Kantar’s latest Consumer Sentiment Barometer reveals significant shifts in Australian consumer behaviour in response to economic pressures. According to the findings, 42% of Australians are poised to cease purchasing US products and services due to tariffs, while 53% intend to increase their consumption of local goods.

The Barometer, which surveyed 20 markets with a sample size of 500 for most, except the USA (1,000) and China (120), highlights a trend among Australians to cut back on big-ticket items such as cars and overseas holidays. Instead, there is a noticeable pivot towards spending on smaller, local indulgences.

The rising cost-of-living is a primary concern for Australians, with 51% attributing it to business profiteering, 64% to rising energy costs, and 52% to economic policies. As a result, 43% of Australians are actively seeking price reductions to alleviate cost-of-living pressures.

Kantar Australia’s Managing Partner – Consulting, Mark Kennedy, commented, “In this poly-crisis world, people are uncertain – and genuinely so… To make your own luck in turbulent times, foresight becomes critical. Now unfortunately, even at Kantar, we don’t have a crystal ball, but we can build possible scenarios based on the data we have.”

Globally, the Barometer indicates that 71% of consumers blame the US for the ongoing tariff turmoil, with varied responses towards local governments. In Australia, four in five citizens believe it is the government’s responsibility to address economic, political, social, and environmental concerns.

“What is clear is that in Australia, the disparity is growing, and the impact is not being felt equally across the population, and across business,” said Kennedy.

“Deciding not to do something it is an ACTIVE decision – and one that is extremely risky. Marketers need to understand not only the meta picture but more importantly, the relevance to your business and brand, and your context. And that requires smart scenario planning: that is, understanding what most relevant to you, and taking bold action to address it.”