The current environment marked by persistent cost-of-living pressures, heightened geopolitical volatility, and increasing social polarisation isn’t just a temporary market condition, it’s a psychological stress test on consumers.

One of the trends we expect to see in 2026 is defined as ‘Hope Under Strain’: a state where optimism has contracted, forcing individuals to actively build resilience and agency rather than passively relying on external institutions.

For leaders across businesses, marketing, finance, understanding this pivotal shift is essential for recalibrating strategy, communications, and product design.

The collective outlook for Australia is noticeably cooling. While two in five Australians (64%) remain optimistic about the country’s future in three years, this figure represents a tangible decline from the 72% recorded just four years ago in 2021.

This decline is a direct response to tangible external threats perceived to be outside of personal control. Those include the rising cost of living, being the single most prominent concern, affecting 77% of Australians (Extremely/Very Concerned). Geopolitical Threats, emerging or growing international wars/conflicts (62%) and global uncertainty (57%) rank as significant anxieties.

Despite these overwhelming external threats, reliance on the government to build a better world is only marginally increasing, cited by 31% of Australians a reliance that is clearly strained given the overall decline in optimism.

The data confirms that the customer’s mindset is dominated by a complex interplay of personal financial insecurity and global instability.

Hope Under Strain defines the new psychological state where consumers are grappling with simultaneous, non-negotiable pressures. It forces a strategic contraction of focus.

Taking Agency Despite Uncertainty

Faced with an increasingly turbulent world, the consumer response is not one of paralysis, but of agency. This shift from passive coping to cultivating personal agency is the counter-measure to the ‘Strain.’

Just over half of Australians (55%) are hopeful about their future, and 50% strongly or somewhat agree they can navigate challenges without the loss of hope. Just under half, however, strongly/somewhat agree they have the agency to shape the future they want (47%) or see themselves having a responsibility to shape the world they want through their actions (46%).

Young People Finding a Sense of Agency

The greatest sense of hope and agency resides within the younger generations. Gen Y (31-45) is the most likely to strongly agree they have the agency to shape a positive future for themselves (55%), compared to just 37% of Baby Boomers. This represents a 1.5x multiplier in personal belief. Gen Y also leads in taking responsibility to shape the world they want (55%), compared to 35% of Baby Boomers.

This heightened sense of ownership contributes to the higher optimism seen in the younger cohort, with 73% of Gen Z (18-30) remaining optimistic about the future, contrasting sharply with just 53% of Baby Boomers.

Article supplied with thanks to McCrindle.

About the Author: McCrindle are a team of researchers and communications specialists who discover insights, and tell the story of Australians – what we do, and who we are.

Feature image: Canva

Think back a decade. Your shelves were likely lined with DVDs, your car’s glovebox full of CDs, and buying software meant purchasing a physical box with a disc inside. Today, that world feels distant.

In its place is a new ecosystem built not on one-off purchases, but on ongoing access. From the entertainment we stream (Netflix, Spotify, Audible) and the news we read, we’ve seen the rise in the subscription economy, and it represents one of the most significant shifts in consumer behaviour and business strategy in the 21st century. In 2008, Spotify didn’t exist. Fast forward to 2025 and there are 696 million monthly active users.

This is more than a trend – it’s a fundamental change in the relationship between a provider and a consumer. The traditional, transactional model of selling a product has been replaced by a relational model built on ongoing value, and convenience. There has, however, been a shift in the sense of what ownership means. While consumers have unlimited access, they own less.

Understanding consumer sentiment behind this reveals insights on what modern consumers value – flexibility over commitment, experiences over possessions, and seamless integration into their lives.

Divided sentiment across generations

As digital natives, younger generations are the most enthusiastic adopters of subscription services. Almost half of Gen Z (48%) say they love or like subscriptions, compared to just 12% of Baby Boomers. Yet despite being less enthusiastic, older generations are still active users. More than four in five Gen X (83%) and two in three Baby Boomers (66%) hold at least one subscription. In contrast, subscriptions are near-universal among younger cohorts, with almost all of Gen Z (99%) and the vast majority of Gen Y (85%) signed up to at least one.

What are people subscribing to?

The most common subscription service to use across the generations is video streaming, followed by audio streaming. Gaming services are also common among Gen Z, Gen Y and Gen X, however publications are the next most popular service for Baby Boomers.

What drives the use of subscription services?

Almost half of Australians (45%) choose subscriptions for their convenience. Similarly, more than half of Australians who use subscriptions (54%) strongly or somewhat agree that subscriptions save them time and effort. The decision is also influenced by value for money and access to exclusive content.

Organisations that succeed in the subscription economy understand a key tension: consumers want the convenience of subscriptions but also fear being trapped. While younger generations are more likely to subscribe, they also desire agency, customisation, and personalisation. To build a lasting relationship with these customers, businesses must put them at the centre of their product, providing a constant stream of new content and a clear sense of value that not only justifies the ongoing cost, but empowers them with choice.

Article supplied with thanks to McCrindle.

About the Author: McCrindle are a team of researchers and communications specialists who discover insights, and tell the story of Australians – what we do, and who we are.

Feature image: Photo by CardMapr.nl on Unsplash

The number one rule in marketing is that if you speak to everyone, you speak to no one.

It’s no wonder that customer segmentation and persona building is such an integral part of any marketing team’s activities. An often overlooked segment is the generations. In this article, we explore the consumption behaviours of each generation, with key insights from our consumer profiles infographic.

Gen Alpha: The Digital-First Consumers

While they’re the youngest consumers, Gen Alpha is growing up in a world where technology is seamlessly integrated into their lives. Although their earning power might end at pocket money and chores, they’re still having an impact on household spending, with four in five parents (79%) saying their children have influenced them to be more environmentally aware in their consumption decisions.

Gen Alpha will be raised with AI-driven recommendations, short-form videos, and other digital experiences. They’re rarely going to use cash with the majority of their financial experiences, including digital wallets, contactless payments, and even crypto, making them the most cashless generation yet. For brands targeting Gen Alpha, authenticity, engagement, and interactive digital experiences are key to building long-term engagement.

Gen Z: The Purpose-Driven Spenders

Currently in their early careers and growing their side hustles, Gen Z are likely to prioritises ethics over traditional brand loyalty. Their spending habits reflect a mix of affordability concerns and a demand for brand transparency. Marketing to Gen Z requires a strong presence on social media, particularly through short-form videos and influencer collaborations. Brands that align with their values—sustainability, social justice, and authenticity—will win their business.

Gen Y: The Convenience-Seekers

Millennials are balancing careers, parenting, mortgages, and financial commitments, making value and convenience top priorities. While they are still influenced by ethical concerns, practicality is likely to win out. Their preferred communication channels include live chat, AI-driven support, and social media. Brands that offer simplicity, sustainable solutions, and personalised experiences will resonate most with this generation.

Gen X: The Practical Decision-Makers

In their peak earning years, Gen X values reliability, quality, and convenience. They are comfortable using traditional credit methods and have extensive experience with mortgages and loans. While brand loyalty is strong, it is contingent on practical benefits such as price, durability, and customer service. This generation consumes a mix of online and traditional media, making omnichannel marketing strategies effective. Providing straightforward, high-value solutions is essential to capturing Gen X consumers.

Baby Boomers: The Brand-Loyal Consumers

Baby Boomers prioritise trust and familiarity in their purchases. With pensions and retirement savings as their financial focus, they continue to favour direct debit and cash. This generation appreciates in-person service but is increasingly engaging with online support and email communications. Brands looking to connect with Baby Boomers should emphasise reliability, customer service, and value for money while maintaining a strong presence in mass media channels such as print, TV, and radio. Bottom of Form

Generational consumer profiles

Understanding generational consumer behaviour is key to crafting targeted marketing strategies and understanding the future consumer. Our infographic (download below) breaks down the earning power, key marketing channels and consumer values of each generation.

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Article supplied with thanks to McCrindle.

About the Author: McCrindle are a team of researchers and communications specialists who discover insights, and tell the story of Australians – what we do, and who we are.

Feature image: Photo by Jacek Dylag on Unsplash