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Why does spending on others make us happier?

In the age of solitude and the little treat economy – where we reward ourselves with small indulgences like an artisanal pastry, we are prioritising ourselves more than ever. 

Valentine’s Day and long winter fatigue nudge us further towards “treat yourself” moments. Fancy dinners, scented candles, quirky merch – small indulgences framed as self-care. It works. Nearly 60% of Gen Z say this “little treat” culture leads them to overspend.

The global wellness economy reached $6.8 trillion in 2024 and is projected to grow to around $9.8 trillion by 2029 (McKinsey). More than half of global consumers say they are willing to spend $100+ per month on nutrition, self-care, and mental or physical health.

And yet, research points to the paradox – spending that delivers the strongest emotional return is not self-focused, but directed towards others.

Why spending on others feels better?

Research from Harvard Business School shows that prosocial spendingspending money on other people, increases happiness more than spending on oneself. The study found that any act of generosity improves mood because it creates a sense of impact, regardless of how much is spent. Small acts of giving, say treating a friend to a coffee, can feel just as rewarding as larger gifts. What matters is the personal aspect. Sharing a  meal creates a more immediate and social payoff than tapping a “Donate” button on a screen.

So why aren’t we more generous more often?

People systematically underestimate how positively others will respond to gifts, gratitude, or support. Behavioral scientists call this undersociality: people holding back from acts of kindness because they expect awkwardness or negative reactions. In reality, recipients respond far more positively and with more gratitude than expected. In other words, people want to be more generous, but hesitate.

This aligns closely with patterns we consistently see in our Human Context Circle. Prosocial spending sits at the intersection of key human drivers: the need for social ties, the desire for purposeful action, and moments of transcendence beyond the self.

For brands, the opportunity is to help people act on this impulse.

Make giving participatory:

Prosocial spending works best when people are directly involved, choosing what to give and who benefits rather than brands donating on their behalf.

Think gift-giving features, shared experiences, or buy-one-give-one formats. Example: Coca-cola The Friendship Machine.

Let customers choose to give

“Sharing is caring” and the positive feelings it brings only works when sharing feels voluntary, and not forced.

Think opt-ins instead of defaults, choice of cause over one-size-fits-all campaigns, and personalisation rather than mandatory giving.

Show what changed

When people can see who benefited or what changed, they are far more likely to give again.

Move away from vague promises like “making the world a better place” and focus on clear, human results such as “a meal was shared,” “a project was funded,” or “this person was supported.” A case in ponint: TOMS shoes  – for every pair purchased, a pair was donated to children in specific communities in countries such as Argentina, Ethiopia, and Haiti. 

The takeaway

Shift the narrative away from indulgence and towards connection, and remind customers that treating others can also be a way to treat yourself.

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Author

Ilze Vitola

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Tabea Höllger

Partner

Tabea Höllger specializes in brand positioning in saturated markets and measuring brand success. One of her key areas of expertise is the FMCG sector, where she focuses on topics such as product launches and the impact of packaging.

Tabea sees herself as a bridge-builder at the intersection of the FMCG market, sustainable brand management, and emerging technologies. She firmly believes that knowledge transfer between these three perspectives is essential for successfully addressing the challenges of the future.

In addition, Tabea has established herself over many years as an expert in creating engaging and memorable brand experiences. She helps companies inspire their employees to embrace and champion the brand strategy.

After gaining experience in market and advertising research and spending time abroad in the United States and the Philippines, the trained business psychologist returned to BrandTrust in 2016.

Kees Elands

Founder & Strategist

Kees his purpose is to help ambitious leaders and brands to human-proof their business. In 2003 he founded TrendsActive, a trend consultancy enabling brands to become more human centric.

Kees consults global brands like

  • Disney
  • The Coca-Cola Company
  • Asics
  • Discovery Channel
  • Swiss Life
  • Vodafone

and many more.

Next to being the founder of TrendsActive, he is also initiator of the first academic trend master for executives at the University of Utrecht and is initiator of various trend studies and white papers on subjects like trust, meaning, visual culture & generations.

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Kim Pillen

Consultant

Before Kim Pillen started as a trend consultant at TrendsActive, she worked for four years as a creative strategist at Dept. For brands such as Philips, bol.com, Beiersdorf, JBL, and the Consumers’ Association, she built (online) campaign, brand, and social media strategies. After four years, she decided that she wanted to better understand people and society in order to advise brands more effectively. That’s how she ended up at TrendsActive. Here, she can do what she loves most: digging into people’s needs and then working with brands to see how and where they can be relevant and meaningful.

Douwe Knijff

Researcher

Douwe is fascinated by how people work. With a background in Interdisciplinary Social Sciences (Bachelor) and Psychology (Master) and an analytical mind he tries figure out how societal shifts manifest themselves through social culture and human behaviour.

Aljan De Boer

Keynote speaker

Aljan has been widely recognized as an inspiring professional speaker on the critical trends that will shape society in the decades to come. He works as the Head of Inspiration at TrendsActive, a trend consultancy from the Netherlands using social science to human-proof business decision for brands like

  • Disney
  • Vodafone
  • Hugo Boss
  • ASR
  • Rabobank

Next to his role at TrendsActive he is the Community Director at the Institute for Real Growth where he inspires and connects a global community of +400 CMOs.  

He has been on the board of the Dutch Platform of Innovative Marketing for almost a decade. Regular speaker and moderator for the Dutch Marketing Awards and 3 times winner of the best of MIE. 

Kees Elands

Founder & Strategist

Kees his purpose is to help ambitious leaders and brands to human-proof their business. In 2003 he founded TrendsActive, a trend consultancy enabling brands to become more human centric.

Kees consults global brands like

  • Disney
  • The Coca-Cola Company
  • Asics
  • Discovery Channel
  • Swiss Life
  • Vodafone

and many more.

Next to being the founder of TrendsActive, he is also initiator of the first academic trend master for executives at the University of Utrecht and is initiator of various trend studies and white papers on subjects like trust, meaning, visual culture & generations.

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Kees Elands

Founder & Strategist

Kees Elands

Founder & Strategist