New Zealand households are pulling back on bigger
discretionary purchases, but data indicates demand for
smaller, emotionally rewarding “affordable luxury” items
and experiences remains comparatively resilient, offering a
practical lens on how consumer sentiment is shifting in a
high costofliving environment.
The latest
spotlight from Experian’s Business
Pulse Monthly (March 2026) notes that discretionary
spending over the holiday period tracked 8.9% lower than the
prior year, with the most significant reductions in personal
care services (-14.7%), holidays (-19.5%) and household
furnishings (-22.9%).
Against that backdrop, the
report explores “affordable luxury” as accessible
indulgences – small discretionary purchases that feel
premium (for example, prestige beauty, fragrance,
treatoriented food and beverage, or experienceled
spending) but sit well below true luxury price points. The
report explains that when real incomes are squeezed or
uncertainty rises, households often defer larger,
postponeable purchases and redirect spending toward
lowercost items that still deliver emotional value,
effectively trading down in ticket size rather than
switching discretionary spend off entirely.
Key trends
highlighted in the spotlight
include:
- Personal care shows standout
resilience. New Zealand’s personal care Experian
Spend Index reached 140% in December 2025 (with prior
holiday periods noted as even higher), indicating strong
seasonal demand despite household budget
pressure. - Home-related spending has
structurally contracted. The report notes New
Zealand’s household furnishings Experian Spend Index
plummeted to 47% before recovering partially to 74% in
December 2025, which it characterises as a structural shift
rather than a cyclical dip. - Pet-related
spend is showing more caution recently. While
historically flatter, the latest Experian Spend Index for
animal expenses in New Zealand is 73%, with commentary
suggesting pet owners may be deferring expensive vet visits
or opting for more affordable food
choices. - Digital goods remain “relatively
consistent”, though at a lower level than
Australia. New Zealand’s digital goods index –
including streaming services, software subscriptions, in-app
purchases, gaming – sits at 92% in Dec25, marginally
below the 2021 baseline, but the Spotlight notes it has been
increasing since 2024. - Travel continues to
be prioritised. International airlines spend is
reported at an Experian Spend Index of 337% for New Zealand,
with the report noting the continued upward trend from the
2021 baseline period.
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Louis Tsang, Head of
Analytics Consulting & Insights at Experian A/NZ, said
the value is in understanding what consumers protect when
budgets are under strain.
“In New Zealand, we’ve
seen households scale back on larger discretionary
categories – holiday discretionary spending was 8.9% lower,
with notable reductions in areas like holidays (-19.5%) and
household furnishings (-22.9%). At the same time, the
Experian Business Pulse Monthly shows how many consumers are
trading down in ticket size rather than switching
discretionary spending off altogether, continuing to
prioritise smaller ‘feelgood’ indulgences that remain
financially manageable,” said Tsang.
“Spend trends
can provide a grounded view of where demand is proving more
resilient. The report highlights how combining Experian
Spend Analytics with an organisation’s internal data can
support richer segmentation and more forwardlooking
decisions, particularly when consumer confidence is
uneven,” said Tsang.
These patterns sit against a
broader backdrop of continued pressure on household budgets
and confidence and take on added significance as global
uncertainty remains elevated. With geopolitical tensions and
ongoing pressures on fuel and commodity costs forming part
of the wider environment, interpreting shifts in
discretionary spending with context and care remains
critical for businesses navigating uneven consumer
confidence.Read the full March Experian Business Pulse
Monthly here
About
Experian
Experian is a global data and technology
company, powering opportunities for people and businesses
around the world. We help to redefine lending practices,
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data, analytics and software. We also assist millions of
people to realise their financial goals and help them to
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We operate across a range of
markets, from financial services to healthcare, automotive,
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segments.
We invest in talented people and new
advanced technologies to unlock the power of data and to
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across 33 countries. Our corporate headquarters are in
Dublin, Ireland. Learn more at experianplc.com.
.