Brand loyalty in decline, almost all that matters is value for money
A new global survey by EY has revealed a dramatic shift in consumer priorities amid persistent inflation and economic uncertainty. With over 20,000 respondents worldwide, the study highlights how rising living costs are forcing shoppers to rethink their purchasing decisions — placing affordability far ahead of brand loyalty.
According to the findings, more than half of consumers are deeply concerned about increasing living expenses, with nearly 47% worried about the economic situation in their own countries. The unease is particularly pronounced among younger generations, including Millennials and Gen Z.
Price first, brand second
Eight out of ten consumers now say price is the most important factor when making a purchase, with many paying much closer attention to the value they get for their money. As inflation continues to bite, purchasing habits are changing: 80% of shoppers have altered how and what they buy.
Perhaps most strikingly, two-thirds of respondents are just as satisfied with private-label products as with those from established brands. Thirty percent no longer consider brand names when shopping at all. Even when well-known brands introduce new ingredients or recipes, 42% of consumers view these as cost-cutting measures rather than genuine innovation.
Discounts have also taken center stage. The survey found that 54% of people only buy branded products if they’re on sale, signaling a significant erosion of brand loyalty in the current market climate.
The rise of digital influence
EY’s report also underscores the growing influence of digital and social media on how consumers discover and connect with products. Traditional retail channels are no longer the dominant marketplace for brands. Shoppers are fluidly switching between physical stores and online platforms while actively bypassing conventional brand messaging.
This fragmentation makes it increasingly difficult for companies to stay top-of-mind with customers — and it’s forcing marketers to rethink their strategies.
What consumers still expect
Despite these shifts, nearly half of respondents said they would be open to trying premium products again if they offered noticeably better taste or quality. Additionally, about a third of consumers would be willing to pay more for improvements that meaningfully enhance product offerings.
A new opportunity — and risk — for brands
According to László Palincsár, Director of EY’s Customer & Growth division, 58% of consumers now consider themselves brand switchers. “They’re not loyal to any one product or service,” Palincsár noted. “These customers can be easily won over — but just as easily lost. That presents both a major risk and a huge opportunity. The right retail, marketing, and sales strategy is now more critical than ever, and this is where an experienced consulting firm can offer significant support.”
In an era of economic volatility and digitally driven commerce, the message is clear: brands must work harder to build meaningful, value-driven connections with customers — or risk losing them altogether.
