Inflation, social shopping, home ownership status, and other factors are influencing how, where, and why consumers are shopping in 2024, according to new research from Jungle Scout. Here are five key stats about Q2 spending trends.
1. More than half of Amazon product categories showed sales increases in Q2
Key stat: Sales for 13 out of 19 Amazon product categories rose between 2% and 50% between Q1 and Q2, according to Jungle Scout.
What it means: Seasonality matters. Patio, lawn, and garden exhibited the biggest increase (82%), followed by automotive at 21%, signaling consumers’ desire to get out of the house and take advantage of sales as the weather warms.
- Other categories with at least a 10% increase in Q2 sales were health & household (10%), grocery & gourmet food (13%), and electronics (14%).
- Despite the patio, lawn, and garden increase, not all home-related categories boomed. Tools and home improvement only increased 2% QoQ, and home & kitchen declined 5%.
- Video games, typically an indoor activity, showed the biggest Q2 decrease at 39%. The second largest decline was clothing, shoes, and jewelry (7%).
2. Inflation is taking a toll on consumer spending behavior
Key stat: In Q2, 84% of consumers said inflation had an impact on their spending, a 10% increase over Q1, per Jungle Scout’s research.
What it means: Even though the labor market is strong and many retailers are cutting prices to lure in shoppers, consumers feel strained. The increased burden on households carrying debt, thanks in part to the Federal Reserve’s timeline for trimming interest rates, is one factor contributing to their concern.
- Three-quarters (75%) of millennials and Gen X respondents are concerned about their family/personal finances, compared with only 61% of Gen Z and 60% of boomers.
- Boomers feel their household income is the most stable. Only 30% feel it is unstable, compared with Gen X (49%), Gen Z (50%) and millennials (52%).
- Over 70% of renters are worried about their personal/family finances, versus only 61% of homeowners.
3. Spending dropped by nearly one-third for consumers of all ages in Q2
Key stat: Overall spending dropped in Q2 for 32% of Gen Z shoppers, 39% of millennials, 40% of Gen Xers, and 33% of boomers.
What it means: In the face of economic uncertainty, consumers are cautious about their spending.
- Across all generations except boomers, online spending increased more than overall spending. Gen Z shoppers displayed the biggest boost (34%), followed by 28% of millennials, 24% of Gen X, and 18% of boomers.
- Across all generations, boomers’ spending changed the least in Q2. Gen Z shopping patterns changed the most in Q2, increasing in both overall and online.
- 64% of respondents have access to an Amazon Prime account, with Gen X being the most likely (73%) and Gen Z the least likely (54%).
4. Housing status impacts how and where people shop
Key stat: The majority of homeowners and renters—over 60%—shop online at least once a month, with homeowners doing so more frequently. Jungle Scout’s research shows that 42% of homeowners shop online more than once a week, compared with only 35% of renters.
What it means: Homeowners’ higher confidence in their financial security makes them more likely to spend overall. This is further evidenced by renters’ higher propensity to shop at discount websites such as Shein and Temu.
- Only a third of homeowners start their online product searches on social media, compared with more than half (56%) of renters. For both, YouTube is the first stop in social product search.
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Walmart is the most frequented brick-and-mortar store for both renters (52%) and homeowners (54%), while Amazon.com was the most popular online shopping destination, cited by 59% of homeowners and 46% of renters.
- Half of renters say their household income is currently unstable, versus only 30% of homeowners.
5. Social media shopping is on the rise
Key stat: Consumers are becoming more comfortable with purchasing products directly from social media platforms, per Jungle Scout’s research. Forty-four percent said they would purchase directly from Facebook in Q2, a 10% increase over Q1.
What it means: Marketers should pay attention to social trends that are disrupting the way people want to shop and purchase, such as up-and-coming platforms like Whatnot.
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Facebook was the social media platform most respondents said they would likely purchase from in Q2, followed by YouTube (39%), Instagram (29%) and TikTok (26%).
- When starting a product search on social media, Gen Z was most likely to turn to TikTok. They were also the cohort most likely to make a purchase on the platform (66%), compared with 57% of millennials, 30% of Gen X, and only 4% of boomers.
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