Consumers around the world are channelling spending toward affordable indulgences such as wellness products and hobbies as financial pressures and geopolitical tensions weigh on sentiment, according to WARC’s 2026 Global Consumer Trends report.
The report, released on Monday, said prolonged economic uncertainty, employment concerns and international conflict were prompting consumers to seek “small comforts” that deliver joy without requiring major financial outlays.
Half of consumers surveyed said financial stress was the biggest contributor to their unhappiness, while 45% of employed respondents expressed concern about job security, WARC said. One-third said they were either saving more or cutting back on spending because of labour market conditions.
“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,” Stephanie Siew, senior research executive at WARC, said in the report.
The findings are based on GWI consumer surveys, combined with WARC’s own research, case studies and analysis.
While consumers remain cautious, WARC said many are prioritising discretionary spending that offers emotional value, including wellness products, hobbies and other affordable treats. Travel remains a priority for some, but geopolitical instability could curb demand as safety concerns and higher fuel prices affect affordability and destination choices.
The report identified five broad themes expected to shape consumer purchasing decisions in 2026, including the rise of AI companionship, growing concern over children’s access to social media, and increasing demand for transparency around artificial intelligence-generated content.
Concerns over the impact of social media on younger users are intensifying. Nearly 64% of consumers believe social media is harmful to children, while 51% support age-verification measures for access to social platforms, according to WARC.
That could pose challenges for marketers, particularly as social media has become an important discovery and influence channel for younger consumers. WARC said tighter regulations may push brands to shift investment toward private messaging platforms, family-oriented streaming services and owned digital communities.
Artificial intelligence is also reshaping consumer behaviour in unexpected ways. One in 10 consumers globally said they had been in a relationship with an AI chatbot, the report found. Among those, 62% said they would be likely to seek personal advice from an AI chatbot rather than a human friend.
WARC said AI companions were gaining traction by offering emotional support, reducing loneliness and providing a more frictionless form of interaction. The trend is spurring innovation in products ranging from AI-enabled toys to companion devices for older adults.
At the same time, consumers are demanding greater transparency around the use of AI in content creation. About 78% of respondents said it was very or extremely important that AI-generated content be clearly labelled, while nearly 85% said knowing an artwork was created by a human made it more meaningful.
The rapid spread of AI-generated content has prompted concerns about quality, authenticity and ethics, particularly in areas such as entertainment, healthcare and politics, WARC said.
For brands, the report said, success in 2026 will depend on building trust and emotional resonance while navigating growing scrutiny over technology, authenticity and consumer wellbeing.
