What makes us happy these days?

When I think back to ‘before the pandemic’, I’m amazed by how much my life has changed. Looking back, it seems I was always travelling for work, and that my home was a place where I would check in occasionally with my family. During the week we were like ships in the night and Saturdays always seemed to be spent grocery shopping and running kids around to their activities.

Fast forward to today, and things are very different. I now spend a lot more time at home, both working and relaxing, giving me far more quality time with my children. The effect? I’ve re-evaluated what matters and taken back some control – and I feel happier as a result.

For me, it’s the silver lining on grim couple of years for all of us. And I’m not alone, as Wave 8 of our Future Consumer Index confirms. Our research reveals the emergence of a new and happier post-pandemic mindset among consumers globally – one in which they place less value on material goods, and more on financial, mental, and physical health.

This shift shines through in the findings. For most consumers, consumption for consumption’s sake is a thing of the past: only 27% say they’re buying more things because it makes them happy. People are again becoming more inclined to repair rather than replace items and look to reduce their spending on non-essentials like more beauty products, new clothing when the closet’s full and extra tech gadgets. Many are finding this approach is benefitting their mental health too, not just their wallet. For many, they’ve put aside keeping up with their peers and it’s one less stress in their already hectic lives – 45% feel less pressure to buy latest fashions, 41% with latest technology.

What’s more, consumers seem determined not to revert to their old ways. Almost half – 44% – say they like the way aspects of their life have changed and don’t want to go back.

?But if consumers are turning away from material goods, what do they want to buy? In a word, experiences. As the world gradually opens up, people are excited at the opportunity to spend on things they’ve missed and that reflect their new priorities – including activities that were unavailable during the pandemic, and products that support their mental and physical health.

Again, the figures tell the story. Forty per cent of consumers plan to spend more on experiences, and 61% aim to make healthier product choices. And they’re looking to make up for lost time with friends and family by prioritizing travel, events and socialising: 57% are planning a vacation in the next six months.

All of this is helping to make consumers happier. And for many it’s coupled with a greater sense of stability and security, particularly financial.?For many their financial position improved during the pandemic (48% say they are better off), but even more changed their perspective on savings, looking to build up their financial reserves, with 65% saying they’re trying to save more than before. Our current inflation rates may impact here, but certainly the intention is there.

Consumers look set to be happier - but if they’re buying less stuff and saving more, will consumer facing companies be left out in the cold? Current growth and take-make-dispose production models don’t align well to a reduction in consumer consumption. But there are plenty of opportunities for brands to rethink their offering to stay relevant. Consumers are not going to stop buying, they’re just thinking more carefully about it and will be more demanding. In being more mindful of mental health they’re paying more attention to their physical wealth and their world. Brands can respond in the same way:

1. Aligning their brands and products with the new consumer values focused on health and wealth (both financial and in terms of meaningful experiences)
2. Reshaping their portfolios to more closely mirror consumers’ new mindset and expectations
3. Using new messaging and strategic positioning to become integrated or associated with the types of activities and experiences consumers now seek – such as social, sports, outdoors, and travel

The message? A new, happier consumer is here, and consumer products companies need to respond. In my next blog, timed to coincide with International Women’s Day, I’ll draw on our Future Consumer Index to zero in on how the pandemic has affected women in particular. Stay tuned......