Retail Consumer Insights

Trend - Retail is entering a "less-is-more" era, driven by consumer desire for curated shopping experiences that simplify decision-making. Consumers, overwhelmed by past excess, now value well-edited selections that simplify decision-making. This trend prioritizes quality and guidance over sheer quantity.

Insight - The fundamental role of the retailer is evolving from supplier to curator. This shift addresses a growing psychological burden on consumers, who are increasingly overwhelmed by excessive choices. By offering a refined selection, retailers can elevate the shopping experience, making it more efficient and satisfying. This strategy not only reduces the stress of choice for the consumer but also strengthens brand loyalty by reinforcing the retailer’s role as a trusted advisor in the consumer’s style and purchase decisions.

Trend - Wallet loyalty programs are gaining prominence as consumers show increasing reluctance to download multiple apps for brand engagements. Brands are offering loyalty cards through Apple Wallet and Google Wallet as a seamless way to integrate loyalty cards directly into consumer smartphones.

Insight - In today's consumer landscape, convenience is a paramount factor that significantly influences brand interactions and loyalty strategies. Modern consumers, particularly digital natives, prioritize efficiency and seamless integration in their transactions, expecting quick and effortless interactions that mesh with their daily routines. This shift has compelled brands to rethink traditional loyalty strategies, which often felt cumbersome or disconnected from a digital-first experience.

Trend - Since their inception in France in 2022, croissants filled with baked cookie dough, or 'Crookies,' have grown in popularity in restaurants and bakeries. Crookies are versatile and offer consumers a mix of the light flakiness of a croissant and the densely flavored dough of a cookie.

Insight - Foodie consumers and influencers continually seek foods with new ingredients, flavors, or cooking methods. These consumers try new products as soon as they are available, with social media bringing attention to more popular selections. Brands recognize that these consumers heavily prioritize more creative and diverse foods. In order to better capture the foodie consumer base, bakeries and restaurants are crafting hybrid pastries that blend different textures and flavors.

Trend - Restaurants and CPG brands are creating bubble waffles and mixes made with meal-like ingredients. Bubble waffles are versatile, allowing for nearly any type of filling while maintaining a bite-sized and shareable shape. These are easy to prepare and offer new ways of experiencing well-known flavors.

Insight - Foodie consumers continually desire novelty food experiences; whether it pertains to the recipes, preparation method, or food format, these consumers are willing to experiment to see what works for them. The rise of cross-dish experimentation, spurred on by more adventurous customers, has led to the creation of hybrid dishes such as curry hamburgers. In aiming to address the needs of these consumers, brands are turning to savory bubble waffles for their versatility and convenience in preparation.

Trend - Beauty brands are releasing skincare lineups specifically designed for melanin-rich skin. These collections include serums, moisturizers, and cleansers designed to reduce signs of aging and promote healthy skin in individuals with colored skin. These brands are backed or owned by people of color.

Insight - When shopping for cosmetics, people of color in North America find challenges in finding reliable brands designed around their skin tones. These consumers gravitate toward local BIPOC-owned retailers due to the reliability and assurance that the products offered there are designed for them. In response to these preferences, brands are launching new skincare collections marketed explicitly toward consumers with melanin-rich skin, which enables stronger brand loyalty within these communities.

Trend - New startups are launching alcoholic RTD drinks with honey as the primary ingredient or sweetener. Honey is used due to its unique flavor profile and health benefits over processed sweeteners. These canned drinks boast the convenience of canned drinks and the natural, organic flavors of honey.

Insight - Health-conscious consumers are less likely to purchase canned alcoholic beverages due to high-calorie content, unexciting flavor profiles, and the inclusion of processed ingredients. As such, these consumers are drawn to canned drinks with healthy alternative ingredients and unique flavors that cannot be found in a local bar. Brands are adhering to these desires by taking flavor inspiration from non-alcoholic drinks to use in healthy alcohol-based RTDs.

Trend - Brands are redesigning the packaging and pack-ins of consumables, such as food and beauty products, to be quicker and easier to use. The redesigns include adding handles or resealable lids, based on how consumers interact with the products. This reduces friction during the consumption ritual.

Insight - Most consumers have certain beauty or food products that are integrated into their daily routines. These consumers can prefer a product for any number of reasons, but, when faced with two nearly identical products, they ultimately prefer the more convenient one. Brands that aim to integrate themselves into daily lives, particularly in the F&B and beauty spaces, are re-assessing their products with a new focus on convenience, with the goal of streamlining consumption and capturing more consumers.

Trend - Retailers are releasing bulk goods that are of higher quality and offer added value compared to traditional bulk items. These products, which often include wine and artisanal foods, prioritize convenience and value to appeal to consumers who are seeking unique offerings at affordable prices.

Insight - As more millennials transition into parenthood, there is an increased demand for bulk products catering to evolving lifestyles and consumption habits. Once viewed as a marketing tactic utilized by discount brands, bulk products have evolved into a strategic choice for shoppers who require more niche or unique products in larger formats. Businesses catering to the demand for wholesale products can appeal to customers searching for cost-effective options to accommodate expanding family sizes.

Trend - Businesses are using custom packaging that reduces moisture levels with custom materials that do not require desiccant packets. These packaging materials are more sustainable and cost-effective than traditional plastic packages while having active moisture-reducing qualities that protect contents.

Insight - Brands that sell moisture-sensitive products, such as textiles, F&B, or electronics, are tasked with ensuring their products are sufficiently protected while maintaining low packaging costs and adhering to sustainability goals. These complex desires are leading to material science companies creating new solutions that aim to replace traditional packaging methods. Brands that partner with these material manufacturers can differentiate themselves from competitors and more quickly achieve goals.

Trend - Retailers are launching mobile apps with AI-powered features designed to replace their existing apps. These apps offer recommendations, conversational support, image search, and features unique to certain retailers. These brands aim to improve customer retention while reducing ordering friction.

Insight - Partially onset by the pandemic, many consumers are now accustomed to shopping for nearly every type of product on a website or mobile app. However, the ease of these apps makes many consumers purchase products that are not optimal, leading to high return rates. To maintain the low-friction ordering system of mobile apps while aiming to reduce return rates, many retailers looking to AI to improve services. Brands that implement these AI updates can improve customer satisfaction and retention.