41% of consumers plan to cut restaurant spending; over 50% expect higher grocery expenses.

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According to the 2024 KPMG Consumer Pulse Survey, U.S. consumers are adjusting their spending habits this summer due to inflationary pressures. Here are the key findings:

  • Essential Goods and Services:
    • Consumers expect to spend less on personal care products (considered essential) and restaurants, travel, and entertainment.
    • About 21% of consumers anticipate spending more on personal care products, a significant drop from last year’s 32%.
    • However, over 50% of consumers think they will spend more on groceries this summer.
  • Online Spending on Essentials:
    • While 53% to 65% of consumers plan to maintain the same online spending on essentials, only 29% expect to spend more on groceries.
    • Personal care products and prescription medicines are expected to have net less spend online.
  • Experiences Under Scrutiny:
    • Consumers plan to reduce spending on experiences:
      • 43% anticipate spending less on out-of-home entertainment.
      • 41% plan to spend less on restaurants (compared to last year’s net increase).
      • Travel and vacations also face reduced spending.
  • Data Collection Concerns:
    • Gen Z (60%) is least aware that companies gather data about their online activity for personalized offerings.
    • Across all generations, there’s concern about data collection, yet more than half are willing to trade personal data for financial incentives.
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In summary, consumers are tightening their belts, emphasizing essentials, and scrutinizing experiences this summer. Restaurants, in particular, face reduced spending compared to last year.

Source:

https://kpmg.com/us/en/media/news/kpmg-consumer-pulse-survey-summer-2024.html