The world is at a crossroads, where every spending decision carries weight in an era of economic flux.

Frugality, retrenchment, and selective prioritization are no longer buzzwords but survival strategies for millions.

Net spending intentions swing sharply as consumers globally brace for a year of careful recalibration.

This shift is not just about cutting back; it's about reimagining value in every aspect of life.

From groceries to travel, people are methodically reassessing what truly matters to them.

Global Spending Intentions: A Sharp Pullback

In 2026, consumer sentiment reveals a dramatic reversal from previous years.

Eighteen percentage points higher for those planning to spend less versus more globally.

This gap has widened by over 60% from the prior year, signaling deep caution.

Only younger demographics, particularly those under 35, show resilience in their spending plans.

In contrast, the 65+ age group projects a net reduction of 35 percentage points.

High-income earners are shifting from growth to decline, with a -5 ppt net change.

Lower-income groups face the harshest cuts, often making significant sacrifices to balance budgets.

If budgets were to expand, priorities would lean heavily toward experiences and security.

• Travel and holidays top the list at 32%.
• Saving follows closely at 31%, highlighting a focus on future stability.
• Groceries account for 14%, reflecting essential needs.
• Fitness and wellness capture 7%, showing a commitment to health.

Driving forces for these cutbacks are multifaceted and deeply personal.

• Persistent financial strain affects 65% of consumers for essentials and 62% for travel.
• Value scrutiny is rampant, with 31% feeling restaurants lack worth.
• Reprioritization across categories leads to intentional spending shifts.
• The "buy now, wait longer" mentality encourages frugality.
• GLP-1 weight-loss drugs are reshaping health spending, notably in regions like the Middle East.

Category-Specific Projections: Reallocating Wallets

Consumers are not just cutting back; they are reallocating their wallets with precision.

Groceries is the sole global growth category, with an 8% increase in net spending.

This growth is value-driven, fueled by inflation rather than volume, as people shop more methodically.

Non-food retail sees the largest decline at -24 ppt, with older consumers reducing by 44 ppt.

Eating and drinking out drops by 21 ppt, plagued by experience fatigue in markets like the UK.

Travel, while prioritized if budgets grow, shows a net decline of 9 ppt from previous gains.

Fitness and wellness vary but maintain high loyalty when service remains consistent.

Regional Breakdown: Diverging Paths

Spending trends diverge sharply across the globe, painting a complex picture.

China experiences a dramatic reversal from growth to an -8 ppt net spending decline.

The United States shows resilience but with scale-backs in dining, retail, and travel.

Saving leads globally at 42% among U.S. consumers, emphasizing financial caution.

The UK faces high experience fatigue, leading to cuts in overpriced sectors.

France is the most pessimistic with a -33 ppt net, reflecting broader economic concerns.

Italy sees a widened decline to -17 ppt, while the DACH region continues its frugal habits.

The Middle East, particularly Saudi Arabia and UAE, stands out with +5 ppt net optimism.

Asia-Pacific overall is a growth engine, with private consumption set to overtake North America.

• India accelerates with 13.7% growth in the first half of 2025.
• Southeast Asia slows to 1.8%, showing regional variability.
• China and South Korea lead in e-commerce strength.
• Local brands dominate except in India, where international players hold sway.

Demographic and Behavioral Shifts

Age and income levels play critical roles in shaping spending behaviors.

Younger consumers under 35 show resilience, often boosting non-food retail spending.

Older age groups are more cautious, with significant reductions across categories.

High earners are retrenching, while low-income groups make the deepest cuts.

In the U.S., top-third income households drive over 50% of spending, highlighting disparities.

Switching drivers vary by category, with price being dominant in most cases.

• Grocery has the lowest loyalty, pushing consumers to seek value.
• Non-food retail relies on service and omnichannel experiences.
• Travel decisions hinge on safety and unique experiences.
• Eating out is influenced heavily by reviews and social proof.
• Fitness loyalty depends on consistent and high-quality service.

Broader U.S. trends include moderate growth and disinflation in 2026-2027.

AI business spending supports upper-income resilience, but tariff risks loom early in the year.

Emerging Forces and Strategies

New forces are reshaping consumer landscapes, demanding adaptive strategies.

In Asia-Pacific, Bain and NIQ highlight key trends for 2026.

• Diversified markets rise, with India and Southeast Asia gaining prominence.
• Diverging preferences include premiumization in some regions and polarization in others.
• Channel complexity grows, with e-commerce at 40% in China and South Korea.
• Local and regional brands are gaining significant market share.

CPG and FMCG companies must adapt to volatility by localizing strategies.

Redefine value beyond price to connect with conscious consumers.

U.S. risks include labor slowdowns early in 2026, but growth is expected to broaden later.

Experiences remain a high priority, especially for resilient higher-income groups.

General trends point to more home-centric lifestyles, boosting groceries and intentional reassessment.

AI and channel shifts are accelerating, with 39% of consumers using GenAI for shopping.

Practical Strategies for Thriving in 2026

For consumers, navigating this landscape requires mindfulness and planning.

Start by assessing your budget with a focus on essentials and long-term goals.

Prioritize spending on categories that bring genuine value, such as health and experiences.

Embrace frugality not as a limitation but as a path to financial freedom.

• Use meal planning to reduce grocery waste and costs.
• Seek discounts and store brands for everyday items.
• Limit non-essential purchases by adopting a "wait and see" approach.
• Invest in savings, even small amounts, to build a safety net.
• Leverage technology, like AI tools, to make informed spending decisions.

For businesses, understanding these trends is crucial for survival and growth.

Focus on localization to cater to regional preferences and behaviors.

Enhance value propositions by emphasizing quality, service, and sustainability.

Adapt to channel shifts by optimizing e-commerce and social media presence.

Monitor demographic shifts to tailor offerings to different age and income groups.

By aligning with consumer priorities, companies can foster loyalty in a volatile market.

The global consumer of 2026 is not just surviving but evolving with intention and resilience.