Retail Consumer Insights

Trend - Retailers are deploying in-store kiosks powered by artificial intelligence (AI). These AI kiosks interpret and make recommendations for consumers interacting with them, thus streamlining the retail process. The advent of AI kiosks also reduces the required staff and, thus, costs for retailers.

Insight - Smart technologies are arguably the largest contributor to the ever-increasing number of retailers with seamless, stress-free in-store experiences. Consumers who shop in-stores enjoy the benefits of assistance from employees, as well as the ability to demo items that they may not have known about prior to entering the store. To further improve these experiences for consumers, brands are launching smart kiosks that use AI to assist, make recommendations to, and process payments from, consumers.

Trend - As rage rooms become popular among consumers, brands are replicating this activity in their activations to craft a memorable experience that is also an effective outlet for stress reduction. This controlled environment allows individuals to release built-up frustration in a tangible, expressive way.

Insight - Consumers increasingly face stress from demanding work environments, social pressures, and global uncertainties. However, traditional relief methods may not always suffice. In response, companies are integrating various wellness practices into their activations to help alleviate consumer stress and create opportunities for consumers to engage with their products. Brands catering to the demand for wellness experiences appeal to consumers looking to invest in their physical and mental well-being.

Trend - Postcard-making workshops are becoming a popular feature at pop-up events, offering guests a creative, hands-on way to connect with the brand. These interactive sessions allow participants to create a tangible, personalized product that delivers a message and introduces a new brand to the recipient.

Insight - Consumers seeking unique shopping experiences are increasingly drawn to events that facilitate personal connections with brands and encourage sharing the experience with loved ones. In response, brands are designing pop-ups that allow consumers to create personalized keepsakes for those in their lives and invite these individuals to experience the brand. By focusing on consumers' desire for shareable moments, brands can attract an audience that values community throughout the product journey.

Trend - Restaurants are partnering with social media-viral chefs and foodie influencers to create menus that resonate with younger audiences. These menus take inspiration from popular recipes and transform them in unique ways to differentiate themselves from competitors.

Insight - Short-form video platforms have contributed to a rise in consumer foodie culture. Algorithms have made it easy for unique, tasteful recipes to gain worldwide attention at a rapid rate. As a result of this, both professional and hobbyist chefs have taken to these platforms to share their takes on recipes, with many quickly gaining virality. In order to capitalize off of the popularity of these videos, restaurants are partnering with these creators to develop curated viral menus for patrons.

Trend - Snacks that combine hot and sweet flavors are being released to diversify snack offerings. These snacks, referred to as 'Swicy' in flavor, are made by mixing traditionally sweet foods with spicy ingredients, such as hot sauces or peppers. This results in unique flavors for younger consumers.

Insight - The recent boom in popularity of spicy foods in the west has led to younger consumers, namely Gen Z and Gen Alphas, growing up more accustomed to spicy flavors than other generations. As a result, these consumers desire more adventurous flavors in all dishes, whether it be a snack, meal, or dessert. Brands are capitalising off of the popularity of spicy foods and the desire for strong flavors by mixing spicy and sweet flavors into countless unique products.

Trend - Brands are using freeze-drying to better preserve the freshness and flavor of foods without extra additives or preservatives. This results in all-natural, organic products with authentic flavors. These snacks are positioned as better-for-you treats with extended shelf lives.

Insight - Modern consumers are faced with ever-expanding choices when it comes to choosing snack foods. The prevalence of products in the space leads consumers to prioritize those that meet their personal needs, which often pertain to health goals, financial savings, or convenience. Brands in the CPG space can differentiate themselves by offering products that adhere to all three of these goals, rather than focusing on only certain areas. In order to achieve this, brands are turning to freeze-drying.

Trend - Self-care brands are packaging products in paper-based cartons. These cartons are capable of holding liquid substances without deteriorating, making them perfect for dishsoaps, shampoos, and more. These cartons have lower carbon footprints and are easier to recycle by the end user.

Insight - Consumers are becoming increasingly aware of the environmental impact of the products they consume. In particular, the health and beauty industry often receives pushback for wasteful and environmentally-destructive practices. As such, these consumers are voting with their dollars, opting for products with eco-friendly labels and recyclable packaging over traditional alternatives. Brands in the space are becoming aware of this, and are engaging in more sustainable product-related practices.

Trend - Beverage brands are crafting specialty lemonades made with matcha. Matcha is used for its smooth earthy taste and subtle sweetness, as this balances out the sharp sours and tangs of lemonade blends. These flavor combinations cater to consumers looking for familiar flavors in novel combinations.

Insight - Consumers in the West, particularly the younger Gen Alpha, Gen Z, and Millennial generations, are growing increasingly accustomed to global cultural influences in food and beverage products. These consumers have adopted new flavor preferences, with drinks such as bubble tea or matcha lattes becoming staples. These consumers are more likely to purchase products with new and unique flavor pairings. In recognition of this, lemonade brands are launching more experimental flavor combinations.

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.