Low-income shoppers choose own-brand goods over branded ones: Report

New Delhi: As cost-of-living pressures persist and digital platforms continue to influence decision-making, WARC’s Global Consumer Trends 2025 report finds that consumers are becoming increasingly intentional in how they navigate choice, especially across income groups.

In its latest findings, WARC reports that 55% of low-income consumers globally now prefer buying cheaper own-brand products over more expensive branded options, compared to 40% of high-income consumers. The trend highlights how rising costs and economic uncertainty are reshaping purchasing priorities for many households.

“Amidst persisting economic uncertainty and the unpredictability around US trade tariffs, consumers are becoming more intentional in their spending and taking greater control over different aspects of their lives,” said Stephanie Siew, Senior Research Executive, WARC.

The report, based on GWI surveys from 54 markets along with WARC’s own research and case studies, outlines five key shifts in global consumer behaviour: value-seeking, creator-driven influence, AI-mediated decisions, growing wellness priorities, and the need for community connection.

Wealth polarisation is deepening consumer divides. According to the report, the wealthiest 10% of US households now account for nearly half of total consumer spending, while projections from UBS suggest that the richest millennials could hold five times more wealth by 2030. Trade tariffs are compounding the divide, disproportionately impacting lower-income groups that allocate more of their income to essentials such as food and apparel.

“Since the ‘middle class’ is bifurcating into the haves and have-nots, many companies are reshuffling to serve the top twenty percent and the top one percent within that,” said Faris Yakob, Co-founder, Genius Steals. “The lower echelons are offered value alternatives and those with money are tempted to spend it on various levels of luxury.”

The report also highlights the evolving role of creators in influencing consumer discovery. Nearly half (47%) of social media users made purchases based on influencer recommendations in the past year, with GWI data showing more people now access news via social media (57%) than national TV (52%) or websites (49%). Younger audiences dominate this trend: 71% of Gen Z engage with news content on social platforms, followed by 62% of millennials.

“Consumers are going to creators to discover information about brands. The difference now is that they are moving from passive discovery to really immersing themselves in an entirely new shopping experience, which encompasses video,” said Sapna Chadha, VP of SEA and South Asia Frontier, Google.

Artificial intelligence is also playing a growing role in how consumers shop. Tools such as OpenAI’s Operator and Google’s Project Mariner allow autonomous AI agents to perform tasks independently, ranging from booking flights to making grocery purchases. Nearly a quarter (24%) of consumers globally are already comfortable allowing AI to handle purchases entirely, rising to a third among Gen Z.

“Soon, consumers will not even need to go to an AI platform to do what they do today. Instead, they will have an AI agent perform a task on their behalf,” said Debra Aho Williamson, Founder and Chief Analyst, Sonata Insights.

Despite the uptake of AI, WARC notes that people still value human interaction, particularly for emotional engagement and empathy, which remain gaps in AI-assisted services.

Meanwhile, wellness has moved to the forefront of decision-making. GWI data shows 77% of consumers are concerned about the health risks of ultra-processed foods, with spending on functional health products such as supplements rising from 24% in 2022 to 31% this year. Younger generations are driving this shift, with Gen Z and millennials emerging as more active participants in the wellness category.

“Whether it is wellness-orientated food or clothing designed for comfort and emotional wellbeing, brands have the opportunity to shape the future by carving out unique and meaningful roles,” said Alberto Romano, Global Consumer & Shopper Planning Collaboration Manager, Diageo.

Lastly, consumers are rethinking how they form social connections. From board games and outdoor fitness to interest-led online communities, Gen Z and millennials are prioritising shared passions over traditional affiliations. Roughly half of these age groups report playing board games monthly, and over 50% of consumers have attended a festival in the past year.

“Ultimately, the way people build connections has changed,” said Colleen Ryan, Partner, TRA. “We have moved from traditional systems to connecting with people whose interests are shared. For brands, this presents a challenge but also an opportunity.”