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Consumer Behavior Trends in 2025: A Comprehensive Analysis
Published by Jessica Weisman-Pitts
Posted on January 14, 2025
20 min readLast updated: January 29, 2026
Global Banking and Finance Review
Company
Published by Jessica Weisman-Pitts
Posted on January 14, 2025
20 min readLast updated: January 29, 2026
In 2025, businesses face unprecedented shifts in consumer behavior shaped by multifarious factors including economic, technological, and social changes. This detailed analysis delves into significant trends backed by empirical data and insights from leading research institutions, providing robust strategies for market alignment.
The 2025 consumer landscape reveals an increasing trend towards self-reliance, with 68% of global consumers emphasizing the importance of managing their health, finances, and lifestyles independently. This is a notable increase from previous years, where only 52% reported similar sentiments (Innova Market Insights).
Cooking from Scratch: Over 55% of adults aged 45+ have reported enhanced engagement in home-cooked meals, a rise driven by both health and economic motivations. The average household has seen food costs climb by 12% annually, prompting a return to traditional culinary practices to maximize financial resources (Innova Market Insights).
Youth and Financial Autonomy: Among younger demographics (18-34), there is a 35% uptick in DIY fitness and workout regimens, coupled with a 22% increase in side hustles as alternative income sources. This reflects a shift towards financial independence and proactive personal development in light of volatile economic conditions (Innova Market Insights).
Survey data indicates that 88% of consumers require authenticity and transparency in their purchasing decisions, revealing a substantial decline in trust towards companies that fail to prioritize social and environmental responsibilities. Millennials and Gen Z are at the forefront of demanding these changes (Innova Market Insights).
Concerns Over Greenwashing: Approximately 74% of consumers are increasingly critical of greenwashing tactics, which are practices where businesses exaggerate their environmental efforts. This prevailing skepticism necessitates that brands provide verifiable commitments to sustainability to maintain and enhance consumer trust (Innova Market Insights).
Authenticity as a Market Driver: 63% of consumers aged 18-29 express a readiness to pay premium prices for brands they perceive as honest and authentic. This trend challenges businesses to substantiate claims with third-party validations and restores faith through transparent communication and practices (Innova Market Insights).
The global wellness market is anticipated to surpass $1.8 trillion, experiencing an impressive annual growth rate of 5-10% (McKinsey). This surge is driven by increased consumer demand for health-promoting products that address both physical and psychological well-being.
Holistic Product Offerings: A newfound focus on holistic health is apparent, with 63% of respondents emphasizing the importance of products that provide both physical and mental health benefits. This shift encourages brands in the wellness sector to innovate with products that lend energy, vitality, and support emotional well-being (Innova Market Insights).
Sustainability has become a pivotal factor for 78% of consumers when choosing products, reflecting a significant societal shift towards environmental stewardship (McKinsey). This growing concern reflects in consumer preferences for sustainably sourced and ethically produced goods.
Sustainable Packaging and Growth: Products with sustainability claims have seen an average cumulative growth of 28% over five years, compared to a 20% growth for those without such claims. There is a marked consumer demand for products that align with their values around sustainable living (McKinsey & Company).
Artificial Intelligence (AI) and Virtual Reality (VR) continue to revolutionize consumer experiences, with a current capability to drive immersive and personalized interactions (Storyly).
AI Integration and Innovation: Of those surveyed, 56% of global respondents report discomfort in sharing personal data despite AI’s potential for personalizing shopping experiences. This highlights a crucial area for brands to build consumer trust while leveraging AI capabilities (Retail Customer Experience).
Virtual Reality (VR) Adoption: The retail sector is harnessing VR to create engaging, immersive experiences that capture consumer interest, with young consumers showing a higher propensity for interactions in virtual spaces—indicating future potential for enhanced consumer engagement (Program Ace).
Omnichannel shopping continues to gain traction, with strategies that attract 89% higher customer retention rates when executed effectively (NielsenIQ Insights).
Growth of the Buy-Online-Pick-Up-In-Store Model (BOPIS): This model maintains its prominence, providing customers convenience and flexibility. With widespread adoption, approximately 70% of major retailers now offer BOPIS services, reflecting consumer demand for integrated shopping experiences (NIQ Insights).
Digital and Physical Retail Integration: By creating a seamless transition between online and physical retail spaces, businesses can capture a larger market share. This integration leverages consumer behavior towards convenience and instant gratification (NIQ Insights).
With the impending phasing out of third-party cookies, 77% of consumers express concern about data privacy, pushing businesses to rely more on zero-party data, which consumers willingly provide (Storyly).
Zero-Party Data Utilization: Zero-party data strategies have seen a 25% increase in effectiveness for personalizing customer interactions. Unlike first-party data, zero-party data ensures transparency and builds trust, with a reported 42% increase in consumer trust in brands that use this method (Storyly).
Personalization Trends: Brands are increasingly leveraging this data to tailor marketing messages, resulting in a 35% increase in engagement rates when messages are personalized versus generic content. This trend is crucial for meeting modern consumer demands for relevant and personalized shopping experiences (Storyly).
Social commerce is projected to exceed $1 trillion by the end of 2023, driven by seamless integration with popular social media platforms like Instagram and TikTok (Deloitte).
Engagement Through Social Platforms: More than 60% of users engage in shopping via social media, with a preference for visual-based product presentations, such as carousels and shoppable videos, enhancing the purchase experience (Smart Insights).
Impact of Macro-Influencers: Macro-influencers, characterized by their follower count ranging from 100,000 to 1 million, drive greater brand awareness. Businesses leveraging macro-influencer partnerships have reported a 20% increase in brand recognition and a 30% enhancement in consumer engagement (Smart Insights).
Sustainability remains a top concern, with 78% of consumers reporting that they seek businesses that align with their green values. This demand signifies a shift towards ethical consumption habits (McKinsey & Company).
Products with ESG Claims: Products with environmental, social, and governance (ESG) claims have shown an average growth rate of 28% compared to products lacking such claims. This confirms consumer preference for sustainable options, which encompasses practices like eco-friendly packaging and ethical sourcing (Impacked Packaging).
Corporate Responsibility and Trust: As businesses adapt to sustainable practices, 67% of consumers are more likely to remain loyal to brands that meet these criteria. Transparency in corporate responsibility fosters trust and long-term consumer relationships (McKinsey & Company).
Mobile commerce is rapidly expanding, with retail m-commerce accounting for approximately 6.5% of total retail sales in 2024, expected to rise to 8.7% by 2026 (Storyly).
Convenience and Adoption: The availability of mobile wallets like Apple Pay and Google Pay has facilitated the swift adoption of mobile shopping. Consumers cite immediate payment options, including tap-and-go technology, as key advantages driving m-commerce’s popularity (Oberlo).
Implications for Retailers: Retailers implementing mobile-friendly platforms have seen a 15% increase in mobile sales conversions. A seamless mobile shopping experience significantly enhances consumer satisfaction and repeat business (Oberlo).
As consumers prioritize well-being, health and wellness products are projected to see an annual sales increase of about 10% in coming years. This encompasses both physical and mental health enhancements (McKinsey).
Focus Areas: Consumers are particularly interested in products supporting holistic health practices, including natural and organic ingredients. 65% of those surveyed indicated a preference for products promoting mental clarity and emotional balance alongside physical health benefits (Innova Market Insights).
Business Opportunities: As the wellness market expands, opportunities abound for businesses to innovate and capture market share by offering personalized health solutions and promoting lifestyle improvements (McKinsey).
The integration of AI and VR technologies continues to transform how consumers interact with brands, offering new levels of engagement and personalization (Storyly).
AI-Driven Personalization: With AI, businesses can create highly personalized experiences, catering to individual preferences and enhancing customer engagement. Reports indicate that personalization can increase consumer spending by 10-15% over non-personalized alternatives (McKinsey).
Virtual Shopping Experiences: VR technology offers consumers immersive, interactive experiences, particularly in sectors like retail, real estate, and hospitality. As VR becomes more accessible, consumer interest and interaction rates are expected to increase, offering novel ways for brands to stand out (Program Ace).
Consumers, especially younger demographics, are increasingly prioritizing experiences over material possessions. This shift is fueled by a desire for meaningful connections and personal growth (Innova Market Insights).
Experiential Spending Trends: In recent surveys, 60% of millennials expressed that they prefer spending money on experiences such as travel, dining, and cultural events rather than on physical goods. This trend is expected to grow by 15% annually as Gen Z becomes a significant economic force (Innova Market Insights).
Investment in Experiential Retail: Retail sectors are evolving to include experiential elements such as interactive store environments and virtual experiences to attract consumers seeking more than just shopping. Brands integrating these experiences reported a 20% increase in consumer foot traffic (McKinsey).
Brand loyalty is decreasing, with consumers more willing to try new brands that align with their values and offer better utility and ethical conduct (McKinsey).
Rebuilding Trust Initiatives: 72% of consumers are more likely to trust brands that commit to ethical practices and transparency, suggesting that companies must actively work to rebuild trust through genuine interaction and communication (Innova Market Insights).
Opportunities for New Entrants: This lapse in traditional loyalty creates opportunities for emerging brands that can differentiate themselves through authentic storytelling and value-driven marketing, appealing especially to Gen Z and millennial consumers (McKinsey).
Businesses must adjust strategies to align with these identified consumer trends for sustained growth. Here are some recommendations:
With inflationary pressures persisting, consumers are more cautious about their spending habits. Studies indicate that 72% of global consumers are actively seeking discounts or value-driven purchases as inflation rises (NIQ).
Shift to Value Brands: As disposable income tightens, there's an observed shift towards value brands that offer quality at a lower price point. Consumers are becoming more sensitive to price changes, and brands that can balance quality with affordability are likely to maintain market share (Impacked Packaging).
Consumers over 65 are one of the fastest-growing demographic groups, with a readiness to spend on travel, leisure, and health-centric products. This group shows a 20% higher interest in experiential spending compared to previous years (McKinsey).
Targeting Emerging Markets' Youth: In contrast, younger populations in emerging markets like India and Brazil exhibit a propensity to spend on premium and tech-savvy products. These markets are poised for significant growth as 75% of emerging market consumers will be between 15 and 34 years of age by 2030 (McKinsey).
BNPL options have surged in popularity, with approximately 60% of online shoppers having utilized this service in the past year (Storyly). The shift to flexible payment solutions attracts younger consumers looking for financial ease.
Implications for Retailers: Retailers incorporating BNPL see a 30% increase in average order values and improved customer acquisition rates. As the BNPL model gains traction, integrating it into payment solutions is becoming a competitive necessity (Storyly).
Consumer concern about data privacy is soaring, with 77% worried about how their data is used, leading to a demand for greater transparency and control over personal information (Storyly).
Zero-Party Data Collection: Businesses are pivoting towards zero-party data strategies, asking consumers directly for information, enhancing trust, and involving them actively in the personalization processes. A shift towards transparent data policies helps build stronger consumer relationships (McKinsey).
Approximately 65% of consumers now expect brands to play an active role in social and political issues. This trend underscores the importance of corporate activism and ethical business practices in consumer decision-making (Deloitte).
Brand Position and Consumer Perception: Brands that authentically address social issues and align with consumer values witness a 25% increase in loyalty. Consumers are likely to support companies that reflect their ethical and social ideals through active engagement in community and global challenges (Deloitte).
The blend of physical and digital experiences—termed "phygital"—is accelerating, with 58% of consumers expressing interest in shopping experiences that merge online and offline elements (NIQ Insights).
Augmented Reality and Smart Stores: Retailers incorporating augmented reality (AR) and smart store technologies are seeing increased consumer engagement, with a reported 18% rise in in-store traffic when AR features are available. These enhancements offer consumers immediate product information and personalized shopping experiences (Storyly).
Over 70% of consumers say they are more likely to purchase from brands committed to diversity and inclusion. This trend reflects a broader societal shift towards representation and equality in branding practices (Innova Market Insights).
Inclusive Marketing Strategies: Companies highlighting diverse representation in their marketing campaigns experience higher customer engagement and brand loyalty. Global markets show an 11% increase in brand trust when diversity is prominently featured (Gravital Agency).
Consumer interest in plant-based diets continues to soar, with the global plant-based food market expected to grow at a CAGR of 10% from 2021 to 2028. Ethical considerations are driving consumers toward vegetarian and vegan options (ProVeg).
Health and Environmental Benefits: 64% of consumers cite health benefits as primary motivation, while 50% are driven by environmental concerns, highlighting the dual appeal of plant-based diets (Innova Market Insights).
Consumers are increasingly focusing on mental health, with 62% expressing a desire to prioritize emotional well-being alongside physical health. Mindfulness practices are becoming mainstream, with meditation apps seeing a 40% surge in downloads over the past year (Innova Market Insights).
Market for Mindfulness Products: There is a growing market for products and services promoting mindfulness and relaxation. Companies investing in mindfulness products can tap into this expanding consumer base, with expectations of continued growth in this sector (McKinsey).
As digital devices become omnipresent, 54% of consumers express concern about the impact of heavy technology use on their well-being, leading to a trend of digital detoxing. Consumers are actively seeking ways to balance tech use with real-world experiences (NIQ Insights).
Opportunities for Brands: Companies offering products and services that encourage tech-life balance, such as workshops for digital mindfulness or apps that limit screen time, are seeing increased consumer interest. This trend provides opportunities for brands to innovate and cater to consumer needs for healthier digital habits (Storyly).
72% of consumers are now actively participating in the circular economy by recycling, reusing, or buying second-hand goods. The focus on minimizing waste and extending product life is driving this shift (Innova Market Insights).
Corporate Initiatives: Brands implementing recycling programs or offering refurbished products are witnessing improved consumer engagement. Circular practices appeal to environmentally conscious consumers and can lead to a 25% increase in brand loyalty (McKinsey).
In 2025, 58% of consumers are showing a preference for products and brands that support local economies, reflecting a shift towards community-oriented purchasing. This trend is partly driven by a desire for economic sustainability and resilience (NIQ Insights).
Supporting Local Enterprises: Businesses that source locally and emphasize community impact can capture this consumer sentiment. Locally focused strategies can lead to increased consumer trust and loyalty, particularly among millennials and Gen Z (McKinsey).
As we look ahead beyond 2025, businesses will need to anticipate and adapt to transformative consumer trends driven by technological advancements, environmental considerations, and shifting societal values. Here’s a forward-thinking outlook on how these factors are expected to mold the future of consumer behavior:
AI and machine learning will become more deeply integrated into consumer experiences, providing unparalleled personalization and convenience. Virtual assistants and automated customer service will handle more complex tasks, reshaping how consumers interact with brands. Businesses will need to leverage these technologies to create seamless, intuitive user experiences (McKinsey).
Smart Home Integration: The Internet of Things (IoT) will continue to expand, with homes becoming more interconnected. Consumers will increasingly expect smart home devices that not only simplify their lifestyles but also improve their energy efficiency and environmental impact (McKinsey).
Consumers are expected to demand even greater sustainability from brands, emphasizing eco-friendly production, renewable energy use, and closed-loop supply chains. Companies investing in sustainable practices will likely see increased loyalty and gains in competitive advantage (McKinsey & Company).
Transparency as a Standard: By 2030, transparency in sourcing, production, and corporate practices will be a baseline expectation for consumers. Brands that showcase their ethical practices through easily accessible information will be rewarded with consumer trust and preference (McKinsey).
The future will see the continued blurring of the lines between health, wellness, and lifestyle, with consumers seeking comprehensive solutions that address physical, mental, and emotional health. Personalized health services, tailored fitness programs, and digital health solutions will be pivotal (McKinsey).
Tech-Enabled Wellness: Technology will enable more precise health monitoring, allowing consumers to take proactive control of their health with wearable devices and personalized data analytics, driving a more preventative approach to healthcare (McKinsey).
The expansion of global connectivity will foster diverse, transnational communities united by shared interests and causes, overshadowing geographical borders. Businesses will need to navigate cultural nuances and embrace diversity to engage these varied audiences effectively (McKinsey).
Collaborative Consumption: Sharing economy models will flourish, with consumers continuing to embrace services like co-living, ride-sharing, and co-working. This change represents a shift towards more collaborative and less ownership-focused lifestyles (McKinsey).
With economic uncertainties prevailing, consumers will lean on adaptive financial services offering flexibility and security, such as dynamic loan options, real-time payment processing, and decentralized finance (DeFi) innovations (McKinsey).
Cryptocurrencies, including Bitcoin, and blockchain technology are increasingly being considered for broader adoption. These developments may influence areas such as financial transactions, supply chain management, and digital contracting, requiring businesses to assess how these technologies could be incorporated into their operations (McKinsey).
With the expansion of AI capabilities and advanced data analytics, consumers will expect hyper-personalized experiences across all touchpoints (McKinsey).
Predictive Analytics and Anticipatory Services: Predictive models that anticipate consumer needs before they arise will transform retail, healthcare, and entertainment sectors. Anticipatory services, which adjust based on real-time data insights, will enhance convenience and satisfaction (McKinsey).
With increasing digital interactions, consumers will need secure digital identities, leading to innovations in identity management and cybersecurity (McKinsey).
Privacy-First Technologies: Demand for privacy-first solutions, such as decentralized identity platforms and encrypted communications, will rise, empowering consumers with control over their personal data while ensuring security in digital environments (McKinsey).
Sustainable and ethical value chains will become a cornerstone of consumer demands. More consumers will support brands that implement environmentally responsible practices, shift to renewable resources, and maintain transparent operations (McKinsey).
Rise of Impact Investing: Ethical investing, focusing on social and environmental impact, will grow exponentially. Funds and businesses prioritizing ESG (Environmental, Social, and Governance) criteria could potentially outperform as they align with consumer values and global sustainability goals (McKinsey).
Brands will leverage augmented reality (AR), virtual reality (VR), and mixed reality (MR) to create immersive consumer experiences (McKinsey). These technologies will foster deeper emotional connections, allowing consumers to experience brands in entirely new ways.
Multisensory Marketing: Engaging consumers through multiple senses—sight, sound, touch, smell, and taste—will revolutionize product experiences, with technological advancements enabling more realistic and interactive environments (Smart Insights).
As remote and hybrid work models become entrenched, consumption patterns will shift, with increased demand for home office supplies, flexible workspace solutions, and decentralized professional services (McKinsey).
Local and Sustainable Living: With more people working from home, there will be a heightened focus on locally sourced products and sustainable living choices, promoting economic resilience within communities (Storyly).
Smart homes will evolve into AI-enabled environments that predict and respond to residents' needs, optimizing energy use, security, and comfort (McKinsey).
AI Companions and Assistants: Development of AI companions and digital personal assistants will provide emotional support, companionship, and enhanced productivity, becoming integral parts of daily life (Storyly).
The trajectory of consumer behavior and market evolution beyond 2025 is set for radical transformation. Anchored by technological advancements, sustainability imperatives, and a focus on personalization and ethical practices, businesses must remain agile, innovative, and consumer-centric to succeed in this dynamic environment.
As the lines between digital and physical worlds blur, and consumers demand more conscious consumption, businesses will focus on creating meaningful impacts, fostering transparent relationships, and delivering experiences that resonate with modern consumer values. By anticipating these shifts and aligning strategies accordingly, companies can unlock new possibilities and secure their place in the future market landscape.
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