Keeping up with the latest consumer behavior trends helps you stay ahead of the competition. It also helps you run better marketing campaigns to attract your target audience.
Looking to 2025, the trends are showing a strong emphasis on cost-saving and financial restraint, as more households reallocate their budgets toward essentials, with housing costs and inflation remaining a primary concern.
Ahead, you’ll learn 12 consumer behavior and shopping trends to look out for in 2025.
Top 12 consumer behavior trends to adopt
1. US consumers are adjusting online spending and becoming budget-conscious
The current cost-of-living crisis has caused people to change how they spend online, with 55% of people shifting toward methods that allow them to track spending more accurately.
Faced with economic uncertainty, consumers are streamlining their budgets, re-evaluating their spending habits, and seeking deals and discounts. With personal savings rates at under 5%, which is a 10-year low , shoppers are managing tighter budgets, which affects their online spending choices.
Consumers want to stay in control and keep their financial details safe and secure. According to Deloitte’s ConsumerSignals, consumer sentiment has declined, especially among middle- and lower-income households, with many choosing to prioritize savings and nondiscretionary expenses.
“Consumers are still buying,” says Shelley Martin, founder of Skinician, “but the items they spend their money on must be well worth the investment. Solve problems well, as many of them as possible with one product, then tell your consumers how your product makes life better.”
2. Inflation is still making an impact on spending habits
Despite inflation cooling from record highs, it remains above pre-pandemic levels, and 33% of people globally cite inflation as a top issue in their country.
This financial environment is also influenced by federal interest rates, which are at a 20-year high. These rates create high mortgage payments for consumers, stretching finances and leading to cautious spending patterns.
American consumers are using different strategies to save money, like:
- Driving less
- Shopping online or closer to home
- Stocking up when items are on sale
- Using coupons
- Finding stores with lower prices
- Buying store brands
Inflation impacts all discretionary spending categories, like apparel, footwear, household goods, and dining out. Companies must proactively prepare for behavior changes as people navigate rising concerns related to inflation.
Wholesale prices have increased at a higher rate than retail prices, squeezing retailer margins, while shipping container costs have reached their second-highest levels since the COVID-19 pandemic.
3. A shift to value-driven shopping
As economic pressures mount, consumers are increasingly focusing on value-driven shopping. This shift prioritizes essentials, as shoppers look for ways to save without compromising on quality.
Deloitte’s financial well-being index dropped to 99.3 in August 2024, indicating that financial strain continues to affect spending behavior.
This decrease reflects heightened caution among middle- and lower-income households, who continue to feel the strain of inflation and high living costs.
A NIQ report corroborates Deloitte’s findings. Besides shifting to shopping at value stores and looking for value brands, consumers look for value through special offers, trials, bundles, payment plans, and more.
While financial sentiment has shown improvement among higher-income groups, middle- and lower-income households have largely maintained flat spending intentions, focusing on essential items over discretionary purchases.
This shift has also led to a growing demand for private labels, with industry reports projecting that private label brands could capture a 25% share of the grocery market in the next decade. Consumers now actively seek brands that offer quality and affordability, with many households ranking price as a top consideration.
Industry players can navigate this trend by:
- Differentiating, innovating, and finding unique spaces for their products away from the “cheaper alternative” private labels
- Nurture and maintain collaborative retailer-manufacturer relationships
4. Subscription services remain essential
While consumers spend less across the board, subscription services are one expense they will not cut out. Some 47% of respondents to Paysafe’s survey would choose to keep film and TV services out of all their subscriptions if they had to cut back overall.
This trend is further supported by Deloitte’s 2023 Digital Media Trends survey, which found that 88% of U.S. households subscribe to at least one paid streaming video service. These shifts suggest that while consumers are mindful of spending, they prioritize digital entertainment.
Younger generations, including Millennials and Gen Z, are particularly engaged in the subscription economy. Millennials, for instance, spend more on paid streaming services than any other generation but also demonstrate the highest churn rates, opting to cancel and re-subscribe, to services based on content availability.
5. Increasing demand for diverse payment options
The average consumer is willing to part with their disposable income if you’re willing to meet their changing expectations. Another consumer behavior trend is the demand for more payment options beyond credit and debit cards.
Paysafe’s Lost in Transaction report found that 52% of consumers are leaving their homes without a physical wallet and paying for everyday purchases with a mobile wallet, like Apple Pay or Shop Pay. Some 55% of respondents believe mobile wallets will replace physical cards over the next 10 years.
Consumers are more lenient with smaller businesses when it comes to payment options. But if you’re a large business, 73% of consumers expect you to offer all payment methods online, including digital wallets and eCash.
Shop Pay stands out as a payment solution for speed and security during checkout. Customers can store their payment information securely in Shop Pay and check out faster than on other websites.
6. Physical shopping still holds a strong appeal
Though ecommerce has seen a significant uptick in past years, in-person shopping is still the preferred method for many consumers—especially for big-ticket items.
A survey from Pragma and Statista on why consumers shop in physical stores found that:
- 20% of respondents said they wanted to acquire the desired product immediately.
- 16% of respondents said trying the product and experiencing brand values are the greatest motivations for shopping in-store.
- 14% of respondents said they shop in person because of close proximity to the physical store.
The in-store experience becomes even more important when enhanced by first-party data. Retailers can create deeper connections with their customers when physical and digital channels are unified. A seamless data exchange between online and offline experiences allows sales associates to customize their service based on complete customer profiles, accessible from Shopify POS.
This integration also works in reverse, with in-store interactions enriching online experiences by feeding valuable browsing and purchase data into sales and marketing funnels.
💡A digitally native brand, Wildling decided to launch showrooms in Germany to let customers try on shoes before buying them. With Shopify POS, the brand saw a 50% higher rate of first-time shoppers in showrooms and a 5% increase in stock availability after integrating all sales channels.
7. Sustainable products are a must-have for shoppers
As shoppers become more conscientious, sustainable products become an important factor in purchasing decisions. According to a survey by PWC, 80% of consumers say they’d pay up to 5% more for sustainably produced goods.
This eco-conscious mindset has translated into consumer expectations that brands will take visible steps to support sustainability. Nearly half of surveyed consumers reported buying sustainable products as a personal measure against environmental impact.
In contrast, others are attracted to products with specific eco-friendly features, such as reduced packaging waste or biodegradable materials.
The NYU Stern Center for Sustainable Business reports that products marketed as sustainable grew about two times faster, with a 17.3% market share, and achieved a five-year CAGR of 9.43% versus 4.98% for those not marketed as sustainable.
A few forward-thinking companies like Allbirds have pioneered sustainability, but research shows that Gen Z consumers are driving the conversation.
A recent report from First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania found that senior retail executives do not understand consumers’ preferences around sustainable offerings and shopping.
The report also found that:
- Two-thirds of consumers from all generations will pay more for sustainable products.
- 44% of consumers rank product sustainability higher than brand name.
- Three-quarters of consumers say sustainability is somewhat or very important to them.
According to Insider, by 2030, Gen Z will earn 27% of the world’s income, surpassing millennials by 2031.
To capture future market share, you must align with Gen Z’s values before it’s too late.
8. Personalization with first-party data is building customer loyalty
Ecommerce personalization has become a hot topic, and for good reason. Personalization efforts can generate conversion-rate uplifts of between 2%-5% on average, and boost loyalty in 68% of consumers.
Personalization is when a retailer uses unique customer data to show dynamic content. What a customer sees is based on their demographic segment, browsing history, past purchases, device, and more.
As online shopping becomes more omnichannel, with multiple channels influencing purchasing behaviors, retailers are adapting their marketing strategies. You can now reach your customers with everything from emails and popups, to TikTok ads and text messages.
Rather than guess what messages or products your customers will respond to, you can use first-party data to learn who your customers are. First-party data refers to any information a customer shares with you, such as their shopping habits or preferences, in exchange for better shopping experiences.
Consumers love personalization, and they’re willing to share their data as long as they feel they benefit from the exchange and that their data is used responsibly. In Movable Ink’s report, 58% of consumers agreed that they share more personal information with the brands they are loyal to in exchange for more personalization.
Monos, a minimalist luggage brand, successfully integrated their four online storefronts with physical retail locations through Shopify POS, achieving 40% year-over-year revenue growth in regions with physical stores.
Their unified commerce approach enabled personalized experiences through features like customer profiles, complete purchase history access across channels, and flexible buying options such as “buy in-store and ship.” The integration improved customer experience through seamless omnichannel shopping, and boosted operational efficiency.
9. Social commerce thrives on TikTok
Facebook and Instagram have led the social commerce movement, but TikTok is right behind them. TikTok has become a powerful social media platform for product discovery and ecommerce. Brands like Adidas and Chipotle have had major success with their TikTok campaigns, and many more are following suit.
Much more than just a video app, TikTok has become the home of shoppable entertainment. Insider Intelligence reports that in 2023 TikTok gained more shoppers (11.6 million) than the net increase of Facebook, Instagram, and Pinterest combined (6.4 million). TikTok has continued to add social buyers in 2024, projected to reach a total of 40.7 million before the end of the year.
People are using TikTok to discover, research, and review products, and they are ready for TikTok to become part of their shopping journey.
According to TikTok, 61% of its users have engaged in ecommerce behaviors on the platform, and 48% are interested in purchasing on TikTok in the next three months. Brands that can play to the strengths of TikTok will be able to get more sales from social customers.
10. More brands will adopt the direct-to-consumer model
DTC is booming. A report by Circuit showed 85% of businesses were using a DTC model, while 94% of tech leaders were interested in switching to it in the near future.
Beyond the money, consumers simply prefer the experience DTC brands provide. PWC’s study found that 63% of consumers had purchased products directly from a brand’s website, and another 29% had considered the DTC option.
Half of consumers say the authenticity of products drives them to DTC websites, especially when shopping for electronics, fashion, beauty, and personal care items. Greater choice of products, better stock availability, and competitive pricing come in close behind as key purchase-drivers.
11. Privacy-driven products and services gain importance
Data privacy is more important than ever as consumers grow concerned about how their data is used.
According to PwC’s Voice of the Consumer Survey 2024, 83% of consumers consider data protection a critical factor in determining their trust in a brand.
Additionally, 80% of respondents demand assurances that their personal information will remain private, while 71% express concerns about data security, particularly on social media platforms.
These heightened concerns push companies to adopt robust data protection practices, not just for compliance, but as a foundation of customer loyalty.
To adapt, brands can:
- Be transparent about data usage policies
- Openly discuss any advancements in AI and how they are using it
- Invest in security features that protect customer data
- Use opt-in first-party data responsibly, offering tailored experiences that enhance customer trust
12. Rising demand for health and wellness products
Consumer preferences are increasingly shifting towards health and wellness, particularly in diet.
According to PwC’s report, 52% of consumers plan to increase their intake of fresh fruits and vegetables. Some 22% are aiming to reduce their consumption of red meat, reflecting heightened awareness of both health and environmental considerations.
The survey also highlights a disconnect between intentions and environmental impacts, as only 19% of consumers consider the ecological effects of their food choices.
This presents an opportunity for companies to bridge the gap by aligning wellness offerings with sustainable practices, appealing to consumers who are increasingly mindful of personal health and environmental sustainability.
Tap into consumer behaviors to influence buying decisions
Now that you’ve seen the consumer trends for 2025, it’s time to take action. Start by adopting one or two of these trends for your business. Find which works for your audience and then build a digital marketing campaign to target these behaviors throughout the customer journey.
Read more
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- Direct-to-Consumer Business Model in CPG: How-To Guide for Brand Managers
- Brands Building Community During COVID-19
- 10 Lessons From the Fastest Growing Consumer Electronics Websites
- Holiday Online Shopping: The Social Commerce Trends Boosting Sales for Ecommerce Businesses
- The 30 Questions You Should Ask Before Selling Direct to Consumer
Consumer behavior FAQ
What is consumer behavior?
Consumer behavior refers to the actions taken by individuals when purchasing and using goods or services. This includes everything from the initial decision to purchase a product, to how the product is used and disposed of.
Why is it important to understand consumer buying behavior?
Understanding consumer behavior can help you more effectively target marketing and advertising efforts. It can also help you develop products that better meet consumers’ needs and wants, which improves customer satisfaction and brand loyalty.
What are 5 major factors that influence consumer behavior?
The five major factors that influence consumer behavior are:
- Psychological factors
- Social factors
- Personal factors
- Cultural factors
- Economic factors