Sydney, 29 April 2026: Australians are entering the year ahead in a defensive frame of mind, shaped by global conflict, rising fuel and energy costs and deepening economic pessimism, according to Kantar’s Consumer Sentiment Barometer released today.

Seven in ten Australians (69%) now rank global conflict as one of the biggest issues facing the world, while three in five (58%) cite rising energy costs, underscoring how international instability and fuel pressure are no longer abstract concerns but part of everyday financial anxiety. Half (48%) expect the national economic situation to worsen over the next 12 months, reinforcing a mood that is increasingly cautious rather than hopeful.

Kantar Australia Managing Partner, Consulting Mark Kennedy says the data shows Australians are not just worried, they are anticipating knock‑on effects.

“Australians have learned that big global issues don’t stay ‘out there’ for long. When fuel and energy prices rise, the impact moves quickly through freight, logistics, farming inputs and retail. People remember how fast everyday staples became stress symbols last time.”

“That’s why moments like the $11.99 iceberg lettuce still loom large in the national memory. Not because anyone expects that exact scenario to repeat tomorrow, but because it proved how suddenly supply shocks and transport costs can show up at the checkout.”

Why fuel costs matter far beyond the bowser
Rising fuel and energy prices increase costs across the supply chain, particularly in transport-heavy categories like fresh food and essentials as higher diesel prices lift freight and cold chain costs, farming inputs such as fertiliser and harvesting become more expensive, and retailers face tighter margins and less flexibility to absorb shocks. The result, consumers expect, is not just higher prices but less resilience when disruption hits.

Affordability pressure is already evident. More than half of Australians say they cannot afford a new car (54%), while two in five say holidays and flights are out of reach. Even modest discretionary items like meals out, drinks and clothing are being reassessed, signalling how tightly households are managing risk.

That caution is already translating into action. More than three quarters of Australian households (78%) have made, or plan to make, changes in response to rising prices, with cutting back on spending and grocery volumes among the most common behaviours.

“This isn’t impulsive belt tightening, it’s deliberate risk management,” adds Kennedy. “People are reshaping habits early because they don’t trust conditions to stabilise quickly.”

Trust, authenticity and provenance rise under pressure
Kennedy says that when uncertainty deepens, Australians become far more selective about who and what they trust.

“In turbulent times, Australians don’t reward noise or hype. They look for brands that feel honest about pricing, clear about where products come from, and consistent in how they behave when things get hard. Authenticity and provenance matter more when money is tight. When people feel exposed to supply shocks and rising costs, they gravitate toward brands that feel transparent, grounded and dependable, not opportunistic.”

The Barometer also reveals generational differences in how uncertainty is felt, with older Australians most concerned about conflict, energy costs and the economy, while younger Australians continue to place relatively greater emphasis on climate change. But across all groups, the prevailing sentiment is caution.

“The signal for brands is stark,” adds Kennedy. “When confidence is low, trust becomes the real currency. The brands that navigate this moment best will be the ones that make value feel fair, supply feel credible, and intentions feel genuine – and there are five key signals that underpin thriving through turbulence:

1. Build brand resilience. “In times of volatility, brand is not a nice‑to‑have, it’s a resilience mechanism. Brands that are meaningful and different recover faster from shocks and retain pricing power when conditions tighten.
2. Keep the lights on. “The instinct to go quiet when uncertainty hits is understandable, but it’s dangerous. Kantar evidence shows that brands which go dark take longer, and spend more, to recover lost demand.”
3. Get a grip on pricing power. “Pricing power isn’t set by finance teams; it’s earned in people’s minds. Brands with meaning and difference can hold margin because consumers believe they’re worth paying for.”
4. Make creative count. “In pressure economies, creative isn’t decoration, it’s persuasion. The right tone, relevance and proof of value determine whether a brand feels optional or essential.”
5. Find new space. “Volatility forces CMOs to look beyond optimisation. The brands that grow are the ones finding new, incremental space, new needs, new price architectures, and new adjacencies to serve them.”

“In uncertain times, the question for CMOs isn’t whether to act. It’s whether their brand is strong enough to carry the pressure.”

For further information or to interview Mark Kennedy, contact:  jeannie.duhigg@kantar.com