From Vapes to Virtual Assistants: Where British Consumers Are Spending in 2025

British household spending showed renewed strength in early 2025. Barclays data found that consumer card spending was up 4.5% year-on-year in April, the largest rise since mid-2023, and for the first time in over two years, growth beat inflation (3.4%). This boost was driven by a sunlit Easter holiday: “Easter weekend and the sunny weather boosted both retail and hospitality spending,”. All major categories saw growth: overall retail spending jumped (~+6.8% year-on-year) and in-store retail alone rose 6.9%, while the hospitality and leisure sector was up roughly +6.7% (pubs/bars/clubs +6.6%). Even everyday essentials clawed back ground; grocery spending returned to modest growth (+3.1%) after months of decline.

Consumers also report cautious confidence. About 70% say their household finances are stable, and 74% feel they can live within their means. This “resilient consumer” outlook has translated into higher spending on discretionary items: non-essential spending surged by 5.1% year-on-year in April 2025, the strongest pace since 2023. In short, Brits are still watchful of prices (noticing discounts, own-brand lines and price-matching more than ever), but many feel secure enough to enjoy treats and experiences.

Experiential and Lifestyle Spending

A clear theme of 2024–25 has been “affordable indulgences” and experience-focused spending. Brits are prioritising small luxuries to brighten tighter budgets. Entertainment and leisure are leading the way: live events and cinema boosted spending, pushing the entertainment sector up about +5.8% in 2024. Digital content and subscriptions were especially strong (around +13.2% growth last year), which reflects Brits paying for streaming, gaming and online media to stay entertained at home.

Travel and holidays are rising again post-pandemic. Leisure travel spending grew by roughly +6.9% in 2024 as more Brits took short breaks or booked summer getaways. In April 2025, summer-trip planning may have contributed to spending: Barclays noted people were already booking holidays abroad, helping keep services buoyant. Likewise, restaurants, cafes and pubs saw strong gains in April: spending in pubs/bars/clubs hit a 16‑month high (+6.6%), and restaurants/cafés were up around +8.1%. These trends suggest that enjoying social and leisure outings remains a priority.

Even amid limited budgets, many UK consumers are finding ways to savour life’s “little luxuries.” For example, last year, health-and-beauty retailers saw a 7% jump in sales, attributed to the so-called “lipstick effect,” where people spend on feel-good items like cosmetics, skincare or fitness gear. Home comforts also saw spending: homeware, gardening and DIY saw a spring boost with the warm weather, and bedding/furnishings remained in many shopping baskets.

Health, Wellness and Alternatives

Health and wellness are important priorities. Gyms, yoga studios and fitness classes are regaining popularity, while supermarket shelves see more organic and plant-based products. Barclays noted that “health and beauty” stores enjoyed strong growth last year, showing that consumers will pay for wellbeing even during belt-tightening. Many are also investing in personal health devices, from fitness trackers to smartwatches and home-exercise kits, which became very popular during lockdowns and remain in demand.

Part of the wellness trend is moving away from harmful habits. For example, smoking rates have declined, and many who still want nicotine are turning to vaping or alternative products. In this vein, the market is shifting towards new smoking alternatives. Glossy vaping devices have become commonplace, whether disposable or refillable kits alike, and consumers have many choices to quit cigarettes. 

In fact, the expanding range of e-cigarette products shows this change: niche, high-tech vape kits with pre-filled pods are increasingly on sale to cater to former smokers. We see references to nic salts e-liquid in this context, which is a type of e-liquid that delivers nicotine more smoothly, as evidence of how the market is diversifying. Similarly, products like compact vape pods in the UK are marketed as safer or more convenient alternatives and are now widely available through almost every major online vape shop. While these items might not be in everyone’s basket, they illustrate a broader shift: spending on harm-reduction (and related tech) is shaping this corner of retail even in 2025.

Tech Adoption and Smart Living

Technology and convenience are also shaping spending. Subscription services and digital entertainment saw especially strong growth; streaming and downloads rose over 13%. Smart home devices continue to catch on. Millions of UK households now have voice-controlled assistants (Amazon Echo, Google Nest, etc.), smart speakers, thermostats, lighting and security systems. Buying these gadgets is part of a wider tech spend: electronics and appliances with the latest features often top wish lists. In financial terms, digital content & tech devices remain a key consumer category.

However, consumers remain value-conscious with tech, too. Many have embraced cost-saving measures: nearly 7 in 10 Brits say they seek discounts or switch to cheaper brands when shopping. Loyalty programs and price-matching policies (especially in supermarkets) get a lot of attention. The result is a shopper who is savvy. For instance, 30% of consumers reported seeing more in-store promotions and bundles. Even amid increased spending on new gadgets or subscriptions, people are hunting bargains and assessing long-term value.

Conclusion

In summary, 2025 spending patterns in the UK blend caution with enjoyment. Consumers are carefully managing budgets, seeking deals and prioritising essentials. Yet at the same time, they are rewarding themselves with experiences and products they value. Barclays’ insights show resilient confidence and rising non-essential spending, while British retail data confirms strong travel, leisure and wellness sales. 

The focus, for now, is on quality of life: health, family time, and personal treats. Whether at the gym, at a gig or through a new voice assistant at home, Britons are channelling their spend into sectors that align with their priorities. As always, innovation follows demand: we see it from the update-friendly electronics to the latest vape and wellness products on shelves, all underscoring the varied ways we choose to spend our money in 2025.