Circana: Steady consumer spending led by lifestyle and wellness priorities

CHICAGO — Consumers continued to spend in May despite ongoing economic pressures, though purchasing patterns indicate shoppers are becoming more deliberate in how they allocate their dollars, according to new Circana data.

Overall retail spending increased 1.3% year over year in May, while unit demand declined 1.5%, reflecting a more selective consumer environment. Within consumer packaged goods, retail food and beverage sales rose 2.2%, with unit demand essentially flat at 0.1%. Non-edible CPG sales increased 2.3% despite a 2.1% decline in units sold.

“While gas prices have eased slightly, consumers appear to have adjusted to elevated levels, unlocking pent-up demand. The pain at the pump didn’t dampen Memorial Day spending either — the week delivered modest year-over-year growth,” said Marshal Cohen, chief retail industry advisor for Circana. “That being said, consumers may be callused to higher prices, but they’re not numb — they remain highly engaged and intentional in how they spend.”

Circana noted that consumers continue to prioritize purchases in health, wellness and personal care, with beauty remaining a standout performer among discretionary categories. At the same time, shoppers are increasingly focused on balancing quality and value amid persistent economic uncertainty.

The findings suggest consumers are maintaining spending on products that support everyday lifestyles and personal well-being, even as they pull back in other discretionary areas. Categories such as apparel and footwear continue to face pressure, while spending on practical needs and lifestyle-oriented products remains more resilient.

According to Circana, the behavioral shifts mirror patterns seen during the pandemic, though today's spending decisions are driven by economic concerns rather than health-related disruptions.

“Resilience in consumer spending is not automatic — it must be activated,” Cohen said. “Consumers remain willing to pay a premium for quality, but they are increasingly selective. Coupled with the current digital-first environment, impulse buying is hard to come by. Success lies in the ability to transform purchase moments into compelling, destination-driven experiences that balance both enjoyment and value.”