Top trends for the consumer sector in 2025: how can businesses prepare?

6 December 2024

As we move into 2025, the consumer sector is poised for significant transformation driven by technological advancements, shifting consumer values, and evolving market dynamics.

Top consumer industry trends for 2025

Artificial Intelligence continues to revolutionise the consumer experience by enabling highly personalised interactions.
Sustainability remains a critical focus, as consumers increasingly demand eco-friendly products and ethical practices.
The metaverse is expanding, offering immersive virtual environments where consumers can interact with brands and products. This trend opens new avenues for marketing, virtual shopping experiences, and brand engagement, making it a key area for innovation.
The sharing economy is evolving with more innovative and efficient ways for consumers to share resources and services. This trend promotes sustainability and cost-effectiveness, appealing to a broad range of consumers.
Building communities and fostering connections are becoming increasingly important. Brands that create platforms for consumer interaction, both online and offline, can build stronger relationships and enhance customer loyalty.
Evolution of Payment Methods, with new payment systems, including digital wallets and cryptocurrencies, becoming mainstream.
Leveraging data and analytics is crucial for understanding consumer behaviour and improving customer experiences. Brands that effectively utilise data can make informed decisions, personalise offerings, and stay ahead of market trends.
As Gen Z becomes a dominant consumer group, their preferences for authenticity, transparency, and social responsibility are shaping market trends.
Increasing regulatory complexity will impact the sector with the potential to increase the business cost base and impact profitability.

As a result, consumer businesses will need to take into consideration the below focus areas to stay competitive and resilient.

More 2025 consumer industry trends

Technology and cybersecurity

The first would be to embrace technology by leveraging AI, automation, and other advanced technologies to enhance productivity and customer experiences. However, it will be crucial to balance automation with human interaction. With increasing digitalisation and reliance on technology comes the need for better protection against cyberattacks. So, ensuring cybersecurity measures and practices are robust and fit for purpose will be important.

Customer and employee experience

Customers are at the heart of the sector and providing them with exceptional customer service and memorable experiences is fundamental. This involves understanding their needs and preferences and delivering personalised solutions where necessary. Technology can surely support in this however, human touchpoints will be necessary. This highlights the importance of attracting and retaining talent which might become more challenging due to evolving employee expectations. Offering flexible work arrangements professional development opportunities, and a supportive work environment will help mitigate the risk.

Economic and political uncertainty

Businesses must be prepared for economic fluctuations and environmental challenges. These coupled with geo-political factors could exacerbate market stability. Furthermore, new regulations and policies will be implemented which businesses will need to comply with. Proposed trade policies in the US could significantly exacerbate the inflation landscape globally. However, there’s also good news, in the form of proposed bank deregulation, which, if enacted could materially boost growth.

Staying ahead of the curve on upcoming regulatory changes

Consumer businesses need to be aware of a number of regulatory changes that could have a significant impact on their operations and lead to a potential increase in costs. Some of the changes, we feel, will have the biggest impact in the new year are:

Tax changes following the Autumn Budget: with additional labour costs coming into force with the introduction of the new National Living Wage as well as the increase of National Insurance contributions for employers, businesses in the sector will be required to monitor costs appropriately to remain both competitive and maintain their profit margins.
Sustainability and ESG reporting: this new year is set to bring a new ear for sustainability reporting with the arrival of the Corporate Sustainability Reporting Directive (CSRD). The directive will require around 50,000 companies operating in the European Union to publicly disclose how their environmental, social, and governance (ESG) activities impact their business, and how their operations impact people and the planet. In one of our previous articles we looked at what the CSRD entails and how you can start planning for the regulations, Sustainability assurance: Are you ready for CSRD?
Consumer Duty: the application of the Consumer Duty will continue to impact businesses in the sector that offer financial services products and will require them to prioritise consumer interests and ensure fair treatment. Transparency in pricing, clear communication, and addressing consumer complaints effectively will continue to be key.
Supply chain regulations: with new regulations to improve supply chain transparency businesses will need to ensure compliance to reduce risk, avoid disruptions and maintain consumer trust and brand reputation.

Conclusion

In this new year, the consumer sector will be characterised by evolving trends some of which are familiar challenges, namely technological advancements and sustainability, but a few new trends are rising the agenda that businesses should consider more carefully if they want to achieve long-term growth and success.