Will Consumers Turn the Corner in 2025?
Is the midpoint of the decade also an inflection point for grocery shopping? A new slate of 2025 predictions from Acosta Group indicates that consumers will still be driven by value in the year ahead, but that definition is changing and they are guided by a better outlook and interest in enjoyable experiences.
As 2025 arrives, the market may be shaking off some of the heaviness associated with the successive early-decade challenges of COVID, supply chain bottlenecks, inflation, lower consumer confidence and other issues.
“Last year, it was more about price and promotion optimization to try to force some unit sales. I think consumers are more optimistic going into this year – consumers, manufacturers and retailers are getting tired of this and saying, ‘Let’s get back to something else, let’s start enjoying life',” Colin Stewart, EVP, business intelligence at Acosta Group told Progressive Grocer in a recent interview.
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That said, enjoying life doesn’t mean a shunning of practicality. “That’s where we get back to value,” Stewart pointed out.
Acosta Group’s first prediction for 2025 is a new definition of value that is driving shopper decisions. Although price is a priority and retailers are highlighting price cuts, shoppers are looking for authentic connections with brands and retailers. “Consumers have become very astute value seekers, reshaping the overall retail experience by demanding more than discounts,” said Kathy Risch, SVP, thought leadership and shopper insights at Acosta Group. Innovations will be embraced by these consumers, as 84% of CPGs expect to launch some form of innovation next year, per Acosta’s report.
The four other 2025 predictions from Acosta Group include the following movements:
Consumers crave affordable indulgence in foods away from home. Forward-looking shoppers may be still minding their dollars but are willing to pay for premium products and flavors. “The concept of affordable indulgence is gaining traction,” reported Risch.
Shoppers’ in-store experience is the new canvas for retail media. Shoppers appreciate the omnichannel experience, but most retail sales still happen in stores. There, retailer and brands are finding success with digital apps, dynamic retail media and other AI-driven technologies. “A lot of manufacturers are still struggling with the investment they need to make there, but the reality is that it is probably the best way to reach your target shopper if you do it right and work with retailer to sync up data and retail media,” Stewart said. In its trend predictions report, Acosta also underscored the importance of understanding a brand’s objectives and implementation costs to create the best integrated shopper experience.
Shoppers embrace effortless shopping in their social feeds. Acosta Group's trendwatchers anticipate social commerce that combines personalized content and commerce within the retail channel, as grocers and brands are able to reach out to customers directly. “As consumers are spending more time on their social feeds, they are also spending more time using these platforms to do product research, read influencer posts, discover new products they ‘didn’t know they needed,’ and with the convenience of a click, make a purchase they believe meets their needs or preferences,” said Risch. “It’s a perfect blend of entertainment, personalization, connectivity and convenience that is important for brands to build into their commerce plan."
Empowered shoppers drive a wave of change in health and wellness. Living healthier lifestyles isn’t just about New Year’s resolutions as 2025 kicks off. As Acosta points out, health-conscious shoppers are seeking overall transparency from brands and are exploring avenues like individualized health management, food-as-medicine innovations and weight-loss options including GLP-1 prescriptions.
Stewart and Risch delved deeper into the 2025 trends during an online symposium hosted by the Jacksonville, Fla.-based Acosta Group.
