Despite ongoing economic uncertainty, 2025 should hold more promise for retailers and brands than this past year, offering early opportunities for brands that want to tap into mass-reach marketing as consumers adapt and spend more intentionally.
According to the World Data Lab, global consumer spending is set to grow by nearly 6% in 2025, adding $3.2 trillion to the worldwide economy. This research was broken down in NielsenIQ’s Mid-Year Consumer Outlook: Guide to 2025.
The report identifies several global catalysts expected to drive change in 2025. Key among them is the growing adoption of AI in shopping, with 40% of consumers willing to accept product recommendations from AI assistants and leverage AI to streamline purchasing decisions. Additionally, the rise of GLP-1 medications for weight loss, i.e. Ozempic, is expected to influence consumer spending habits and lifestyles.
Omnichannel retail continues to evolve, thanks to social commerce and in-app experiences, leading to an 11.6% increase in global online sales. However, rising costs of commodities like cocoa, coffee, and milk are expected to reduce sales volume in related categories. 60% of consumers say they’ll cut back on these items if prices stay high.
The report also highlights top consumer concerns for 2025, including rising food prices (33%), utility costs (20%), and the potential for an economic downturn (19%).
Consumers are also increasingly turning to private-label – more commonly referred to as store-brand – products, with 50% buying more than ever before, typically due to advantageous pricing.
Regional differences were also noted, with North Americans most concerned about rising housing costs, while global conflict remains a top issue for consumers in Africa, the Middle East, and Europe. Inflation in consumer packaged goods is slowing globally but remains higher in regions like Latin America and Africa, where prices have risen by as much as 9% year-over-year.
This comprehensive report provides a roadmap for retailers to capitalize on emerging trends and adapt to changing consumer behaviors in the coming years.
