Markets where consumers are actively reducing expenses

Most notably, in several markets, the majority – or a significant minority – of consumers are actively limiting their expenditure: ranging from a fifth (Denmark: 20%) to comfortably over half (UAE: 53%; Italy 56%) of the adult public. In Indonesia, the figure is as high as 72%. COVID-19 has provided a number of plausible reasons for this reduced spending.

Yet reduced expenditure may also relate to a general lack of options: people who are discouraged from or unable to travel, to eat lunch at a quick-service restaurant, to watch films at the cinema or to socialize in bars simply have fewer non-essential things to spend money on.

The COVID-19 cutback? Consumers set to continue limiting spending in future

Whether consumers are restricting non-essential expenditure out of choice or not, they intend to continue doing so in future. The only countries where a clear majority do not plan to cut back are Germany and Denmark, where 45% and 46% respectively believe they will slim down their outgoings. However, across the rest of Europe most consumers (58% – 86%) anticipate restricting their spending.

In each of the APAC nations featured in our study, at least two-thirds of consumers (69% - 87%) plan to cut their costs going forward. By next year’s study, we will have a better idea of the extent to which they have delivered on these intentions.

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