UK consumers are cutting essentials but spending more on health, beauty, and experiences

UK consumer card spending grew 1.0% year-on-year in February 2026, according to the latest Barclays Consumer Spend Report. The headline figure is modest, but the category-level detail tells a more interesting story — consumers are actively reallocating their spending toward health, beauty, clothing, and entertainment.

Non-essential spending rose 1.8%, the highest uplift since August 2025, while essential spending fell 0.6%, marking seven consecutive months of decline.

Where the money is going

Health and beauty retail was the standout category, up 6.4% year-on-year. Almost a quarter (24%) of consumers said they had bought health supplements in the past 12 months, with protein products (11%), high-fibre foods (12%), and home gym equipment (8%) also in growth — the latter rising to 16% among Gen Z.

Clothing had its strongest month since August 2025, up 3.7%, driven by early spring collections. General retailers and marketplaces grew 4.6%. Entertainment spending hit an 11-month high at 9.9%, with live events up 14.0% and digital subscriptions — including AI and fitness apps — up 12.2%.

Takeaway and fast food spending, by contrast, grew just 1.3%. Nearly a quarter of consumers (23%) said they are actively cutting back on fast food, while a third (33%) named health and fitness as a top spending priority for the year.

The GLP-1 signal

One data point worth watching: 20% of consumers told Barclays they had noticed more GLP-1-friendly products being advertised. But 49% said they were confused about what the label means, and 44% see the smaller portions as poor value for money. For brands rushing to position products around the GLP-1 trend — as several in the functional food and nutrition space are doing — the consumer reception may be mixed right now.

The full February 2026 Barclays Consumer Spend Report can be found here.