Britons are spending more of their disposable income than they were a year ago, with 38% of consumers reporting a rise in non-essential spending, according to a new nationwide study by Bauer Media Outdoor.
Despite ongoing cost-of-living pressures, the research suggests that consumer confidence is on the rebound. The Audiences in Focus report, which surveyed 2,000 UK respondents, found that over a third of people (36%) have loosened their budgets, treating themselves more frequently — a 20% increase year-on-year.
Travel topped the list of purchases, with one in three (33%) people saying they had spent a significant portion of their disposable income on holidays and breaks. Other popular categories included clothes (26%), home improvements (25%), entertainment (23%), and hobbies (20%).
Generational spending patterns revealed sharp contrasts. Gen Z favoured snacks (32%) and entertainment (26%), while Millennials prioritised clothes (37%) and travel (30%). For those aged 35 and above, travel consistently ranked highest — with the preference only increasing with age.
Regional shifts also challenged long-standing assumptions about consumer concentration in large cities. Aberystwyth, Glasgow, London, Manchester, Sunderland, Newcastle, Birmingham, Chelmsford, Belfast and Portsmouth all featured in the top ten locations for year-on-year increases in disposable income spending.
Ben Hope, Marketing Director at Bauer Media Outdoor, said the data debunked a popular myth. “It’s a common misconception that only big cities have consumer potential. Our insight challenges that theory,” he said. “Across the UK, there are consumers with strong spending power, in cities both big and small. This report helps brands better understand and reach those audiences through smarter, more targeted Out of Home advertising.”
Emotional drivers behind spending were another key focus of the research. Over a third (32%) of participants cited mood improvement as their reason for spending, closely followed by new experiences (31%), self-improvement (23%), and social connection (19%).
Notably, motivations varied by age. Mood-boosting spending was especially prevalent among 45–54-year-olds (41%) and 18–24-year-olds (32%). Meanwhile, self-improvement emerged as the leading factor for 25–34-year-olds, with 45% identifying it as their main reason to spend.
When it comes to who benefits from this discretionary spending, 29% of people say they primarily spend it on themselves, 28% on their children, and 19% on their partner. The data also revealed that the higher the individual’s income, the more likely they are to spend on their children.
Socialising and leisure remained strong spending categories, particularly among younger groups. Almost one in five (19%) Gen Z respondents said they spend disposable income on watching films, while 9% admitted to using it for dating.
Millennials were shown to be the most socially active, with 5% saying they go out every day — more than double the 2% figure reported by Gen Z.
Spending patterns also skewed towards experiential categories, with grocery shopping (69%), travel (31%), eating out (29%), quality time with family (26%) and clothes shopping (18%) topping the list of how consumers allocate their broader income.
Hope concluded: “Our findings reinforce the opportunities available and unveil untapped markets for brands. By understanding where and why people are spending, advertisers can better tailor their messaging and maximise their return on investment in Out of Home media.”
The report is the first major consumer trends insight released by Bauer Media Outdoor since its rebrand from Clear Channel UK earlier this year.
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More than a third of Brits increasing disposable income spending, new study finds