The lengths Americans are willing to go to make every penny count

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Amid persistent inflation and rising living costs, Americans are adopting increasingly creative and extreme cost-saving habits—from diluting soap and toothpaste to bulk-buying meat and sharing streaming subscriptions
• These frugality strategies are reshaping consumer behavior and starting to affect sales at major consumer goods companies

🔭 The context: Following years of high inflation and elevated interest rates, U.S. households are facing greater financial pressure, especially in food, housing, and healthcare
• While wages have grown, price increases have outpaced income gains for many, driving consumers to prioritize essentials and rethink daily habits
• Consumer goods companies are reporting slower sales growth, as shoppers stretch product usage and trade down to lower-cost alternatives

🌍 Why it matters for the planet: While driven by economic need, many of these frugal practices inadvertently reduce waste and consumption
• Using fewer packaged goods, extending product life, and buying in bulk can decrease packaging waste and lower emissions across supply chains
• However, reduced consumption may also challenge revenue models for brands investing in sustainability, creating tension between economic resilience and green innovation

⏭️ What's next: Companies are adjusting their strategies—offering smaller pack sizes, value bundles, or marketing durability—to align with shifting consumer habits
• Policymakers may also face increasing pressure to address affordability and food security concerns
• If frugality persists as a long-term trend, it could redefine sustainability narratives in consumer markets from “more sustainable consumption” to simply “less consumption”

💬 One quote: "People are being forced to ask what they truly need—and that’s reshaping the consumer economy in ways we haven’t seen since the Great Recession," — a retail analyst at NPD Group

📈 One stat: Roughly 69% of U.S. consumers say they have changed their shopping habits in 2025 to cope with higher prices, according to recent industry surveys

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