How current events are shaping German consumer behavior

| Survey
In Germany, confidence in the economy is tumbling as high prices motivate consumers to reduce their spending across the board.

Almost half of German consumers are negative about their country’s economic prospects. Overall pessimism about economic recovery has significantly increased in recent months, reaching its highest level since March 2020.

As prices rose, spend for groceries, energy and other essentials soared, and consumers are expecting prices to increase even further.

To manage price pressures, consumers have cut down on spend in non-essential categories, and 76 percent of respondents say they have changed shopping behavior in the last three months. They report widespread trading down in retailers and brands, with the key drivers being prices/promotions and value for money. Even for holiday shopping, most consumers are planning to spend less this year.

These exhibits are based on survey data collected in Germany between September 23 and October 2, 2022. Check back for regular updates on German consumer sentiments, behaviors, income, spending, and expectations.

0—36
Consumers expect to spend more on organic and sustainable brands but will buy less of them
Three emerging consumer themes in September/October 2022
Rising prices are by far consumers' top source of concern; consumers in the United Kingdom are more concerned about inflation than consumers in other countries
Rising prices continue to be number-one concern for German consumers; invasion of Ukraine has become less prominent
Rising prices are the dominant concern for consumers across all income categories and generations
Consumer pessimism about economic recovery is much higher today than it was during COVID-19 lockdown period
Consumer pessimism is elevated consistently across major economies in Europe
Confidence in their country's future economic recovery is similar across income groups; by generation, Gen Z leads in confidence
Consumers who are concerned about rising prices are the most pessimistic about prospects of economic recovery
Three emerging consumer themes in September / October 2022
Across countries surveyed, about 95 percent of respondents observed price changes
The vast majority of respondents perceive price increases across all categories; almost all see increases in groceries, fuel, and energy
Consumers, especially millennials, are increasingly concerned about rising prices and expect more increases in the next 12 months
Consumers are putting less money into savings and are expecting to spend more in energy, transport, and food and essentials
Across categories, spending has risen in the last three months and is expected to increase further, led by energy, rent, and transport
A majority of consumers report spend increases and expect further increases in energy, transport and gasoline, and food and essentials
Half of millennial respondents are using savings to cover typical expenses
Spending on groceries and gasoline increased sharply and is expected to grow further; spend reduction fell markedly across non-essentials
Net intent to purchase has dropped across all non-essential categories, mostly for jewelry, accessories, and home and furniture
To reduce spend, consumers will typically buy fewer non-essentials and discontinue luxury purchases, such as jewelry and travel
More than half of German consumers surveyed say they are more conscious about their home energy usage
Three emerging consumer themes in September / October 2022
Consumers changing shopping behavior are growing; almost half of them have tried a private label brand in the last three months
For groceries and essentials, Gen Z and millennials were more likely than older consumers to explore new shopping behaviors
Trading down of brands is common for household products, frozen foods, dairy and eggs, and snacks and confectionary
Consumers are mainly switching brands for household products, frozen foods, and snacks and confectionary
Better prices/promotions and better value for money are the major reasons for switching to a new brand
Consumers across countries are shifting to shopping at discounters
Many consumers increased their purchases of groceries and other essentials in discounters
Deep dive: A majority of consumers do not shop at organic (super)markets
Consumers’ top reasons for moving to a new retailer are prices/ promotions and value for money, particularly in the United Kingdom
Better prices/promotions and better value for money are key reasons for switching retailers, especially for older generations
Consumer shopping in omnichannel remains strong but has slightly shifted to more in-store-only
A majority of consumers, except in Gen Z, do not plan to splurge in the next three months; a majority also will do less holiday shopping
By category, splurging is most often for travel and restaurants, for which Gen X has above-average intent to splurge
Many COVID-19-influenced behaviors are proving to be sticky, most notably home cooking and working from home
Consumers expect to spend more on organic and sustainable brands but will buy less of them
Three emerging consumer themes in September/October 2022
Global surveys of consumer sentiment during the coronavirus crisis

Global surveys of consumer sentiment during the coronavirus crisis

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