Beyond Affordability is one of Euromonitor International’s five new Trending Topics for the year ahead. We have identified these topics as the most crucial cross-industry trends that businesses need to prioritise to remain competitive.
Despite real household disposable income growing by just 0.4% annually since 2021 (following the COVID-19 pandemic), consumers no longer assess brands by price alone. Instead, they weigh a shifting mix of priorities, including health, convenience, sustainability and digital experience. To remain relevant in this context, businesses must evolve beyond traditional price-based competition to meet increasingly complex consumer expectations. Companies must recalibrate their value offers or risk losing relevance and market share.
The dual pressures of stagnating incomes and escalating costs
Even though global inflation has eased from its 2022 peak, household disposable incomes have stagnated, and the cost-of-living crisis continues to strain household budgets. Affordability and price sensitivity remain a paramount concern for consumers, with 71% of respondents in Euromonitor’s Voice of the Consumer: Lifestyles Survey (fielded in January-February 2025) expressing concern over the rising cost of everyday items. At the same time, businesses are grappling with rising production costs, tariff uncertainties, market volatility and renewed recession concerns.
Producer prices in manufacturing surged by 53.2% year-on-year in 2024 and are expected to continue to rise in 2025, by 24.4%, further squeezing profit margins
Source: Euromonitor International from national statistics/Eurostat/OECD/UN/IMF
The pressure of stagnating purchasing power means consumers have little tolerance for further price increases, thus companies have limited room to pass on escalating input costs. As a result, recalibrating value propositions has become a strategic imperative. Businesses must find new ways to deliver enhanced value beyond price, differentiating themselves in a market where both companies and consumers face unprecedented financial constraints.
Today’s consumers are more discerning, even while they seek affordability. They demand enhanced value, balancing price with quality, convenience and alignment to personal priorities, which vary across industries and categories. In food, for example, 40% of consumers actively seek health and good nutritional properties, according to Euromonitor’s Voice of the Consumer: Lifestyles Survey 2025 (fielded January-February, n=40,337).
At the same time, brand loyalty is weakening. Private label is growing in value share, especially in essential categories such as cooking ingredients, staple foods and dairy. Meanwhile, value-focused retailers, such as discounters and warehouse clubs, continue to expand. E-commerce disruptors, such as PDD Holdings (Temu), ByteDance (TikTok) and Shein, are accelerating this shift, particularly among younger consumers who prioritise convenience and affordability over brand loyalty. This marks a structural change in consumer behaviour, where loyalty is no longer earned by brand tradition, but by relevance and reliability. In this environment, brands that can redefine value beyond price and move faster than competitors to deliver enhanced benefits will unlock growth.
The shift towards enhanced value beyond affordability is reshaping competitive dynamics across industries. Businesses that focus solely on price are losing share to those that deliver differentiated, enhanced benefits – such as health, nutrition, sustainability, convenience and experience – alongside affordability.
To stay competitive, businesses must move beyond price competition and deliver relevant benefits and enhanced value that align with shifting consumer priorities and expectations:
- In the automotive industry, SAIC’s MG4 EV exemplifies this approach. Built on the intelligent Modular Scalable Platform (MSP) – a flexible vehicle architecture that allows multiple models to share the same base, reducing design time, part costs, and manufacturing complexity – the MG4 EV combines affordability with advanced features, making it one of the best-selling EVs in Europe.
- In the travel industry, InterContinental Hotels Group is redefining solo travel with its NOMO (Night On My Own) offering, which blends affordability with curated wellness experiences. NOMO targets “me time” seekers with tiered packages that include discounted overnight stays, late checkout, dining discounts and wellness add-ons. This strategic bundling transforms affordability from a baseline offering into a gateway for purpose-driven experiences.
Ultimately, value creation must become a commitment guiding businesses every step of the way, from product development and manufacturing processes to customer engagement, brand positioning, and long-term growth planning. By doing so, businesses can stay relevant and unlock growth in a rapidly evolving market landscape.
Learn more about this Trending Topic in our report, Beyond Affordability: Unlocking Enhanced Value Across Industries, to effectively recalibrate value strategies to maintain relevance, defend market share, and unlock growth opportunities.
Discover Euromonitor’s other Trending Topics to help you strategise for the year ahead.
