Consumer Mindset - January 2025
This report is informed by the Credit Union Consumer Sentiment Index, in partnership with Core Research.
The beginning of a new year symbolises a pivotal moment in the psychological and cultural calendar of many people in Ireland. It becomes a time for recalibration, where people reassess their outlook, their habits and strive for improvement. The January mindset is closely tied to the psychological concept of the ‘Fresh Start Effect,’ introduced by Katherine L. Milkman in her 2014 research. Milkman’s study show that temporal landmarks, such as the New Year act as catalysts for a mental reset and behavioural change. These moments help people create a mental divide between their "past self" and "future self," enabling them to set aside past failures and focus on future goals with renewed vigour.
This month, we set out to explore this effect in more depth and identify the key learnings for marketers.
Dual Mindset:
Fresh Start Enthusiasm & Economic Realism.
The Credit Union Consumer Sentiment Survey, conducted in partnership with Core Research, saw a marginal improvement in consumer sentiment in January 2025. This increase, while small, marks the best reading since early 2022 when confidence began to decline due to the Russia-Ukraine war and the associated cost-of-living crisis.
However, the economic uncertainty reflected in the survey shows that while consumers may aspire to personal improvement, their ability to commit to major financial decisions or increased spending is constrained by external economic anxieties.
This dual mindset—optimism for self-improvement versus financial caution is a critical consideration for businesses planning Q1 campaigns. February often sees a reversal in consumer sentiment, meaning brands must sustain engagement beyond the initial January enthusiasm.
Intentional Behaviour Change
7 in 10 adults in Ireland set a resolution or intention for 2025, with improving physical health, financial stability, improving mental wellbeing and personal travel being the most common goals. What is interesting is when we look at the motivations, the preferred approach, and self-efficacy that people have.
Motivations
When making plans for 2025, people state that they are predominately influenced by long-term benefits, financial caution, and lessons from past experiences.
Incremental vs. big change advocates
The majority (63%) prefer incremental change, this dominant preference reflects a practical, cautious mindset, consistent with the current economic climate. A smaller group (17%) prefer making big changes, these are more financially secure, have a significantly more positive outlook and emotionally motivated to seize bold opportunities.
Self-efficacy
This is an individual's belief and confidence in the ability to exert control over one's own motivation, behaviour, and social environment. 42% of people feel confident that they will achieve their goal in 2025, 21% are not confident, the remaining fall somewhere in between, feeling cautiously optimistic but also uncertain. This reflects the January mindset where motivation is high, but long-term follow-through remains a challenge.
If you want to encourage people to switch / change behaviour, focus messages on micro-goals, emphasising the ability to achieve small wins. Use messaging that frames change as simple and achievable. And finally, focus messages for change at a fresh-start moment.
