European consumers entered 2026 with heightened economic pessimism, stemming from inflation, rising energy prices, and geopolitical tensions. Over half of Europeans (56%) expressed pessimism about the economy in 2026, a rise from 54% in 2025 and 49% in 2024. This concern is translating into financial distress, with 53% of consumers worried about their daily personal finances, up from 40% in 2024. Six in ten are also concerned about having enough money for retirement, according to a survey of over 20,000 consumers in 11 European countries by the Boston Consulting Group (BCG).
This widespread pessimism is driving significant changes in consumer behavior. Nearly two-thirds of European consumers (63%) are only buying at a discount or actively seeking deals, and 62% are willing to switch brands for better prices, demonstrating an erosion of brand loyalty. Around 44% reported their most recent purchase was from a new or unfamiliar brand. Consumers are also making substantial spending cutbacks, particularly in discretionary categories. Categories showing the steepest declines include fashion (–$25), alcohol (–$23), and packaged snacks (–$18), while groceries (+$11) and pet care (+$12) are the only categories seeing positive net spending, primarily due to price increases rather than volume growth.
The cautious spending behavior is deeply embedded, with consumers prioritizing saving over immediate spending. If given a hypothetical windfall of 10% to 15% extra income, nearly half of consumers would prioritize saving more, signaling a focus on building a financial buffer rather than increasing immediate consumption. The preference for savings is also fueled by concerns about future income stability and potential tax increases. Despite efforts by the European Central Bank (ECB) to cut interest rates, the household saving rate has remained high, indicating a lack of consumer confidence. Consumers are also increasingly turning to second-hand purchases, with 47% buying used products, primarily to save money (46% of those buyers) rather than for environmental reasons (17%).
