according to The New Consumer and Coefficient Capital’s “Consumer Trends 2023” report. But consumer habits are changing as a result of high inflation, shifting attitudes around COVID-19, and the battle for digital attention. Here are our key takeaways from the report.

1. TikTok is making them buy it.
The No. 1 use for TikTok is mindless entertainment, but nearly one-fourth (23%) of US users say they use the platform for discovering new products to purchase. One-fifth say they use it to keep up with brands, according to The New Consumer and Coefficient Capital’s survey.
Some 27% of those surveyed say they have purchased a product because of a TikTok video.

According to our own data, 27.3% of US TikTok users have purchased something using the platform. By 2026, we forecast that number will reach 39.9%.
Among Gen Z, 19% say they primarily discover beauty products on TikTok.

2. Creator and celebrity-backed brands will keep their advantage.
Creator and celebrity-backed brands like Skims, The Honest Company, and Fabletics have a leg up in advertising, because creators already have a social media audience to whom they can advertise. An established audience will become even more advantageous as marketers sift through the loss of third-party data in the year ahead. Celebrity-founded beauty brands have an Instagram engagement rate of 13%, compared to non-celebrity-founded brands’ 3% engagement rate, according to a Charm.io study reported by The New Consumer and Coefficient Capital.

3. Consumers would rather forget COVID-19.
COVID-19 is the least of US adults’ concerns right now (although the pandemic is not over), according to The New Consumer and Coefficient Capital.
Metrics like air travel bookings and dinner reservations have effectively returned to what they were in 2019, according to the TSA and OpenTable data reported by The New Consumer and Coefficient Capital.

Some pandemic habits have slowed but not stalled. Grocery delivery intermediary sales growth has decreased significantly from 215.5% in 2020, but growth remains in the double digits, meaning the behavior itself has stuck around.

4. Consumers with wealth lean into health.
Wealthy consumers (those making more than $150,000 per year) are more likely to make health and wellness a high priority next year, according to The New Consumer and Coefficient Capital.

That could have major retail implications, considering the leading potential lifestyle changes involve food, exercise, and supplements.
Health and personal care was the third-fastest-growing ecommerce category this year at 22.1% year-over-year growth, behind food and beverage and pet products. Next year, the category will rise to the No. 2 spot, though growth will slow to 18.4%, according to our forecast.

Source : www.insiderintelligence.com