Many people in Germany are cautious about consuming drugs. A change in mood is now emerging, as a study shows. However, uncertainty remains high, particularly in one age group.
Pandemic, war in Ukraine, rising prices: The various crises have led to uncertainty and reluctance to buy among many consumers in recent years. According to an analysis by the Cologne-based retail research institute IFH, the mood has improved somewhat, but many younger people in particular are still very uncertain. This is the conclusion of the study “Consumer trends under scrutiny” which will be published next week.
Around 3,000 people were representatively surveyed about their consumer behavior in 2023 and 2024. The result: 43 percent of consumers are still very unsettled by the economic crisis. That was less than last year, when 56 percent said they were unsure about the price increases. “Our surveys clearly show the change in direction and less uncertainty due to the economic situation,” said study author and IFH director Werner Reinartz, who is also a professor of marketing at the University of Cologne. It is important that inflation has fallen significantly.
Younger people in “shock”
This year’s survey also shows signs of relaxation elsewhere: the proportion of those who are afraid of not being able to maintain their standard of living has fallen slightly compared to the previous year. The number of consumers whose financial situation has improved has increased slightly. 26 percent (+5 percentage points) say this. 61 percent (+9) do not have to limit their consumption. However, more than a third also consumed less in 2024. According to the study, many consumers are still paying more attention to prices (81 percent) and offers (79), which is slightly less than last year.
Some people also perceive the current situation as challenging, and this is particularly common among younger people. One in two people between the ages of 18 and 29 said in the survey that they were feeling uncertain. This is due to lower income, but also “the fact that the previously familiar and traditional consumer environment has changed significantly and for the worse for this generation for the first time,” said Reinartz. “This means that this generation has to deal with an external shock for the first time that affects them in many areas of life.”
The study also shows that uncertainty is currently lowest among people with a higher net household income of 5,000 euros or more or those aged 60 and over. It is less pronounced among men than among women.
Source: Stern
