Consumer Trends For 2025 - Publicis Groupe

At the end of each year, leading research and market analysis firms traditionally publish their reviews and forecasts for the consumer trends of the coming year. Nearly all these reports highlight the following key trends: the impact of artificial intelligence, the promotion of well-being, and the importance of sustainability. These trends reflect global priorities and values. In this context, we aim to share an analysis of these trends, highlighting their relevance and significance within the Latvian consumer landscape.

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The Challenge of Trust

In today’s world, many people have encountered fake messages, emails, and misleading content online, testing their vigilance and challenging their sense of trust. It has become increasingly difficult to distinguish between what is real and what is fake.

Facts about the situation in Latvia:

€20.7 million – the amount fraudsters have attempted to steal from Latvian residents.¹
53% of young people have encountered deepfakes at least once.²
67% of people claim they verify the authenticity of received messages and avoid clicking on suspicious links.³

Beyond digital forgeries, consumers also face aggressive sales communication that often creates a sense of coercion. Advertisements and marketing tactics continually target users, frequently employing misleading tricks such as AI-generated images that inaccurately represent product quality. This has led to popular social media trends like “What I ordered vs. what I got.”

Trust is further undermined by reviews, which are often questioned for their authenticity. Globally, 38% of consumers have reported encountering fraudulent reviews in the past year.⁴ These circumstances make people increasingly cautious in their decision-making, exacerbating the trust crisis in the age of technology.

Over the years, companies have asked customers to prove their identity. However, the situation is shifting - businesses now need to prove their authenticity and reliability.

What can brands do?

Brands can lead by example, demonstrating the legitimacy of their content and communication. They can take a stand against fake content and fraud while strengthening relationships with customers. Businesses that find effective ways to build trust will be able to establish a lasting connection with their audience.

An intriguing example comes from the UK telecommunications company O2 and its initiative, “Grandma Daisy.” This AI-generated character takes scam calls and engages fraudsters with stories about cats, knitting, and birds. Virtual “granny” can handle multiple calls simultaneously, reducing scammers’ chances of reaching other victims.¹⁰

Food as Medicine

The COVID-19 pandemic significantly changed people's attitudes toward their lifestyle, prompting a stronger focus on health. Moreover, the global tensions and economic crises of recent years have further highlighted the importance of emotional and psychological well-being, encouraging individuals to reconsider their wellness and adopt new habits.

Facts from Latvia:

48% of residents say they are highly concerned about their health.⁵
45% believe they are eating much healthier than before.⁵
61% have experienced emotional or psychosocial issues in the past 12 months.⁶

Well-being is becoming a priority across many aspects of life—from diet to the cosmetics people use daily. Increasingly, health and wellness are emerging as the primary criteria influencing consumer choices.

By 2025, the demand for food products that promote health and wellness—almost granting them medicinal qualities—is expected to rise significantly. These products will become a primary criterion for consumer choices, with individuals actively seeking foods that help achieve specific wellness and health goals.

For example, those following weight-loss diets will opt for products with a balanced nutritional profile to ensure proper nourishment. There will also be growing demand for foods that improve gut health and strengthen immunity.

How can brands respond?

Brands aiming to gain consumer trust will need to emphasize the following:

Transparency: Clearly and simply indicate product ingredients, their country of origin, and natural benefits.

Education: Provide information about product benefits and help consumers understand how these products contribute to wellness.

Personalized Approach: Offer tailored solutions that align with specific wellness goals, such as boosting energy levels or strengthening the immune system.

Example from Latvia

In Latvia, such products are already available. For instance, Piena Spēks highlights its product as a source of protein and vitamin D, low in fat, with 0% sugar, and suitable for children, athletes, and active individuals. This product meets multiple consumer needs simultaneously.

Consumers are increasingly viewing food as a tool for enhancing well-being, and this trend is set to grow. Companies aiming to remain competitive must adapt by offering products that provide not only nutritional value but also address specific health needs.

Pragmatic Sustainability

Sustainability is increasingly becoming an integral part of large companies’ strategies. By 2025, sustainability regulations in economically developed countries are expected to tighten, driving businesses to further prioritize their sustainability programs.

Facts from Latvia:

45% of residents are willing to change their lifestyle to reduce their environmental impact.⁵
21% actively seek brands that offer ways to offset their environmental footprint.⁵
26% consider climate change and environmental degradation to be among the most critical issues.⁷

Consumers are making choices that positively impact the environment, but their approach is becoming more pragmatic. Sustainability is no longer just about promises or certifications—it requires concrete and verifiable evidence. For example, globally, only 34% of consumers trust sustainability labels, while 50% trust companies that openly disclose their production methods and sources.⁸

Greenwashing has significantly undermined consumer trust. To regain confidence, sustainability promises must be backed by tangible results and transparent practices.

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Consumers often view a product's "green attributes" as a valuable added benefit rather than the sole selling point. They are more likely to choose sustainable solutions if the product is offered at an affordable price. So far, brands have been slow to integrate sustainability into their offerings, leading to significantly different approaches and communication that may not always resonate with consumers. The most proactive have been beauty and personal care brands, which have adapted to sustainability demands by emphasizing "green messages." In 2023, nearly 50% of online sales in this sector involved sustainability communication.⁹ In the household goods category, about a quarter of products were positioned as sustainable.

How Can Brands Respond?

It is crucial for brands not only to lead by example in their operations but also to empower consumers to adopt sustainability initiatives and support their efforts to shift towards an eco-friendlier lifestyle. In this process, it is important to adhere to the following principles:

Transparency and Facts: Clearly indicate the impact, sources, and results of sustainability initiatives.

Simple and Clear Communication: Sustainability messages should be crafted in a clear and accessible manner so that they are understandable to all consumers, regardless of their prior knowledge.

Affordability: Offer sustainable products at reasonable prices to make them accessible to a wider range of consumers.

Examples from Latvia

Enefit actively offers green electricity, emphasizing its production from Baltic wind resources. At the same time, the company provides some of the most competitive prices in the market.

Swedbank has been encouraging its customers for the second year in a row to change their Christmas gift-giving habits by replacing traditional gifts with thoughtful solutions. This year, the bank has created inspiring stories to motivate people to enhance their knowledge and share these opportunities with others.

Liepājas RAS, a waste management company, has created a circular economy initiative called Krāmu kambaris (The Junk Room), a goods exchange center where anyone can donate household items in good condition, offering others the chance to acquire them for free.

However, it is important to note what PepsiCo International Foods EVP, Consumer and Marketing Director, Jane Wakely, has stated: "Sustainability cannot just be on the marketing agenda. It must be on the company-wide agenda, where the role of marketing is to find an authentic connection with the consumer and turn sustainability initiatives into a driver of growth.”

Refenreces:

¹The Financial Industry Association: In the four largest banks in Latvia during the period from 01.01.2024 to 31.08.2024.

²Samsung Electronics Baltics / Norstat August 2024, 15-19-year-olds.

³Luminor/Nortsat 2023 Q4

⁴Accenture Life Trends Survey, 2024

⁵Kantar Atlas 2024 vasara

⁶Eurobarometer 2023

⁷European Investment Bank, September 2023

⁸YouGov, September 2023

⁹Euromonitor International

¹⁰Trendwatching