2025 Consumer Trends: What Brands Need to Know

January often feels like hitting “reset” after the holiday whirlwind. As the dust settles, it’s time to look ahead and prepare for the consumer trends shaping the year. If you’re looking to connect with new audiences or strengthen loyalty, here’s what you need to know about what 2025 has in store.

Strong Spending, But Watch the Price Tags

Good news for brands: consumer spending is expected to remain robust in 2025. Thanks to a healthy job market, rising wages, and stable savings, shoppers are ready to spend. However, there’s a catch—potential tariff increases may push prices higher, keeping retailers on their toes.

Translation? Consumers will still shop, but they’ll be looking for value and justification for higher price tags. Your mission: demonstrate how your products or services are worth it.

Gen Z Is the Generation to Watch

Gen Z, the most diverse generation in U.S. history, is stepping into its purchasing power. By 2030, they’ll join Millennials to account for 39% of retail spending. And if you think their habits are just a phase, think again—this is a demographic rewriting the retail playbook.

Born with a smartphone in hand, Gen Z doesn’t just scroll—they shop. Over half make purchases directly through Instagram (55%) and TikTok (51%), turning social media into their version of the mall. For brands, the takeaway is clear: meet Gen Z where they are, with content that catches their eye and promotions they can’t scroll past.

 

Blurring the Lines Between Online and Offline

The days of shopping exclusively in-store or online are over. Consumers now navigate both worlds simultaneously—researching online before heading to the store or checking their phones while browsing aisles. Globally, 56% of shoppers research online before buying in-store.

This hybrid behavior underscores the importance of consistency. From your app to your storefront, your messaging and branding should be seamless. Make the shopping experience feel like an adventure, not a chore, and watch loyalty grow.

 

Sustainability and Personalization: Buzzwords or Baselines?

Consumers are gravitating toward brands that feel personal and purposeful. Sustainability isn’t just a trend—it’s becoming a baseline expectation. Meanwhile, personalization is evolving from “nice-to-have” to “must-have.”

Here’s the challenge: You don’t need to chase every trend. Instead, focus on what resonates most with your audience. Sustainability might matter more for a younger demographic, while personalization could be key for driving loyalty with repeat customers. The key is prioritizing strategically, not spreading yourself thin.

 

Final Thoughts

The consumer landscape in 2025 is evolving rapidly, driven by tech-savvy Gen Z shoppers, hybrid retail habits, and a demand for authenticity. For brands, the opportunity is immense—if you’re willing to listen, adapt, and deliver what customers truly want.

Let’s make 2025 the year of connection, creativity, and customer-first thinking.

Sources:

https://www.forbes.com/sites/billconerly/2025/01/14/consumer-spending-forecast-2025-good-jobs-and-savings-drive-growth/

https://www.forbes.com/sites/catherineerdly/2024/12/23/four-major–retail-trends-that-will-reshape-the-industry-in-2025/

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This written content was generated by a human author, with a catch. AI helped with, grammar & proofreading, and image production. The final edit is my point of view. If you’re interested in how it was made, reach out and I would be happy to walk you through my process.