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Rising tariffs push consumers toward local products, value alternatives

Nearly half are switching to cheaper brands.

Consumers worldwide are changing the way they shop in response to a turbulent global economy marked by inflation, rising tariffs, and political uncertainty, GlobalData said.

According to the Q1 2025 consumer survey, more than half (56%) of global consumers are concerned about how trade wars and tariffs are affecting product prices, with heightened concern in countries like Canada (66%) and Mexico (62%).

“These concerns are not abstract. They are driving tangible changes in consumer behavior across everyday categories such as food, drinks, toiletries, clothing, and homewares,” Prerana Manral, senior consumer analyst at GlobalData, said.

The survey found that 54% of consumers are now comparing prices online before buying, and 47% are choosing cheaper brands. Private-label brands are growing in popularity, with 33% of consumers opting for store-owned brands to save money. Additionally, 38% are shopping at discount retailers, and 32% have stopped buying some products due to rising costs.

Moreover, the report also highlighted a growing preference for locally sourced products. About 68% of consumers say they prefer buying local, with 71% citing support for local brands as a key reason. Political events are also influencing purchasing decisions, with 58% of consumers becoming more aware of a product’s country of origin.

“As consumers increasingly respond to rising tariffs and price pressures by shifting toward local products and value-driven alternatives, FMCG companies must recognize this as a long-term behavioral shift rather than a temporary adjustment,” Manral said.

He added that brands need to adjust by focusing on local sourcing, expanding private-label options, and communicating their values around price, sustainability, and origin.

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