A new report from M&C Saatchi Group on the impact of the cost-of-living crisis on Australians has found 70% of Australians believe rising costs are reducing their social time.

According to the report, over 50% say they can't afford to socialise as they used to. The report also suggested younger generations, particularly Gen Z and Millennials, are most affected, with many reducing paid activities and working more. Of those cutting back, six in 10 reported feeling socially isolated, equating to 12 million Australians.

Another aspect to the report is changes in shopping habits, with 81% of consumers open to trying more affordable brands, reflecting a shift in loyalty. The DIY trend is also on the climb, with more Australians cooking at home and cutting back on beauty treatments as a way to save money.

"Persistent economic pressure is leading to ingrained behaviours and new consumer norms. Business strategies need to adapt for brands to stay connected and relevant," said Amy Kousis, Strategy Director at M&C Saatchi Group.

The report suggests that brands can help by creating low-cost or free social opportunities, supporting DIY activities with convenience, and offering financial literacy resources, stress management tools, and practical solutions to everyday challenges.

The research also predicts a more frugal Christmas, with Australians turning to online marketplaces like Temu and Amazon for cheaper options, and planning DIY celebrations, fewer decorations, and smaller gatherings.

The research was conducted over two years by M&C Saatchi Group’s marketing sciences division, Precision, using Dynata Global Australian Research Panel and delivered via an online panel.