RBC predicts financial pressures, reduced luxury spending, increased M&A activity; challenges for companies

From Investing.com: 2024-12-14 03:30:00

RBC Capital Markets released its ‘2025 Global Consumer Outlook’ report, highlighting challenges and opportunities in consumer markets. Analysts predict financial pressures due to inflation, interest rates, and unemployment, leading to reduced luxury spending and increased value-seeking behavior.

Global consumer trends include a shift towards volume-driven stock outperformance and concerns about potential policy impacts of a second Trump administration. Trade policies, geopolitical risks, rising costs, and currency fluctuations pose challenges for companies.

2025 may see increased M&A activity as companies navigate cost pressures and regulatory challenges. Consumer sentiment in China remains subdued, with a growing preference for secondhand goods. RBC anticipates favorable conditions for consolidation in the latter half of the year.

Sector-specific insights highlight ongoing challenges in Consumer Staples, modest revenue growth in Luxury & Premium Brands, and cautious optimism in the restaurant space for 2025. Analysts expect gradual improvement in consumer sentiment and prioritization of health and wellness in the fitness sector.



Read more at Investing.com: Here are the key takeaways from RBC’s ‘2025 Global Consumer Outlook’ report By Investing.com