Quarter-century crisis: Are we better or worse off than we were 25 years ago?

Introduction

A quarter of the way into the twenty-first century, life is rapidly changing – from technology to the state of the economy to media and advertising outlets to the job market. 

Cint and Advertising Week partnered to run a research study looking at consumer perception surrounding these changes and the impact on consumer behavior.

Live at the Advertising Week Europe event in London, April 2025, Advertising Week’s Katie Ingram and Cint’s Ariel Madway took the stage to unpack the most notable findings.

Read on to see what they shared.

Methodology

To answer the question “Are we better or worse off today than we were at the turn-of-the century 25 years ago?” – or rather do consumers think we are – two concurrent studies were fielded from late February through early March 2025 in the US and the UK, each consisting of 1000 census representative respondents of voting age.

The data was analyzed through a few lenses, including generationally, regionally, and fiscally (e.g., the respondent’s ability to save versus living from paycheck to paycheck) to answer some overarching questions, including:

• Is there a perception gap in terms of inflation? 
• What industries do consumers tie most to life improving or life getting worse?
• How have consumer priorities shifted when it comes to saving and spending? 
• What role do brands play in this equation?

Due to taking place in London, the live session primarily focused on the UK data, with some comparisons to the US that were closely aligned or starkly different.

In October at Advertising Week New York, Madway and Ingram will retake the stage to present a second round of data focusing on US consumer sentiment. We hope to see you there!

Are we in a quarter-century crisis?

If you were to ask a room full of people whether life is better now than it was 25 years ago, what do you think they’d say?

To open the session, Ingram and Madway asked exactly that. A quick show of hands from the 200 people in the room showed a split opinion, skewing only slightly to those who believe we’re worse off today. While not entirely scientific, this spontaneous pulse check surprisingly mirrored the actual data from the research, which uncovered that while 42% of UK consumers surveyed say life is better off now, the remaining 48% say that life is worse.

Over in the US, the responses were fairly similar but skewed slightly in the opposite direction, with 45% of US respondents believing life is better now and 41% believing life is worse.

Generational perceptions
(aka “When I was your age…”)

When split generationally, 50% of Gen Z (born between 1996-2012) said they think life is better off now, making them the only generation with a higher percentage of respondents in the better off camp. In contrast, only 25% of Gen X (born between 1965-1979) think that life is better now, with the lion’s share (66%) of Gen X thinking life is worse, as do 52% of Boomers (born between 1946-1964).

As Ingram pointed out, “this generational divide makes sense given that Gen Z have no strong frame of reference for comparison because they have limited experience with the world of 25 years ago; while Gen X, now navigating peak career and family life, report feeling the financial squeeze most acutely and can reflect with a true comparison to how things used to be because they lived through it.”

To gain a deeper understanding of the divide between generational perception of being set up for success, the respondents were split into two groups.

The older generations were asked: “Do you think Gen Z/Millennials (born between 1980-1995) are better off today than you were when you were their age?” 

Their younger counterparts were asked to respond to: “Do you think you are better off today than your parents were at your age?” 

In the UK, respondents in both categories think the other has — or had — it better off.

In the US, however, both parties agreed that the older generations were better off than the younger generations are today.

Across all generations, when cross-referencing saving ability with outlook, over half of those who have the means to frequently save agree that life is better now, while under one-third of those who are living month to month feel similarly.

“While it is not shocking to see that those with more financial freedom feel more optimistic about where the world is headed than those without it; it is interesting to see what we may naturally assume be proven out so strongly in the data,” commented Ingram.

Getting into the why

For those who think we’re not better off now than 25 years ago, the number one reason is the cost of living (80%), followed by housing (57%) and job opportunities (44%). 

Tech advances show up in a minority — but not a statistically insignificant one — with 18% of people believing that this is a reason things are worse off.

Cost of living crisis

Across all those surveyed, regardless of whether or not they think life is better or worse now overall, a whopping 81% think the cost of living has increased; 68% think it has increased significantly.

In the US, these numbers slightly lower to 71% who think the cost of living has increased; 59% think it has increased significantly.

“As with all research, this is a snapshot in time,” Madway explained, “With new political levers at play and an increasingly volatile economic climate, it will be interesting to see how the numbers, especially in the US, shift when this research is fielded again in the Fall.”

Consumer perception of the role brands play

With people across the UK feeling the weight of life getting more expensive, one of the culprits consumers are pointing fingers at is the rising cost of consumer goods.

Food and beverage brands top the list, followed by clothing and fashion, then electronics.

And it’s not just data; it’s personal. From anecdotes about crisp packets that cost double but feel half-full to nostalgic conversations about penny sweets at the Cint Candy Stand activation simultaneously taking place at the Advertising Week Europe event, today’s consumers are increasingly vocal about the perceived decline in value.

Regardless of whether what consumers perceive to be true is factually true or not, it matters: 76% of consumers agree brands have a duty to provide products that are both high quality and affordable.

The value of a pound vs. moral values

When looking at what consumers value today, it’s not enough to focus solely on the usual suspects: price, quality, and quantity. Increasingly, another layer is shaping how people spend their money: moral consumerism.

In a world that’s more expensive than ever, can consumers afford to prioritize values-driven purchasing decisions?

Respondents were asked “When purchasing a product or service, how often do you take the moral values of a company into consideration?”

Tracking with trends we’ve seen before, Gen Z and Millennials stood out. These generations are vocal about aligning purchases with personal beliefs, with nearly half of Millennials saying they consider a brand’s values more than 50% of the time.

But does that hold up when prices come into play? Turns out, not always.

When asked how likely they are to still buy from a company whose values they strongly disagreed with if the product was significantly more affordable, a majority of Gen Z, the most values-driven generation, showed a strong willingness to make the trade-off for a better deal. 

“It’s a real-world reflection of the financial constraints they’re under. They care, but when money is tight, morals may take a back seat,” observed Madway.

Interestingly, Gen X, who is also under financial pressure to keep up with bills and steeply climbing cost of living, tends to stick to their values more consistently.

Spending priorities in an expensive era

So, what are people actually spending their money on in 2025?

Across the board, the top spending priorities are consistent and practical:

1. Food and groceries
2. Housing and utilities
3. Clothing

From there, there’s a fascinating race for fourth place. For Gen Z, health and wellness was nearly tied with clothing, indicating how much emphasis this younger generation places on personal wellbeing. Meanwhile, the older generations (Gen X and Boomers) lean more toward travel and experiences as their next big spend.

This nice-to-have tier of spending – the purchasing priorities that go beyond the bare necessities – gives us an insight into what each generation values when they do have discretionary income.

Everyday cost cutting vs experience splurges

To better understand this dynamic, we asked respondents to rank “This or That” with spending habits (e.g. luxury hotels vs budget hotels/hostels; designer fashion vs generic clothing labels; Michelin-starred/high-end restaurants vs fast food chains, etc.)

Even among those who can save, many are still shopping at discount grocery stores, but then turning around and splurging on boutique gyms or designer fashion. 

As Ingram pointed out: “This lines up with a broader trend: people are focusing their dollars where they feel the most impact. It’s not just about products; it’s about lifestyle choices. And that aligns beautifully with how brands today are building experiences around health and wellbeing.”

Saving for a rainy day

For the 41% of people surveyed who say they are able to save consistently, we asked what they are earmarking the money in the bank for:

• Gen Z is setting up savings accounts to purchase a car or fund travel.
• Millennials prioritize building a nest egg to buy a home, followed by funding retirement accounts.
• Gen X and Boomers are focused on retirement and travel.

Strikingly, in contrast to their only slightly senior Millennial counterparts, purchasing a primary home ranked relatively low as a savings goal for Gen Z.

“Perhaps it’s a sign of changing expectations, or just a recognition that homeownership is increasingly out of reach. Either way, many are opting to invest in experiences now, rather than wait for uncertain milestones later,” said Ingram, a speculation which was met by murmurs and strong nods of affirmation from those in the room representing the Gen Z demographic.

Looking on the bright side

Despite all the financial pressure and uncertainty, it’s not all doom and gloom.

When asked what has improved society over the past 25 years, consumers highlighted:

1. Technological advances
2. Greater access to education and global information
3. Healthcare improvements
4. Job opportunities

With technological advances having arguably spurred the most significant changes to our way of life over the past 25 years, it is not shocking to see consumers rank it the number one cause of society improvement in the first quarter of this century.

But there is a slight plot twist: while technology topped the list as an improvement, you may recall it also ranked among things consumers believe are making life worse. 

“Between discussions around AI, social media addiction, and privacy concerns, tech is both savior and scapegoat,” Ingram reflected, referencing other conversations taking place throughout Advertising Week, which also highlighted the mixture of excitement and unease rapid tech advances are creating in our world today.

The changing world of work

One of the clearest signs of progress? The evolving job market.

We asked UK consumers if they’re working in roles that didn’t exist or have significantly changed since the year 2000. A massive 71% said yes.

• 55% are in jobs that existed but have changed drastically
• 16% are in roles that simply didn’t exist 25 years ago

From content creators to AI ethicists to prebiotic soda brand ambassadors, the workforce is evolving fast. And while change can bring anxiety, it also brings opportunity.

And it’s not just the cost of goods that consumers feel has noticeably increased over the past quarter-century; consumers are simultaneously confident that in many career paths there is also more money to be made. When asked which industries consumers feel have seen exponential salary growth outweighing the rate of inflation, the clear frontrunners were technology, finance, and energy.

Conclusion

So, are we better or worse off than we were 25 years ago? The answer is nuanced.

Nearly half of consumers believe life has worsened, especially when grappling with the cost of living and housing; however, others — particularly younger generations and those with financial security — see reasons for optimism, from technological advancements to evolving work opportunities.

One thing is clear: As the world continues to evolve at breakneck speed, consumer sentiment and priorities are evolving too.