Shopping: 55% of Aussies prioritise experiences, even amidst economic uncertainty

Why it is the topic trending:

• Counter-Intuitive Economic Behavior: Traditionally, economic downturns lead to reduced spending on non-essential experiences. The fact that a significant portion of Australians are increasing or maintaining their spending on these areas despite economic anxieties highlights a noteworthy shift in consumer behavior that defies typical patterns.

• Signal of Evolving Consumer Values: This trend suggests a deeper change in what Australians value, placing a higher emphasis on the personal fulfillment and lasting memories gained from experiences compared to the acquisition of material possessions, indicating a potential long-term shift.

• Resilience and Adaptability in Consumers: The reported decrease in anxiety and increase in contentment signal that consumers are not just facing economic pressures passively. Instead, they are actively adapting by focusing their spending on activities that bring them genuine satisfaction and a sense of control in their lives.

• Implications for Various Industries: The strong prioritization of experiences has significant implications for sectors like hospitality, tourism, and entertainment, requiring them to understand and cater to these evolving consumer preferences to thrive. Even retail might need to incorporate experiential elements to remain competitive.

Overview:

A 2025 study by Mediahub Australia, titled "The Paradox of Purchase Decisions," reveals that 55% of Australians prioritize experiences despite economic uncertainties like tighter budgets and potential tariff impacts. Dining out and travel are the top spending priorities for 30% of Australians, indicating a strong "experience economy." The study also shows a year-on-year decrease in cost-of-living concerns and anxiety, coupled with an increase in feelings of contentment.

Detailed Findings:

• Experiences Over Essentials: Over half of Australians prioritize experiences despite financial constraints, with 36% making trade-offs on travel and holidays.

• Brand Reputation Grows as Price Sensitivity Weakens (for big-ticket items): While consumers are more price-sensitive for everyday purchases, they place a higher emphasis on brand connection (+15%) for larger, premium purchases, valuing long-term value and aspirational narratives. Delays in purchasing big-ticket items have doubled.

• The Mental Load Gap: A significant gender gap exists, with men reporting higher levels of optimism and women experiencing more anxiety, highlighting the mental load often carried by women.

• Decreasing Concerns and Increased Contentment: Concerns about the cost of living have decreased by 13% compared to the previous year, and overall contentment has risen by 9%. Anxiety levels have also dropped by 10%.

Key Success Factors of Product (Trend):

The "product" in this context is the trend of prioritizing experiences. The key success factors driving this trend are:

• Connection: Experiences often involve social interaction and create stronger bonds with loved ones.

• Quality Time: Engaging in experiences allows individuals to dedicate focused time to enjoyment and personal enrichment.

• Feeling in Control: Choosing experiences can provide a sense of agency and control amidst broader economic uncertainties.

Key Takeaway:

Australian consumers in 2025 are navigating economic pressures by tightening their belts on material goods but are still actively seeking and prioritizing meaningful experiences. This indicates a shift towards valuing connection, quality time, and a sense of personal well-being. Brands need to understand this paradox and cater to both the rational need for value and the emotional desire for enriching experiences.

Main Trend:

The main trend is the Prioritization of Experiences Over Material Possessions Amidst Economic Uncertainty.

Description of the Trend:

The Resilient Experientialism. This trend describes the behavior of Australian consumers in 2025 who, despite facing economic headwinds and cost-of-living pressures, are demonstrably choosing to allocate their spending towards experiences such as dining out and travel rather than solely focusing on acquiring material goods. This indicates a resilient spirit and a re-evaluation of what constitutes value and happiness.

What is Consumer Motivation:

Consumer motivation behind this trend is driven by a desire for emotional fulfillment and lasting memories. In a climate of uncertainty, tangible possessions might offer fleeting satisfaction, whereas experiences provide opportunities for connection, personal growth, and moments of joy that are often cherished long after the experience has concluded. Consumers are motivated to invest in activities that enhance their well-being, strengthen relationships, and provide a sense of normalcy and enjoyment amidst potential financial constraints. This reflects a deeper understanding that happiness is often derived from what one does and who one is with, rather than simply what one owns.

What is Driving Trend:

Several factors are driving this trend:

• Shifting Value Systems: There's a growing societal shift towards valuing personal growth, memories, and social connections over the accumulation of material wealth.

• Desire for Escape and Enjoyment: Experiences offer an opportunity to escape daily stresses and uncertainties, providing moments of pleasure and relaxation.

• Social Media Influence: Sharing experiences on social media has become a cultural norm, potentially fueling the desire to engage in noteworthy activities.

• Adaptation to Economic Conditions: The decrease in anxiety and increase in contentment suggest consumers are adapting to the economic climate by focusing on what brings them genuine happiness and provides a sense of control within their budget.

What is Motivation Beyond the Trend:

• Desire for Meaningful Connections and Social Bonds: Experiences often involve shared moments with family and friends, strengthening relationships and fostering a sense of belonging. In an increasingly digital and sometimes isolated world, these real-life connections hold significant value.

• Pursuit of Personal Growth and Enrichment: Many experiences, such as travel, learning a new skill through a workshop, or attending a cultural event, contribute to personal growth, broaden perspectives, and create lasting memories that enrich one's life narrative. This focus on self-improvement and personal fulfillment extends beyond material possessions.

• Seeking Emotional Well-being and Reduced Stress: Engaging in enjoyable experiences provides an outlet for stress relief and contributes to overall emotional well-being. The anticipation, the event itself, and the recollection of positive experiences can all have a positive impact on mental health.

• The "Making Memories" Imperative: There's a growing cultural emphasis on creating and cherishing memories. Experiences are inherently memorable and are often seen as a more valuable and enduring form of "wealth" than material goods that can depreciate or become obsolete.

• Counteracting the Ephemeral Nature of Material Goods: In a world saturated with consumer products, experiences can feel more unique and personal. While material possessions can be easily replaced, the memories and personal growth derived from experiences are often irreplaceable and hold a more profound personal value.

Description of Consumers Article is Referring to:

• Australian: The study surveyed a representative sample of 1,000 Australians, indicating the findings reflect the broader consumer sentiment within the country.

• Economically Conscious: These consumers are aware of and likely impacted by current economic challenges such as tighter budgets and potential price increases due to tariffs.

• Experiential Priority: Despite financial concerns, they actively choose to spend on experiences like dining out and travel, demonstrating a clear preference for these activities over solely acquiring material goods.

• Resilient: Despite economic pressures, they report lower anxiety levels and increased contentment compared to the previous year, suggesting an adaptive and positive mindset.

• Gender Difference: The study found a notable difference in emotional response, with women reporting higher levels of anxiety than men, potentially influencing their purchasing decisions and priorities.

• (Inferred) Some Disposable Income: The decision to prioritize discretionary spending like dining out and travel suggests that these consumers have some level of income available beyond basic necessities, allowing them to make these experiential choices.

Conclusions:

The study concludes that Australian consumers in 2025 are exhibiting a paradoxical behavior by prioritizing experiences over material possessions despite economic uncertainty. This highlights a shift in what they value, with connection, quality time, and a sense of control becoming key drivers of contentment. Brands need to acknowledge these paradoxes – the desire for value in everyday purchases versus emotional connection in larger ones, and the contrasting emotional states between genders – to effectively engage with consumers.

Implications for Brands:

• Emphasize Experiential Value: Brands should highlight how their products or services contribute to positive experiences, focusing on the memories, connections, and feelings they evoke.

• Tailor Messaging: Acknowledge economic concerns while also appealing to the emotional desire for experiences. For premium items, focus on long-term value and aspirational narratives that align with creating memorable moments.

• Address the Mental Load Gap: Brands should consider how their offerings can provide empathetic, practical support and build community, particularly for female consumers who report higher anxiety levels.

• Consider Value Propositions: While price sensitivity exists for everyday items, brands should not solely compete on price. Emphasize the quality and connection consumers feel with their brand, especially for significant purchases.

Implication for Society:

A societal shift towards prioritizing experiences could foster greater emphasis on social connections, personal well-being, and the creation of shared memories. This could lead to a more community-oriented and experience-rich society, potentially reducing the focus on material accumulation as a primary measure of success.

Implications for Consumers:

Consumers are becoming more discerning about their spending, focusing on what truly brings them happiness and lasting value. They are demonstrating resilience by adapting to economic challenges and finding contentment in experiences that enrich their lives rather than just acquiring more possessions.

Implication for Future:

The trend of prioritizing experiences is likely to continue and potentially strengthen, even amidst future economic fluctuations. Brands and industries centered around providing experiences (e.g., travel, hospitality, entertainment) may see continued growth. Consumer behavior will likely be characterized by a more conscious and values-driven approach to spending.

Consumer Trend:

• Name: The Experience-First Mindset

• Detailed Description: Australian consumers are increasingly adopting a mindset where experiences are the primary drivers of their spending decisions, taking precedence over the acquisition of material goods. This signifies a fundamental shift in priorities, with individuals actively seeking out and investing in activities that provide personal enrichment, social connection, and lasting memories.

Consumer Sub Trend:

• Name: Intentional Spending on Well-being

• Detailed Description: Within the broader trend of prioritizing experiences, there's a sub-trend of consumers intentionally spending on experiences that directly contribute to their overall well-being, such as travel for relaxation, dining out for social connection, or engaging in hobbies that bring joy and reduce stress.

Big Social Trend:

• Name: The Rise of the "Memory Economy"

• Detailed Description: Globally, there's a growing societal emphasis on creating and valuing memories over accumulating possessions. This is fueled by a recognition that experiences provide lasting personal value and contribute more significantly to overall life satisfaction.

Worldwide Social Trend:

• Name: From Materialism to Experientialism

• Detailed Description: Across various cultures and economies, a noticeable shift is occurring where consumers are increasingly prioritizing spending on experiences rather than solely focusing on material goods. This trend reflects evolving values, with a greater emphasis on personal growth, social connection, and well-being.

Social Drive:

• Name: The Pursuit of Meaning and Connection

• Detailed Description: At a fundamental level, this trend is driven by the human desire for meaning and connection. Experiences offer opportunities to connect with others, learn new things, and create a sense of purpose and fulfillment that material possessions alone often cannot provide.

Learnings for Brands to Use in 2025:

• Understand the Paradox: Acknowledge that consumers are both price-conscious and experience-seeking. Your strategies need to address both needs.

• Focus on Emotional Connection: Emphasize how your brand helps consumers create meaningful experiences and foster connections.

• Highlight Long-Term Value: For larger purchases, showcase the lasting value and the experiences the product or service can enable.

• Empathize with Consumer Concerns: Recognize the ongoing economic pressures and tailor your messaging to be sensitive and relevant.

• Consider the Female Perspective: Be mindful of the higher anxiety levels reported by women and consider how your brand can offer support and build community for this demographic.

Strategy Recommendations for Brands to Follow in 2025:

• Integrate Experiential Marketing: Create opportunities for consumers to engage with your brand in a meaningful and memorable way through events, workshops, or personalized experiences.

• Focus on Storytelling: Craft narratives that highlight the experiences your products or services enable, emphasizing the emotional benefits and memories created.

• Build Community: Foster a sense of belonging and connection among your customers through online platforms, events, or loyalty programs.

• Offer Value Beyond Price: While remaining competitive on price, emphasize the unique value proposition that lies in the experience your brand provides.

• Personalize Customer Interactions: Tailor your offerings and communications to individual consumer needs and preferences to enhance their overall experience with your brand.

Final Sentence (Key Concept) Describing Main Trend From and What Brands & Companies Should Do in 2025 to Benefit From Trend and How to Do It:

In 2025, Australian consumers are demonstrating a clear preference for experiences that enrich their lives, even amidst economic uncertainty, and brands should strategically align their offerings and marketing efforts to tap into this desire by creating experiential products/services, marketing the experience, leveraging digital platforms, collaborating for unique experiences, and providing exceptional customer service.

Final Note:

• Core Trend:

  • Name: Experiential Priority

  • Detailed Description: Australian consumers are actively choosing to allocate their limited resources towards experiences, indicating a fundamental shift in their value system and a desire for emotional fulfillment over material accumulation.

• Core Strategy:

  • Name: Experience-Centric Engagement

  • Detailed Description: Brands must prioritize creating and communicating the experiential value of their offerings to resonate with consumers who are actively seeking meaningful and memorable encounters.

• Core Industry Trend:

  • Name: The Flourishing Experience Economy

  • Detailed Description: Industries that directly provide or facilitate experiences, such as travel, entertainment, dining, and leisure, are poised for continued growth as consumer demand for these offerings remains strong despite economic headwinds.

• Core Consumer Motivation:

  • Name: Pursuit of Joyful Connection

  • Detailed Description: The primary driver behind this trend is the consumer's intrinsic desire to connect with others, create positive memories, and ultimately enhance their overall sense of joy and well-being through shared and personal experiences.

• Final Conclusion: The 2025 Australian consumer landscape presents a unique opportunity for brands to connect with their audience on a deeper, more emotional level by recognizing and catering to the strong and resilient prioritization of experiences, even in the face of economic uncertainty.

Core Trend Detailed:

Experiential Priority: Australian consumers in 2025 are making a conscious and deliberate choice to allocate their spending towards experiences such as dining out and travel, even when faced with economic uncertainty and concerns about the cost of living. This trend signifies a fundamental shift in their value system, where the desire for personal enrichment, social connection, and the creation of lasting memories takes precedence over the acquisition of material goods. This behavior is driven by a recognition that experiences contribute more significantly to overall well-being and happiness in the current environment.

Key Characteristics of the Trend (use more text):

• Resilience in the Face of Uncertainty: Despite ongoing economic anxieties and concerns about the cost of living, Australian consumers are demonstrating a remarkable resilience by continuing to prioritize spending on experiences. This suggests that the value they place on these activities is significant enough to withstand financial pressures.

• Emphasis on Emotional Value and Personal Fulfillment: The trend is heavily characterized by a consumer focus on the emotional benefits and personal fulfillment derived from experiences. Rather than simply acquiring more possessions, Australians are seeking activities that provide lasting memories, strengthen social connections, and contribute to their overall well-being and happiness.

• Strategic Allocation of Discretionary Spending: Consumers are making deliberate choices in how they allocate their discretionary income, with a clear inclination towards investing in experiences, even if it means reducing spending in other non-essential categories. This highlights a conscious prioritization based on their perceived value and impact on their quality of life.

• Adaptability to Economic Conditions: The reported decrease in anxiety and increase in contentment indicate that consumers are not passively succumbing to economic pressures. Instead, they are actively adapting their spending habits to ensure they can still enjoy and engage in experiences that they value, finding ways to balance practicality with their desire for enrichment.

• Potential for a Fundamental Long-Term Shift in Values: This trend might not be a temporary reaction to current circumstances but could signal a more profound and lasting change in consumer values, where experiences are increasingly seen as more valuable and integral to a fulfilling life than solely accumulating material possessions.

Market and Cultural Signals Supporting the Trend (summary):

• Strong Support from Study Findings: The core signal is the significant statistic that 55% of Australians explicitly stated they prioritize experiences over material possessions. This direct acknowledgment in a consumer study provides strong empirical evidence for the trend.

• Top Spending Priorities Indicate Direction: The fact that "dining out and travel" are identified as the top spending wish list items for 30% of Australians clearly demonstrates the specific types of experiences that are driving this trend and where consumer dollars are likely to be directed.

• Positive Shift in Consumer Sentiment: The reported year-on-year decrease in anxiety levels (by 10%) and increase in feelings of contentment (by 9%) suggest a broader cultural shift towards valuing experiences that contribute to positive emotional states, even amidst economic challenges.

• Reframing Happiness Around Connection and Quality Time: The quote from Linda Fagerlund highlights a conscious shift in consumer mindset, where contentment is now more centered on human connection and the quality of time spent, both of which are often facilitated by shared experiences.

• Consumer Behavior Despite Constraints: The observation that over half of Australians still prioritize experiences even with 36% saying they are actively making trade-offs on travel and holidays underscores the strength of this trend, as consumers are willing to adjust their spending to accommodate it.

How the Trend Is Changing Consumer Behavior (summary):

• Spending Allocation: Consumers are directing more of their discretionary income towards experiences and potentially less towards non-essential material goods.

• Value Perception: The perceived value of experiences is increasing relative to material possessions.

• Decision Making: Purchase decisions are being influenced more by the potential for creating memories and fostering connections.

• Brand Engagement: Consumers may favor brands that facilitate or enhance their desired experiences.

• Trade-offs: Consumers are making conscious trade-offs, potentially spending less on certain goods to afford experiences.

Implications Across the Ecosystem (summary):

• For Brands and CPGs:

  • Emphasizing the "Experience Enabler" Role: Brands need to move beyond simply selling products and focus on how their offerings enable or enhance consumer experiences. This could involve highlighting the social aspects of their products (e.g., food for gatherings), the potential for adventure (e.g., outdoor gear), or the creation of memorable moments (e.g., beauty products for special occasions).

  • Creating Branded Experiences: There's an opportunity for brands to directly create and offer experiences that resonate with their target audience, fostering deeper engagement and loyalty. This could range from in-store events and workshops to sponsored travel or entertainment opportunities.

  • Potential Shifts in Demand: CPG companies might see shifts in demand towards products that are associated with experiences, such as premium food and beverages for at-home dining experiences or travel-sized personal care items. Conversely, demand for purely functional or status-driven material goods might see slower growth.

  • Marketing Focus on Emotion and Storytelling: Marketing strategies will need to increasingly focus on emotional connection and storytelling, showcasing how the brand contributes to positive experiences and helps consumers create lasting memories.

• For Retailers:

  • Transforming Retail Spaces into Experience Hubs: Brick-and-mortar retailers may need to evolve their spaces to offer more than just product displays. Incorporating cafes, event spaces, or interactive experiences can draw consumers in and create a more engaging shopping environment.

  • Curating Collections Around Experiences: Retailers can strategically curate product collections that cater to specific types of experiences, such as "The Ultimate Home Entertainment Night," "The Weekend Getaway," or "The Gourmet Cooking Experience," making it easier for consumers to find what they need.

  • Leveraging Online Platforms for Experience Booking: Online retailers can expand beyond product sales to offer booking services for local experiences, travel, or events, becoming a comprehensive platform for both material goods and experiential opportunities.

  • Focus on Customer Service as Part of the Experience: Exceptional customer service becomes an even more critical component of the overall experience, building brand loyalty and encouraging repeat business for both products and any offered experiences.

• For Consumers:

  • Greater Focus on Well-being and Life Enrichment: This trend signifies a growing emphasis on personal well-being and enriching life through experiences rather than solely focusing on material accumulation as a measure of success.

  • More Discerning and Value-Driven Spending: Consumers are likely to become even more discerning about where they spend their money, prioritizing experiences that offer genuine value in terms of enjoyment, connection, and personal growth.

  • Increased Demand for Diverse and Unique Experiences: There will likely be a growing demand for a wide range of unique and memorable experiences, from local events and activities to more significant travel and adventure opportunities, driving innovation in the experience economy.

  • Potential for Budgeting and Trade-offs: To accommodate their desire for experiences, consumers may need to make more conscious budgeting decisions and trade-offs in other areas of their spending to ensure they can allocate funds towards these priorities.

Strategic Forecast:

The "Experiential Priority" trend is likely to continue and potentially strengthen in the near to medium term. Even with ongoing economic uncertainties, the demonstrated value that Australians place on experiences suggests a fundamental shift in their priorities. Brands and businesses that can effectively cater to this desire for connection, quality time, and memorable moments are poised for success. This trend may also influence government and societal focus towards supporting industries and activities that contribute to well-being and enrich people's lives beyond material wealth.

Final Thought:

The enduring human need for connection and meaningful moments is proving to be a powerful driver of consumer behavior, with Australians in 2025 clearly demonstrating that enriching experiences hold a higher value than ever before, even amidst economic complexities.

Source: https://wa.campaignbrief.com/55-of-aussies-prioritise-experiences-even-amidst-economic-uncertainty-mediahub-study-reveals-paradoxical-consumer-behaviour-in-2025/