Consumer Compass Europe (Q4)

Q4 2023 

Consumer 

Compass 

Europe 

savanta.com

Savanta Consumer Compass Europe Q4 2023 

Contents 

Introduction and opinion 

Objectives and method 

Opinion 

Consumer confidence 

Spending habits 

Alcohol 

Value for money 

Summary and implications 

03 

04 

05 

06 

15 

17 

22 

28 

2


Introduction 

Welcome to our quarterly European Consumer Compass 

report. 

The goal of this work isn’t just to provide you with 

a snapshot of today’s consumers – it’s to help you 

understand how they’ll behave tomorrow. 

This report explores how consumers feel about their 

current and future spending habits and examines their 

knowledge and awareness of topics that can be crucial to 

a brand’s success during periods of economic instability: 

sustainability, understanding of new technologies, and 

many others. 

This quarterly study surveys over 3,500 European 

consumers in the UK, Netherlands, Germany, France, 

Spain, Italy, and the Nordics (Denmark, Norway, Sweden) 

will deliver: 

» A Consumer Confidence Index (CCI) linked to current 

and future spend across markets 

» Analysis of sectors-at-risk 

» A profile of differences across European markets. 

For brands that seek to be agile, proactive, and dynamic 

during this period of flux, the Savanta European Consumer 

Compass is an invaluable tool to help marketers and 

product owners alike Make Better Decisions. 

Alex Ward-Booth 

Research Director | Consumer 

Introduction Objectives & method Opinion Consumer confidence Spending habits Alcohol Value for money Summary 

3


Objectives & method 

Objectives 

» Measure Consumer Confidence (calculated based on 

3 main questions about projected confidence in the 

economy, personal finances, and job situations). 

» Understand & track current levels of confidence. 

» Understand & track current spending habits and the 

impact of inflation. 

» Assess which sectors may suffer in the upcoming 

quarter. 

» Focus on specific ‘hot topics’ for each quarter. 

Method 

Online survey of n=3,500 consumers 

Fieldwork dates: 4th - 12th December 2023 

Average interview length: 10 minutes 

Nationally representative sample (by market) 

across 7 European markets: 

» UK 

» Netherlands 

» Germany 

» The Nordics (Sweden, Norway, Denmark) 

» Italy 

» Spain 

» France 


4


Consumer Compass opinion 

Nikki Lavoie 

EVP | Marketing, Brand & Innovation 

Going into the critical festive period we continue to see significant headwinds across all of the markets we track; brands will need to continue to monitor consumer opinions carefully so that they can 

remain relevant in this challenging trading environment. 

We see three key themes emerging from the latest consumer data: 

The road to economic recovery remains long and slow 

The picture remains volatile on a quarterly basis, with 

no markets seeing a consistent growth in consumer 

confidence across the year. 

We continue to see pressure on household budgets across 

the markets we track, with declines in perceptions of 

disposable income across markets a particular concern. 

Celebrating the festive period remains a luxury for many 

consumers 

Spending on alcohol, both in and out of home remains 

under pressure, with younger consumers in particular 

cutting their spending in this sector. 

There remain opportunities for growth for brands operating 

in the sector, but it’s critical to offer a clear point of 

differentiation and clearly articulate the value that can be 

offered. 

In this context defining value remains paramount 

Unsurprisingly, value for money remains critical but brands 

need to be mindful of the nuances between different 

groups in how value is more concretely defined. 

There are important distinctions between age groups and 

also between groups with higher and lower spending power 

which need to be leveraged in order to communicate value 

for money effectively. 


5


Consumer 

confidence 

Introduction 


Opinion 



Alcohol 


Summary 

6



remains extremely 

fragile across the 

markets we track, 

with France falling 

back significantly 

this quarter 

100 

95 

90 

85 

80 

Consumer Confidence Index 

>100 = Positive 

100 = Neutral 


Consumers continue 

to hold a relatively 

pessimistic outlook 

on their respective 

economies, with both 

France and Spain 

falling back 

100 

90 

80 

70 

Relative confidence in the economy 

Net: Sentiment (% agree - disagree) 

Net sentiment (Agree - Disagree) 

7% 

19% 

24% 

2% 

18% 

35% 

7% 

16% 

27% 

5% 

17% 

34% 

8% 

20% 

23% 

Strong agree 

Agree 

Neither/nor 

Disagree 

Strongly disagree 

Significant change at 95% confidence level from prev. quarter 

-23% -24% -27% -23% -29% -21% -38% 

4% 

16% 

30% 

3% 

16% 

23% 

60 

50 

40 

30% 

35% 

31% 

31% 

33% 

27% 

34% 

30 

Q. Please indicate how much you agree or disagree with the following 

statements: I feel more confident about the overall economic situation in 

the country than I did a couple of months ago 

Base: Total (c. 500 per market) 

20 

10 

0 

22% 

23% 

20% 

19% 

17% 

13% 

10% 

UK Netherlands Germany The Nordics Italy Spain France 


8


Pressure on 

household budgets 

remains tight, with a 

significant decline in 

perceived disposable 

income levels across 

almost all markets 

this quarter 

0 

-10 

Disposable income levels 

Net: perceived disposable income (% more than last year - % less than last year) 

Change vs. previous quarter 

-6 +6 -8 -5 -2 -6 -7 


-4% 


Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 

-11% 

-20 

-21% 

-30 

-30% 

-26% 

-28% 

-32% 

-40 

-50 

Q. On balance, which of these best describes the situation for your 

household now, compared to this time last year? 



9


Employment 

security appears 

to be an issue this 

quarter, with Italy, 

Germany, Spain, and 

The Nordics seeing 

a significant decline 

for this measure 

100 

90 

80 

70 

Current job situation compared to last year 

Net: Situation (% better - worse) 

Net situation (Better - Worse) 

7% 

15% 

47% 

3% 

17% 

61% 

4% 

15% 

55% 

6% 

13% 

57% 

4% 

10% 

57% 

A lot better 

A little bit better 

About the same 

A little bit worse 

A lot worse 


-9% 0% -8% -7% -16% -7% -20% 

8% 

14% 

48% 

2% 

11% 

53% 

60 

50 

Q. How would you describe your overall job situation right now? 


40 

30 

20 

10 

0 

23% 

18% 

18% 

18% 

17% 

18% 

15% 

13% 

10% 

11% 

12% 

10% 

7% 

4% 



10


We track the progress of four groups—defined 

by socio–economic attitudes—going beyond 

demographics to understand consumer resilience to 

economic downturns 

Insulated Cautious Squeezed 

Sufferers 

I’m aware of the problems in the wider 

economy but it has not really affected 

me personally 

I’m being a bit more cautious about how 

much I spend and saving a bit more 

I’m taking action to buy cheaper brands 

and/or going to less expensive shops 

I’ve cut all of the expenditure that I 

can because I’m really worried about 

the future 

14 % 42 % 28 % 16 % 

Least affected 

Most affected 

Q: Which one of these statements describes you best? 



11


Although the 

resilience groups 

remain relatively 

stable, we have seen 

a directional increase 

in ‘Squeezed’ 

consumers in Spain, 

Germany and France 

Q. Which ONE of these statements describes you best? 


100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

Resilience groups Q4 2023 

No significant difference vs. Q3 2023 


Sufferers 

Squeezed 

Cautious 

Insulated 

14 % 17 % 13 % 17 % 11 % 16 % 

10 % 

17 % 10 % 

18 % 

20 % 15 % 16 % 

19 % 

29 % 

40 % 

29 % 

24 

27 % 

% 

26 

26 % 

32 % 

44 % 

42 % 37 % 49 % 42 % 

39 % 


12


Key insights by market 

Northern Europe 

United Kingdom 

Netherlands 

Germany 

The Nordics 

Confidence remains relatively stable 

quarter-on-quarter in the UK, with a 

gradual upward trend seen over the 

last year. UK consumers are relatively 

confident in their economy compared 

to other markets, potentially fuelled 

by a period of relative stability in this 

economy in Q4. 

Household budgets remain tight with 

a significant decline in perceptions 

of disposable income, making the UK 

the second lowest across all markets 

on this measure. 

Consumer confidence is relatively 

stable this quarter, with the 

Netherlands being the only market 

this quarter to see an improvement in 

both perceptions of job security and 

disposable income. 

Measures for confidence in the 

economy have also improved this 

quarter, but this is largely driven by 

significant growth in the proportion 

of those who are ‘neutral’, suggesting 

that, following national elections, 

consumers may be looking to see 

how the new government performs. 

Consumer confidence has stagnated 

across the last 6 months amongst 

German consumers. Perceptions 

of disposable income have fallen 

significantly this quarter, following 

improvements throughout 2023, 

and there is a growing proportion of 

“squeezed” consumers. 

Concerns around employment have 

increased significantly this quarter 

with over 1 in 4 (27%) stating that they 

feel their job situation is worse than it 

was last year. 

Following a year of consistent growth 

in consumer confidence, Nordic 

markets see a directional decline this 

quarter. 

This appears to have been driven 

largely by a significant decline in the 

perceptions of disposable income and 

an increase in employment insecurity. 

1 in 4 consumers in the Nordics 

currently feel that their job situation is 

worse than it was last year, potentially 

reflecting the impact of high inflation 

and a gloomy outlook for economic 

growth across these markets. 


13


Key insights by market 

Southern Europe 

Italy 

Spain 

France 

Consumer confidence has remained 

relatively flat throughout the year. 

Whilst Italian consumers remain 

one of the most pessimistic about 

their economy, Italy is one of the 

few markets where perceptions of 

disposable income have not fallen 

back significantly this quarter. 

Perceptions of employment security 

have fallen back significantly with 

around 3 in 10 Italian consumers 

(29%) feeling that their job situation is 

worse than last year in Q4, reflecting a 

more challenging economic outlook in 

Italy compared to 2022. 

Following consistent improvements 

in consumer confidence, Spain falls 

back directionally this quarter. This 

has been driven by a significant 

decline in confidence in the economy, 

potentially driven by a period of 

political instability in Spain at the 

end of 2023 following the summer 

elections. 

Consumer confidence in Spain has 

also been impacted by a decline in 

perceptions of disposable income, 

with a directional increase in the 

proportion of consumers defining 

themselves as ‘squeezed’ in the latest 

quarter. 

Consumer confidence in France 

has fallen back significantly this 

quarter. Against a backdrop of 

continued political instability, 

confidence in the economy amongst 

French consumers has fallen 

significantly this quarter and is now 

the lowest across the markets we 

track. 

Perceptions of disposable income 

have also fallen back significantly 

this quarter and are lower than in 

any other market, with a directional 

growth in ‘squeezed’ consumers in the 

latest quarter. 


14



& inflation 

Introduction 


Opinion 



Alcohol 


Summary 

15


We can map the impact of inflation against 

consumers’ net spend to understand which 

sectors are most at risk, and which are more 

protected. 

Economic health by consumer sector 

Cost of living sector map 

This quarter, the 

impact of inflation 

on spending has 

remained consistent, 

with a slight 

increase observed in 

spending on eating 

out and holidays 

Impact of 

inflation 

Sacrificed 

Inflation impact high, spending much less 

Eating out 

Family days out 

Entertainment 

outside of the home 

Alcohol (on-trade) 

Fashion 

Alcohol 

(off-trade) 

Holidays 

DIY & home 

improvement 

Grooming & beauty 

Eating in (take-aways) 

In-home 

entertainment 

Extra-curricular activities 

Protected 

Inflation impact high but spending not impacted 

Petrol 

Phone contract 

Groceries 

Utility bills 

Insurance 

Q. How significantly have recent price increases impacted your levels of 

spending in any of the following areas? 

Q. How much, if at all, have you changed your spending on the following, 

in the past year? 

Base: Total EU (circa 3,500 per wave) 

De-prioritised 

Inflation impact low but spending still much less 

Gym 

NET spend 

Less affected 

Inflation impact low, spending not impacted 


16


Sector spotlight: 

Alcohol 

Introduction 


Opinion 



Alcohol 


Summary 

17


We did not see an increase in alcohol spending as we entered the 

festive period, with spending down both at home and out of home 

Net spend (last 12 months - EU average) 

% spending more - spending less 

“I have spent less in the last 12 months on alcohol” 

% spending less on-trade and off-trade by market 

On-trade 

Off-trade 

On-trade 

Off-trade 

0 

-10 

-20 

-30 

-40 

Q1 2023 Q2 2023 Q3 2023 Q4 2023 

In the past two 

decades, European 

alcohol levels have 

decreased by 

2.5 litres* 

60 

50 

40 

30 

20 

51% 

46% 48% 46% 

55% 

50% 

55% 

45% 

54%54% 

59% 

53% 

58% 

51% 

-50 

-46% 

-52% 

-43% 

-49% 

-42% 

-49% 

-44% 

-49% 

10 

-60 

0 

Q. How much, if at all, have you changed your spending on the following in the past year? 

Base: Total EU (c 3,500 per wave) (c.500 per market) 

UK 

Netherlands 

Germany 

The Nordics 

Italy 

Spain 

France 

*Source: Euronews 


18


Approximately 3 in 5 consumers in Europe feel the impact of inflation 

on their alcohol expenditure, driven by young people 

Net: Affected 

% affected on-trade and off-trade 

Net: Affected split by market 

70 

60% 

60 58% 58% 

55% 54% 

50% 

50 

59 % 

40 

30 

20 

10 

57 % 0 

On-trade 

Off-trade 

How significantly have recent price increases impacted your 

levels of spending in any of the following areas? 

% affected on-trade and off-trade 

UK 

Netherlands 

Germany 

52% 50% 

The Nordics 

65% 64% 

Italy 

On-trade 

66% 

61% 

Spain 

Off-trade 

59% 60% 

France 

Younger generations are also 

significantly more affected. Among 

18–34-year-olds, 63% feel an impact 

on their off-trade spending, and 67% 

on on-trade spending. 

Notably, younger Italians appear 

to feel the biggest impact on offtrade 

spending, with 7 in 10 feeling 

impacted. 

Base: Total EU (c 3,500 per wave) (c.500 per market) 


19


Future expenditure across markets appears low, although there are 

some initial positive signs for the UK on-trade sector 

Net predicted spend (next 3 months) 

% spending more - spending less 

0 

-10 

% change vs. Q3 2023 


+2 +5 +1 +5 -2 -3 -3 +1 -5 = = -3 +7 = 


A significantly higher proportion of 

young people aged 18-34 anticipate 

spending less on alcohol both in and 

out of home in the next 3 months 

compared to those aged 35 and over. 

-20 

-30 

33% 

35% 

-40 

36% 36% 

36% 

39% 

39% 

41% 39% 37% 

40% 

42% 

42% 

-50 

49% 

On-trade Off-trade 

Q. How do you anticipate your spending on each of the following to change over the next 3 months? 


Despite remaining low, the UK shows 

a directional uplift in its predicted ontrade 

alcohol spend. This increase 

in on-trade spending is primarily 

driven by men, with 45% of them 

not anticipating any impact on their 

spending in the next 3 months. 


20


In the UK, the directional improvement in on-trade spending is being 

driven by men 

UK on-trade drinking: male perspective 

How can alcohol brands capture attention? 

53% 

Of men find value important when 

going out for drinks 

42%* 

Of men would pay more for beer 

if it was locally made 

34%* 

Of men would pay more for beer 

if it was craft/vintage brew 

Enhance product differentiation 

» To mitigate the impact of rising inflation, invest in 

product differentiation and innovation. This could 

involve developing unique flavours, packaging, or 

marketing campaigns that differentiate a brand from 

competitors, making it more attractive to consumers 

even in a challenging economic climate. 

Emphasise value and affordability 

» With rising inflation, consumers can be more pricesensitive. 

Therefore, emphasising value for money and 

offering affordable options means that brands can 

cater to a wider range of customers. This could include 

introducing smaller-sized packages or promotional 

offers that appeal to budget-conscious consumers. 

Q. Which of the following would encourage you to pay more for your beer? Q. Thinking about the following categories, how important is ‘value for money’ when making a purchase? 

Base UK market c.500 | * Source: Savanta beer report featured in Dine Out magazine December 2023, click this link to read the report 


21


Brands are already exploring ways in which they can do something 

different to capture attention, whilst maintaining an underlying value 

for money message 

All Shook Up cocktails shared a discounted price 

offer on instagram for a mixed sharing pack at 

Tesco. 

Unplugged cabins shared a January give-away 

in association with BrewDog Punk on their 

instagram. 

Waitrose hosted a pop up quiz in their Kings Cross 

store offering a free pint of zero alcohol Lucky 

Saint Beer. 


22



Introduction 


Opinion 



Alcohol 


Summary 

23


Price and value remain key 

and we see a peak amongst 

those who are most / least 

financially secure 

Importance of value 

By resilience group - Score out of 10 

Important (8-10) 

Neutrals (5-7) 

Unimportant (1-4) 

Significant change at 95% confidence level vs. other resilience groups 

74% 

Rate price highly important 

(8-10 out of 10) 

70% 

Rate value highly important 

(8-10 out of 10) 

Q. How would you rate the importance of price and value separately? 

Base: All who rated price/value @ Q14 (3,465) 

Insulated (480), Cautious (1,459), Squeezed (956), Sufferers (570) 

100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

74 % 

69 % 

vs. cautious 

23 % 

29 % 70 % 

vs. insulated 

& sufferers 

29 % 73 % 

vs. insulated 

& sufferers 

24 % 

Insulated Cautious Squeezed Sufferers 


24


Value comms should 

be tailored to your 

audience. ‘Insulated’ 

consumers are 

looking for quality 

whilst ‘Sufferers’ 

seek low cost 

100 

90 

80 

70 

60 

50 

40 

Levers to demonstrate value for money 

By resilience group 

71% 

67% 

57% 

44% 

54% 54% 

Cost indicators 

47% 

41% 

43% 

40% 

Quality indicators 

36% 

44% 45% 50% 

Sufferers 

Squeezed 

Cautious 

Insulated 

30 

20 

36% 34% 

14% 

27% 28% 

23% 23% 

17% 

22% 23% 

10 

Q. Thinking about how a brands demonstrate value for money to you, 

which of the following best promotes value for money in your opinion? – 

Any ranking 

Base: Total (3,501), Insulated (487), Cautious (1,473), Squeezed (965), 

Sufferers (576) 

0 

Reducing prices 

Offering 

promotional 

discounts 

Offering loyalty or 

reward schemes 

Offering high 

quality products 

Offering extended 

warranty or return 

Sharing customer 

testimonials and 

reviews 


25


The age of your 

audience should 

also be considered. 

Younger consumers 

are most receptive 

to less direct price 

messaging 

70 

60 

Levers to demonstrate value for money 

By generation 

Older consumers look for the more traditional 

value indicators, which are clear, direct, and 

focused on overall price. These are also effective 

indicators for younger generations… 

64% 66% 

57% 

56% 

52% 

42% 44% 

Gen Z 

Millennials 

Gen X 

Baby Boomers 

But having grown up in an age of mass communication, 

younger consumers see more indirect features and messages 

as value indicators also i.e. extended warranties and customer 

testimonials translate to high-quality. 

50 

40 

43% 

50% 48% 

51%51% 

30 

20 

28% 29% 26% 

22% 

25% 23% 

20% 18% 

30%25% 

17% 

13% 

24% 

21% 

17% 

13% 

10 

0 

Q. Thinking about how a brands demonstrate value for money to you, 

which of the following best promotes value for money in your opinion? 

Base: Total (3,501), Gen Z (276), Millennials (879), Gen X (973), Baby 

Boomers (1,145) 

Reducing 

prices 

Transparent 

pricing and 

discounts 

Offering 

promotional 

discounts 

Offering 

extended 

warranty or 

return 

Promoting 

sustainable/ 

ethical 

practices 

Sharing 

testimonials 

and reviews 

Offering 

exclusive sales 

or early access 


26


The main touch-points for finding deals are at the point of sale, with 

the exception of loyalty cards 

Top 3 sources for finding promotions/deals 

Most used touch-points by market 

38% 

In-store promotions or signage 

36% 

Loyalty cards 

31% 

Retailer websites or apps 

Dutch consumers lean 

towards direct online 

sources more so than 

any other market 

(Retailer website or 

apps, 41%). 

Loyalty card 

programmes have the 

highest engagement 

in the UK (58%) and 

France (55%). 

Price comparison 

websites prove to have 

some weight amongst 

consumers when 

looking for deals, with 

the Nordics leading the 

way (34%), followed 

by Italy (31%), and the 

Netherlands (29%). 

German shoppers 

utilise physical 

media formats most 

(Newspaper or 

magazine ads, 37%). 

Whilst Nordic 

consumers explore 

social media for 

promotions more than 

any other market (29%), 

followed by the UK 

(22%) and Spain (22%). 

Q. Which sources do you typically use to find promotions/ deals for 

shopping? 

Base: Total (3,501) (c. 500 per market) 


27


1 in 3 consumers use loyalty schemes to seek deals, presenting an 

opportunity for brands to promote various value indicators. 

Use of loyalty cards to find deals 

Significant change at 95% confidence level vs. other resilience groups 

Case studies 

UK 

58% 

France 

55% 

Italy 

38% 

Spain 

30% 

Netherlands 

27% 

Germany 

The Nordics 

23% 

25% 

» Promoting new ranges or 

product deals 

» Exclusive access to deals 

through the Tesco Clubcard 

» Communicating new sales & 

range discounts 

» Personalised offers on products 

/ brands purchased before 

» Targeted promotions based on 

location 

» Opportunity to enter into 

exclusive prize draws 

Q. Which sources do you typically use to find promotions/ deals for shopping? 

Base: Total (3,501) (c. 500 per market) 


28


Summary 

In a nutshell, we feel that three key themes are emerging from our latest tracking of 

consumer confidence. 

Consumer confidence remains fragile and volatile across 

the markets we track 

Pressure on disposable income is being felt across 

multiple markets this quarter, and concerns are increasing 

around job security. 

With continued acute inflationary pressures across 

categories, it is unsurprising that consumers are cutting 

back on discretionary spend across multiple sectors. 

Going into the festive season, spending on discretionary 

sectors such as alcohol continues to be under-pressure 

Consumers are spending less on alcohol in all markets, 

both in and out of home, with younger consumers in 

particular cutting back. 

However, there remain opportunities for growth in the 

sector for brands able to connect with consumers’ needs 

and offer a clear point of differentiation and provide value 

for money. 

Being able to articulate value for money remains a key 

challenge for brands 

Price is key but, it is critical to consider the nuance 

between how different consumer segments define value, 

with opportunities to utilise quality and indirect features as 

a way of engaging with key consumer groups. 

Point of sale remains key in delivering value messages, 

with opportunities to use tools such as loyalty cards more 

strategically to deliver value messages and other brand 

growth opportunities. 


29


Implications 

The path to economic recovery remains a challenging one across all markets. 

We believe it is therefore critical that brands are able to: 

1. Understand the context for consumers 

With the volatile picture amongst consumers across markets, it is critical for brands to keep their finger on the pulse of 

emerging trends so they can stay one step ahead. 

2. Continuously review range and offer 

Household budgets are under significant pressure, meaning consumers are spending strategically and it’s key for brands to 

offer something new and different. 

3. Ensure you deliver the right message at the right time 

Point-of-sale touch-points remain critical in engaging with consumers and articulating the value brands can deliver to them. 

William Blackett 

EVP | Consumer 

Introduction Objectives & method 

Opinion Consumer confidence Spending habits Alcohol Value for money Summary 

30


Want to find out more? 

Get in touch 

Nikki Lavoie 

EVP | Marketing, Brand & Innovation 

William Blackett 

EVP | Consumer 

Oliver Warren 

Senior Director | EMEA 

nikki.lavoie@savanta.com 

william.blackett@savanta.com 

oliver.warren@savanta.com 

savanta.com 

31

etter.decisions@savanta.com 

UK | +44 (0) 20 7632 3434 EU/NL | +31 (20) 809 3812 US | +1 (917) 768 2710 

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report or for any decision based on it. We expressly reserve all rights in and to the name “Savanta”, our logo, service marks, trading names and/or trademarks. © 2024 Savanta Limited. All rights reserved. 

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