Increased spending on shows, concerts and movies is expected to continue to rise in 2025 as many consumers prioritize experiences over essential items like food.
The amount of money Britons spent on entertainment and memorable experiences rose almost 6 per cent in the last year, data shows.
Amid political and economic turmoil, spending on live shows and concerts like Taylor Swift’s show rose 6.7 percent, according to figures from Barclays.
On average, Brits spent around £343 each during the year on things like shows, concerts and cinema.
Spending on TV subscriptions and online content has increased more than 13 percent in the past year, with hits like baby reindeer and Bridgerton attracting more people to their sofas.
The amount of money spent on television subscriptions in 2024 was almost double the 7.3 percent increase seen in 2023.
It’s worth it: Brits will spend more on TV subscriptions, concerts and cosmetics in 2024
Almost 60 percent of Britons said they were worried about higher digital TV subscription costs.
However, only 27 per cent of people looking to reduce their discretionary spending said they would reduce their spending on TV subscriptions, Barclays said.
As well as entertainment and television, a large proportion of Brits continue to prioritize spending on holidays and travel.
Consumer spending across the travel sector is up 6.9 per cent this year, and almost 30 per cent of Britons have already booked a getaway by 2025.
On average, Britons spent £1,117 each on travel in 2024. Both airlines and travel agencies saw bookings rise sharply, according to Barclays.
Of more than 2,000 people surveyed, the majority ranked vacations as their number one discretionary spending priority.
One in five Britons said they took a “treat yourself” approach to travelling. Nearly 40 percent said they tended to spend more than planned when on vacation.
While the amount of cash spent on vacation increased this year, the increase was much smaller than the 15.2 percent increase seen in 2023, just after the pandemic.
While spending big on holidays and concerts was a priority for many, Barclays noted that a growing number of people also adopted a smaller-scale “treat yourself” mantra in 2024.
Almost half of Brits said they prioritized spending on small, affordable mood-boosting luxuries, such as cosmetics and cakes.
Barclays said: ‘Demand for small luxuries boosted pharmacy, health and beauty retailers by 7.1 per cent, further demonstrating the impact of the “lipstick effect”, where shoppers prioritize cosmetics purchases. Beauty spenders spent £291 each on average in 2024.
Baked goods were another popular pick-me-up: More than 40 percent of people surveyed spent more on treats like cookies and pistachio desserts.
People also spent more in pubs, bars and clubs in 2024 than the previous year.
Average spending on trips to the pub increased 3.6 per cent year-on-year. On average, Brits spent £344 on trips to the pub throughout the year.
Barclays said: “Growth in pubs outpaced restaurants in 2024, which rose just 1.7 per cent in comparison, suggesting Britons have opted for more casual, relaxed socializing over the past year.”
In total, spending on non-essential items grew by 1.9 percent in 2024, compared to the previous year.
Spending on home improvement and DIY fell more than 7 per cent year-on-year as experiences outpaced cash spent on property improvements.
Karen Johnson, head of retail at Barclays, said: “2024 demonstrated very clearly Britons’ strong appetite for experiences, selectively spending elsewhere to find room in their budgets for the moments and treats that matter most to them.
‘From The Eras Tour to the long-awaited Oasis reunion; blockbusters at the cinema to quality content on the couch; From cakes to lipsticks and planning trips abroad, Brits collectively said “yes” to joy in their spending, even against a backdrop of rising bills and living costs.’
He added: “This conscious consumerism will continue to shape spending in the new year, and entertainment is likely to maintain its momentum as Brits continue to embrace their ‘new essentials.’
Spending on essentials slows
Spending on essential items like food grew just 0.9 percent in 2024, down from 3.9 percent a year ago. The amount of money spent on fuel fell, although it slowed in supermarkets.
Supermarket spending growth slowed to 1.3 percent this year, down from 6.5 percent in 2023. Many shoppers remain cost-conscious and are making use of loyalty and discount programs.
Barclays found that more than a third of shoppers said they had noticed food prices rising at a slower rate in recent months.
Spending at high street discounters fell more than 6 per cent year-on-year, the findings added.
The total amount of money spent on cards across all sectors rose 1.6 percent year-on-year, notably below the 4.1 percent growth seen in 2023, Barclays said.
Recent official figures showed inflation rose 2.6 percent in the year to November, up from 2.3 percent in the 12 months to October. Higher clothing and fuel prices played a major role in the rise in inflation in recent weeks.
November’s figure marked the highest rate since March 2024 and meant inflation has been above the Bank of England’s 2 percent target for two consecutive months.
On December 23, revised data from the Office for National Statistics showed that the economy experienced zero growth between July and September.
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