March 2022 - Consumer Mindset

Impact of War on Consumer Mindset

Humanitarian Crisis

Russia’s war on Ukraine has entered a fourth week, with none of its state objectives reached. The horrific result is that thousands of people have been killed, over 2.8 million refugees are going west to find safety and millions of others are sheltering in basements or fighting back on the streets.

According to the Irish Red Cross, over €14 million has been donated by Irish citizens, and over 20,000 people have offered their homes as shelter to those who have had to flee their own.

This humanitarian crisis has had a significant impact on Europe and on the psyche of people in Ireland. Core’s Cultural Index has measured over 1,300 news stories since 2015 in terms of public awareness and the extent to which they personally impact people. When Ireland went back in to a second Covid-19 lockdown in October 2020, this event measured 85.7, meaning that 85.7% of the adult population said it was personally significant in their lives. For further reference, the story of the first case of COVID-19 in Ireland measured, 85.3.

In comparison, Putin’s invasion of Ukraine and subsequent war has measured 88.0 – the highest Index score since Core started this analysis in 2015. The war and humanitarian crisis in Europe has and will have significant impact on us all.

When asked about their emotional response to the invasion, 35% of adults in Ireland said they were angry, 21% were disgusted, 17% said sad and 15% said they were afraid. These significant emotions have impacted this month’s emotional barometer, with stress, anxiety and worry all rising in terms of emotions experienced in general.

Public Priorities

The priorities of the public have shifted. Concern about COVID-19 has fallen to an all-time low, with only 23% of people now concerned (extremely or very). Instead, our focus has turned to the need for peace in Europe. 63% of people say this is very important to them personally, ahead of the number of people who attribute importance to their own health, time with family or friends or their job.

Other significant local issues such as housing are now secondary to the European crisis, with 43% of people saying housing is very important to them, while 52% of people say the rising cost of energy and fuel is of significant concern.

Again, people are facing further uncertainty, with a growing level of anxiety about the war in Ukraine, the humanitarian crisis and the subsequent impact on the economy and the cost of living.

As the majority of the world stands with Ukraine, resilience will be tested again and people will turn their focus towards actions that can help those who need it most in Europe. Closer to home, people will undoubtedly have to plan for an increase in the cost of living.