Fragile consumer sentiment, shaped by economic strain and geopolitical uncertainty, is pushing people to spend more cautiously while prioritising small, affordable comforts, according to the latest Global Consumer Trends report by WARC.
Released on 23 April 2026, the report examines the key factors influencing consumer purchasing decisions across brands and categories over the coming year.
Drawing on extensive GWI survey data alongside WARC’s research, case studies and analysis, the report identifies five major trends shaping brand choice. These are analysed through WARC’s GEISTE framework, covering the shift towards comfort consumption, the rise of AI companionship, tightening restrictions on youth access to social media, changing perceptions of Chinese-made products, and increasing demand for transparency in AI-generated content.
Stephanie Siew, Senior Research Executive at WARC, says, "Consumer sentiment in 2026 remains fragile, shaped by financial pressures, geopolitical turbulence, and a growing need for escape, with spend shifting to small comforts that bring joy. Brands that forge emotional connections will thrive, but must navigate rising scrutiny on technology, authenticity, and trust to make a meaningful impact."
“Our annual Consumer Trends report provides a broader view of the major issues confronting our industry from the perspective of consumers, with suggestions to help businesses create the most impact in the year ahead.”
Financial uncertainty reshapes spending habits
The report highlights growing anxiety around job security and personal finances. Nearly half of employed consumers, 45 per cent, are concerned about their job stability, while one in three are either saving more or cutting back due to labour market conditions.
Wider economic turbulence and geopolitical tensions have contributed to emotional and financial fatigue, with half of consumers identifying financial stress as the leading cause of unhappiness.
As a result, spending is increasingly directed towards low-cost sources of joy, including wellness products and hobbies. While interest in travel remains, ongoing global tensions and rising costs are likely to limit demand.
AI companionship on the rise
The growing role of artificial intelligence in daily life is also reshaping social behaviour. One in ten consumers globally report having been in a relationship with an AI chatbot, with 62 per cent saying they would turn to AI rather than a human friend for personal advice.
AI tools are increasingly being used for emotional support and companionship, reducing loneliness and simplifying social interaction. This trend is driving innovation in areas such as AI-powered toys and devices designed to support elderly users.
However, the report cautions that brands must approach AI carefully, particularly when engaging younger or vulnerable audiences, due to potential safety and mental health concerns.
Debate intensifies over youth social media access
Concerns about the impact of social media on children and teenagers are growing. Around 64 per cent of consumers believe social media is harmful to young people, while just over half support age verification measures.
This shift is fuelling regulatory discussions and could limit marketers’ access to younger audiences. As a result, brands may need to redirect investment towards alternative channels, including private messaging platforms and family-focused streaming services.
The report suggests that brands should focus on building their own communities, prioritising transparency and targeting parents as key decision-makers.
Changing perceptions of ‘Made in China’
Perceptions of Chinese products are evolving, particularly in technology and lifestyle categories. More than a third of consumers now view Chinese apps and tech products as innovative, while one in four prefer to purchase personal electronics from China, behind only the United States and Japan.
Chinese brands are increasingly positioning themselves beyond low-cost manufacturing, focusing on innovation and emotional brand appeal. For marketers, building trust through quality and cultural understanding will be critical to sustaining growth.
Demand grows for transparency in AI content
The rapid rise of AI-generated content is prompting concerns about authenticity. A significant majority of consumers say content created by humans is more meaningful, while 78 per cent believe AI-generated material should be clearly labelled.
While some consumers acknowledge that AI can enhance creativity and diversity in content, many struggle to distinguish between human and machine-generated work. Transparency is therefore becoming a key expectation, particularly in sensitive sectors such as healthcare, politics and law.
The report concludes that brands must balance innovation with trust, ensuring clear disclosure and ethical use of AI to maintain consumer confidence.
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