How Consumer Brands Should Address Recessions

A counterintuitive survival guide based on WARC Research

Introduction

Recession presents a distinctive set of challenges for fast-moving consumer goods brands. Unlike other sectors that may experience abrupt shocks, FMCG businesses often face slower but sustained pressure as consumer behaviour shifts. Discretionary spending declines, repeat purchases for premium products weaken, and retailers respond with greater focus on price. These pressures create tension between short-term sales performance and the need to protect brand equity over the long term.

Recent developments in global trade policy, particularly the imposition of wide-ranging tariffs and retaliatory measures between major economies, have led analysts to sharply raise their expectations of a worldwide recession. Market volatility, higher inflation expectations, and falling consumer confidence have made this scenario increasingly likely. This environment presents familiar dilemmas and specific risks for FMCG marketers, particularly around pricing, media investment, and consumer trust.