Every year, Euromonitor International identifies top global consumer trends that are expected to gain traction in the year ahead. As 2024 draws to a close, we’re looking at how the trends have manifested across businesses globally, and what shifts in consumer behaviour we might expect in 2025.
Generative AI: friend or foe?
Going into 2024, consumers were expected to embrace deeper integration of GenAI in their daily lives. AI applications have evolved to focus on personalised products and enhanced experiences. According to Voice of the Consumer: Lifestyles Survey, fielded January to February 2024, 68% of connected consumers, the ones most actively participating in digitally driven activities, sought tailored products or services, and 31% desired personalised shopping experiences.
In response, companies have harnessed GenAI capabilities to foster personalised engagement and streamline operations. Samsung's Bespoke AI and Haier's HomeGPT launches represented advancements in integrating AI into home appliances, offering users personalised, efficient and intuitive control over their smart home environments. Smarter virtual assistants, such as L'Oréal’s Beauty Genius and IKEA’s AI Assistant, have been developed to elevate customer experiences. Additionally, Chinese e-commerce leader JD.com and beauty giants like L'Oréal, Estée Lauder, and Jo Malone utilised virtual anchors in livestreaming e-commerce, demonstrating how AI enables brands to maintain continuous visibility and engagement with consumers.
In 2025, rising consumer awareness of Gen AI’s limitations will challenge brands to look for the right balance between tech and human interaction. Consumers are AI Ambivalent. Businesses must assess consumer sentiment, select appropriate touchpoints for GenAI integrations, and use it transparently and purposefully to maintain consumer trust.
In the new consumer reality, value goes beyond just price
Prolonged economic uncertainty has created new spending norms. In 2024 we predicted Value Hackers would attempt to "outsmart the system" with creative approaches to make their money go further.
In 2024, 72% of consumers were concerned about the rising cost of everyday items, and 48% planned to save more money
Source: Euromonitor International’s Voice of the Consumer: Lifestyles Survey, fielded January to February 2024
To remain relevant in 2024, businesses needed to find innovative ways to offer affordability. Retailers expanded their private label ranges to suit all budgets. For instance, Walmart launched ‘bettergoods’, a private brand offering quality, chef-inspired food for under USD5. Coles rebranded its premium private label, Coles Finest, to offer affordable luxury; key amid the cost-of-living crisis. In fashion, H&M opened a concept store in Sweden in 2024, offering a curated "H&M Pre-Loved" collection, underscoring the rise of second-hand fashion in Europe.
In 2025 ‘Wiser Wallet’ consumers will prioritise overall value and long-term benefits, seeking the best deals. In beauty and personal care sectors this has already led to a focus on affordability and value through simplicity and multifunctionality, as consumers seek high-quality products that reduce the need for multiple and costly purchases. Brands must strike a balance between offering cost-effective options and delivering lasting benefits.
The shift toward living longer and healthier lives
In 2024 we anticipated Wellness Pragmatists to gravitate toward efficient, effective products and services that deliver results and fit seamlessly into their daily lives.
Demand for healthier foods and drinks remained strong, driving continued investment. Health claims and flavour features gained attention on packaging and will remain a focus.
Innovations in packaged food leveraging functional ingredients like fibre and plant-based proteins gained significant traction, alongside popular health claims like ‘good source of vitamins’, ‘gluten-free’, and ‘natural’ - trends that are expected to grow even further in the coming year
Source: Euromonitor International
Functional beverages continued to target new consumer needs, aligning closely with new or under-addressed health challenges. In Asia Pacific, more consumers have adjusted their diets to relieve stress, anxiety and sleep issues. This has boosted demand for drinks featuring ingredients like chamomile, ashwagandha and ginger for emotional and mental wellbeing.
The rising use of weight loss treatments like Wegovy and Ozempic is already influencing consumer behaviour, encouraging companies to offer healthier alternatives, better nutritional profiles, and smaller portions. In 2024, many leading health and nutrition companies, from Abbott to GNC and from Herbalife to Nestlé, launched new products or rebranded for users of these medications.
Going forward, consumers will increasingly focus on Healthspan Plans prioritising their long-term health and wellness and driving demand for preventative solutions addressing specific future health concerns. Personalised health assessments, real-time tracking, and customised approaches based on life goals, age, biomarkers and nutritional needs will gain competitive advantage.
Consumers are more practical towards sustainable consumption
In 2024, over 60% of consumers sought to have a positive impact on the environment, and nearly two thirds were concerned about climate change, according to Voice of the Consumer: Sustainability Survey, fielded January to February 2024. Nevertheless, in 2024 Greenwashed out consumers became more critical of brands' sustainability assertions.
In response, businesses have been working to rebuild consumer trust, by ensuring their environmental claims are transparent and verifiable. Beauty giant L'Oréal introduced sustainable fragrance initiatives, focusing on transparency and genuine environmental impact, while LEGO started producing bricks from renewable or recycled materials, such as used cooking oil. LEGO is investing in developing a fossil fuel-free brick by 2032, showcasing a long-term commitment to sustainability. In home care, Procter & Gamble and Unilever expanded their cold wash laundry care lines to promote household energy savings and align with consumer preferences for performance, convenience, and sustainability.
Products with sustainable attributes that meet consumers’ primary needs, like quality, efficacy and convenience will stand out. Brands must ensure their claims are credible and appealing, making sustainable options of familiar products an easy choice for Eco Logical consumers.
