South Korean Consumers Embrace 'Wiser Wallets' Amid Persistent Inflation, Report Finds | Be Korea-savvy

South Korean Consumers Embrace ‘Wiser Wallets’ Amid Persistent Inflation, Report Finds


Customers shop at a major discount chain store in Seoul on Oct. 2, 2024. (Image courtesy of Yonhap)

Customers shop at a major discount chain store in Seoul on Oct. 2, 2024. (Image courtesy of Yonhap)

SEOUL, Nov. 15 (Korea Bizwire) – In response to ongoing inflation, South Korean consumers are expected to evolve beyond simple cost-cutting measures to adopt more sophisticated “wiser wallets” spending patterns in the coming year, according to a new global consumer trends report. 

The “2025 Global Consumer Trends Report,” released on November 14 by global data analytics firm Euromonitor International, identified three key factors shaping consumer behavior in the upcoming year: inflation, sustainability, and healthy life expectancy.

The report outlined five major global consumer trends for the coming year: Healthspan Plans, Wiser Wallets, Eco Logical, Filtered Focus, and AI Ambivalent. Among these, the “Wiser Wallets” trend is expected to be particularly prominent in South Korea. 

“What initially appeared to be temporary frugal spending habits have now become deeply ingrained in consumer behavior,” Euromonitor noted in the report. “Impulse purchases are declining, while planned consumption that considers all aspects – including cost, consumer experience, and long-term product value – is on the rise.” 

The report emphasizes that businesses and brands must offer consumers comprehensive value propositions beyond just competitive pricing, incorporating factors such as consumer experience, cost effectiveness, product quality, and future value. 

South Korean consumers notably demonstrate a willingness to prioritize effectiveness over price alone. According to Euromonitor’s 2024 Beauty Survey, 53% of South Korean consumers said they would pay higher prices for skincare products with proven effectiveness, surpassing the global average of 49%. 

The report also predicts increased consumer interest in extending healthy life expectancy and growing demand for sustainable everyday products. Additionally, consumers fatigued by constant notifications and excessive choices are expected to gravitate toward curated product recommendations through live commerce platforms.

Regarding AI-powered shopping, the report suggests consumers will maintain a dual stance, expressing concerns about data privacy while simultaneously viewing AI as a trusted source of information. 

“As consumers become increasingly mindful about their spending, they are seeking products and services that are not only rational and personally relevant but also offer lasting value,” said Stella Vatcheva, head of innovation practice at Euromonitor International.

She advised that “to lead growth amid changing consumer trends, companies must prioritize both product innovation and consumer loyalty in their business strategies.”

Ashley Song (ashley@koreabizwire.com) 

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