ÎÚÑ»´«Ã½

Skip to Content
Customer first

Top consumer trends in 2025 and actionable insights for brands and retailers

Retailers and brands are navigating a landscape shaped by rapid market shifts, emerging technological advancements, and evolving consumer expectations.

These forces are converging to create both significant challenges and immense opportunities in 2025.

With so many changes happening simultaneously, the question is: Where should brands and retailers prioritize their efforts to make the greatest impact? The key lies in understanding what truly matters to today’s consumers.

That’s the driving force behind our annual consumer study, aptly named What matters to today’s consumer. Now in its fourth year, this global survey of 12,000 shoppers offers brands and retailers crucial insights into consumer preferences and behaviors—helping them align their strategies to meet shifting demands.

This executive summary highlights the most important takeaways from our research and outlines actionable steps brands and retailers can take to adapt to the dynamic market, evolving technology, and changing consumer mindset.

1. Unlock channel growth: Building loyalty with today’s consumer

53%
Gen Z and 45% millennial shoppers purchased products via social media
70%
social media shoppers seek advice from influencers, up from 50% last year
58%
replaced traditional search engines with Gen AI tools, an 86% increase from last year
67%
notice ads on retailer websites and apps when searching for a product

In 2025, what once seemed like science fiction is now shaping the shopping experience. Generative AI is transforming search, social media is evolving into a transaction-driven space, and everyday individuals—better known as influencers—wield remarkable influence over consumer choices. In this shifting landscape, brands and retailers must recognize that the line between browsing and purchasing is increasingly blurred. The so-called “pre-shop” phase isn’t just where interest is sparked—it’s where buying decisions are made and customer loyalty is cultivated.

While influencers continue to gain prominence, our research shows that brands and retailers still play a crucial role in guiding the shopper’s journey. In fact, consumers are receptive to their input—53% express interest in personalized in-store ads, while more than two-thirds notice advertisements on retailer websites and apps when searching for products.

The key to both winning the pre-shop phase and maximizing the effectiveness of in-store and online retail media is data-driven personalization. Whether through tailored social campaigns, AI-driven recommendations, or highly targeted retail media network ads, brands and retailers must harness their data to anticipate customer needs and provide individualized shopping experiences.

Key takeaways

As the line between browsing and buying continues to blur, retailers and brands must remove friction from the purchasing journey, ensuring seamless transactions across all channels.

Retail media networks offer a powerful way to engage consumers, delivering targeted, data-driven ads that enhance relevance and drive conversions.

Actionable insights should serve as the backbone of every strategy, enabling brands to anticipate customer needs and create meaningful, personalized experiences.

Consumer buying behavior is evolving at a pace that outstrips many retailers’ current capabilities. To stay competitive, businesses must accelerate investments in innovation and adaptability.

2. Adapt to compete: Differentiating through the supply chain

Let us be the bearer of good news: Consumers are feeling more optimistic about their financial situation in 2025 compared to previous years. However, much like businesses, they remain cautious with their spending. This shift is evident in the growing preference for private-label and budget-friendly brands, signaling the rise of a more intentional and cost-conscious shopper.

At the same time, our research shows that convenience remains a top priority. A significant majority of consumers place high value on ultra-fast delivery—whether within 10 minutes or two hours—and are even willing to pay extra for it. However, their willingness to pay still falls short of making these services profitable for retailers.

65%
buy private-label or low-cost brands
~70%
say 10-minute delivery is key, up from 34% in 2023
65%
willing to pay extra for 2-hr delivery
71%
retailers view Gen AI as a transformative tech, up from 45% last year

This imbalance underscores the urgent need for retailers and brands to reduce operational costs. At the same time, they must rethink the supply chain not just as a cost-saving function, but as a competitive differentiator. In other words, supply chain innovations should not only streamline expenses but also enhance the customer experience and reinforce brand value.

Generative AI is emerging as a key tool to drive both cost reduction and experience improvements. For instance, our report highlights Amazon’s AI-powered real-time vehicle routing, which dynamically adjusts for traffic, load weight, and customer preferences. Meanwhile, Zara is using AI-driven algorithms to analyze trends and predict popular styles, helping them significantly shorten design and production cycles.

As the retail industry leans further into AI, it’s important not to overlook other cost-effective and widely available technologies. The price of RFID, for example, has dropped considerably, making it a viable solution for inventory management and production planning, even for lower-cost items like fresh groceries or household essentials. Additionally, advancements in computer vision and sensor technology offer retailers new ways to cut labor costs, enhance efficiency, and reduce waste and shrinkage.

Key takeaways

Focus on using AI to tackle a well-defined business challenge that delivers measurable value, rather than adopting technology for its own sake.

Evaluate all available technologies, weighing their cost, implementation complexity, and potential impact to ensure the best fit for your organization’s needs.

Look for solutions that not only drive efficiency and reduce expenses but also elevate the customer experience and strengthen brand differentiation.

3. Lead with purpose: Aligning with customer values

Our research reaffirms that consumers consistently prefer to support brands and retailers that reflect their personal values on key issues such as sustainability, fair trade, social justice, equality, and health-conscious living. As these priorities continue to shape purchasing behavior, businesses must establish goals that not only drive their own success but also contribute positively to society and the environment. At ÎÚÑ»´«Ã½, we call this dual focus Business for Planet—a principle that informs both our client partnerships and internal initiatives.

64%
purchased products from organizations perceived to be sustainable
67%
see lack of sustainability as a reason to switch retailers
62%
support brands that demonstrate transparent food-waste reduction practices
38%
willing to pay up to 5% more for sustainable products

The growing influence of the conscious consumer is evident across industries. For instance, our report highlights Carrefour’s use of dynamic pricing to combat food waste—a strategy that is increasingly being embraced by top grocers, making waste reduction a necessity rather than an option.

Beyond grocery, the push toward a circular economy is gaining traction. Retailers like IKEA are introducing upcycling programs to create resale opportunities for used furniture, while in the luxury sector, major fashion houses are acknowledging the shift toward second-hand shopping as a preferred choice for many consumers.

Key takeaways

Consumers are drawn to brands and retailers that actively support social and environmental causes, making corporate values a key driver of loyalty and trust.

Businesses can generate long-term value by implementing initiatives that not only contribute to sustainability and social well-being but also strengthen brand reputation and customer engagement.

Shoppers look to brands for clarity on complex topics like environmental impact and public health, expecting them to provide actionable insights and meaningful ways to make a difference.

Conclusion

By 2025, simply selling products won’t be enough for brands and retailers. They must deliver engaging experiences—ones that align with consumer expectations, foster trust and loyalty, and respond to shifting market demands. In this evolving landscape, brands and retailers must meet consumers wherever they choose to engage—whether that’s on TikTok, in a virtual fitting room, inside a physical store, or within the metaverse—leveraging shopper behaviors and preferences to continuously refine their strategies. The challenge isn’t just to react to change, but to actively shape it by gaining a deep, data-driven understanding of who today’s consumers are and what truly matters to them.

About the research 

What matters to today’s consumer is an annual research report published by the ÎÚÑ»´«Ã½ Research Institute (CRI) that tracks and analyzes evolving purchasing patterns and preferences based on a global survey of over 12,000 consumers aged 18+ across 11 countries in North America, Europe, and Asia-Pacific. Now in its fourth edition, this report explores seven key consumer trends within the consumer products and retail industry: the impact of Generative AI on the shopper experience; consumers’ growing preference for sustainable products and changing food habits; the ongoing cost-of-living crisis; how social commerce is reshaping consumer behavior; the rise of personalized advertising powered by retail media networks; the criticality of delivery and fulfillment; and what drives consumers to switch brands. The report also offers practical and actionable insights for how retailers and consumer brands can adapt, evolve, and excel to capitalize on these trends and meet the needs of today’s shoppers.

For more information and insights, download the free report here.

Expert perspectives

Meet our experts

Lindsey Mazza

Global Retail Lead, ÎÚÑ»´«Ã½
Lindsey is ÎÚÑ»´«Ã½â€™s Global Retail Lead. She is a retail thought leader and subject matter expert who specializes in shopper-centric, unified-channel commerce and innovation. With nearly 20 years’ experience in retail transformation, Lindsey has served some of the world’s largest retailers in analytics-enabled integrated planning and execution, from consumer demand to receipt.

Tim Bridges

Global Head of Consumer Products & Retail
Tim Bridges leads ÎÚÑ»´«Ã½â€™s Global Sectors and the Consumer Products, Retail, Distribution (CPRD) global sector practice, a portfolio that includes major global retail, fashion, restaurant, consumer products, transportation, and distribution brands such as McDonald’s, Coca-Cola, Meijer, Office Depot, Domino’s, and Unilever.

Emmanuel Fonteneau

Global Consumer Products & Retail Industry leader, ÎÚÑ»´«Ã½ Invent

Kees Jacobs

Consumer Products & Retail Global ÎÚÑ»´«Ã½ & Data Lead, ÎÚÑ»´«Ã½
Kees is ÎÚÑ»´«Ã½â€™s overall Global Consumer Products and Retail sector thought leader. He has more than 25 years’ experience in this industry, with a track record in a range of strategic digital and data-related B2C and B2B initiatives at leading retailers and manufacturers. Kees is also responsible for ÎÚÑ»´«Ã½â€™s strategic relationship with The Consumer Goods Forum and a co-author of many thought leadership reports, including Reducing Consumer Food Waste in the Digital Era.

Owen McCabe

Vice President, Digital Commerce – Global Consumer Goods & Retail, ÎÚÑ»´«Ã½
Owen is ÎÚÑ»´«Ã½â€™s Global VP for eCommerce. He previously led the Digital Commerce Practice at Kantar and held senior marketing and sales roles at both Procter & Gamble and Nestle. He has domain expertise in eCommerce, digital marketing, brand marketing, route-to-market strategy, and category management. Owen’s passion for digital commerce came about after a private equity assignment in an online travel business.

Eric Cohen

Vice President, Intelligent Industry Accelerator | Global Connected Consumer Offer Lead
At ÎÚÑ»´«Ã½, Eric guides the global Connected Consumer offer within Intelligent Industry. His expertise blends AI with tangible products and digital environments, fostering growth and cherished consumer experiences. Eric’s creativity led to the Reebok PUMP and successful innovations for P&G, Target, and Pfizer. He also shares his insights as a writer, speaker, and by mentoring early stage founders at Harvard Business School.

Steve Hewett

Head of Customer Transformation, frog, ÎÚÑ»´«Ã½ Invent UK