54% of Europeans pessimistic on national economy: BCG

More than half (54 per cent) of surveyed European consumers are pessimistic about the economy in their home country—a 7 point increase since July 2024, according to a new report by Boston Consulting Group (BCG). European consumers are navigating 2025 with growing unease, re-evaluating their spending priorities due to economic, political, and environmental concerns.
These findings are part of BCG's latest European Consumer Sentiment Report, titled European Consumers Brace for More Uncertainty, based on an April survey of over 16,000 consumers across nine countries. The study reveals a widespread shift toward financial caution and value-driven spending.
BCG's latest report reveals growing economic and political pessimism among European consumers in 2025, with 54 per cent worried about their home economies. Shoppers are cutting discretionary spending, prioritising value, savings, and low prices. Sustainability and secondhand shopping are rising, though few will pay more for eco-friendly options.
In addition to economic unease, political anxieties run high, with 57 per cent of Europeans expressing pessimism. But anxiety isn't felt equally: over 73 per cent of consumers in France, 71 per cent in Romania, and 70 per cent in Spain feel pessimistic, compared with just 38 per cent in Scandinavia. The impact of tariffs remains a lesser concern, cited by only 30 per cent of consumers—lower than the 42 per cent of consumers concerned about sustainability and climate change.
"Across Europe, consumers are becoming more selective and deal-driven," said Andreas Malby , leader of BCG's consumer practice in Europe, the Middle East, Africa, and South America, and a co-author of the report . "With consumers scrutinising every purchase, brands are now competing on trust, ethics, and value for money."
Good value for money is the most important purchasing factor for consumers across all nine European countries surveyed, with 59 per cent citing it as their top priority. This is followed by the ability to save (48 per cent) and low prices (47 per cent), highlighting a strong focus on financial prudence. Reflecting this cautious mindset, consumers are cutting back on discretionary spending, with apparel experiencing a 22 per cent net decline in spending. However, luxury fashion is bucking this downward trend, as high-income consumers and luxury buyers indicate plans to increase their spending in this category over the next six months.
Compared to 2024, there has been a slight decline in online shopping as consumers cut back on discretionary spending. A strong majority (72 per cent) still view physical stores as essential, highlighting a continued preference for a seamless blend of in-store and online experiences. Sustainability is gaining traction, with 45 per cent of consumers factoring it into their purchasing decisions—a 5 percentage point increase—though only 17 per cent are willing to pay more for sustainable options. In response to environmental concerns, secondhand shopping is on the rise, with about 20 per cent of European consumers regularly purchasing used apparel, toys, luxury fashion, and furniture. Participation is particularly high in Scandinavia (25 per cent to 35 per cent), while lower in Spain and Italy (10 per cent to 15 per cent). Additionally, over one-third of consumers now avoid brands for ethical or political reasons, marking a 6-point increase from last year. This trend underscores the need for brands to align with consumers' values as well as their budgets.
"This is a defining moment for consumer companies," Malby said. "Brands should make bold portfolio and pricing decisions while planting seeds for the future. Although the current climate is challenging, growth will return—companies should manage for both today and a brighter tomorrow."
Fibre2Fashion News Desk (RR)

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