The consumer landscape is transforming profoundly, presenting CPG companies with challenges and immense opportunities.
Based on the results of a recent poll I ran on LinkedIn, the key trends predicted to dominate in 2025 are:
- Ultra Personalisation (44%)
- Digital Engagement (25%)
- Sustainability (19%)
- Wellness (13%)
Although the sample was small and skewed toward professionals, the respondents were primarily corporate leaders, so I was happy that the results were similar to those of more representative research.
Each trend signals a shift in consumer priorities, urging brands to adopt innovative approaches to thrive.
This post explores how companies can turn each of these five trends—I added one more that emerged from the more extensive study—into actionable strategies, supported by practical guidance and real-world examples.
If you prefer to listen rather than read:
1. Ultra Personalisation to Connect at a More Granular Level
Ultra personalisation has evolved from a competitive advantage to an expectation. Consumers now demand tailored experiences that align with their unique needs, values, and preferences.
Why It Matters
- Personalised experiences increase purchase intent by 80%. (McKinsey)
- Over 90% of consumers are more likely to shop with brands that provide relevant offers and recommendations. (Accenture)
Expanded Case Study: Spotify’s “Wrapped” Campaign
Spotify’s “Wrapped” campaign exemplifies how personalisation can drive engagement. Each year, Spotify users receive a personalized summary of their listening habits, down to the most-played song and genre. This initiative doesn’t just foster a sense of individuality—it encourages users to share their summaries on social media, generating massive organic reach.
The result? Spotify saw app downloads increase by 200% during the campaign, along with a surge in active users. (Spotify Insights) The takeaway for CPG brands is clear: leverage consumer data to create memorable, shareable moments that resonate on a personal level.
How CPG Brands Can Apply This
- Product Personalisation: Coca-Cola’s “Share a Coke” campaign swapped logos for popular names, creating a deep emotional connection. The campaign’s 7% sales increase demonstrates the power of personalisation in driving purchases. (Marketing Week)
- AI-Powered Recommendations: Use machine learning to deliver product suggestions tailored to consumers’ preferences, whether it’s snacks for specific diets or skincare for unique concerns.
Visionary Tip: Imagine offering real-time personalised recipes based on a consumer’s pantry, helping them make the most of your products while creating a memorable brand experience.
2. Digital Engagement: Creating Immersive Experiences
Digital engagement is more than just being active online—it’s about fostering meaningful, interactive relationships. Consumers seek brands that can make the digital experience feel human, immediate, and relevant.
Why It Matters
- Livestream shopping is expected to reach $35 billion in US sales by 2024. (Coresight Research)
- Interactive content gets 2x more engagement than static content. (Demand Metric)
Expanded Case Study: IKEA’s AR Revolution
IKEA’s “Place” app transformed the way consumers interact with furniture online. By integrating augmented reality (AR), the app allows users to visualize how IKEA furniture fits and looks in their own spaces. This not only simplifies decision-making but also reduces returns—a major cost for e-commerce.
The app’s success is reflected in a 25% increase in online sales during its launch phase, with many customers citing the tool as pivotal in their buying decisions. (IKEA Annual Report)
How CPG Brands Can Apply This
- Virtual Sampling: Beauty brands like L’Oréal use AR to let consumers virtually “try on” makeup shades, driving engagement and purchases.
- Gamification: Offer interactive tools like quizzes or challenges that entertain while educating consumers about your products.
Visionary Tip: Envision a future where AR enables consumers to virtually “stock their pantry” with your products, allowing them to experiment with combinations and meal ideas before purchasing.
3. Sustainability: Walking the Talk
Sustainability is no longer a marketing buzzword—it’s a critical business imperative. Consumers increasingly align their spending with their values, demanding transparency and accountability from brands.
Why It Matters
- Over 64% of global consumers prefer sustainable products, even at a premium. (NielsenIQ)
- Brands with strong sustainability credentials report 30% faster growth rates. (Unilever Study)
Expanded Case Study: TerraCycle’s Loop Initiative
Loop, developed by TerraCycle, redefines how products are packaged and consumed. By partnering with brands like Unilever and Procter & Gamble, Loop offers products in reusable containers that consumers return for cleaning and refilling. This circular model reduces waste and appeals to eco-conscious buyers.
The initiative has driven loyalty among younger, environmentally aware consumers, demonstrating the profitability of sustainable practices. (TerraCycle)
How CPG Brands Can Apply This
- Sustainable Packaging: Use biodegradable or reusable materials to reduce waste.
- Transparency: Share the story behind your sustainability efforts through video content or interactive timelines.
Visionary Tip: Consider creating subscription services for sustainable products, combining convenience with eco-consciousness to capture repeat customers.
4. Wellness: Supporting Holistic Health
The wellness movement continues to reshape consumer choices, as people prioritize their physical, mental, and emotional well-being.
Why It Matters
- Functional foods and beverages are driving a market set to reach $275 billion globally by 2025. (Grand View Research)
- Over 50% of global consumers actively seek brands that support their health goals. (Food Navigator)
Expanded Case Study: PepsiCo’s Driftwell
Driftwell, a beverage designed to promote relaxation, marked PepsiCo’s entry into the wellness space. Targeting consumers dealing with stress and sleep issues, the product launched at a time when mental health was a growing concern globally. Driftwell not only diversified PepsiCo’s portfolio but also positioned the brand as a forward-thinking leader in wellness.
This bold move demonstrates how CPG brands can innovate within their existing categories to meet emerging consumer needs. (PepsiCo Annual Report)
How CPG Brands Can Apply This
- Functional Ingredients: Introduce products enriched with probiotics, adaptogens, or vitamins.
- Wellness Campaigns: Partner with influencers or health experts to inspire and educate consumers.
Visionary Tip: Explore wearable technology integration, like fitness trackers, to provide real-time insights on how your products enhance consumer well-being.
5. Authentic Brand Purpose: Building Trust Through Meaningful Impact
As consumers become more socially conscious, they expect brands to take a stand on key issues and demonstrate a genuine commitment to making a difference. Authentic brand purpose goes beyond marketing—it’s about aligning a company’s mission, values, and actions with the issues that matter most to its consumers.
Why It Matters
- 77% of consumers say they are more likely to buy from brands that share their values. (Havas Group Meaningful Brands Report)
- Companies with a clear purpose have been shown to grow 3x faster than their peers. (EY Global Study)
Expanded Case Study: Ben & Jerry’s Advocacy
Ben & Jerry’s is a shining example of a brand that has built its identity around social purpose. From climate change to racial justice, the company actively engages in advocacy campaigns, ensuring its actions align with its values. This consistency has not only cemented consumer trust but also driven loyalty, with many customers citing Ben & Jerry’s activism as a reason for their continued support.
The brand’s alignment between purpose and product also enhances its market differentiation. In 2020, during the Black Lives Matter protests, Ben & Jerry’s saw a 20% increase in sales, reinforcing the value of authenticity. (Source: Adweek)
How CPG Brands Can Apply This
- Define Your Purpose: Identify the causes that resonate most with your audience and align with your business goals. Ensure that your efforts are authentic and measurable.
- Communicate Transparently: Share progress and challenges openly, whether it’s through annual sustainability reports or behind-the-scenes content.
- Activate Through Action: Consumers expect more than statements; they demand actions. Partner with credible organizations to implement meaningful initiatives.
Visionary Tip
Imagine using your supply chain as a platform for good—for example, sourcing materials exclusively from fair-trade suppliers or creating community programs in regions where you operate.
Bringing It All Together
With the addition of Authentic Brand Purpose, CPG companies can craft strategies that address the full spectrum of consumer expectations in 2025. This trend, combined with Ultra Personalisation, Digital Engagement, Sustainability, and Wellness, highlights the importance of humanizing brands and creating genuine connections.
Key Takeaways for CPG Success:
- Ultra Personalisation: Harness data and AI to create experiences that feel uniquely personal.
- Digital Engagement: Invest in emerging technologies like AR and gamification to captivate audiences.
- Sustainability: Commit to measurable actions that align with consumer values.
- Wellness: Stay ahead of health trends by introducing functional, innovative products.
- Authentic Brand Purpose: Build consumer trust through consistent values-driven actions.These trends represent not just challenges but unparalleled opportunities for brands to redefine their role in consumers’ lives.
Your Turn: What’s Your Strategy?
How is your company embracing these five trends to stay ahead?
Are there opportunities you’ve overlooked? Let’s explore them in the comments below.