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August 20, 2025
Is ‘Treat Culture’ a Healthy Retail Opportunity?
Seen as modern-day adoptions of the ‘‘lipstick effect,” two newer trends — “little treat culture” and “treatonomics” — are driving an uptick in splurging on indulgences.
First coined by Estée Lauder’s chair, Leonard Lauder, in the downturn in 2001, the lipstick effect, or “lipstick index,” is an economic theory that when times are tough, people tend to choose affordable luxuries — like cosmetics — to treat themselves. The purchases are said to be driven by their relative affordability and the consumer’s desire for escapism.
Little treat culture encourages consumers to treat themselves to small indulgences such as a $7 latte or another somewhat-cheap beverage, snack, or beauty product as a reward for completing a task — or as a coping mechanism. Those treat-buying occasions are then celebrated on social media. The TikTok tag, “sweet little treat meme,” has seen more than 23 million videos using it.
‘Little Treat Culture’ Not Necessarily a Luxury, But a Grounding Mechanism for Consumers in Tough Times
“’Little treat culture’ is not just describing a buying behavior — it’s almost more like a philosophy,” Julia Peterson, director of consumer marketing at youth culture agency Archrival, told Advertising Age. “Young people see ‘treating’ themselves not as a luxury, but as a necessity for staying grounded and finding joy in the wake of tough cultural and economic times.”
With treatonomics, on the other hand, an individual cuts back on everyday expenses by buying cheaper supermarket brands or giving up takeaway coffees to save up for “significantly larger indulgences and experiences,” such as attending a live concert, according to CNBC.com.
Meredith Smith, senior director at retail analysis firm Kantar, told CNBC that consumers are looking to reward themselves with “inch-stones” because life’s traditional milestones are harder to achieve.
“For example — for those who can’t afford a home before 40, treating has been a welcome respite and a way to express themselves in their environment when a milestone passes them by,” Smith said. “For those without a partner or children, instead of celebrating weddings and baby showers, they are throwing their energy into breakup parties, dog birthdays, high-effort wellbeing-driven treating routines and more.”
The trends are often grouped under the “treat culture” moniker given their similarities. They promise an opportunity for retailers to offer products or marketing approaches celebrating that address those moments of escapism.
However, the self-treating trend has some downsides.
As noted in a New York Times article, treat culture represents a departure from conventional savings behaviors and can lead to overspending.
U.K. psychologist and wellbeing specialist Lee Chambers told the Huffington Post said while small treats can reinforce healthy habits, they may cause “too much focus on short-term gratification” and lead to a dependency on external rewards.
He said, “It can also have the potential to become normalized, taking the edge off the benefits as it becomes the standard way of operating.”
Discussion Questions
Do you see the ‘little treat culture’ and ‘treatonomics’ trends as a limited or long-term opportunity for retailers?
Do you generally view ‘treat culture’ or the self-treating trend as a positive or negative?
Poll
Loading …BrainTrust
Lisa Goller
B2B Content Strategist
Georganne Bender
Principal, KIZER & BENDER Speaking
Lucille DeHart
Principal, MKT Marketing Services/Columbus Consulting
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The role of any retailer is to persuade consumers to buy. Offering something that feels like a treat or indulgence is a powerful motivator as it takes the consumer away from purely transactional considerations like price, to softer ones like emotions and feelings. Of course, this dynamic exists in good times and bad – it just becomes more salient in bad times as overall discretionary spending is more constrained and those nudges to buy become more important.
The issue with ‘treat culture’ is that it occurs inconsistently and lacks brand loyalty, 2 key things that are core tenants with retailers. If this trend continues, it is up to the retailer to figure out how to convert these one-off shoppers into repeat, loyal customers.
“Little treat culture” definitely appears to be a long-term opportunity for retailers. Compounding stress (from the economy, layoffs, climate events, wars) can feel overwhelming. More consumers will pamper and soothe themselves with affordable luxuries, as we did in the mid-’90s when coffee chains exploded in North America.
I’d question whether this is really a trend at all (Didn’t HoJo’s rise to fame and fortune during the Great Depression b/c ice cream suddenly seemed like a “splurge”).
But to answer the question as it was asked, I see this as a negative: when $23 items come to be widely viewed as the upper limit of spending, what will become of those who sell $123 items ? (or $1230 items?)
I generally see treat culture as a positive trend, but it has some downsides.
The Good – Treats can be good for your mental health. They offer a simple way to cope with stress, giving you a brief moment of joy and escapism to prevent burnout. My day at Spa Land was a crucial reset button that left me feeling revitalized and more productive. This culture also empowers people by giving them a sense of control in an uncertain economy. While you can’t control the housing market, you can at least control your ability to buy a nice coffee or a new book. The Bad – The biggest risk is that “little treats” can lead to overspending. A daily $7 chai latte, my favorite, can quickly add up. There is also a risk of dependency, where you become reliant on external rewards for happiness. This can make the treat feel less special over time.
Ultimately, a treat is a short-term fix, not a long-term solution for the stress that’s causing you to seek them out.
A stair step to full ‘retail therapy’… esp with BNPL?
A refreshed name for YOLO… spending when it exacerbates worry over money?
Retailers being ready for it, sure.
But using Treat Culture/Self Gifting all year long (in addition to 4Q) is a crutch. Branding & valued product assortment is the hard work that can’t be waived away.
Like anything else, too much of a good thing has it’s downsides and bad outcomes. But treat culture can be a net positive for customers, and a great way for retailers to connect with shoppers. Buying or receiving something special, that you love or ordinarily might not buy can be a motivational tool for a hard work day or work week. To expect consumers to hold strong to a spartan lifestyle is unrealistic, and retailers are smart to help bridge an aspirational gap in reminding customers they have the freedom to make both good and tough decisions. It’s ultimately on the consumer to determine their own direction and outcomes.
‘Treat culture’ signals retailers should shift from transactional product thinking toward relationship curation as emotional wellness platforms. When consumers can’t afford traditional luxuries, they compensate with higher-frequency micro-indulgences – creating new touchpoint opportunities for savvy retailers. The strategic choice: help customers build sustainable treat habits through structured micro-rewards, or exploit short-term emotional vulnerability? The former builds deeper customer relationships while the latter extracts temporary value.
This represents legitimate differentiation in an era where consumers seek more complex and supportive relationships with brands. Retailers who master emotional wellness will capture higher lifetime value with competitive moats that pure product sellers can’t replicate.
Excellent point here, and one that can be used in other parts of society as well. I can see libraries and museums, for instance, pointing to their spaces as oases of relaxation / celebration / personal growth and access to elements of “the good life” that aren’t available to acquire personally. Positioned thoughtfully, these messages can also promote community-building, mental health, and social resiliency.
Treating yourself to a small indulgence now and again is just something people do. Let’s not turn it into a thing retailers can do to milk sales. Sometimes you just want a latte. Or a Hostess Snoball. Don’t judge…
The US market was built on “treating yourself.” Our consumer economy is based on end-users “deserving” their purchases. Most marketing messages are catered to want and not need, so I don’t see the “little luxury” culture as new or unique. I do believe the mini-version of self-indulgence can be effective to trade consumers up and to expand user base.Similar to how aspirational luxury shoppers look to accessories in a brand to enter it, “little treats” can provide validation/approval to hesitant consumers looking to splurge.
Let’s not make this bigger than it is. “Treat culture” has been around as long as I can remember. Craig points out HOJOs. Georganne and Lucille describe it perfectly.
I like the “little treat” concept, but not in the way the article is talking about. Retailers should always be offering little treats, good times and bad. They need to be offering up the differentiating, unexpected delights that lift shopping out of the mundane. Weren’t we calling this “experiential retail” not that long ago? Retailers known for offering this kind of shopping experience become a go-to destination. Offering the occasional little treat won’t built any real brand equity in the customers mind. It’s the ‘treasure hunt’ mentality. Isn’t that what makes Costco and TJX so powerful? Little (or huge) treats 24/7/365…???
People want to feel good. It’s easier to make and justify purchases during good economic times. With prices going up due to inflation and tariffs, sometimes a little indulgence at a reasonable price is exactly “what the doctor ordered” to make the consumer feel good, as some consumers are feeling more cost-conscious than usual. There will always be room for this self-treating/indulgence in a retail strategy.
Does this tactic cause consumers to spend money they may otherwise not spend? Sounds like it does, so I do not see this being anything but a positive for retailers and consumers!
I see treat culture as more than a passing trend. It reflects how consumers cope when milestones like homeownership or family feel out of reach, turning small indulgences into meaningful rituals.
That shift gives retailers a chance to connect, but success depends on offering experiences that support joy and grounding rather than simply pushing products. When framed around self-care and community, treat culture can build lasting loyalty. When reduced to quick gratification, it risks fading as economic pressures grow.