Consumer Trends: Changing Our Relationship with Luxury and Status, Indulging Differently and Spending Responsibly

American superstar Taylor Swift, or as her fans affectionately call her, Tay-Tay, made history last year with her ‘Eras’ tour. Not only was it one of the most attended tours in history, but it also effortlessly filled the coffers of the cities where the concerts took place, contributing to the growth of local economies. Since her colleagues Madonna and Beyoncé also did not disappoint with their tours last year, these successes confirmed not only an era of female musicians’ dominance but also that the concert and the entire experiential industry have returned with a bang after the pandemic. This conclusion was also reached by Diageo, the owner of alcoholic brands Guinness, Smirnoff, and Johnnie Walker, which published a global report on consumer trends for 2024, ‘Distilled: A Diageo Foresight Report’.

According to the report, in a year where financial challenges will continue (e.g., inflation), consumers will change their relationship with luxury and status, indulge in different ways, and simultaneously strive to spend more responsibly. This year will thus be marked by five consumer trends: new hedonism (neo-hedonism), betterment brands (betterment brands), conscious wellbeing (conscious wellbeing), collective belonging (collective belonging), and expanding reality (expanding reality). These trends are the result of research conducted by Diageo with a little help from artificial intelligence, which tracked and collected data (conversations, trends, interactions) from internet users from June 2021 to June 2023.

The Search for Pleasure

Of the mentioned trends, the most interesting, and likely to be dominant, is new hedonism, which does not exclude traditional luxury (consumers still enjoy traditional status symbols) but redefines the concept of hedonism. Consumers are seeking innovative ways to experience, or introduce pleasure into their daily lives, whether it is through tasting fine food, enjoying nature, new rituals, or connecting with loved ones in different locations, with different experiences. Interestingly, even sixty percent of millennials and Generation Z members prefer to spend on experiences they will remember (travel, concerts…) rather than saving or investing in the future (retirement funds). This approach is not surprising as the pandemic, followed by the geopolitical situation, has significantly eroded the idea of a secure future; people are increasingly realizing that there is no other life but the one that is now and here. Brands would be wise to capitalize on this momentum, this carpe diem approach, and offer them things that bring joy and pleasure. Given that they are indeed more selective than other generations, younger consumers should be offered innovative products and experiences, something that can serve as an escape from the everyday, the usual. According to Diageo, this includes products and services that provide comfort for all senses, alternative spaces for socializing, luxury at home… Excellent examples of brands following new hedonism include Pasta Evangelists, Aupen, and House of Yes. Pasta Evangelists is a British brand that delivers handmade pasta made from locally sourced, sustainable ingredients right to customers’ doorsteps, as well as cooking classes, tasting events, and similar activities, while House of Yes focuses solely on events and unprecedented parties. Located in Brooklyn, New York, this nightclub hosts extraordinary parties, from drag queen competitions to circus performances. Aupen has entered this category because it is a luxury jewelry and handbag brand adored by Taylor Swift and Kylie Jenner, yet affordable enough for customers with shallower pockets to enjoy.

Guilt-Free Shopping

In addition to seeking new experiences that bring them happiness and pleasure, consumers will embark on adventures they will perceive as new status symbols, and will be more inclined towards brands they can purchase without guilt. Sustainable brands, or as the report calls them, ‘betterment brands’, will continue to grow this year, offering consumers services and products that fall into the categories of eco-friendly, local, zero waste, and/or safe origin. One such brand is Divine Chocolate, whose co-owner, the agricultural organization Kuapa Kokoo, brings together over one hundred thousand Ghanaian cocoa producers and, besides selling quality chocolate, invests in education, women’s empowerment, and ethical management. In addition to valuing sustainability in all business segments, consumers will increasingly engage in so-called creator communities that will offer some form of cooperative, local products. By purchasing ‘betterment brands’, they will feel better about themselves. This personal wellbeing is also one of the trends that will characterize the next twelve months.

Consumers will continue to invest in their mental health and recognize the importance of caring for their psychological, emotional, social, sexual, and financial health. The pandemic served as a catalyst for these needs, which has, of course, influenced the growth of the entire wellness market, or as they write, wellbeing. By 2033, the value of the functional food market will grow to $38.5 billion, and by 2027, the wellness industry will be worth $8.5 trillion. Consumers will, according to the report, increasingly invest in their homes, turning them into some kind of temple, refuge, engaging in online communities that will support them on their journey of personal growth and development, purchasing gadgets that measure their mental/physical state in real-time, and spending money and time on activities that relax, rejuvenate, and heal. This trend will be supported by technological development, making available tools that facilitate users’ management of their own wellbeing (this segment is indeed called wellbeing-management), biohacking, or (super)foods and products that have high nutritional properties and simultaneously elevate mood (e.g., mushrooms). However, this is not the only segment where new technologies will shine.

Worlds Without Borders

The last two trends highlighted by the researchers behind Diageo’s report rely on technology, whether it serves to expand reality (expanding reality) or to connect and strengthen the sense of belonging (collective belonging). The latter, however, does not only include the growth of digital communities but also those in real life, and what they have in common is that consumers will seek like-minded individuals in those places, new ‘families’ where they will feel accepted and seen. This trend involves all brands that support diversity and celebrate consumers regardless of their age, gender, religious or sexual orientation; brands that build communities around their products, services, or values, as well as those that offer products and services whose purpose is precisely networking.

A great example of the latter is the Bumble app, tailored to women’s needs, where, in addition to finding life partners, users can form friendships or business partnerships. An interesting phenomenon is grey-pop, a South Korean trend of increasing influencers over sixty around whom a legion of fans gathers worldwide. Since South Korea has the highest suicide rate among those over sixty, this trend has been embraced and supported by users of all generations, especially older ones who have found communities of people with similar life challenges with a little help from the virtual world.

All these users, whether young or old, will utilize technology that blurs the lines between the real and the virtual. This trend of expanded reality will be particularly interesting to brands that offer personalized products and services, shopping, or any form of education, as they can (with the help of VR and AR technology) be elevated to a whole new level. In any case, as the report concludes, brands will win over customers this year with creativity, but also precision; dialogue, but also partnership, co-creation with their audience, and the skill of listening to their desires and needs.