Understanding consumer behavior has never been more critical, as the pace of change in the retail landscape continues to redefine how we operate amid various disruptive forces.

To help you navigate the road ahead, here is a snapshot of what we are watching at Circana.

Demographics Influencing Shopping Trends   

Age Matters: From January to April 2025, general merchandise spending among 18–24-year-olds dropped by 13% year-over-year, in contrast to a 3% increase among consumers aged 25 and over.

Households with Children vs. Without Children: Families with children are prioritizing discretionary spending despite soaring food prices, while adult-only households are scaling back non-essential purchases.

Hispanic Consumers Driving Growth: The increasing influence of Hispanic consumers continues to shine through regional spending patterns, representing a key growth opportunity.

Female Spending Trends: As of the end of April, female consumers accounted for 59% of discretionary retail spending, and their influence will only grow from here. According to the Female Quotient, by 2028, women will control 75% of all discretionary spending. We are seeing female consumers exhibiting caution, signaling potential hurdles ahead for all consumer-driven businesses.

Consumer Behaviors We Are Watching

Postponed Purchases: Higher-priced items are increasingly being delayed by consumers. 

Financial Pressure on Younger Generations: Mounting student loan repayments and credit debt are weighing heavily on younger consumers.  

Economic Pressures: Price hikes and shifts in the employment landscape are likely to have a ripple effect in the coming quarters. 

Promotional Strategies: Retailers are doubling down on aggressive event-driven promotions, such as Amazon Prime Days and Target Circle Week, to counter inflationary pressures and sustain consumer interest. 

These shifts, paired with broader economic influences, open the door to transformative possibilities. Together, we have the chance to not only overcome challenges but to lead with innovation and shape the future in bold, meaningful ways.