Siobhan McDade explores why small treats are helping consumers find comfort through the big squeeze
Even in leaner times, people rarely give up the pleasure of a small treat. The impulse to seek comfort in a flat white or a bar of something indulgent isn’t new, but it’s taken on new meaning in today’s financial pressures.
This behaviour, now dubbed “food-luxxing”, mirrors the “lipstick effect”, a term economists have used to describe how consumers swap big-ticket spending for affordable luxuries.
Comfort, control and the psychology of indulgences
Food-luxxing taps into something deeper than reward. People crave moments that feel within their control, and food provides that.
It’s comfort disguised as practicality, a quick win that lifts the mood without hurting the wallet. Research from the Office for National Statistics shows food price inflation peaked at 19.2 percent in March 2023. In that context, spending £4 on a croissant and coffee feels rational compared with splurging on a restaurant meal.
Psychologists have long associated this type of spending with reassurance and identity. Small luxuries become a statement of taste rather than excess. A neatly poured latte from an independent café, or a limited-edition biscuit flavour, satisfies both comfort and the desire for individuality.
Social currency and the shareable plate
Where the lipstick effect meets food, it becomes social. Food is visible in ways few other luxuries are.
That’s why food-luxxing has flourished in a digital culture built around discovery. 72 percent of Gen Z use social platforms for meal inspiration, with TikTok (84 percent) and Instagram (75 percent) outpacing traditional cookbooks.
This shift has made presentation as important as taste. One third of UK shoppers say they’ve bought food through social channels, rising to 67 percent among millennials. That feedback loop turns even a simple snack into cultural participation. Food becomes a social signal and connection in an unpredictable world.
Who’s winning the food-luxxing moment?
The biggest winners of this shift are low-cost, high-value. Coffee, chocolate, and bakery treats all fit the brief.
The UK branded coffee shop market grew 9.2 percent in 2024 to reach £5.3 billion, and the sweet bakery and biscuit sectors rose 9.9 percent and 11.2 percent respectively in the year to July 2024. What these categories share is their ability to balance indulgence with accessibility. They allow brands to innovate through flavour twists or clever packaging, without breaking the bank.
A “little upgrade” format, such as a single-serve premium bar, hits the sweet spot of aspiration and affordability. When done well, it keeps consumers excited despite shrinking budgets.
Younger generations are especially driving discovery. 73 percent of Gen Z consider themselves foodies, and 55 percent use TikTok for information about food. This cohort values novelty and story as much as quality, and their feeds reflect that. They treat food as content, an experience worth capturing before eating.
The line between premium and pretentious
For brands, the temptation to lean too heavily on premium cues can be risky. Price sensitivity remains high, and trust fractures quickly when shoppers sense they’re paying more for less.
Shrinkflation and skimpflation, both tracked by consumer group Which?, have already caused backlash across multiple categories. The challenge is to make something feel special without tipping into exclusivity.
The strongest brands are those that combine transparency with imagination. Ingredient sourcing and authenticity give people reasons to believe the story behind the extra pound. A well-shot short-form video can be more persuasive than any slogan. With so much scrollable choice, proof of effort matters.
Ultimately, food-luxxing thrives because it balances indulgence with reassurance. Those small acts of self-kindness are the quiet luxuries keeping consumers going through the big squeezes.
Siobhan McDade is the Managing Director of Jungle Creations
