Korean consumer trends shift from restraint to selective spending
Conspicuous consumption remains strong, especially among young people
Report recommends tailored marketing strategies for each generation
A survey has revealed that domestic consumer trends are shifting from 'restraint' to 'selective consumption.' Experts suggest that companies should focus their marketing efforts on items with high consumer purchase intent.
Korea Deloitte Group announced on the 9th that it published the 'Q1 2025 Consumer Signals' report containing these findings. The report was based on in-depth surveys and interviews conducted with approximately 1,000 consumers across 17 countries, including Europe, North America, and Africa.
According to the report, recent consumer trends in Korea are rapidly moving from restraint to selection. The consumption intention index by category in Korea was highest for groceries (15%), savings and investments (14%), leisure activities (12%), and housing/residential expenses (10%). While the rise in essential goods prices and asset protection psychology contributed to the high proportions of groceries and savings/investments, leisure activities also showed a significant share. Notably, the leisure expenditure proportion among the younger generation aged 18 to 34, which well represents their consumption trends, was the highest among all age groups.
Additionally, domestic consumers continue to engage in conspicuous consumption. When examining conspicuous purchase amounts across 17 countries, Korea rose from 9th place in December 2024 to 7th in January 2025 and 5th in February. The average conspicuous purchase amount among the 17 countries was $52, the United States was $50, while Korea recorded $55. The report explained, "Despite the perceived price increase due to the high exchange rate, Korean consumers maintain relatively strong purchasing power in the conspicuous consumption sector." Conspicuous consumption was particularly concentrated on food ingredients (33%) and clothing/accessories (33%). The motives for consumption included emotional comfort (16%), practicality (14%), and durability (13%).
Regarding companies, the report recommends tailored strategies considering these trends. It stated, "For the MZ generation (Millennials + Generation Z), who value experience and self-expression, focus on value and brand; for middle-aged and older consumers who prioritize practical consumption, emphasize cost-effectiveness and functionality; and for seniors seeking health and comfort, highlight wellness, stability, and reliability." It added, "Furthermore, companies should justify consumption through premium and practicality and concentrate marketing on items with high purchase intent and those focused on conspicuous consumption."
Kim Taehwan, head of the Consumer Division at Korea Deloitte Group, said, "Companies now need to adopt differentiated approaches and prioritize adjustments by target groups rather than stimulating consumption indiscriminately." He added, "We hope this report provides meaningful insights into the changing trends of the retail market."
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