A KPMG survey of 1000 consumers in February 2022 reveals that consumers anticipate spend increases, higher prices, and a continued shift to online spending. The survey also looked at the impact of social media, and consumers’ move to metaverse. Explore key findings here and download our reports to learn more.
Consumers enter the metaverse
The metaverse is here and consumers are embracing it. Nearly two out of three consumers are at least somewhat familiar with the metaverse. Familiarity is positively correlated with income and negatively correlated with age. Forty percent (40%) of parents responding to the survey have purchased a virtual reality device for their child(ren). Nearly 50 percent of respondents agree that “the metaverse can provide a forum to interact with friends in a way that is as meaningful as in person” and over 40 percent of respondents agree that “engaging with friends in the metaverse is an authentic way of interacting.”
Forty-six percent (46%) of consumers in our survey agree that “the metaverse can provide a forum to interact with friends in a way that is as meaningful as in person.”
The impact of social media
Facebook is still the most frequently used social media platform, followed by Instagram, Pinterest, TikTok, and Snapchat. TikTok is noted as the leading social media advertising influence for Millennials (75 percent) and Gen Z (64 percent), with Snapchat at a close second. Some 50–60 percent of survey respondents indicate they sometimes, often, or always make purchases based on advertising recommendations or directly on social media platforms. Respondents who make purchases via social media do their research; they search company websites and product reviews, prefer products made in the U.S., and rely on word of mouth.
Social media engagement by platform
*Totals may not sum to 100% due to rounding.
Social media advertising influence on consumer purchases by age
Gen Z |
|
|---|---|
| TikTok | 64% |
| 63% | |
| 59% | |
| Snapchat | 55% |
| 55% | |
Millennials |
|
|---|---|
| TikTok | 75% |
| Snapchat | 74% |
| 72% | |
| 72% | |
| 71% | |
Gen X |
|
|---|---|
| 58% | |
| TikTok | 56% |
| Snapchat | 53% |
| 52% | |
| 51% | |
Baby Boomer + |
|
|---|---|
| Snapchat | 45% |
| 37% | |
| TikTok | 34% |
| 30% | |
| 22% | |
Higher prices equal increased spend
Expected increases in consumer spend may be linked to perceived price increases. Approximately half, if not more, of consumers have perceived price increases across all categories since the summer of 2021. Price increases are felt most in groceries, restaurants, and personal care products with 80 percent, 73 percent, and 68 percent of respondents believing prices have increased in these categories, respectively.
Consumer perception on price changes
*Totals may not sum to 100% due to rounding.
*Totals may not sum to 100% due to rounding.
Consumers expect to spend less on apparel
According to survey respondents, apparel spend dropped during COVID-19 and will continue to stay at the same level in the foreseeable future. Approximately one-third of survey respondents expect to spend less on apparel in 2022 than they did in 2019, mainly because they are still going out less. It’s important to note that the majority of consumers who have shopped online in the last three months are purchasing from the same retailers that they used to shop in-store, rather than shopping at new retailers online.
Projected apparel spend and top reasons for spending less
Read the survey report
The KPMG Consumer pulse survey series explores key, emerging themes around consumer behaviors, purchasing patterns and the economy. Each survey asks 1,000 U.S. consumers, representing all demographics, timely questions about upcoming purchases and economic conditions. We conduct the surveys to help our clients understand consumers, uncover the signals of permanent change and create basis for transforming their businesses to meet customers where they are.
Hot topics include anticipated spend, social media, metaverse, and apparel.
