Top 10 Consumer Trends for 2025: What Australian Brands Need to Know

December 19, 2024

In a rapidly changing world, keeping a pulse on consumer trends is essential for brands seeking to remain relevant and drive growth. As we look to 2025, several key global trends are shaping consumer behavior, with significant implications for the Australian market. From health and wellness to sustainability and economic pragmatism, understanding these shifts will empower brands to develop stronger value propositions and connect with consumers in more meaningful ways.

We have audited the lastest trends consumer trend reports and complied our list of the top 10 consumer trends, each supported by key data points, and provides actionable insights for Australian brands.

1. Health and Longevity: A Shift to Preventative Wellbeing

Consumers are prioritizing health as a lifelong pursuit, not just a reaction to illness. There’s a growing emphasis on preventative care, driven by smart devices, health apps, and personalized wellness solutions.

• 52% of consumers believe they will be healthier in the next five years. This optimism is fueling demand for wellness-related products and services, from wearable health trackers to AI-powered health monitoring. (Euromonitor International, 2024).
• Wearable technology and health-tracking apps are becoming mainstream, driving growth in the global wellness economy, which is projected to reach $7 trillion by 2025 (Global Wellness Institute).

Actions for Australian Brands: Brands in the wellness, fitness, and health technology sectors have a prime opportunity to cater to consumers’ desire for longer, healthier lives. Businesses should consider partnerships with health tech firms, develop products that support preventative care, and emphasize wellness as a lifestyle.  Highlight how your brand contributes to long-term wellness.

2. The Rise of Wiser, More Informed Shoppers

Today’s consumers are savvier and more discerning than ever in their purchase decisions. With a click of a button, they’re researching products, comparing prices, and evaluating brand trustworthiness.

• 57% of consumers extensively researched products and services they consumed in 2024. This rise of the “research-first” consumer requires brands to have clear, transparent messaging and compelling value propositions.   (Euromonitor International, 2024).
• Economic uncertainty and rising cost of living are driving a thrifty mindset, with 48% of consumers planning to save more money in 2024. Consumers are seeking credible value from every purchase.   (McKinsey & Company, 2024).

Actions for Australia Brands: Australian brands should double down on transparency, trust, and evidence of value. Showcase detailed product information, customer reviews, and transparent pricing. Communicate your value proposition clearly to stand out in crowded markets.

3. Sensibly Green: Sustainability with Pragmatism

Consumers continue to seek environmentally responsible options and are increasingly aware of sustainability, but financial pressures mean they’re also looking for affordable choices. Rather than paying a premium for sustainability, consumers seek products that are both “green” and affordable.

• 63% of consumers actively tried to have a positive impact on the environment through everyday actions.  (Euromonitor International, 2024).
• Cost remains a key barrier, with 42% of consumers unwilling to pay a premium for sustainable products (NielsenIQ, 2024). Sustainable consumption is taking on a more pragmatic form. While eco-friendliness is desirable, it’s often not the primary motivator in a cost-of-living crisis.

Actions for Australian brands: For Australian brands, this trend underscores the importance of aligning sustainability with value. Highlight how sustainable products save consumers money over time (e.g., energy-efficient appliances). Focus on durability, cost savings, and sustainable sourcing in your messaging.  Brands also need to provide clear, verifiable claims to avoid accusations of greenwashing.

4. Simplicity in a Complex World

With increasing mental load, consumers seek simplicity, convenience, and stress reduction in their daily lives.   As our world becomes increasingly complex, consumers crave simplicity. Seeking products, services, and experiences that reduce mental load and make decision-making easier.

• 67% of consumers sought to simplify their lives in 2024, and this trend is only growing.  (Euromonitor International, 2024).
• 52% of consumers use digital wallets to streamline purchases, emphasizing the importance of effortless payment options (Deloitte, 2024).

• Consumers are also turning to AI-driven solutions that streamline everyday tasks, from personal assistants to automated customer service.

Implications for Australia: Australian brands that make life simpler for consumers will win loyalty and trust. This could mean optimizing user interfaces, simplifying the customer journey, or using AI to create seamless, personalized experiences. Retailers and service providers should also leverage digital wallet payments and one-click checkouts to cater to the “ease-first” mindset, and don’t forget easy returns for online purchases.

5. The Experience Economy: Access Over Ownership

Ownership is being replaced by access and shared experiences, with consumers seeking variety, flexibility, and subscription-based models.

• 46% of Gen Z and Millennial consumers prefer access over ownership, especially in fashion, mobility, and entertainment (Statista, 2024).
• Subscription services continue to grow, with the global subscription economy expected to reach $1.5 trillion by 2025 (Zuora, 2024).

Action for Australian Brands: Explore subscription and rental models. This could include “try before you buy” services, rental fashion, and flexible payment plans.

6. Emotional Wellbeing and Mental Health

Consumers are looking for products and services that support mental health and emotional well-being.

• 40% of consumers have prioritized mental health in 2024, with growing demand for mindfulness apps, relaxation products, and well-being support (Euromonitor International, 2024).

Action for Australian Brands: Products, services and supports that offer mental wellness benefits, such as guided meditation apps, wellness-focused subscription boxes, or aromatherapy solutions will be valued by consumers. Emphasize work-life balance and stress reduction as key messages.

7. Frictionless Shopping: Effortless Transactions

Consumers expect fast, easy, and seamless shopping experiences across online and offline channels.

• 70% of consumers expect checkout processes to be faster and easier (Deloitte, 2024).
• Digital wallets, self-checkout options, and one-click payments are growing in adoption.

Action for Australian Brands: Offer fast payment options like digital wallets and one-click checkout. Invest in omnichannel solutions that connect online and in-store experiences.

8. Hyper-Personalization: Custom Products and Experiences

AI-driven personalization is changing the way consumers shop, with tailored recommendations and personalized content becoming the norm.

• 75% of consumers are more likely to purchase from brands that offer personalized experiences (Accenture, 2024).
• AI-driven personalization is driving e-commerce, with customized product recommendations increasing conversion rates.

Action for Australian Brands: Use of AI and customer data to deliver personalized recommendations and experiences are valued. Tailored product bundles, custom offers, and curated shopping experiences can drive loyalty and conversions.

9. Social Commerce and Influencer Marketing

Social media platforms are driving commerce, with consumers making purchases directly through social channels.

• 53% of consumers purchase products directly via social media (Hootsuite, 2024).
• Platforms like TikTok and Instagram are transforming shopping behavior with in-app purchase functionality.

Action for Australian Brands: Leverage social commerce by using in-app purchases on platforms like TikTok and Instagram. Partner with micro-influencers to build trust and increase visibility.

10. Ethical Consumerism: Values-Driven Purchasing

Consumers are actively seeking brands that align with their values, such as ethical sourcing, fair trade, and social justice.

• 55% of consumers are more likely to buy from brands that support social and environmental causes (NielsenIQ, 2024).
• Consumers expect brands to be transparent and authentic about their values.

Action for Australian Brands: Highlight ethical sourcing, fair trade certification, and support for social causes. Transparency and third-party verification (like certifications) are essential to build trust and avoid greenwashing accusations.

What These Trends Mean for Australian Brands

The 2025 consumer landscape is one of complexity, pragmatism, and empowerment. Australian consumers want to live healthier, longer lives, make wiser financial decisions, and support sustainability — but only if it’s practical and affordable. Simplicity and ease of use will drive loyalty as consumers prioritize stress-free experiences.

To stay ahead in 2025,  brands can consider focusing on three key strategies:

1. Demonstrate Value: Showcase credible value propositions that balance cost, quality, and sustainability.
2. Leverage Technology: Incorporate health tech, AI, and smart devices that enable preventative care, simplify decision-making, and streamline customer interactions.
3. Prioritize Transparency: Be clear, honest, and data-driven. Consumers are researching like never before, so ensure your brand stands up to scrutiny.

By tapping into these shifts, Australian brands can build stronger, more impactful relationships with their customers and position themselves as essential partners in their customers’ lives and be well-positioned for success in 2025.

This comprehensive analysis is designed to help Australian brands navigate and leverage the most impactful consumer trends for 2025.  To ensure your brand is leveraging impactful insights which inform your brand strategy and campaign in 2025, reach out to our team at Insight LED for audience and consumer market research that is actionable, fast and cost-effective.

Insight LED is a Melbourne-based market research agency specializing in customized services to uncover insights that inform brand and business growth.

Sources

• Euromonitor International (2024) – Global Consumer Trends 2025.
• McKinsey & Company (2024) – Consumer Insights Report.
• Global Wellness Institute (2024) – Global Wellness Economy Report.
• NielsenIQ (2024) – Trends in Sustainable Consumption.
• Deloitte (2024) – Digital Wallet and Frictionless Payments Report.
• Statista (2024) – Gen Z and Millennial Buying Behavior.
• Accenture (2024) – The Rise of Personalization in Retail.
• Hootsuite (2024) – State of Social Commerce.
• Zuora (2024) – The Growth of the Subscription Economy.