The 5 Top Trends for Consumer CEOs in 2025

Predicting the future is always a difficult art. With consumer being one of the world’s fastest-changing sectors, how can its CEOs prepare for next year?

Business has become borderless, and sales and marketing technologies have raised the bar on consumer experience. Artificial intelligence (AI) has impacted all sectors, changing the way organizations and customers interact with their world and each other. As a result, companies that hope to continue to conduct business as they’ve always done may find themselves out-competed and left behind.  

The speed of change that consumer-based businesses face today challenges C-suite leaders to remain adaptable and constantly (re-)informed of market shifts as they happen. Frances Kelly, Managing Partner in Executive Search at Signium Germany, comments: “Staying relevant is one of the greatest pressures that executives in the consumer sector will experience in 2025. With brand loyalty on the decline and cancel culture a constant reality, leaders will need to use every resource available to stay at the forefront of their respective markets.”  

What were the key drivers for consumers in 2024?  

To understand and predict the year to come, it’s crucial to understand how business has evolved in the year behind us. For consumer-based companies across the globe, 2024 was a tumultuous yet tremendous year, with these five factors dominating most sectors:  

1. Digital transformation  

Technology continues to disrupt traditional business models, propelling innovation and increasing consumer expectations for seamless, tech-driven experiences.  

Frances Kelly says, “For executives, the pace at which operating systems evolve can be frustrating. It may feel that as soon as they’ve invested in one technology, it becomes outdated, making it difficult to make decisions about up-and-coming technologies and practices. Resilience has taken on a new meaning altogether.”  

2. Sustainability and ESG  

Sustainability has become central to brand value. More consumers now demand ethical practices, and businesses face growing regulatory pressures to meet environmental, social, and governance (ESG) goals. 

3. Economic uncertainty  

Global economic instability, fueled by inflation, supply chain interruptions, and geopolitical tensions, has forced businesses to almost endlessly pivot. “Having to be constantly ready for unprecedented change is one of the top reasons for burn-out in the past few years,” says Frances Kelly. “Having to be on your toes all the time, for such a long time, is exhausting – especially when global economic circumstances are so out of your control.”  

4. Consumer behavior shifts  

Personalized experiences and ethical products dominate demand, while loyalty to brands hinges – rather loosely – on their responsiveness to consumer values. According to McKinsey’s State of the Consumer 2024 report, approximately 50% of consumers will switch brands without batting an eyelid when they can’t find exactly what they want or need or when presented with a more competitive price.  

5. Workforce dynamics  

Remote work, skills shortages, and the focus on employee well-being are reshaping workforce strategies. This directly affects consumers by influencing the quality and accessibility of products and services. While remote work drives investments in digital tools, improving online customer experiences and streamlining service delivery, skills shortages can slow innovation, potentially leading to higher prices or limited product availability.  

On the positive side, skills-based organizations that prioritize employee well-being often translate this focus into enhanced customer service, as motivated and engaged employees tend to deliver better consumer experiences. 

Looking ahead: Projected consumer trends for 2025 

Many of the pivotal factors that will define the future of consumer industries have been developing for years. “Certain innovations and practices have been brewing for some time,” says Frances Kelly. “I believe we’re going to see many of these take the market by storm in 2025. It’s time for all that simmering to finally boil over. ​​The leaders who make significant progress in 2025 will be those who boldly use these emerging trends to make their consumers’ lives better and to provide the support their workforces need to thrive.”  

1. Accelerated AI and automation adoption 

AI and automation will continue to transform the sector, revolutionizing operations, customer interactions, and decision-making processes. 

• Efficiency gains: Automation of routine tasks will improve operational efficiency, allowing employees to focus on innovation and strategy. For consumers, this will translate to streamlined service and better products. 

• Enhanced consumer experiences: AI-powered chatbots and personalized recommendations will elevate customer engagement, delivering tailored solutions at scale. 

Although AI and automation present opportunities, CEOs will need to address ethical concerns around workforce displacement and consumer data privacy by ensuring transparency and compliance with regulations like GDPR. The seriousness of these matters often deters organizations from taking the leap toward more progressive technologies and practices.   

On the risks of innovation, Mr. Mike Kelly, Finance Consulting Leader of Ernst & Young Americas, says, “Some companies will penalize people for trying new things. What companies need is a more experimental investment philosophy, almost like a venture capitalist fund. Try it, and see if it works; if it hits, great. If it doesn’t work, we’ll learn from it and move on.” 

2. New consumer demographics 

Demographic shifts will demand that businesses adjust their strategies to meet the needs of diverse consumer groups. 

• Older populations: The growing mature market presents opportunities for wellness-focused products and services designed for longevity and personal well-being. According to a WGSN study, Gen X and millennials in particular seek out consistency and simplicity as a survival mechanism. As consumers, these generations are eager to adopt fast and frictionless commerce processes, such as click-and-collect or curb-side delivery options.  

• Gen Z influence: This generation, along with a handful of millennials, is characterized by digital savviness and value-driven purchasing. As they continue to join buyer ranks, Gen Z will dominate market trends, demanding authenticity, sustainability, and inclusivity. As consumers, these individuals are 60% more likely to demand transparency about the production journey that their purchases have been on so that they can make informed buying decisions.  

Aligning with the value that this generation places on authenticity and autonomy, we can also expect to see more decentralized business models governed by communities instead of executive boards.  

• Leaning into tumultuous times: Covid-related stress and anxiety continue to linger in the form of over-committing – both to work and personal demands. What’s more, it’s estimated that emails, IM, phone, and video calls now consume 85% or more of people’s work week; it’s an overwhelming amount of communication and information, especially when added to the ever-rising noise of social media. ‘Group-buying’ will also continue to grow as consumers rely on the convenience of collective finance, driven by limited individual income and multi-generational households. 

Frances Kelly comments, “For organizations that want to connect with today’s consumers, it’s important to remember that people are actively seeking care and peace, both of which seem to be in short supply. Services, products, and marketing developed with empathy for the consumer have a far higher chance of success than those simply devised for sales.”  

3. Continued rise of omnichannel retailing 

Omnichannel retail strategies will reach new heights as businesses blend online and offline experiences seamlessly. To meet consumers along their day-to-day journey, finding new avenues to get in front of buyers will be key in 2025.  

• Consumer expectations: Shoppers will increasingly demand a unified experience, from mobile apps to physical stores, driving investments in omnichannel ecosystems. 

• Technology’s role: AI and augmented reality (AR) will enhance these experiences, enabling virtual try-ons, personalized store visits, and dynamic inventory management. 

• Supply chain optimization: Efficient logistics and real-time inventory tracking will be critical for meeting consumer demand while minimizing operational costs. 

“Just because nearly a quarter of all retail purchases are expected to be digital by 2027, it doesn’t mean brands can ignore other channels,” says Frances Kelly. “According to Forbes, 53% of Gen Z still prefer traditional shopping, choosing in-store experiences over web-based commerce. Customers don’t care about channels as much as they care about a seamless, personalized experience – wherever they may be.”  

4. Increased focus on personalization 

Already a cornerstone of consumer engagement, personalized experiences will continue to be a key component of business strategies in 2025. 

• Advanced Data Analytics: Companies will harness vast amounts of data to create hyper-personalized marketing campaigns, product recommendations, and services. 

• Privacy Concerns: Striking a balance between personalization and respecting consumer privacy will be paramount. Transparent data policies and opt-in frameworks will build trust. 

• Technology Integration: Tools like AI, machine learning, and predictive analytics will enable businesses to anticipate consumer needs and deliver proactive solutions. 

As an example, Spotify’s algorithm-driven playlists and Netflix’s tailored content recommendations illustrate the power of personalization in building loyalty and engagement. By cleverly gathering data and ensuring relevant content is available at affordable and flexible fees, these two companies have set themselves apart as leading media streaming providers across borders, cultures, and generations.  

5. Sustainability as a competitive advantage 

Sustainability will no longer be a niche consideration – it will define competitive advantage in 2025. 

More and more, consumers are looking for environmentally friendly products and ethical business practices with many willing to pay a higher price for sustainability. This growing demand is pushing businesses to adopt innovative approaches, such as circular economy models that focus on recycling and reusing materials. At the same time, stricter government regulations are making it essential for companies to prioritize green practices, turning sustainability from a choice into a necessity. 

Many of today’s consumers would agree with Jochen Zeitz, President and CEO of Harley-Davidson, who once said, “Sustainability is no longer about doing less harm. It’s about doing more good.”  

Creating the future of consumer-based business 

Navigating the evolving consumer business terrain demands agility, foresight, and innovation. To embody all these, a good measure of courage is required, too. Critical consumer trends will shape global consumer-based industries for years to come, and executive leaders must embrace these changes and embed them into strategic planning. 

Frances Kelly urges organizations to proactively investigate their respective industries on an ongoing basis:

“To not only meet the challenges of 2025, but also thrive long into the future, you have to stay informed and be ready to adapt. The secret is to become so resilient that you’re able to change before you’re forced to. In this way, you do more than merely predict the future. You create it.”