Consumers To Cut Spending, Re-Evaluate Budgets in New Year

Consumers are still concerned about spending and high retail prices heading into 2023, according to a new report from Jungle Scout, which should mean another strong year for private label.

In its Q4 2022 Consumer Trends Report, the e-commerce data firm surveyed 1,000 U.S. consumers and found that more than 60% of consumers are noticing higher prices in their everyday shopping. Of those surveyed, 83% said that rising inflation has affected their spending, 69% said they are worried about their finances, and just over half (51%) reported household income being unstable.

The top categories where consumers have noticed the highest prices include groceries as the number one area, followed by electronics, cleaning supplies, clothing and beauty & personal care products. In Q4, 29% of those surveyed said their household income increased, while 52% reported no change and 16% reported a decrease in income.

WIth the new year comes a refined look at spending. According to the Consumer Trends Report, cutting back on dining out was the most popular way of saving money in Q4, followed by cutting back on fun/impulse purchases, in-person entertainment, clothing/accessories and air travel. 79% of those surveyed by Jungle Scout said they plan to re-evaluate their spending in 2023, which could mean good news for private brands following a record-breaking 2022.

The full report from Jungle Scout can be found here.