When we asked why consumers across markets prefer local brands, 36 percent say that they want to support domestic businesses. 22 For 20 percent, local brands better fit their needs. Only 13 percent say that domestic brands are more affordable. Some consumers outside the United States are also growing wary of American brands. In Europe, 42 percent of survey respondents report that they have a worse or somewhat worse perception of American brands in May 2025 than they did at the beginning of the year. US consumers want to shop locally, a desire that’s evident in categories such as apparel and household supplies. While this trend is most pronounced in Canada and the United States, we also periodically see it in other markets. In China, for example, six of the top ten beauty brands with the 22 Survey question: Why do you prefer, prioritize, or choose domestic brands? McKinsey State of Consumer Market Survey of 2,838 consumers from China, Germany, the United Kingdom, and the United States, April 23 to May 6, 2025 (date range covers differing survey dates in the four regions). Exhibit 4 43 29 14 44 14 30 37 15 23 45 20 25 40 9 31 45 30 15 43 16 27 48 22 26 60 44 16 US UAE Saudi Arabia Mexico India EU–5³ China Brazil Australia Share of consumers concerned about rising prices, ¹ % Of those consumers, share who plan to do the following, ² percentage points Do not intend to splurge Intend to splurge Web <2025> Exhibit <5> of <5> — 810 pdf Concerns about rising prices and how that impacts consumers’ plans to splurge Note: Figures may not sum, because of rounding. 1 Question: What are the greatest source(s) of concern for you right now? (Choose up to 3.) 2 Question: With regard to products and services you will spend money on, do you plan to splurge/treat yourself over the next 3 months? 3 EU-5 = France, Germany, Italy, Spain, and UK. Source: McKinsey ConsumerWise Sentiment Survey, Q2 2025 (n = 25,998) Consumers are worried about rising prices, but a large proportion of those same consumers plan to keep splurging. McKinsey & Company 9 State of the Consumer 2025: When disruption becomes permanent