Consumers Are Investing in Self-Care, Quality, and Experiences: How They’re Making Smarter Spending Choices on What Matters Most

Rakuten’s in-house research team, focused on understanding our members to enhance their shopping experiences, recently surveyed shoppers to gain insights into their sentiment, spending outlook, and shopping behaviors. The findings highlight where consumers are investing, where they are scaling back, and how they are allocating dollars to align with their priorities.

In response to tighter budgets, consumers are becoming more strategic with their spending. Impulse shopping is on the decline, as today’s shoppers focus on maximizing value and making intentional purchases that align with personal priorities, long-term utility, and financial prudence.

Prioritizing Self-Care, Quality, and Experiences Amid Tighter Budgets

As economic uncertainty continues, shoppers are adopting a more thoughtful approach to their purchases. This shift is evident in three key trends:

Investing in Self-Care and Wellness

Despite financial constraints, consumers are still allocating budget for their personal well-being. As one shopper shared, “It’s okay to spend money on yourself for the greater good of yourself. I’ve started buying things I get real use out of—clothing, grooming products, better shampoos.”

Survey insights reveal that consumers remain committed to self-care and wellness, investing in products, services, and routines that enhance their well-being. Key findings include:

32% are researching beauty and wellness products more thoroughly before making a purchase.
27% are prioritizing multipurpose products that offer greater value.
27% of beauty shoppers are buying fewer products but focusing on quality.
12% are increasing their investment in self-care and wellness despite budget limitations.

This trend is also reflected on Rakuten, with notable year-over-year growth in categories like Banking & Financial Services, Workout & Fitness, Wellness & Nutrition, Dental Care, Eye Care, and Fragrance.

Prioritizing Quality Over Quantity

Consumers are shifting away from fast fashion and disposable purchases, choosing to buy fewer but higher-quality items. Rakuten data shows a 30% decline in fast fashion purchases in 2024 and a 7% increase in luxury spending. This trend is further supported by survey findings:

34% of apparel shoppers are buying fewer items but focusing on longer-lasting pieces.
32% of consumers are selecting versatile clothing that can be worn in multiple settings.

This move toward quality and longevity reflects a changing consumer mindset—focusing on fewer, more worthwhile purchases.

Choosing Experiences Over Possessions

With COVID restrictions behind them, many consumers are now prioritizing experiences over material goods. As one shopper put it, “We’re focusing on experiences because there was a huge chunk during COVID when we couldn’t have them.”

This shift is reflected on Rakuten’s platform, where ticket sales have surged by 794% and travel bookings have increased by 174% since 2020.

Looking ahead to Spring and Summer 2025, travel behavior is evolving:

34% plan to take fewer trips than last year.
33% are opting for more affordable destinations or accommodations.
32% are using points, miles, or cash back to offset costs.

As spending habits shift, consumers are increasingly focusing on meaningful experiences over material goods. This trend signals a growing preference for experience-driven purchases that will continue to shape consumer behavior in the seasons ahead.

Smart Spending Strategies: How Consumers Are Maximizing Every Dollar

The last five years have intensified financial pressure on households. The cost of living is higher than it was last year and, even more so, compared to pre-pandemic levels. While inflation has slowed, prices remain high. On average, people are paying 17% more for goods and services, but getting less in return.

As a result, consumers have adopted more strategic spending approaches to buy the things they want and need, making smart shopping the norm. Today’s shoppers demand value and use a variety of tools and tactics to get the most out of every purchase:

Price Comparison: 62% are actively comparing prices before making a purchase, ensuring they get the best deal.
Waiting for Promotions: 69% are delaying purchases until major sales events to maximize savings.
Using Coupon and Cash Back Apps: 68% are leveraging coupon and cash back sites to stretch their budgets and unlock rewards.
Switching to Budget-Friendly Brands: 28% are opting for more affordable alternatives.
Buying Second-Hand or Refurbished Items: 24% are embracing resale and refurbished options as smart, sustainable choices.

Purposeful Spending is Here to Stay

While consumers are more mindful of their spending, they aren’t stopping altogether. Instead, they’re shopping smarter by prioritizing value and long-term benefits. The focus on wellness, quality, and experiences reflects a shift toward more purposeful spending. Whether using coupons and cash back, prioritizing longevity in purchases, or planning trips in advance, shoppers are making intentional decisions to maximize their money while still accessing what matters most.

For retailers, this means adapting to meet the needs of value-driven consumers. Offering quality products and essential incentives like free shipping and cash back will be key to engaging today’s purposeful shoppers.