Spending on mood-boosting products and experiences is proving resilient as consumers seek a morale boost in hard and uncertain times. From the 'Lipstick Effect' to 'Treatonomics,' consumers are looking to reward themselves as life's traditional milestones become harder to achieve. They treat themselves not only with goods like makeup or affordable homewares, but also with enriching experiences. 'Treatonomics'—which encompasses spending on everyday luxuries to larger life-affirming experiences—is booming as people search for a mood boost amidst ongoing economic unease. Small-item purchases, often referred to as 'pick-me-ups,' are a well-established recession-resistant trend where consumers opt for modest personal items for comfort during tough times. This trend acts as a bellwether for consumer sentiment about the economy characterized by inflation, high interest rates, and growth concerns.
The COVID-19 pandemic led to a reevaluation of personal wellbeing, prompting a rise in 'Treatonomics.' Consumers are making sacrifices in everyday spending to indulge in memorable experiences such as concerts, sometimes spending significant sums for tickets. John Stevenson, a retail analyst, highlighted that this trend reflects a shift towards prioritizing these experiences over traditional milestones like homeownership or marriage. As life’s milestones become less attainable, consumers focus on celebrating smaller achievements, leading to the emergence of events like 'Resignation Parties' and 'Divorce Parties.' The trend continues to evolve, influenced by factors like economic uncertainty and changing social norms, suggesting that 'Treatonomics' will remain relevant for years to come.