Quiet “Micro-Indulgences” Persist As New Zealanders Cut Back On Bigger Discretionary Spend, Experian Analysis Reveals

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.

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, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realise their financial goals and help them to save time and money.

We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.

We invest in talented people and new advanced technologies to unlock the power of data and to innovate. A FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 25,200 people across 33 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.

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