Many trends from 2023 have carried on into the first quarter of 2024 with a slightly different meaning, according to Circana’s first FMCG outlook report for the Australian market.
Funflation spending is one trend that has carried through to 2024 as Australian consumers continue to feel the economic pinch in this post pandemic world.
Little luxuries and everyday experiences help lift the mood and make the mundane more meaningful because huge expenditure for leisure is no longer a viable option, explains Circana’s head of media, insights and analytics for Asia Pacific, Alistair Leathwood.
“In an economic climate trending towards disinflation, the idea of value is changing as people search for everyday experiences and little luxuries as a form of escapism,” he says.
“Funflation continues to be a strong consumer trend as big-ticket expenses continue to be out of reach for most Australians.
“Shoppers are more actively seeking out value and modifying their behaviour to incorporate little luxuries into their shopping journey.”
The extent of the pandemic hangover cannot be underestimated as is clearly shown by the strength of the funflation trend, adds Leathwood. With big spend items like overseas travel still off the books for many Australians, these consumers are showing a willingness to spend to seek joyful distractions on things like Taylor Swift concert tickets.
“Social media continues to drive a #lifehacking trend that teaches viewers how to turn mundane everyday items into something more luxurious, thus elevating its value or worth in terms of the everyday experience. This trend, fuelled by Millennials and Gen Z content creators, is a response to the cost-of-living battle making the everyday lived experience painful to pay for by optimising it.
“This is a trend that will continue to grow as more shopfluencers and brandassadors flood the social media market space with tips, insights and hacks on how to incorporate products and brands into our lives on a budget. Their sole focus is to increase shoppers’ spend on their aligned products and services using the power of profile, lifestyle, money-saving tips and entertainment in a manner that achieves virality across online and offline environments. As I said, expect more of this.”
