Key Issues Facing Consumers at Year-End 2025

As the 2025 year-end approaches, the holiday season beckons with its promise of joy and connection. However, for many consumers, it arrives amid a whirlwind of economic and social pressures. Global surveys reveal a landscape of cautious optimism, where spending intentions clash with ongoing uncertainties.

According to McKinsey’s State of the Consumer Market Survey, consumer sentiment remains below pre-2020 levels, influenced by concerns over inflation and living costs, even as behaviors adopted during the pandemic—such as digital reliance and solo leisure—have become permanent.

Nielsen IQ’s Mid-Year Consumer Outlook reflects this, highlighting a shift toward "intentional consumption" as 27% of consumers report financial security, up from 21% in 2023, but many still shift budgets to essentials due to rising everyday expenses.

With holiday shopping expected to increase, these factors intensify key challenges: inflation’s persistent effects, sustainability demands, data privacy concerns, health priorities, and the AI-driven shift in decision-making. Navigating these wisely is essential to avoid year-end pitfalls.

Inflation’s Lingering Grip

Inflation is the top concern for consumers, with Euromonitor reporting that 72% worry about rising costs, even as global rates drop to 4.2%. Year-end worsens this issue as holiday sales hide underlying increases in prices for groceries, travel, and gifts. SpringFour predicts these high prices will continue into 2026, stretching budgets and increasing debt—transportation costs alone climbed 24%, leading to more requests for financial aid from mid-2024.

Consumers, especially Gen Z burdened by student loans, express pessimism about price stabilization, according to McKinsey, leading to stockpiling behaviors or a preference for U.S. made goods amid tariff threats on electronics and apparel. Over half plan to hoard essentials, according to Numerator Visions, turning Black Friday into a defensive ritual rather than a festive shopping spree. This squeeze risks dampening holiday cheer, pushing families toward "cautious splurges" on experiences rather than things.

Data Privacy and Cybersecurity Threats

Data privacy and security remain a major challenge, especially with AI’s widespread use. Intelligence Node reports that 23% of U.S. internet users now withhold personal information online, reaching a new high amid rising deepfake frauds and AI-driven scams expected to increase in 2025.

PwC’s consumer markets outlook warns of rising threats, such as fake video calls designed to steal payments during busy holiday shopping seasons. With e-commerce expected to reach $1.6 trillion by 2028, according to Forrester, cyber vulnerabilities at the end of the year remain a serious concern—similar to the increase in phishing scams during Cyber Monday.

Consumers want stronger protections, but trust in brands is falling, according to Innova, as problems like corruption and job insecurity weaken confidence. Taking proactive steps like two-factor authentication and transparent privacy policies is crucial to maintain customer loyalty.

Health and Wellness Priorities

Health and wellness, post-pandemic, continue to be key focus areas, with Euromonitor highlighting a rise in demand for customized functional products. Exploding Topics notes significant growth in markets for sleep aids and mindfulness tools, as consumers use their newfound free time—three extra hours each week, according to McKinsey—for solo fitness and relaxation.

HubSpot notes that affordable healthcare is the top issue, with 55% urging brands to support racial justice and income equality. Year-end indulgence temptations clash with health priorities, as nutritional concerns influence a third of U.S. purchases, favoring low-sugar options. Successful brands offer personalized, value-driven wellness solutions, turning potential regrets over overeating into empowered choices.

The AI-Driven Shopping Revolution

Finally, AI’s disruption transforms how consumers shop, with 72% planning to use generative tools for decisions, according to HubSpot, weakening traditional search dominance. WARC’s 2025 report, shared via All Things Insights, emphasizes that visibility in AI outputs is vital for holiday success. As the year ends, consumers need to adapt to this new reality—using AI for smarter deals while protecting against algorithmic biases and privacy breaches. The future of shopping has arrived, and it is intelligent, personalized, and requires trust.