As household budgets remain under pressure and financial anxiety continues to dominate headlines, many would expect consumers to be cutting back across the board. Yet one behaviour appears to be standing firm — the art of treating ourselves. From a takeaway coffee to a bar of premium chocolate, small luxuries are quietly thriving, offering affordable comfort in uncertain times.
Comfort in a Cost-of-Living Climate
Despite continued concerns about rising costs, the desire for moments of joy hasn’t gone away. In fact, 46% of UK consumers say they’re still prioritising spending on “small, affordable mood-boosting luxuries” such as pastries or cosmetics, even while tightening their belts elsewhere. This echoes the long-standing “lipstick effect” — the idea that when times are tough, we turn to inexpensive treats to lift our spirits.
Post-pandemic, this behaviour has become even more pronounced. As self-care and wellbeing take centre stage, indulgence has evolved beyond extravagance. It’s less about status and more about emotional restoration — that little pick-me-up that makes the everyday feel a bit more special.
Trading Down, Trading Up
Consumer confidence may be fragile — PwC’s Spring 2025 Consumer Sentiment Index sits at –12, the lowest level since 2023 — but people are becoming more strategic with their spending. Rather than abandoning indulgence, they’re redefining it.
Many are trading down on essentials but trading up on the products that bring them joy. It’s the reason a standard grocery trip might now include a premium chocolate bar or a scented candle, even as own-label pasta and cleaning products fill the rest of the basket. Research from FMCG Gurus suggests 73% of UK consumers view indulgence as playing a key role in their self-care routine — an indication that emotional reward is becoming an essential, rather than an extra.
Little Luxuries with Big Impact
The ripple effect of this behaviour is visible across multiple categories. In food and drink, “treat” products are quietly outperforming their everyday counterparts. Flavoured butters, for example, have seen spend rise by 24% year-on-year, while branded snacks and confectionery continue to hold their ground against cheaper own-label alternatives.
In beauty, prestige “mini” formats are booming, with the lipstick effect showing up quite literally — UK lip product sales grew 16% in the first half of 2025. Even in non-traditional luxury areas like homeware, comfort-driven purchases are on the rise, from candles to cosy textiles.
The common thread is that these small-scale indulgences offer consumers a sense of control, comfort and normality — a manageable way to feel good without guilt.
Redefining Modern Indulgence
What’s perhaps most interesting is how treating has shifted from an occasional reward to a key part of everyday routine. The ritualistic coffee break, the Friday night snack, the skincare moment before bed — all have become new forms of luxury.
This redefinition of indulgence isn’t just a coping mechanism; it’s a reflection of changing consumer values. As the concept of luxury becomes more inclusive and emotional, the focus has moved from exclusivity to accessibility.
Even in an age of value-conscious shopping, people are proving that there’s always room for joy — as long as it fits within reach.
A Resilient Form of Joy
Ultimately, the resilience of treating tells us something deeply human: no matter the economic backdrop, people will always find ways to seek comfort and reward. Small luxuries are the quiet constants — the five-minute escape, the sensory pleasure, the moment of calm amid the chaos.
And in 2025, they’re not signs of excess, but of resilience.
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Sources
Blog Cover Image: EkaterinaIlchenko/istockphoto.com
https://www.investopedia.com/terms/l/lipstick-effect.asp
https://www.pwc.co.uk/industries/retail-consumer/insights/consumer-sentiment-survey/spring-2025.html
https://www.ife.co.uk/news/fmcg-gurus-reveal-six-key-trends-watch-2025
https://www.theguardian.com/food/2025/sep/27/britain-butter-food-cooking-retail-social-media
