Health, Wealth and the Death of Over Consumerism
The New Rules of Consumer Behaviour based on Key Consumer Trends for 2025
2025 is upon us so let’s take a look at the key consumer behaviour trends as we enter a year where uncertainty seems to be, unfortunately, a key watchword. This won’t be the only list of trends that you read as we start off the year; marketers, and in particular market researchers like to play the psychic at this time of the year. Of course, it’s important that all our ‘predictions’, come from credible sources. If you are reading this as a brand owner or Marketing Director, I would argue that it’s even more important that you have consulted your own consumer base and asked them themselves what their key trends are for 2025. You will have heard me talk about how LifeStars helps to make this happen, the only question is why you wouldn’t do this? Surely understanding your consumers, where they are now, and what their plans are for the year ahead is equally as important as using market research to look back, and understand what they did in the past. I’d love to show you how we can put this system in place, just get in touch.
For now, let’s look at five categories of trends that we think will be important for FMCG and retail clients and customers in 2025.
- How customers make decisions
- The impact of tech
- The role of health
- The role of sustainability
- The re-emergence of community
Decisions and how they are made
Previously, millions of content generators all over the world spent their waking hours creating and curating content for your customers to engage with, digest, and use to make their decisions. Currently, this army of content creators has multiplied exponentially in size due to the rampant development of AI. Content is not a problem, negotiating that content is. This has led to what many are calling decision fatigue. I won’t be as naive as to suggest that customers follow a neat, ordered decision hierarchy in their minds when choosing a product. Personally, I subscribe more to the Byron Sharp way of thinking. It feels more natural and it’s what I’ve seen over 20-plus years of market research projects. However, whatever your base model, the undisputed truth is that there are far more inputs now than ever. With an abundance of information and choices, consumers desire streamlined experiences. They prefer curated selections and personalised recommendations that reduce decision fatigue. In other words, they need you to help them.
More choice is not necessarily a good thing. Our brains are only designed to weigh up a limited number of options. Scientists, particularly behavioural scientists would point to evidence to support the theory that consumers can only evaluate and process a certain amount of data. Cognitive load theory, which has been developed by John Sweller amongst others, shows that excessive choices can overwhelm working memory leading to decision fatigue. When consumers have too much to consider, nothing gets considered and decisions are poor. Barry Schwartz goes one step further. He suggests that while choice can be empowering, too many options can lead to anxiety, indecision, and dissatisfaction. If you like this type of theory, check out The Jam Study by Sheena Iyengar. She offered consumers 24 varieties of jam and found that they were much more likely to purchase if they were offered just six options.
In relation to decision-making, one of the other trends we are noticing across the industry is a reduction in impulse purchases. This is a direct result of the economic uncertainty that exists in many markets and amongst lots of cohorts of customers. Savings are on the increase, and consumers are seeking value-driven products that offer quality at reasonable prices. Estimates suggest that UK households accumulated between £143 billion and £338 billion in excess savings from 2020 to 2024. Unlike in the US, UK consumers have been more reluctant to spend these accumulated savings. (Office for National Statistics) Elevated interest rates have encouraged households to save more, with higher returns on savings accounts influencing this behaviour (Financial Times). In Ireland, in Q3 2024, the household saving rate rose to 14.1%, up from 12.9% in the previous quarter, indicating a cautious approach to spending amid economic uncertainties. (CSO)
What does this mean for brand owners?
Are you helping your consumers reduce decision fatigue by understanding how they make their decisions and presenting your products, be it in-store or online, in a manner that enables easier decision-making? I would guess that most large FMCG companies and retailers are doing this. However, I would question how up-to-date the decision hierarchy and decision inputs are. There’s no reason that this can’t be monitored monthly to ensure that as more products are launched, and more content emerges, your product still rises to the top.
Economic uncertainty looks set to be a feature of 2025. Consumers need to see that you understand this as a brand and are working with them. This doesn’t just mean offering sales and promotions, although they are important. It also infiltrates how we communicate with our consumers, ensuring they know that we are on their side as they approach new purchases cautiously. A dose of pragmatic optimism is in order.
Tech as hygiene?
Truth be told, I could rewrite this article with just tech trends. They are that ubiquitous, with new ones emerging every single week, though it’s becoming quite difficult to stay on top of them, from a retail or consumer point of view. If you feel this then know that you are not alone, consumers feel it too.
AI, the next frontier, has landed. Some might say crash-landed into all our lives. Even consumers who didn’t want to engage in AI have no choice but to. It is reshaping the world around us. However, while artificial intelligence is becoming more integrated into daily life, consumers are exhibiting a mix of enthusiasm and scepticism. Brands need to balance technological advancements with human interaction to maintain trust.
Consumers may joke online, “I for one welcome my AI overlord” but the reality is when push comes to shove, the value of human interaction cannot be overestimated. About a year ago when AI was becoming more pervasive, at least in the marketing world, I read a comment online where a prominent marketer exclaimed (and I’m paraphrasing) “I want AI to do my accounts and help create my plans so I can spend more time doing the things I love such as being outdoors and writing creative essays whereas at the moment it feels like it’s the other way around”. She wasn’t wrong. Thankfully that balance seems to have been redressed somewhat over the last 12 months and the hope is that over the next year and years to come AI will become the tool that facilitates a better life for us as everyday citizens and enables more seamless digital interactions in the consumer world, to the benefit of both consumer and retailer. But, we are not there yet.
Currently, there is no doubt that the increasing use of digital services on devices is reshaping consumer behaviour. There’s a growing expectation for seamless digital experiences; this influences how consumers interact with brands. I would argue that brands need to be mindful of this and can use this desire for digital experiences to their advantage as part of their marketing mix.
Picture yourself walking the aisles of your local Asda, Tesco, or Supervalu and you decide to pick up a loaf of bread. I believe that the bread aisle is a particularly good example of how the proliferation of choice can lead to indecision. It used to be that a loaf of bread was either brown or white. Now there seem to be endless skus, from brown, white, whole grain, sourdough, malt, and rye, as well as bloomers and everything else in between. Shopping for bread is no longer easy. However, imagine as you walk down this fictional aisle in Asda, Tesco, or Supervalu you are met with the Baker herself. She meets you and in 30 seconds via a very simple ‘get to know you and your choices’ chat she recommends which bread you should buy that day. Would you buy that bread? There’s a good chance you would as she has reduced your decision fatigue and even better, she’s giving you an introductory offer to encourage you even further.
In times past, this role was conducted by what we used to call in the business “Dem ladies”. Back then, they were always women, but I do appreciate that the term does feel a little outdated. These demonstration ladies, were in-store to offer you a taste of the product and give you a coupon at the same time. The issue with this is that it’s quite expensive to have these demonstration ladies always turn up in your local store. Is it beyond the realms of our imagination the demonstration bot could sit neatly on the Shelf Edge Label of the bread aisle, and efficiently and effectively guide you towards the right product for you and send you on your way with a coupon? I don’t think so.
What does this mean for brand owners?
In the future digital needs to be integrated, and in 2025 it needs to become not “What if we did digital?” but “How can we include digital in what we are already doing”. Digital and AI are no longer the next frontier, they’ve already here. Digital should be used to make transactions as frictionless as possible. Of course, to make transactions frictionless we need to understand where the friction is in the first place. This is true of in-store, just stand in your local store and watch the hapless consumer (usually a man) as he stares at the bread aisle hoping that your product will present itself. And how often have you been online and had the pop-up that says something like – Leaving so soon?, “Well, yes, I am leaving because I thought I knew what I wanted but now I’ve been inundated with so much information that I don’t know anymore.” In short, the fundamentals of marketing and retail sales haven’t haven’t changed but it’s essential that we as the brand owners and retailers understand the new tools that we have at our disposal and use those to facilitate a more engaging, frictionless, and even a more enjoyable retail experience for our customers.
Health – look at me
This trend is particularly important at the start of the year when everybody has a list of New Year’s resolutions which involve losing a few pounds, looking better, having more energy, and being ready to hit the beach when the sun does eventually come out. However, health and wellness are becoming indicators of status. Consumers are investing in products and services that promote their wellbeing. The trend spans nutrition, physical and mental health, and beauty.
Health has always been about looking and feeling better for you. Now, the trends and evidence would suggest that this is becoming increasingly a status symbol. Health has changed from being a personal pursuit into a marker of affluence sophistication, and cultural capital. We have all seen the drivers of this trend emerge over the last three to four years, particularly since the pandemic of 2020. Platforms like Instagram, TikTok, and YouTube have been central to this development. We know that social media shows people’s highlight reels, but we also know that social media is growing at enormous rates.
Consumers are also more aware of the benefits of a healthy lifestyle. This is because of the abundance of health information that has become available since 2020 when consumers’ hunger for this information was rampant. Whilst there may be a cost-of-living crisis in some markets, disposable incomes are on the rise. This leads to subcategories such as organic food, specialist fitness classes, and luxury retreats. Again, these signify, “I am healthy, I have status.” Tech is ubiquitous as I said, and it plays a role here also. Just sit in any agency or marketing meeting and look at how many people have a smartwatch on their wrists. Garmin, Apple, Whoop – there seems to be a place for all of them. Finally, we’ll discuss sustainability shortly but that is tied to being healthier by making choices that have less impact on the planet and will also paint you as a conscientious consumer, one with status.
The role of customisation within health is important also. Consumers are prioritising longevity and overall wellbeing via the products that they purchase to support their healthier lifestyles. This has led to an increase in nutritionists and pseudo-nutritionists online. People walk the aisles of your local supermarket and say things like “Don’t buy this one, buy this one” and these videos are extremely popular. These influencers are helping consumers navigate the confusing world of everyday products, most created in the last century, with the desires of consumers in 2025 who both want to be healthier, look healthier, and want you to know it too. How many of your colleagues purchase their meals weekly via a service such as HelloFresh? I can bet that at least some of them do and that they’ve told you about it. There’s absolutely no criticism on my part, if people want to be healthier – that’s a good thing.
What does this mean for brand owners?
As health becomes a definite status symbol and very much part of the everyday lifestyle of millions of consumers, brands can position themselves as lifestyle enhancers, not just medical solutions. Transparency, efficiency, and simplicity are key watchwords. Do you know why your consumers buy your product over another? The answer is rarely just ‘price’ or ‘taste’ even though that’s what you may be told if you do a superficial check. It’s important to get close to consumers and understand the real drivers of purchase. Health on its own is not the answer. We must go deeper.
Based on this trend, marketing messaging should align health with aspiration and achievement, emphasising aesthetic performance and the long-term benefits. Aligning this trend with the previous one of technology, brands can also develop products that not only improve health but also serve as visible markers of the purchaser’s commitment to wellness. If I’m going to drink 2 litres of water every day, why don’t I choose your water brand, and if I do how will I show people I’ve chosen it and why does that matter? The same could be said for many other categories. See bread above!
Simplicity and sustainability
If tech is becoming hygiene now, then sustainability already has. We see this when we speak to consumers to understand their choice process. Quite often sustainability, being ‘green’ or environmental factors, are not mentioned. We could interpret this as consumers believe these issues do not matter however It’s clear that once we got a bit deeper, we can see that, like tech and health, sustainability does matter, so much so that for many it is a given. I’m not naive enough to suggest that sustainability is as important for everyone. It over-indexes with more affluent consumers. However, even less affluent consumers when asked if they would make a sustainable choice or a less sustainable choice if the price was the same usually choose the sustainable choice.
Environmental consciousness is driving demand for sustainable products. Consumers prefer brands that demonstrate tangible eco-friendly practices and transparent sustainability claims. This is aligned with the proliferation of data that consumers need to wade through every day, as mentioned earlier.
Consumers want brands that make being green easy. Sure, you might have some fancy process that means your product has less of an impact on the earth than the next product, but consumers are not as interested in the ‘how’ as you are – tell them ‘why’ in very straightforward simple language. Of course, the opposite is true also, if your products are not sustainable and you haven’t made the efforts in terms of overall environmental, social, and governance strategies then don’t pretend you have. Ok, you might have to bend the truth a little bit here in the short term – but you better have a plan for making better ESG a reality.
This meta trend of our desire for simplicity is also evident as people look to make the parts they can control mean more. Nowhere is this more evident than in how people are consuming for their homes. The concept of ‘home’ is evolving, with consumers seeking authenticity and comfort over perfection. This trend influences home-related products, emphasising individuality and practicality. Important if you are a homewares brand with some similarities to the trend of ‘cocooning’ of the 1980s, popularised by Faith Popcorn (that’s her name – it was the 80s, roll with it), where individuals prioritise the comfort, safety, and enjoyment of their homes, often as a response to external uncertainties, stress, or social changes.
What does this mean for brand owners?
In a previous article called, Rage against the (market research) machine, I have mentioned the KISS principle – Keep It Simple Stupid. This principle is usually always relevant. Focus on the essentials. Keep your products and the way you talk about your products accessible to as many as possible. Reduce or eliminate processes that add complexity – did someone say “LifeStar’s reduces research complexity?”. If so, they’d be right. Target internal decision fatigue via better and simpler decision-making and help your consumers reduce their decision fatigue in the same way. Believe the future is sustainable. Then sustainability could help you drive differentiation, loyalty, and choice. Also, as governments build sustainability into regulations, the time when you have a choice whether to be sustainable or not is quickly disappearing (like some of our coastlines).
Community
You were fortunate enough to grow up in a community full of colourful characters that Kermit and his friends in Sesame Street called out in their song “Who are the people in your neighbourhood?” (that’s a blast from the past for anyone over the age of 40 reading this). Community, where I grew up meant everybody knew everybody else, people mixed daily, and it was an incredibly positive thing. That seems idyllic currently, although I know it still exists. Communities these days are forming collaborative spaces that transcend physical boundaries.
So, it may not be a case of who is the local plumber, musician, coach, or teacher but to the generations who have grown up with a virtual community, there are similar roles to be played. What is different is that the brand also has a role in this community. Brands can engage by fostering inclusive environments that encourage shared experiences and collective support. Just look at some of the brands that have emerged over the last few years to see how this works – I’m thinking of brands such as Sculpted by Aimee, Sweaty Betty, and Diageo’s Rockshore. Each of these brands has grown with its consumers. Consumers play the role of brand ambassadors as opposed to just purchasers. Sculpted by Aimee hosts events across London, Dublin, and Dubai where eager consumers turn up in much the same way as they would have to witness a show in previous years. Album signings have evolved into product trials. Sweaty Betty, via its Sweaty Betty foundation, has hosted in-store events like run clubs, yoga classes, and sound baths to raise money for its foundation. By doing this it creates a community around the brand, a community of like-minded individuals that are drawn together because of the brand. Rockshore, Diageo’s lager brand launched in direct competition with Heineken, was created with a particular consumer in mind, one that is less concerned with downing copious pints and more concerned with good times with real friends (and perhaps Rockshore acts as the social lubricant in this situation). Community is at the core of every consumer’s wish list – It’s just that what community looks like has changed.
What does this mean for brand owners?
Brands have a role to play here especially as traditional norms shift due to societal changes and technological advancements. It’s important that brands remain relevant, embrace innovation, and respect cultural values, and brand leaders must also step up and facilitate brand community exchanges. And you thought you were just selling widgets! In order to do this, brands need to understand the shifts as they happen by consulting their consumers. This will enable them to create relevant marketing that can be assessed by these consumers and then used to increase brand engagement.
LifeStars enables customer closeness that helps brands conduct simple, quick, and cost-effective customer and consumer research.
If you would like to know more about how LifeStar’s can work for your brand, please contact hello@lifestars.com. Let’s bring your customers close and create truly effective brands built on common values, long-term goals, and positive relationships. Sound interesting? Get in touch today.
Sources: Euromonitor, Financial Times, Central statistics office, Mintel, Deloitte, Vogue Business, Office for National statistics, Reuters, The Popcorn Report, LifeStars.