How US Consumer Spending Is Changing in 2024
As a business owner, one of the most important metrics to track is your target audience’s expenditure—more specifically, if and how it’s evolving.
If your store sells to buyers in the United States, knowing how US consumer spending is changing provides you with insights into how you should be adjusting your ecommerce pricing strategy. This is vital to the success of your store, as it has a direct impact on sales and growth.
How US consumer spending is changing overall
|
Overall changes in US consumer spending from Q4 2023 to Q1 2024 |
Percentage of consumers reporting their spending changes |
|
Decrease (1–50%) |
25% |
|
Decrease (51–100%) |
7% |
|
Stay the same |
52% |
|
Increase (1–50%) |
15% |
|
Increase (51–100%) |
1% |
|
Increase (100%+) |
1% |
According to a recent study on how US consumer spending is changing, 52% of shoppers in the US say their expenditure in Q1 2024 remained the same as the previous quarter.
One-quarter (25%) decreased their overall spend by up to 50%, while 7% reduced it by between 51% and 100%.
17% of US consumers increased their total expenditure to varying degrees. 15% said they spent up to 50% more, while 1% said they spent between 51% and 100% more. Another 1% of US consumers said they more than doubled their expenditure in Q1 2024.
How US consumer spending is changing online
|
Changes in online US consumer spending from Q4 2023 to Q1 2024 |
Percentage of consumers reporting their spending changes |
|
Decrease (1–50%) |
24% |
|
Decrease (51–100%) |
8% |
|
Stay the same |
48% |
|
Increase (1–50%) |
15% |
|
Increase (51–100%) |
3% |
|
Increase (100%+) |
1% |
If you’re an ecommerce business owner, you’ll be more interested in how US consumer spending is changing online.
Online spending habits in the US look pretty similar to the overall trend. In Q1 2024, just under half (48%) of consumers surveyed said their online expenditure held steady from the previous quarter, as they did not alter how much they spent.
Out of the remaining consumers, more saw their online expenditure decrease. 24% of US consumers lowered their online spend by up to 50% in Q1 2024, while 8% lowered it by between 51% and 100%.
In comparison, 15% increased their online expenditure by up to 50%, 3% by between 51% and 100%, and the remaining 1% of US consumers saw their total spend on online purchases surge by over 100%.
How US consumer spending is changing by product
|
Category |
Year-on-year sales increase (Q1 2023–Q1 2024) |
|
1. Arts, crafts, and sewing |
+27% |
|
2. Pet supplies |
+20% |
|
3. Beauty and personal care |
+18% |
|
4. Home and kitchen |
+16% |
|
5. Clothing, shoes, and jewelry |
+15% |
|
6. Health and household |
+15% |
Knowing how US consumer spending is changing isn’t enough. Understanding what types of products are seeing the biggest changes is also key. This way, you’ll know whether and how to adjust your prices according to consumers’ evolving shopping habits.
Analyzing sales on Amazon, the same report shows that products related to arts, crafts, and sewing experienced a 27% increase in online sales from Q1 2023 to Q1 2024. This is followed by pet supplies and beauty and personal care products, which grew by 20% and 18%, respectively. It’s worth noting that revenues from the US personal care industry are forecast to rise by 1.8% in 2024, to $45.5 billion.
Sales from items related to home and kitchen rose by 16% from the previous year, while clothing, shoes, and jewelry and health and household products grew by 15% each.