The Rise of the "Treat Culture" in Tough Times

In times of economic uncertainty, it's common for consumers to adjust their spending habits and become more frugal. However, in the current downturn, we're seeing a contrasting trend emerge - a "treat culture" that's alive and well. Particularly among younger consumers, there's a mentality of "f*ck it" that's allowing them to indulge in little luxuries more often.

This trend is driven by crisis fatigue caused by a rise in the cost of living and fears of recession. This crisis fatigue is causing people to focus on the present moment rather than worrying about the future. Consumers now feel priced out of experiences like dinners and holidays and are turning to small indulgences to help them feel better.

Trade-Down to Trade-Up

There are two opposing forces at play when it comes to "treat occasions." On the one hand, there's the "trade-down" effect, where consumers are looking for brands to fill the gap left by experiences that they can no longer afford. On the other hand, there's the "trade-up" effect, where consumers are willing to spend a bit more on affordable luxuries to make themselves feel better in tough times.

What it Means for Marketers

This trend has significant implications for marketers. It's essential to understand that consumers may not be who you think they are. Their priorities and spending habits may have shifted, and it's crucial to stay on top of these changes to effectively reach and engage your target audience. Marketers should consider what new occasions they can satisfy. As people look for little luxuries to indulge in, there may be opportunities to create new "treat occasions" that consumers will eagerly embrace. Messaging and activations should lean into notions of decadence and indulgence. Consumers are looking for a bit of escapism and indulgence in tough times, so brands that can tap into these desires are likely to be more successful.

Taco Bell

Taco Bell found a financially empathetic way to help consumers indulge and treat themselves in times of economic downturn. They introduced a taco lover pass, where for one month, members could get a taco a day for an upfront cost of just ten dollars.

Tequila Rose

Within the shots category, Tequila Rose is a great example of a brand we’ve helped to build a sense of treat culture into their proposition, serve strategy and brand comms. One way we did this was by shifting away from the idea of shots as a dare or punishment and aligning the drink more to the brunch occasion. 

We were able to do this as we recognised consumer shifts and preferences. For example, young people are going out earlier to avoid the spiralling costs and health implications of being out later. Furthermore, Tequila Rose having a lower ABV allows consumers to have indulgence-focused occasions than stronger drinks would typically allow. 

In conclusion, the treat culture that's emerged during this downturn is a fascinating trend for marketers to watch. By understanding the opposing forces at play and adapting messaging and activations accordingly, brands can successfully tap into this trend and engage consumers looking for a bit of indulgence in tough times.

If you would like to dive deeper into the ever-changing world of consumer behaviour and find out how your brand can stay at the forefront, check out our latest webinar, Rethinking Retail: The New New Normal in 2023. If you’d like to speak with an expert about how Quantum can help your brand deliver impactful activations at the moments that matter most, get in touch today.