Barclays has revealed the top 10 consumer trends of 2023.
Rising food prices propelled supermarket growth, while “shrinkflation” and “skimpflation” emerged as new challenges for grocery shoppers.
The Barclays report combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending.
Rising food price inflation fuelled a 6.5 per cent increase in supermarket shopping, while food and drink specialist stores returned to growth (4.4 per cent) following a -1.1 per cent decline last year.
Today, Barclays senior leaders joined the Prime Minister at the UK's Global Investment Summit to celebrate the UK’s world-renowned innovation and creativity - and to discuss the UK’s growth and investment opportunities. pic.twitter.com/CVf7YfEyI3
— Barclays Bank (@Barclays) November 27, 2023
"Shrinkflation” and “skimpflation” emerged as the main scourges of supermarket shoppers in 2023. At its peak in September, 76 per cent of consumers had noticed examples of shrinkflation, with chocolate (48 per cent), crisps (41 per cent), packs of biscuits (38 per cent) and snack bars (31 per cent) the most cited products impacted by this trend.
Esme Harwood, Director at Barclays, said: “Brits prioritised memorable experiences and shared moments with loved ones this year, boosting pubs, travel and entertainment.
"Many were keen to make up for lost opportunities during the pandemic by booking holidays, treating themselves to concert tickets, and enjoying nights out with friends.
“However, certain sectors saw noticeable cutbacks. Restaurants and clothing stores were hampered by the unpredictable weather, as well as the impact of rising household bills on consumers’ personal finances.
"Nonetheless, Brits' confidence in their ability to spend within their means has remained resilient, as they become more resourceful and adept in finding ways to balance their budgets.”
"the New Year is a time to look for the positives"
Jack Meaning, Chief UK Economist at Barclays: “Although 2024 will be a tough year for the economy as a whole, the New Year is a time to look for the positives.
"We expect to see the Bank of England start easing interest rates from the middle of the year, and in fact, we’re already seeing mortgage rates come down in anticipation.
"This is as the speed of price rises slows, which should continue to provide at least some boost to the spending power of people who have been squeezed through the cost-of-living crisis. 2024 will be a year of transition, from headwinds to tailwinds, but come next December we should be able to toast the New Year with more festive spirit.”
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