
When times get tough, you’d think everyone would tighten their belts and stick to the bare essentials. Though more consumers are prepared to rein in their spending and live with less, according to a study by Intuit Credit Karma, recessions have a funny way of revealing what people really value.
From small indulgences to unexpected splurges, spending habits during an economic downturn can be… surprising, to say the least.
“From my experience working in retail analytics, I’ve noticed some weird purchasing patterns when the economy tanks,” said Andrew Lokenauth, money expert and owner of Fluent in Finance.
Here’s what he’s seen firsthand (and the psychology behind it).
Find Out: I’m an Economist: Here’s How Likely a Recession Is for the Second Half of 2025
Read Next: 8 Common Mistakes Retirees Make With Their Social Security Checks
Lipstick and Makeup
While it may sound bizarre to some, Lokenauth said he watched his cosmetics sales jump 25% during the last downturn.
“People can’t afford big luxuries, so they go for small indulgences that make them feel good. A $8 lipstick gives that little boost without breaking the bank,” he said.
Discover More: Mark Cuban Warns of ‘Red Rural Recession’ — 4 States That Could Get Hit Hard
Premium Pet Food
In Lokenauth’s store, premium pet food sales went up while people bought cheaper food for themselves.
“The thing is, we feel guilty cutting back on our pets. They’re family. My customers would literally tell me ‘I’ll eat ramen, but Fluffy gets the good stuff,'” he explained.
DIY Hair Dye and Styling Tools
When Lokenauth managed a beauty supply store, these products flew off shelves during tough times. He noted it makes sense — people skip $200 salon visits but still want to look good.
“A $12 box of hair color does the trick.”
Streaming Subscriptions and Gaming
“Working in digital services taught me people double down on home entertainment when money’s tight,” said Lokenauth.
Netflix, Disney+, Steam games — all see spikes. It makes sense when you think about it as it’s cheap entertainment compared to concerts or travel.
Exercise Equipment
“This one shocked me at first,” said Lokenauth.
But during economic uncertainty, he said people focus on health and self-improvement. He saw home gym equipment sales rise 40% in his sporting goods department.
It’s cheaper than a gym membership in the long run.
Canning Supplies and Garden Seeds
From Lokenauth’s time in home goods, he said these items would randomly sell out.
He observed that people get into DIY food production to save money and feel more self-sufficient. Mason jars, pressure canners, seed packets — they’d vanish from shelves.
Comfort Foods and Alcohol
“Working in grocery, I noticed folks gravitate toward familiar childhood foods and affordable luxuries,” he said.
Mac and cheese, ice cream and boxed wine are small pleasures that provide emotional comfort without major expense.
Education and Training
Lokenauth noticed this from his consulting work — enrollment in certification programs and online courses tends to rise.
“People invest in skills to recession-proof their careers. Even a $500 course feels worth it for better job security.”
The Bottom Line: We Just Shift Priorities
“The psychology fascinates me,” said Lokenauth. “We don’t completely stop spending in recessions — we just shift priorities toward small luxuries, practical investments and emotional comfort.”
Those shifts create some surprising spending patterns that he’s witnessed firsthand across different retail sectors.
More From GOBankingRates
- 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025
- 4 Things You Should Do if You Want To Retire Early
- 7 Luxury SUVs That Will Become Affordable in 2025
- Warren Buffett: 10 Things Poor People Waste Money On
This article originally appeared on GOBankingRates.com: 8 Surprising Things People Buy During a Recession