WARC Report Highlights Forces Reshaping Consumer Spending In 2026.

WARC has released its 2026 Global Consumer Trends report identifying five key forces that are expected to shape consumer purchase decisions across brands and categories over the coming year.

The analysis draws on a wide set of GWI consumer surveys alongside WARC research, case studies and proprietary frameworks. It highlights growing financial pressure, rapid advances in artificial intelligence, tightening regulation of youth social media use, shifting perceptions of Chinese-made products, and increasing consumer demand for authenticity in digital content.

Stephanie Siew, Senior Research Executive at WARC, says consumer sentiment heading into 2026 remains under strain.

“Consumer sentiment in 2026 remains fragile, shaped by financial pressures, geopolitical turbulence, and a growing need for escape, with spend shifting to small comforts that bring joy,” Siew says in a news release. “Brands that forge emotional connections will thrive, but must navigate rising scrutiny on technology, authenticity, and trust to make a meaningful impact,” Siew said.

“Our annual Consumer Trends report provides a broader view of the major issues confronting our industry from the perspective of consumers, with suggestions to help businesses create the most impact in the year ahead.”

A central theme of the report is what WARC describes as “comfort consumption,” driven by economic and geopolitical uncertainty. More than two in five (45%) of employed consumers report concern about job security, while one third (33%) say they’re saving more or reducing spending due to labor market conditions.

Half of consumers cite financial stress as the biggest contributor to unhappiness. In response, many are redirecting discretionary spending toward small, affordable purchases that offer emotional relief, including wellness activities and hobbies. While demand for travel remains, WARC notes that geopolitical tensions and cost pressures could dampen international tourism spending.

The report says marketers should focus on aligning products and messaging with these smaller, everyday sources of enjoyment.

Another major trend is the growing role of artificial intelligence in personal relationships. According to WARC, 1 in 10 consumers globally report having been in a relationship with an AI chatbot. Among those users, 62% say they are likely to seek advice from an AI chatbot instead of a human friend for personal matters.

The report notes that AI companionship is being driven by desires for reduced loneliness and frictionless interaction. This is influencing product development, including AI-enabled toys and companion devices designed for elderly care and emotional support.

However, WARC warns that brands must be cautious when deploying AI in emotionally sensitive contexts, particularly where younger users or vulnerable populations are involved.

Concerns about children’s exposure to social media are also increasing. The report finds that 64% of consumers believe social media is harmful to children, while 51% support age verification requirements.

This shift is expected to affect how brands reach younger audiences, particularly Generation Alpha, who increasingly rely on social platforms for product discovery and lifestyle inspiration. WARC suggests that restrictions may push marketers toward alternative channels, including private messaging platforms and family-oriented streaming services. It also recommends that brands consider building owned communities and prioritizing parental trust and transparency.

The report also identifies a changing global perception of Chinese brands. While 36% of consumers now associate Chinese apps and tech products with innovation, and one in four globally prefer to buy personal electronics from China, affordability remains a core association.

WARC says Chinese companies are increasingly competing on design, innovation and emotional brand value, rather than price alone. The report advises marketers to focus on trust, cultural relevance and product quality to build premium positioning.

Finally, the study highlights growing tension around AI-generated content. While 85% of consumers say human-made artwork is more meaningful, 78% believe AI-generated content should be clearly labelled. At the same time, some consumers see benefits in AI-assisted creativity, with research cited in the report indicating that around four in ten believe it has improved content quality and diversity.