Consumers are increasingly prioritizing value over low prices, with brands offering additional benefits gaining a competitive edge, according to a Deloitte report.
A recent report by Deloitte highlights a significant shift in consumer behavior, driven by economic uncertainties and inflationary pressures. Consumers are increasingly seeking value beyond just low prices, with brands that offer additional benefits gaining a competitive edge. This trend is reshaping the market landscape, as companies strive to meet evolving consumer expectations.
Value-Seeking Behavior on the Rise
Deloitte’s report, “The Value-Seeking Consumer: Competitors Could Lose Out to Brands Offering More than Low Prices,” reveals that 40% of American consumers are now classified as value-seekers. These consumers exhibit behaviors such as cost-consciousness, deal-driven purchasing, and convenience sacrifices across various sectors, including automotive, grocery, leisure travel, restaurants, and retail. The report indicates that value-seeking behavior is prevalent across all demographics, with higher-income earners also participating in this trend.
Impact of Economic Conditions
The ongoing economic uncertainty has led to a more cautious consumer base. Inflationary pressures have altered consumer perceptions of fair pricing and value, prompting a reevaluation of spending habits. Deloitte’s ConsumerSignals data shows that the Value-seeking Behavior Index increased by 10% from September 2024 to April 2025, driven by shifts such as more home cooking and reduced grocery delivery. However, the index dropped by 6% in May, reflecting the volatility in consumer sentiment.
Demographic Insights
The report challenges the assumption that financial pressures primarily affect younger generations. Nearly half of Gen X (49%) and Boomers (43%) engage in value-seeking behaviors, compared to 40% of Millennials and 44% of Gen Z. Interestingly, 23% of consumers earning $ 200,000 or more are value-seekers, indicating that higher-income households also prioritize value. Among young families with six-figure incomes, nearly 30% are identified as value-seekers.
Spending Patterns and Preferences
Value-seekers intend to reduce spending on discretionary categories such as personal care, household goods, home furnishings, and entertainment by 40-50%. Instead, they allocate a larger portion of their budget to essentials like housing and transportation. High-income value-seekers, although fewer in number, make more dramatic cuts in discretionary spending compared to their non-value-seeking peers, with reductions of 50-60% in categories such as clothing, restaurants, recreation, and personal care.
Beyond Price: The Role of Quality and Trust
While price remains a significant factor, Deloitte’s analysis indicates that 10-40% of perceived value stems from factors beyond price. Brands that excel in providing quality, reliability, and trust are more likely to attract consumers. In sectors such as grocery, hotels, and restaurants, quality is the primary driver of value.
Market Implications
The report underscores the importance of brands positioning themselves as MVPs (Most Valuable Players) by delivering more than just competitive prices. Brands that focus on enhancing product and service quality, reliability, and consumer trust are better positioned to attract consumers and build long-term loyalty. The shift in consumer preferences is evident in transaction data, with a 2% increase in spending at MVP brands across grocery, restaurants, and hotels, indicating a tangible impact on market dynamics.
Conclusion
Deloitte’s findings highlight a critical shift in consumer behavior, with value-seeking becoming a dominant trend across demographics and income levels. As economic uncertainties persist, brands that successfully align with consumer expectations for value, quality, and trust are likely to thrive. The report serves as a call to action for companies to reassess their strategies and prioritize delivering meaningful value to consumers in an increasingly competitive market.
Access the report here: The Value-Seeking Consumer: Competitors Could Lose Out to Brands Offering More than Low Prices
