Wave 19 Global Barometer

Inflation’s Impact on
Global Consumers.

- GLOBAL BAROMETER: WAVE 19

A need formarket
understanding.

It’s important to understand the changing needsof consumers. Consumers want to engage withbrands that support them and share their values,
so brands must continue to evolve in the way
they position and market themselves.
Understanding today’s consumer is critical. We
field our Consumer Barometer to better
understand consumer changes as they happen.

- G L O B A L -B AP RR O
E SMEENT TE AR T: I WONA VT EI T 1L 9E

Wave 19: Markets
studied and fieldschedule
Fieldwork took place between 23rd – 29th March
2022• Data has been weighted by age, gender,and region to be Census representative in allmarkets (except UAE, where regions are notweighted).
• In France, data is also weighted to reflectsocial grade.

MarketCompleted Interviews

UK1011

France1006

Germany

1013

Italy

1010

Spain

1014

US

1007

Brazil1006

Australia

1000

Singapore

502

Japan

1004

Korea

1006

China

1005

UAE500

New Zealand501

Mexico1017

Saudi Arabia

504- GLOBAL BAROMETER: WAVE 19LifeSatisfaction

Consumer
Confidence

Consumer
Confidence

is continuing to improve (+10compared to March 2021)

in spending remains low: 25%
globally are confident spending
money (+6 since March 2021)

Over 4 in 10Optimism

have less money now than before
the pandemic and concerns
around job security remain

Despite this, consumers continue
to be optimistic – optimism is up
slightly on last wave

- GLOBAL BAROMETER: WAVE 19

Cost of Living
Consumers are noticing price increases
across categories as a result of the rising costof living and are trying to combat this.

• Consumers are most
likely to visit more storesin search of value orchange to a cheaper
supermarket

agree that rising energy and living
costs are impacting their spending• 48% globally will
increase their purchaseof cheaper alternatives
to their usual choices

58%

are affected (at least moderately)by the price changes within
groceries• Social activities are thearea of spend
consumers are most
likely to cut back on to
help manage finances

8 in 10are noticing price increases in fresh
food

69%

- G L O B A- L P B
RAE SR EONMT EA TTEI RO:N WTAI TVLEE 1 9

Supply Chain

Consumers are experiencing
issues with increased prices
and availability of products /brands both in-store andonline

6 in 10
Who experience issues withproduct availability online would
switch to in-store shopping

52% globally…
are extremely or somewhat
frustrated with issues aroundproduct availability

Top actions to take
• Shopping in other types of stores• Buying extra when items come instock• Use different recipes / food types- G-L OG BL AO LB AB LA RB OAMROE TMEERT: E R
W: A WVAE V1 E9 1 9Brand values
Consumers are thinking more about thevalues of the brands they buy.

8 in 10global consumers believe thatbrands should be accountable toconsumers.

64%

go out of their way to engage withbrands that align with their values

3 in 4

globally agree that it is important tothem that they invest time and care
into the decisions they make as aconsumer

Positive environmental
and social activities
are highly important inwhether consumers will
use a brand• However, a significant
number of consumers don’t
have enough information
about it to start making
those changes (66%).

• Nearly 7 in 10 (67%) global
consumers would stopusing a brand because ofits negative environmental
and social activities- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

Consumer
Confidence- GLOBAL BAROMETER: WAVE 19

SENTIMENT TRACKER

Global satisfaction has
improved compared to thistime last year…
43%

Of global consumers report feelingvery satisfied with their life over thelast 2 weeks

WAS

33%

Were satisfied in March 2021

- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

Optimism continues to rise

41%

SENTIMENT TRACKER

Of global consumers report feelingvery optimistic about the future

30%

In Europe

41%

In APAC& MENA

60%

In theAmericas- GLOBAL BAROMETER: WAVE 19

However, consumers arestill worried about theirfinances

JUST

25%

SENTIMENT TRACKER

Of global consumers say they are very
confident spending money over thecoming months given the pandemic

WAS

19%

+6pp since March 2021

- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

SENTIMENT TRACKER

37%

Of global consumers are very
concerned about their personal
financial security given COVID-19& current global and economic
circumstances

52%

In the Americas - driven
by Mexico (64%)

Over 4 in 10 consumers globally have less money now than they
did before the pandemic. However, there is optimism regarding
finances over the coming months
Expectations for financial change in
the next 3 months

Financial situation vs. pre-pandemic

I am much better offnow
I am a bit better off now

5%

I will be a lot better off

14%

I am a bit less well off
now
I am much less well off
now

40%

No change

31%
Net:13%24%

I will be a bit better off

36%

No change

9%44%

I will be a bit less welloff
I will be much less well
off

18%
Net:
7%

26%

- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

SENTIMENT TRACKER

1 in 5 globally feel worried about their employment

37%

Of global consumers either feelworried about their employment,
are in reduced employment, or
have become unemployedsince the pandemic

21%

21%
16%
13%

13%

9%

EuropeAPAC & MENA

Worried about employment

The Americas

In reduced employment- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

SENTIMENT TRACKER

Expect to Spend More

The top areas global
consumers are expecting
to spend more money on
this year are:Utility bills

Utility bills

42%

Personal care and hygiene

31%

Vacations/holidays

31%

Healthcare

30%

Going out to eat

29%- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

Supply Chain- Presentation title- G L O B A- L P BRAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

SUPPLY CHAIN

Globally consumers areexperiencing issues withincreased prices andavailability of products /brands online & in-store

Issues experienced while shopping in P3M
63%

Increased prices

42%
38%

Products out of stock / temporarily unavailable

29%
32%

Brands out of stock / temporarily unavailable

63%

Experience price increases whenshopping in-store

Lack of social distancingEmpty shelves

Delays in delivery / Click & Collect availability

42%

Experience price increases when
shopping online

In-store

24%
31%
N/A

29%
N/A
N/A

25%
Online- GLOBAL BAROMETER: WAVE 19

SUPPLY CHAIN

The main issues withproduct availability areexperienced at grocery
retailers/ supermarkets
Highest for in-store retailers in:
New Zealand (90%)
Spain (88%)
UK (87%)Australia (87%)
Germany (85%)

Top 5 retailers where products were unavailable
in the past 3 months
75%

Grocery retailer /supermarket

Department store (or similar)

Clothes / footwear / sportswear retailer

Beauty, health, wellness retailer

Homeware / furniture retailer

In-store

50%
26%
26%
24%
33%
22%
27%
17%
20%Online- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

SUPPLY CHAIN

60%
Of global consumers arewilling to switch to instore shopping becauseof products or brands
being temporarily
unavailable online- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

4 in 10 consumers…

SUPPLY CHAIN

globally had difficulty buying pantry/dry products due to availability instore in the past 3 months.

42%

Pantry/dry products

35%

Fruit & vegetables

31%

Fresh meat / fish

27%

Household cleaningproducts

26%

Frozen food25%

Chilled dairy- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

SUPPLY CHAIN

Globally
consumers aremost likely switch
brand/product if
their usual one isunavailable, or to
try and buy fromanother store

If consumers are unable to buy their usual product / brand, they
are most likely to…

[Shown for the top 6 grocery items that consumers have experienced issues with]Pantry / dry products

40%

22%

33%

5%

Fruit & vegetables

40%

19%

39%

2%

Fresh meat / fish

37%

20%

37%

5%

Household cleaning

45%

21%

31%

3%

Frozen food

40%

21%

32%

7%

Chilled dairy

41%

20%

34%

6%

Substitute / try an alternative
Wait until product or brand becomes available
Try and buy from another store
I do not buy this- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

SUPPLY CHAIN

3 in 4 consumers expect issues with product unavailability tolast up to 6 months

52%

Of global consumers are
extremely/somewhat frustrated
with products being unavailable

Net: 76%

27%

Less than 1month24%

2-3 months

25%

3-6 months

13%

11%

6-12 months

More than 12months- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

SUPPLY CHAIN

Top actions that
consumers are taking todeal with the effects ofproduct availability ordelivery delays:

Consumers are most likely to say they could manage 4 to 7
days with their current pantry & fridge supplies without
going shopping
Net: 48%

23%

Shopping in other types of shops

18%

14%

e.g. local butchers or farmer's markets etc

Buying extra when things comeback in stock

25%
14%

2%
Less than 1day

2-3 days

4-5 days

6-7 days

8-14 days

More than 14days

Experimenting with different
recipes / food types- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

Cost of living- GLOBAL BAROMETER: WAVE 19

69%
Of global consumers agree that the risingenergy and living costs are impacting theirspending“The energy crisis and risingcost of living is impacting myspending plans”- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

The areas consumers
are most impacted by
the price changes:
Groceries
Eating outHolidays

Top 10 areas most affected by price changes[Top 2 Box – To a moderate extent/ to a large extent]
58%

Groceries
Eating out

44%

Holidays

44%

Clothes

40%

Electrical Goods

37%

Ordering Takeaways

36%

Mobile Phone

36%

Beauty / Skincare Products

35%

Vitamins & Minerals

33%

Household Subscriptions (i.e. cleaning products,…

66% inAmericas

32%- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

COST OF LIVING

Expected change in spend over next 3 months

47%
Almost half of consumers
globally expect to spend
more on groceries over thenext few months

30%
47%

31%

31%

29%

26%

28%

25%

Holidays

Clothes

ElectricalGoods

25%

14%
Groceries Eating out

Spend less

Spend more- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

COST OF LIVING

79%Globally are experiencing
price increases in fresh food- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

In order to manage cost of living increases
over the next 3 months, consumers are most
likely to change the brands/ products theybuy, or visit more stores in search of value

COST OF LIVING

44%

Change the brands orproducts I normally buy(buy more own label)

29%

Shop more often to
avoid waste and get thebest deals

34%

Visit more stores insearch of value

27%

Shop less often butbuy in bulk

31%

Change supermarkets
to a cheaper
alternative- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

COST OF LIVING

Factors when choosing groceries products

3 in 4

Of global consumers report priceas one of the most importantfactor when choosing groceries
in the next 3 months. This isfollowed by quality.

Price

75%

Quality68%

Health39%

On-promotion

38%

Product Availability

31%

Sustainability

23%

My favourite brand

22%- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

Half of global consumers
expect to buy cheaper
alternatives to their usual
products over the comingmonths
48%

COST OF LIVING

Of global consumers will increase
their purchase of cheaper
alternatives to their usual choices

32%

Of global consumers will decrease theirpurchase of premium brand products- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

COST OF LIVING

Top 5 activities consumers would give up to save moneyConsumers would be mostlikely to give up social activities
in order to save money

31%

Eating Out

27%

Going on holiday
abroad

25%

22%

20%

Purchasing premium Going to bars / pubs
brand products

Ordering atakeaway

Top 5 activities where consumers would NOT give up to save money

Subscriptions are the activities
that consumers are least likely togive up

29%

Mobile Phone
Contract

26%

Purchasing cheaper
alternatives to myusual purchases

23%

22%

TV Subscriptions

Eating Out

18%

Sports / Fitness
Act ivities (e.g . gymmembership)- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

46% globally would turn to

COST OF LIVING

family if they neededfinancial help/support overthe next few months
21%of people would turn to a Banks /Building Society

21%

Would ask a friend

14%

Government / Benefit System- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

COST OF LIVING

Consumers plan to reduce energy andwater usage over the coming months
in order to help manage their finances
59%

Turning the lights off
whenever possible

37%

Taking shorter
showers to reducewater usage

35%

Reducing the targettemperature ofheating

27%

Using eco/cold washes
on washing machinesor dishwashers

24%

Programming laundry
during low tariff hours

24%

Investing in smart
solutions to reduceenergy waste- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9Brand values,ethics, and social
responsibility- Presentation title- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

BRAND VALUES

3 in 4
globally agree that it isimportant to them that they
invest time and care intothe decisions they make asa consumer- GLOBAL BAROMETER: WAVE 19

Consumers care aboutbrand accountability
and brand values.
80%

BRAND VALUESOf global consumers believe thatbrands should be accountable68%

Of global consumers like to keep
informed about the values/ethics of thebrands they use

64%

go out of their way to engage with brands thatalign with their values. The same proportion avoid
brands whose values aren’t aligned with theirs- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

71%
of consumers globally wouldstart using / use more of abrand because of its positiveenvironmental and social
activities

66%

would like to makemore decisions
about which brands
they use based on
environmental andsocial factors but
don’t have enoughinformation

63%

would like to makemore decisions
about which brands
they use based on
environmental andsocial factors but
can’t afford to- PRESENTATION TITLE

BRAND VALUES

67%
would stop using a brandbecause of its negativeenvironmental and social
activities- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

The THREE most important
attributes when choosing
between brands:
67%

Brands being sincere andauthentic in what they do

59%

Brands being committed toreducing the use of plastic/
paper/ packaging

56%

Brands having policies which
benefit the environment andsociety

BRAND VALUES- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

BRAND VALUES

76%
of people would like theirsavings and investments toalign with their values

67%
Would never invest in aproduct if it carried a detrimentto sustainability- G L O B A- L P B
RAE SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9

Toluna USA+1 203 834 8585
tolunacorporate.com- Presentation title- G L O B A- L P BRA
E SR EONMT EA TTEI R
O:N WTAI TVLEE 1 9