European Consumer Pessimism Hits Three-Year High, Driving Spending Cutbacks

Event summary

  • 56% of Europeans are pessimistic about the economy in 2026, up from 54% in 2025 and 49% in 2024.
  • 53% of European consumers are worried about their daily personal finances, up from 40% in 2024.
  • 63% of Europeans will only buy at a discount or actively seek deals, and 62% will switch brands for a better price.
  • Health and wellness spending remains resilient, with 29% spending more on supplements in the past year.
  • Use of generative AI tools in product discovery has quadrupled since 2024, with 8% of consumers now regularly using them.

The big picture

European consumer pessimism has reached a three-year high, driven by rising energy prices and geopolitical tensions. This pessimism is translating into financial distress and spending cutbacks across nearly every category, except for groceries, pet care, and health and wellness. The shift towards digital channels for product discovery, particularly among younger consumers, is reshaping how brands need to approach marketing and customer engagement.

What we're watching

Spending Trends
Whether the spending pullback will persist even if economic conditions improve, as nearly half of consumers prioritize saving over spending.
Brand Loyalty
How the erosion of brand loyalty will affect established brands as 62% of consumers are willing to switch brands for better deals.
Digital Discovery
The pace at which generative AI and social media will continue to grow as product discovery channels, potentially replacing general internet search.