The ‘vanishing middle’ will be a big concern for marketers in 2026

“Brands and marketers now confront a ‘K-shaped’ economy, with spending splitting toward both premium and budget ends, leaving fewer opportunities for middle-income buyers,” Warc states in its annual Marketer’s Toolkit released last week.     

“This economic stress and long-term uncertainty have led younger generations to delay or forgo milestones such as having children, buying homes, or pursuing higher education.  

“Traditional family structures and gender roles are evolving, forcing marketers to reconsider life stage-based strategies.” 

Nearly three-quarters (73%) of marketers agree that the term ‘middle class’ is effectively meaningless as income growth slows, costs rise and job security is threatened.  

Consumers must be guided through ‘affordability tension’ 

As brands are faced with engaging either a high or low end of the market, Warc suggests that they help guide consumers through ‘affordability tension’ – understanding the gap between what people want and what is realistically within their means.  

Conventional consumer milestones, such as having children or reaching retirement age, are in flux against this backdrop.  

Fifty-nine percent of marketers believe audience segmentation based on factors like age, income and social class are less effective today, while 57% think traditional family structures and gender roles are different. 

Given this, marketers must reassess some of their established assumptions around what triggers spending and whether there are new entry points for consumers into their brand categories. 

Warc lists the key takeaways from the latest Marketer’s Toolkit: 

1. Successful brands are moving toward segmentation based on emotional readiness, values and passions, rather than outdated assumptions about linear life progression. 
2. Capture authentic insights to build brand value beyond price, fostering lasting emotional connections.  
3. Develop tiered pricing options, embracing premiumisation or value repositioning to serve both high-end and budget-conscious consumers.  

Other important focus areas for marketers in 2026, says Warc, will be: gambles on creator marketing; delivering escapism through in-person and digital experiences; a shift away from SEO; and changing consumer milestones that are affecting audience segmentation.