“Predicting the future” is not as daunting as it might sound. If you’re paying attention, the future is already here. For the past ten years, we’ve shared potential future scenarios brands and marketers should note as they consider new initiatives. Many of these potential futures have become reality: for example, in 2018 we explored a scenario where a global pandemic shook the world. In our forecasts in December of last year, we identified five significant challenges: the growth of distrust, the polarization of ideals, clashes of classes, the growing impatience of change, and the avoidance of complexity. We highlighted these rising undercurrents well before the US elections, the rise of petty crime impacting retailers worldwide, and the downfall of many European centralist governments. To some, these things may have come as a surprise. By paying attention to signals of change, brands, and marketers can be more tapped into the potential for challenges that others may see as unlikely.
For 2025 we’ve identified five new signals of change marketers should heed. You will note that many are intertwined, one driving the growth of the other and vice versa. Some may seem clear and obvious, but what we’re interested in is the opportunities that can be found within the challenges. We hope the following will stimulate discussions within your organization.
#1 Challenge: Hyper-Insular Thinking
Growing protectionism led to many consumers refocusing on local prosperity, leaning away from global thinking. In 2025 this will increase, with a focus not simply on national interests, but hyper-local ones. What happens in a community or state will drive greater importance and value. In spite of the fact that this insular thinking will drive costs and potentially lead to more inflation and decreased access to goods, many consumers have lost faith in the global economy. There is a backlash towards imports, which are seen as a challenge to local economies. Brands can reinforce where their products are sourced and celebrate local manufacturing to turn this challenge into an opportunity. For example, Lays and Quaker have created greater awareness about their support for local producers and manufacturing in their marketing. This insular thinking has a dark side. Food insecurity, global supply chain disruption, and another spike in inflation are real possibilities. Additionally, we will continue to see the decline of DEI initiatives in some regions. Companies should tread lightly before retreating entirely on DEI, as consumers still overwhelmingly view inclusion as positive, as we found in our Inclusivity in Retail study.
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#2 Challenge: The War Against Loneliness
Technology promises us connection. The reality is quite the opposite, with the rise of mental illness and loneliness coinciding with the rise of social media platforms. Although tech companies cry foul, there is a growing consensus that technology simply can’t act as a surrogate for human interaction. If not resolved, loneliness could soon become one of the leading causes of death, such as heart, cancer, and diabetes. Our soon-to-be-released study highlights the growing sense of loneliness across all age groups and notes that there are ways brands can help us overcome this issue. Consumers are looking to brands to create space for healthier connections, and at the very least, to avoid causing harm. Retail brands can leverage their space to support social gatherings: Lululemon offers free yoga classes, Apple provides learning space and hosts free sessions and many running stores host clubs. Brands can also tap into their charitable organizations to support causes that help build community: the Toronto Blue Jays Care Foundation and Petro-Canada’s CareMakers Foundation are two great examples.
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#3 Challenge: Survivalism Goes Mainstream
Even if global wars are not on your doorstep, climate change is driving extreme weather incidents all over the planet, driving the need for emergency preparedness. Having gone through the pandemic, the reality of such an armageddon-like problem doesn’t seem so far off.
A recent USA Today study noted about 30% of Americans reported taking steps toward emergency preparedness in the past year, up from 25% in 2017. Preppers, the colloquial term for those who are “preparing” for dire straights, are on the rise. 40% of Gen Z have spent money on prepping in the past 12 months. This trend influences purchases on a wide variety of industries, from outdoor equipment to security and personal protection. Brands can speak to this segment by offering suggestions, products, education, and other resources to remain prepared for a disaster. In addition, consider how your brand might respond to a disaster in your region both from a humanitarian point of view as well as for your staff.
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#4 Challenge: Uneven Innovation Creates Big Winners and Big Losers
In some industries, such as AI, investment in innovation is staggering. In others, such as banking and telecommunications, mergers and acquisitions have been more pressing, leaving innovation on the back burner. Larger companies may opt to tighten budgets in the face of global economic uncertainty, leaving their less risk-averse competitors with a big opportunity. Consumers have high expectations and desire change, both short-term novelty and deeper, more meaningful innovation. Brands that can meet their needs will win big, especially if their competitors hang back. In 2025, some AI companies may crumble if they can’t clearly articulate their purpose. In banking and telecommunications, innovation may come in the form of redesigned customer experience, a completely new approach to advice and services, and hyper-personalization. Some great ways to kick-start innovation include strategic foresight, design sprints, and rebranding initiatives. 2024 had one late example of a big swing by a brand that we’ll see play out in 2025: Jaguar. Love it or hate it, the brand took a big risk and only time will tell if it was well played.
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#5 Challenge: The Longevity Economy
Life expectancy is on the rise, with recent predictions that by 2050, the average person will live to 78, up from 73 in 2022. Many of us have family members well into their 80s and 90s thanks to the advancement of medicine and a greater awareness of lifestyle choices on longevity. Rising costs and inaccessibility of services will push those who can afford it to seek alternative care, such as naturopathic medicine, supplements, and wearable health devices. Cosmetic surgery will continue to be a huge trend, but a rising backlash is gaining momentum. The “pro-aging” movement focuses on lifestyle changes that can support healthier aging, such as weight training, healthy sleep behaviors, diet, and social engagement. There are so many ways in which our aging population presents big opportunities to brands if they can step away from their obsession with young people. A great example is the representation of grandparents in advertising: today’s grandparents are more likely to be at the gym or on a walking tour in Europe than they are to be knitting booties or sitting on a porch swing in a tweedy cardigan. Boomers are the wealthiest generation, and yet marketers often ignore or misrepresent them. How big is the opportunity? The menopause market alone is expected to reach $27B by 2030, up from $15.4B in 2021. There is huge potential for growth in many categories.
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Converting Challenges Into Opportunities
No one can predict the future, but considering the various forces at play can support contingency plans to help minimize potential business disruptions and be ready to capitalize on key opportunities.
