WARC outlines consumer trends shaping 2026

Fragile consumer sentiment is reshaping spending habits, with people prioritising small, affordable comforts as financial and geopolitical pressures persist, according to a new report from WARC.

The 2026 Global Consumer Trends report draws on GWI surveys alongside WARC’s research and analysis to identify five forces influencing purchase decisions. These trends range from emotional spending patterns to the growing role of AI in daily life.

Comfort spending rises amid uncertainty

Ongoing economic instability and geopolitical tensions are contributing to widespread financial anxiety. The report finds that 45 percent of employed consumers are concerned about job security, while 33 percent are saving more or reducing spending.

Consumer confidence remains under pressure

Half of respondents cite financial stress as their main source of unhappiness. As a result, many consumers are becoming more deliberate in their spending, directing money toward low-cost activities and products that provide a sense of enjoyment, such as hobbies and wellness.

Travel remains an area of interest, but safety concerns and rising costs linked to global instability may limit demand.

The report highlights a shift in how consumers seek emotional support, with one in ten globally reporting having had a relationship with an AI chatbot.

Digital relationships gain traction

Around 62 percent of those in such relationships say they would turn to AI rather than a human for personal advice. The appeal lies in reduced complexity and a sense of constant availability, driving innovation in AI-powered devices and services, including tools designed for elderly care.

Stephanie Siew, Senior Research Executive, WARC: "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."

Stephanie Siew: "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."

Growing concern over the impact of social media on younger users is influencing regulation and public opinion. The report finds that 64 percent of consumers believe social platforms are harmful to children, while 51 percent support age verification measures.

Brands rethink youth engagement strategies

Tighter restrictions may limit direct access to younger audiences, prompting brands to explore alternative channels such as private messaging platforms and streaming services. The report suggests that marketers focus more on engaging parents and building controlled brand environments.

Consumer attitudes toward products made in China are shifting, particularly in technology and lifestyle categories. The report shows that 36 percent of consumers now view Chinese apps and tech products as innovative.

One in four consumers prefers to buy personal electronics from China, placing it behind only the United States and Japan. The findings indicate a move beyond price-led perceptions toward greater recognition of quality and brand value.

The rapid growth of AI-generated content is raising questions about authenticity and trust. According to the report, 85 percent of consumers believe human-created work holds more meaning, while 78 percent want clear labelling of AI-generated material.

Demand for clarity increases

As audiences struggle to distinguish between human and AI-generated content, transparency is becoming a priority, particularly in sensitive sectors such as healthcare, law, and politics. At the same time, some consumers acknowledge AI’s role in improving the scale and variety of creative output.

The full report can be accessed here