The old ways of buying food won’t cut it anymore for today’s shoppers. With transparency, convenience, and personalization at the top of their needs, consumers drive a massive shift in how brands reach them. As traditional retailers scramble to keep up, DTC  food brands are seizing the moment, cutting out middlemen to deliver not just products but tailored experiences.

This trend shows no signs of slowing, with Salesforce reporting that 64% of shoppers now choose to buy directly from brand-owned channels. These platforms offer more than just a product—they provide authenticity, confidence in quality, and curated experiences that larger marketplaces simply can’t replicate.

Global e-commerce sales are projected to reach $6.3 trillion in 2024, rising from $5.8 trillion in 2023, underscoring the shift toward online purchasing. The food industry is emerging as a critical player in this shift as DTC brands redefine market dynamics and elevate consumer expectations worldwide.

An example of this success is US-based Thrive Market, a subscription-based online grocery service catering to ethically minded shoppers. With over 1.2 million subscribers, Thrive Market shows how DTC brands combine convenience with a commitment to sustainability. Their approach has set a new benchmark for how brands can align with consumer values while delivering a seamless shopping experience.

What Drives the Growth of DTC Food Brands?

Direct-to-consumer food brands have experienced exponential growth due to evolving consumer behaviors, technological advancements, and shifting market dynamics. While already gaining momentum, the pandemic accelerated the adoption of DTC food brands by driving more consumers toward online shopping and home delivery channels. 

Consumer-Centric Strategies

  • Personalization and Customization
    • Consumers can tailor their orders based on dietary needs (e.g., vegan, keto, gluten-free).
    • Brands offer curated subscription plans, meal kits, and customizable snack boxes.
  • Convenience and Accessibility
    • Online platforms make it easy for consumers to purchase products from the comfort of their homes.
    • Subscription models provide regular deliveries, ensuring consumers never run out of their favorite products.
  • Transparency and Trust
    • DTC brands emphasize ethical sourcing and clean ingredients.
    • Brands build trust through direct communication with consumers via social media and email.

Technology and Digital Platforms

The rise of e-commerce and digital tools has been instrumental in propelling DTC food brands.

TechnologyImpact
Social Media MarketingPlatforms like Instagram and TikTok enable brands to build a strong online presence.
Data AnalyticsTools help brands analyze consumer preferences and optimize product offerings.
Mobile AppsApps streamline ordering processes and enhance customer experiences.
AI-Powered PersonalizationChatbots and recommendation engines create tailored shopping experiences.

DTC Food Market Trends

Cultural and generational shifts are also fueling the DTC food trend.

  • Demand for Ethical and Sustainable Products
    • Younger consumers prioritize sustainability and ethical practices.
    • Brands offering eco-friendly packaging and fair-trade ingredients gain a competitive edge.
  • Shift Toward Health and Wellness
    • Consumers are more focused on health-conscious eating.
    • Functional foods, plant-based options, and immunity-boosting products are in demand.
  • Generational Influence
    • Millennials and Gen Z prefer digital-first interactions, resonating with DTC brands’ approach.
    • These generations value convenience, transparency, and brand storytelling.

Key Benefits of the DTC Model

DTC food brands are redefining traditional business models, offering unique advantages that resonate with modern consumers. Their ability to streamline operations, connect directly with their audience, and deliver unique value propositions makes them formidable players in the modern food industry. These benefits not only set DTC brands apart but also enable them to thrive in a competitive marketplace.

Direct Consumer Relationships

  • Data-Driven Insights: By selling directly, brands gain invaluable data on consumer preferences and purchasing patterns, enabling real-time decision-making.
  • Personalized Marketing: With direct access to consumers, brands can create highly targeted marketing campaigns tailored to specific segments.
  • Agility in Product Development: Feedback loops are shorter, allowing brands to adapt and innovate quickly based on consumer input.

Efficient Supply Chain Management

  • Eliminating Intermediaries: By bypassing wholesalers and retailers, brands retain greater control over pricing and margins.
  • Improved Inventory Control: Real-time tracking systems help prevent overstocking or stockouts, optimizing supply chain efficiency.
  • Cost Savings: Reduced reliance on intermediaries translates to lower operational costs, which can be passed on as savings to consumers.
Traditional Supply ChainDTC Supply Chain
Involves multiple intermediariesDirect from brand to consumer
Higher costs due to markupsLower costs with no middlemen
Limited control over distributionFull control over distribution

Stronger Brand Loyalty

  • Community Building: DTC brands foster deeper connections through storytelling, transparency, and direct engagement on digital platforms.
  • Exclusive Offers: Loyalty programs and member-only benefits strengthen customer retention.

Enhanced Customer Experience: Personalized packaging, thank-you notes, and exclusive content create memorable interactions that drive repeat purchases.

How DTC Food Brands Leverage Packaging to Elevate the Consumer Experience

For food brands, product packaging is more than a container—it’s a pivotal touchpoint that bridges the physical and digital shopping experience. Thoughtfully designed packaging serves multiple roles: it protects the product, reinforces the brand’s identity, and enhances the customer’s unboxing experience. Innovative packaging can be the differentiator that keeps customers returning for more.

  1. Brand Storytelling
    • Packaging provides an opportunity to tell the brand’s story visually, from eco-friendly messaging to cultural nods.
    • Custom designs and premium materials create a memorable unboxing experience that resonates with customers.
  2. Sustainability
    • Environmentally conscious packaging is a priority for Millennial and Gen Z consumers.
    • Using recyclable, compostable, or reusable materials showcases a commitment to sustainability.
  3. Functionality and Protection
    • Durable packaging ensures products arrive intact, even after long shipping journeys.
    • Functional designs, like resealable bags or compact boxes, improve usability and convenience for consumers.
  4. Marketing and Retention
    • Unique designs encourage social sharing, effectively turning customers into brand advocates.
    • Personalized messages and custom inserts can boost customer loyalty.

Case Study: Daily Harvest – A Packaging Revolution in DTC

Image Courtesy: Daily Harvest

Overview
Daily Harvest, a subscription-based DTC food brand specializing in ready-to-blend smoothies and plant-based meals, has mastered the art of packaging to align with its health-conscious and eco-friendly ethos.

Packaging Strategies

  • Minimalist Design: Clean, modern designs reflect the brand’s fresh and healthy identity. Each package includes vibrant visuals of ingredients, emphasizing product transparency.
  • Eco-Friendly Materials: Daily Harvest uses 100% compostable and recyclable packaging, reducing its environmental impact while appealing to sustainability-conscious consumers.
  • Customer-Centric Functionality: The brand’s insulated delivery boxes ensure frozen meals and smoothies arrive in perfect condition, preserving quality during transit.
  • Personal Touches: Boxes often include inspirational messages and guides on how to best enjoy the meals, enhancing the unboxing experience.

Impact

  • Daily Harvest has seen a significant increase in social media engagement, with customers frequently sharing unboxing videos and photos of the aesthetically pleasing packaging.
  • Its eco-conscious packaging has bolstered customer loyalty, as many subscribers cite sustainability as a deciding factor in their purchase.

Emerging Trends in DTC Food Packaging

  • Smart Packaging
    • Technologies like QR codes and NFC tags allow consumers to scan packages for product details, sourcing information, and preparation tips.
  • Augmented Reality (AR) Integration
    • AR-enabled packaging creates immersive experiences, like virtual recipe tutorials or stories about the brand’s mission.
  • Personalization
    • Brands offer customizable packaging options, such as names printed on boxes or tailored product bundles.

DTC Brands That Have Disrupted Traditional Brands by Building Customer Connections

Case Study: Magic Spoon – Redefining Breakfast Cereals

Image Credit: The New York Times

Overview: Magic Spoon, founded in 2019, has disrupted the traditional cereal market by offering high-protein, low-carb, and zero-sugar cereals that cater to health-conscious consumers seeking nostalgic flavors.

DTC Strategies:

  • Product Innovation: Utilized alternative ingredients like monk fruit and allulose to create keto-friendly, grain-free cereals replicating classic flavors.
  • Influencer Marketing: Collaborated with mid-tier influencers (100,000–500,000 followers) on platforms like TikTok to authentically promote products, leading to higher engagement rates.
    Podcast Advertising: Invested in podcast ads, resulting in nearly 10% higher lifetime value (LTV) from podcast listeners than other channels.

Outcomes:

  • Rapid Growth: Achieved significant market penetration, prompting expansion into retail channels in 2022.
     
  • Brand Loyalty: Built a strong customer base by aligning with consumer trends toward nostalgia and health-conscious eating.
     

Case Study: Sakuraco – Bringing Japanese Tradition Worldwide

Image Credit: Sakuraco

Overview: Sakuraco offers monthly subscription boxes featuring authentic Japanese snacks, teas, and home goods, aiming to share Japan’s rich culinary traditions globally.

DTC Strategies:

  • Curated Experience: Each box contains 20 artisanal items sourced from local Japanese makers, accompanied by a cultural booklet to enhance the unboxing experience.
  • Thematic Packaging: Monthly themes, such as regional specialties, provide subscribers with a diverse and educational journey through Japan’s culinary landscape.
  • Affiliate Marketing: Launched an affiliate program in 2021 to increase brand awareness and drive revenue, partnering with creators to reach wider audiences.
     

Outcomes:

  • Global Reach: Successfully delivered Japanese cultural experiences to international subscribers, fostering an appreciation for traditional snacks and teas.
     

Customer Engagement: Enhanced customer loyalty through immersive cultural storytelling and high-quality, authentic products.

Challenges and Future Opportunities for DTC Food Brands

Key Challenges

  • Logistics and Delivery
    • Difficulty in maintaining a seamless delivery experience in regions with limited infrastructure.
    • Rising delivery costs impacting profit margins.
  • Market Saturation
    • Intensified competition among DTC brands, especially in popular segments like meal kits and snacks.
    • Consumer fatigue from overexposure to targeted ads.
  • Maintaining Quality and Trust
    • Scaling operations without compromising product quality or the personalized customer experience.
    • Ensuring transparency and authenticity amid growing consumer scrutiny.

Future Opportunities

  • Rural Market Penetration
    • Expanding beyond urban areas to tap into underserved rural markets using hybrid online-offline strategies.
  • Sustainability Innovations
    • Adopting eco-friendly packaging and sourcing practices to appeal to environmentally conscious consumers.
    • Leveraging partnerships with local farmers and producers.
  • Tech-Driven Growth
    • Exploring AI-powered predictive analytics for hyper-personalized marketing.
    • Expanding into augmented reality (AR) experiences for immersive product engagement.
  • Global Expansion
    • Adapting offerings to fit diverse cultural and regional preferences.
    • Collaborating with local influencers and creators to build trust in new markets.

Actionable Insights for DTC Food Brands

Direct-to-consumer food brands are uniquely positioned to capitalize on market trends and consumer preferences. However, they must adopt strategic approaches tailored to their target audience and operational strengths to sustain growth and remain competitive. Here are actionable recommendations for DTC food brands to thrive in an evolving market:
Leverage Data Analytics for Personalization

Why It Matters: Consumers expect tailored experiences that meet their unique preferences and dietary needs.

Action Steps:

  • Implement AI-driven analytics to segment consumers by behaviors, preferences, and purchase history.
  • Use these insights to create personalized marketing campaigns, such as customized meal plans or product recommendations.
  • Invest in dynamic pricing strategies that adapt to consumer demand in real time.

Prioritize Sustainability

Why It Matters: Environmental consciousness is a key factor in consumer decision-making, particularly among Millennials and Gen Z.

Action Steps:

  • Switch to biodegradable or reusable packaging materials to reduce your environmental footprint.
  • Build partnerships with local farmers and producers to support sustainable sourcing.
  • Communicate your sustainability initiatives clearly through product labeling and marketing campaigns.

Expand into Untapped Markets

Why It Matters: Emerging markets, especially rural areas, represent significant growth opportunities.

Action Steps:

  • Develop localized product offerings that cater to regional tastes and preferences.
  • Partner with local distributors and influencers to establish trust and awareness in new markets.
  • Use mobile-first strategies, as many rural consumers rely on smartphones for online purchases.

Strengthen Brand Storytelling

Why It Matters: Consumers connect with brands that have a compelling story and clear values.

Action Steps:

  • Share behind-the-scenes content about product creation, ethical sourcing, or community initiatives.
  • Highlight customer success stories and testimonials to build trust and engagement.
  • Use interactive platforms like live streaming to showcase your brand’s authenticity.

Embrace Emerging Technologies

Why It Matters: Technology can enhance consumer engagement and streamline operations.

Action Steps:

  • Implement AR/VR for immersive shopping experiences, such as virtual try-before-you-buy features.
  • Adopt blockchain for transparent supply chain tracking and product authenticity.
  • Use IoT devices for inventory management and real-time quality control.

Optimize Customer Retention Strategies

Why It Matters: Retaining customers is more cost-effective than acquiring new ones.

Action Steps:

  • Develop loyalty programs that reward repeat purchases with exclusive discounts or free products.
  • Offer subscription-based models with flexible plans to keep customers engaged over time.
  • Provide exceptional customer support via 24/7 chatbots and responsive service teams.

Foster Strategic Partnerships

Why It Matters: Collaborations can enhance brand reach and operational efficiency.

Action Steps:

  • Partner with complementary brands to co-create products or bundled offerings.
  • Collaborate with influencers and content creators to amplify your brand message.
  • Work with logistics providers to optimize delivery speed and reliability.

Measure and Iterate

Gather customer feedback to refine products and services.

Why It Matters: Continuous improvement is essential for long-term success.

Action Steps:

To evaluate performance, use key performance indicators (KPIs) like customer acquisition cost (CAC), lifetime value (LTV), and conversion rates.

Conduct regular A/B testing on marketing campaigns and website features.

Final Thoughts 

The rise of DTC food brands marks a transformative shift in the food industry, fueled by changing consumer preferences, digital innovation, and the demand for personalized experiences. Direct-to-consumer brands have redefined traditional business models by eliminating intermediaries and connecting directly with their audience, offering unique value propositions that resonate globally.

Key Takeaways

  • Adaptability Is Crucial: DTC brands that embrace emerging technologies, prioritize sustainability, and personalize their offerings are better positioned for long-term success.
  • Consumer-Centric Strategies Win: Meeting the evolving demands of health-conscious, ethically minded, and convenience-driven consumers is essential.
  • Innovation Drives Growth: From AI-powered personalization to immersive shopping experiences, leveraging technology will set brands apart in a crowded market.
  • Global Opportunities Abound: Expanding into untapped markets and adapting to local preferences can unlock significant growth potential.

As competition intensifies, the ability to innovate and adapt will determine which brands thrive in this dynamic landscape. DTC food brands must continually refine their strategies, invest in cutting-edge solutions, and stay attuned to consumer trends to remain relevant and competitive. Adopting a forward-thinking and consumer-first approach will be the key to sustained success for brands looking to navigate these challenges and capitalise on opportunities.

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In a survey by the American Marketing Association, 60% of marketers admitted that despite access to advanced analytics, they often struggle to translate data into actionable strategies. Numbers reveal what is happening but rarely explain why. For decades, traditional market research focused on quantifying trends, assuming consumers acted as rational decision-makers. But real-world consumer behavior rarely aligns with such tidy assumptions.

Take, for example, a global beverage brand that saw declining sales despite introducing a competitively priced, healthier product line. The numbers pointed to price sensitivity as the culprit, but behavioral analysis revealed something deeper: consumers viewed the product as “too healthy,” clashing with their perception of indulgence in that category. This insight redirected their marketing approach and revitalized the brand’s market position.

Behavioral science is no longer optional in market research. By revealing the psychological forces behind decisions, brands can better predict and meet consumer needs. This shift marks a new era in market analysis, where understanding the mind of the consumer is as critical as analyzing the data they leave behind.

The Limitations of Numbers Alone

Data dominates modern marketing but loses value without context. While numbers can quantify consumer actions, they rarely capture the underlying motivations. Overreliance on quantitative data can lead to missteps that derail even the most promising campaigns.

Consider the infamous launch of New Coke in the 1980s, a cautionary tale still dissected in marketing circles. Coca-Cola relied heavily on blind taste test data, which showed consumers preferred the sweeter formula over the original. But the research failed to consider the emotional attachment customers had to the brand’s legacy and its connection to American identity. The result was a backlash so severe that the company was forced to reverse course, reintroducing “Coca-Cola Classic” just 79 days later.

Such missteps highlight the risks of treating data as an endpoint rather than a starting point. Without qualitative insights to provide context, brands can misinterpret what their audience truly values. A spike in web traffic might signal interest, but it doesn’t explain why visitors aren’t converting. A decline in sales could point to pricing issues—or an unmet emotional need in the product experience.

Quantitative data lays the groundwork, but motivations emerge only when emotional and psychological factors are explored. The integration of behavioral insights is critical to bridging this gap, turning raw data into strategies that align with human complexity. By combining numbers with a deeper understanding of consumer psychology, brands can avoid surface-level interpretations and unlock insights that drive meaningful results.

Research-brief

The Role of Behavioral Insights

Behavioral science, the study of how people make decisions and act on them, has redefined market research by uncovering the hidden forces that drive consumer behavior. It bridges the gap between what people say and what they actually do, often revealing contradictions that traditional data overlooks.

One cornerstone of behavioral science is the concept of cognitive biases—systematic errors in thinking that influence decisions. For example, the anchoring bias, where initial information disproportionately affects judgment, can explain why pricing strategies are as much about perception as they are about value. Similarly, decision-making heuristics, or mental shortcuts, show how consumers simplify complex choices, such as defaulting to well-known brands in uncertain scenarios.

Emotional drivers also play a pivotal role in consumer behavior, often outweighing logical factors. A 2021 study in the UK revealed that over 70% of electric vehicle (EV) buyers were motivated not by cost savings but by the status associated with owning an environmentally friendly car. Brands that tapped into this emotional narrative, like Tesla and BMW, successfully positioned their products as aspirational symbols rather than mere alternatives to petrol vehicles.

In Asia, behavioral insights have driven transformative campaigns. When Singapore’s Health Promotion Board sought to reduce sugary drink consumption, it recognized that traditional awareness campaigns wouldn’t suffice. Behavioral research revealed that consumers often underestimated their sugar intake and lacked clear incentives to change habits. The board implemented a “graded sugar labeling” system, combining visual cues with clear behavioral nudges. Within months, sales of high-sugar drinks declined, and healthier options gained traction.

By integrating these principles, market researchers can move beyond surface-level observations to uncover deeper truths about their audience. Behavioral insights don’t just explain consumer choices—they empower brands to shape them. For companies operating in competitive markets, this approach can mean the difference between relevance and obscurity.

Integrating Behavioral Science into Market Analysis

Leading companies are no longer content with data that merely tracks trends—they’re pairing it with behavioral insights to craft strategies rooted in the complexities of human decision-making. This integration of traditional analysis with behavioral science allows brands to decode not just what consumers do, but why they do it, enabling sharper predictions and more effective interventions.

Methodologies like qualitative interviews and focus groups have become indispensable for exploring consumer psychology. These techniques go beyond numbers, uncovering emotional drivers, subconscious motivations, and the social dynamics that shape choices. For example, ethnographic studies—where researchers observe consumers in their natural environments—have provided pivotal insights into shopping behaviors. A multinational retailer in Southeast Asia used this approach to discover that cultural norms around gift-giving heavily influenced their product selections. By tailoring marketing campaigns to emphasize these traditions, the company saw a measurable uptick in seasonal sales.

Innovative tools are making it easier to adopt this hybrid approach. Implicit Association Tests (IATs), which measure unconscious biases, are helping brands understand how consumers truly perceive their products. For instance, a European fashion brand used IATs to test reactions to sustainable clothing lines, uncovering a gap between consumers’ stated eco-conscious values and their actual purchase behavior. Armed with these insights, the company adjusted its messaging to focus on design and quality first, with sustainability as a secondary benefit—a strategy that boosted sales significantly.

Frameworks like the COM-B model, which examines behavior through the lenses of capability, opportunity, and motivation, are also gaining traction. By applying this framework, a global food company identified barriers to healthier eating among its target audience in the UK, leading to product innovations and targeted marketing campaigns that drove healthier choices without alienating its core customer base.

Behavioral science enriches traditional market analysis rather than replacing it. By embracing these methodologies and tools, brands can craft strategies that not only align with consumer behavior but actively influence it. For businesses navigating today’s complex markets, this integrated approach is fast becoming a competitive advantage.

iHerb’s Strategy in Singapore and Malaysia

iHerb, an online retailer specializing in health products, aimed to strengthen its position in the Southeast Asian markets of Singapore and Malaysia. The company engaged in market research to understand consumer behavior and preferences in these regions.

By integrating behavioral insights, iHerb identified key factors influencing consumer purchasing decisions, such as cultural attitudes toward health supplements and online shopping behaviors. iHerb tailored its products and messaging to local preferences, boosting customer engagement and business growth in Southeast Asia.

Hindustan Unilever Limited’s Lifebuoy Campaign in India

Hindustan Unilever Limited (HUL) faced the challenge of promoting handwashing with soap in rural India, where traditional habits and limited awareness hindered adoption. Recognizing that mere information dissemination was insufficient, HUL employed behavioral science principles to drive change.

The company launched the “Lifebuoy Swasthya Chetna” campaign, focusing on creating emotional connections and leveraging social norms. By engaging local influencers and organizing community events, HUL made handwashing a socially accepted practice. This approach led to a significant increase in handwashing with soap, reaching over 130 million people across 44,000 villages. The campaign not only improved public health but also strengthened Lifebuoy’s market position in India.

Grab’s Personalized Marketing in Singapore

Grab, Southeast Asia’s leading superapp, sought to enhance customer engagement in Singapore’s competitive market. By analyzing user behavior and preferences, Grab implemented personalized marketing strategies, including targeted promotions and tailored recommendations.

This data-driven approach resulted in a 65% increase in sales for GrabFood, the company’s food delivery service. The success underscores the effectiveness of leveraging behavioral insights to drive customer engagement and revenue growth.

Challenges and Ethical Considerations

While behavioral insights have opened new doors in market research, they also present unique challenges that demand careful navigation. From biases in research methodologies to the ethical use of consumer data, companies must tread cautiously to maintain trust and ensure fairness.

One of the primary challenges is the potential for bias within behavioral research itself. Confirmation bias, where researchers unconsciously seek data that supports pre-existing assumptions, can skew findings and lead to flawed strategies. Similarly, sampling bias—failing to capture a truly representative audience—can result in insights that don’t align with the broader market. For instance, a luxury brand in India once miscalculated demand for a high-end product line after conducting surveys exclusively in metropolitan areas, neglecting the purchasing power and preferences of affluent consumers in smaller cities.

Ethical considerations loom even larger. As behavioral science delves into the psychology of consumers, it raises questions about manipulation versus influence. Where should companies draw the line between encouraging certain behaviors and exploiting vulnerabilities? For example, “nudge” strategies, such as default options that steer consumers toward specific choices, can be powerful—but if not transparently communicated, they risk eroding trust.

Data privacy is critical, especially in fast-digitizing markets like the Philippines and Indonesia, where consumers are wary of data collection practices. Missteps here can result in backlash, as seen with global brands that faced public scrutiny for overly intrusive data collection practices.

To navigate these challenges, companies must adopt rigorous ethical frameworks. Transparency is paramount—consumers should understand not only what data is being collected but also how it will be used. In China, for example, some e-commerce platforms have introduced clear opt-in mechanisms for personalized recommendations, demonstrating respect for user autonomy while still leveraging behavioral insights.

Balancing innovation with ethical responsibility also requires ongoing dialogue. Cross-disciplinary teams, including behavioral scientists, marketers, and legal experts, can help identify potential risks early and ensure strategies align with ethical standards. This approach safeguards brand reputation and fosters trust, essential in today’s market.

Behavioral science has immense potential to enhance market research, but its power must be wielded with care. Companies that prioritize ethical considerations while embracing these insights will not only unlock new growth opportunities but also set themselves apart as responsible market leaders.

Moving Forward

Behavioral science is no longer a luxury in market research—it’s a necessity. By revealing the psychological and emotional underpinnings of consumer decisions, it elevates raw data into actionable insights, enabling brands to connect with audiences on a deeper, more meaningful level. The case studies and strategies emerging from Asia and beyond prove that this integration isn’t just effective—it’s transformative.

But as with any powerful tool, its application requires precision, care, and an unwavering commitment to ethics. The most successful brands of tomorrow will be those that not only embrace behavioral insights but do so transparently, respecting the trust of the very consumers they aim to understand.

In a world where technology continues to reshape how we shop, think, and live, the ability to decode human behavior will become even more critical. For market researchers and brand leaders, the challenge isn’t just to keep up with these changes—it’s to stay ahead of them, anticipating needs before they’re articulated and crafting strategies that resonate in an increasingly complex landscape.

Behavioral science provides the key to understanding consumers and shaping the future of market analysis. And in a rapidly evolving world, that future starts now.

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In India, a financial revolution is quietly taking shape. Over two-thirds of Gen Z and Millennials in India now use neo-banks—digital-only platforms built for a mobile-first world—demonstrating a major shift in youth banking habits.

Data from our study, “Gen Z and Millennials’ Trust in Neo-Banks Across Southeast Asia,” conducted in partnership with PureSpectrum, indicates that convenience and digital services rank highest among the factors influencing bank selection among Indian youth. This preference signals a shift away from traditional banks, where legacy and reputation—a cornerstone for earlier generations—were ranked as the top priority by only 3% of respondents.

Setting the Scene: India’s Youth and Financial Ecosystem

With a median age of 28, India has one of the youngest populations globally. According to United Nations data, Gen Z and Millennials together account for over 50% of the country’s 1.4 billion people. This demographic weight has profound implications for industries across the board, but nowhere is its impact more visible than in banking.

Younger generations’ demand for tech-driven solutions has paved the way for a neo-bank boom. With 750 million internet users and growing smartphone penetration, India’s digital infrastructure provides a solid foundation for this transformation. For many of these young consumers, the appeal of neo-banks lies in their ability to sidestep the inefficiencies associated with traditional banks, including long queues, cumbersome paperwork, and limited operating hours.

Historically, India’s banking sector has been dominated by well-established institutions like the State Bank of India (SBI) and ICICI Bank, whose extensive branch networks were critical for trust and accessibility. However, these legacy systems are now struggling to keep pace with the demands of a digital-first audience. While traditional banks have introduced online services, they often lack the seamless user experience and agility that define neo-banks.

This shift reflects broader global trends but is particularly pronounced in India, where financial innovation is meeting the needs of an increasingly mobile and tech-savvy population. The question is no longer whether neo-banks can compete with traditional institutions but how quickly they can capture market share in a country ripe for digital disruption.

Cultural and Behavioral Insights

India’s youth are redefining banking, favoring innovation and convenience over the legacy markers valued by previous generations. For Gen Z and Millennials, 24/7 accessibility and personalized experiences take precedence. These consumers expect banks to function like their favorite apps: intuitive, always accessible, and personalized.

This cohort values the integration of banking with other digital services, such as wallets, investments, and financial analytics. For instance, many neo-banks provide seamless connections with UPI-based payments and budgeting tools that allow users to track expenses in real time. These features align with the preferences of a generation accustomed to managing their lives digitally.

Traditional banks, with their reliance on physical infrastructure and slower adaptation to technological advances, are increasingly seen as outdated by India’s youth. Legacy and reputation, once cornerstones of trust, no longer hold the same appeal. The generational shift reflects a broader trend: trust is now built through convenience, innovation, and transparency, rather than through long-established institutional histories.

Key Finding #1: Digital-First Banking is the Norm

For India’s youth, banking is no longer tied to physical branches or traditional methods. Research shows 67% of Indian respondents currently use neo-bank services, reflecting a strong shift toward digital-first banking. This trend is driven by convenience, speed, and accessibility—factors that resonate strongly with a generation accustomed to on-demand services.

India’s adoption of neo-banks aligns with a global shift toward digital banking, but the country’s growth trajectory stands out. With India ranking among the largest online populations in the world, affordable smartphones, and low-cost data plans have accelerated this shift, extending digital banking to remote regions.

Another key enabler of this shift has been the Unified Payments Interface (UPI), a government-backed platform that has revolutionized financial transactions. In 2023, UPI processed over 10 billion transactions in a single month, underscoring the scale of its adoption. Neo-banks have seamlessly integrated with UPI, offering users a one-stop solution for payments, savings, and account management, making them a natural choice for digitally native consumers.

Globally, countries like Singapore and South Korea have led the way in digital banking adoption, but India’s unique combination of demographics and infrastructure is positioning it as a leader in this space. Unlike many developed markets, where traditional banks still hold significant sway, India’s younger population is less tied to legacy institutions, giving neo-banks a competitive edge.

This rapid shift is reshaping India’s financial landscape, making digital-first banking not just an option but the norm for millions of young consumers. As neo-banks continue to innovate, their role in India’s economic ecosystem is set to grow even further, challenging traditional banks to adapt or risk obsolescence.

Key Finding #2: What Matters Most to Indian Youth

For India’s young consumers, banking priorities are clear: convenience and digital services rank as the most important factors when selecting a financial institution. According to our study, these attributes consistently outpaced traditional criteria like reputation or customer service, reflecting a generational shift in expectations. Neo-banks, designed for app-first, seamless experiences, have become the go-to choice for Gen Z and Millennials seeking efficient financial tools.

Low fees and attractive interest rates further enhance the appeal of neo-banks. Unlike traditional banks, which often charge maintenance fees or impose minimum balance requirements, many neo-banks offer zero-fee accounts and competitive savings rates. For price-conscious users, these features are game-changers.

Several players have emerged as frontrunners in India’s neo-banking ecosystem, each targeting the youth market with tailored solutions:

  • Jupiter: Designed for digital natives, Jupiter offers intuitive money management tools, including personalized expense insights and instant account setup.
  • Niyo: Focused on global travelers and professionals, Niyo provides multi-currency accounts, competitive forex rates, and seamless integration with international payment platforms.
  • RazorpayX: Catering to freelancers and small businesses, RazorpayX combines traditional banking features with advanced analytics, enabling users to manage cash flow and automate transactions effortlessly.

These neo-banks distinguish themselves by addressing pain points that traditional banks have struggled to resolve. Whether it’s the ability to open an account in minutes or access detailed spending breakdowns at a glance, these features align with the tech-savvy expectations of India’s youth.

By prioritizing innovation and user-centric design, neo-banks are not just meeting the needs of their customers—they are redefining what Indian consumers expect from banking. For the country’s Gen Z and Millennials, convenience is no longer a bonus; it’s a baseline requirement.

Bridging Gaps in Financial Inclusion

Neo-banks are pivotal to India’s digital transformation, driving financial inclusion nationwide. While urban adoption has been swift, neo-banks are increasingly reaching underserved markets in tier-2 and tier-3 cities. According to Statista, smartphone penetration in India is projected to hit 76% by 2025, creating fertile ground for digital-first banking solutions.

Yet, building trust remains a hurdle, especially in regions loyal to traditional banks. Security concerns were cited by more than two-thirds of respondents as a significant barrier, reflecting broader anxieties about data privacy in a country that has seen its share of cyberattacks on financial platforms.

Broader Economic Impact

Neo-banks are not just reshaping how individuals interact with their money—they are also driving financial inclusion across India. Digital-first platforms have significantly reduced the barriers to accessing banking services, especially in tier 2 and tier 3 cities, where traditional bank branches are often sparse. With a smartphone and an internet connection, users in these regions can open accounts, transfer funds, and access savings tools in minutes.

Neo-banks have become indispensable for gig economy workers and small businesses. Platforms like RazorpayX offer features tailored to freelancers and entrepreneurs, such as automated payment systems and cash flow management tools. These innovations enable small-scale enterprises, which often face hurdles with traditional banks, to operate more efficiently and securely.

Government initiatives have played a critical role in fostering this transformation. Programs under Digital India have expanded internet access to rural areas, while open banking frameworks introduced by the Reserve Bank of India (RBI) encourage collaboration between fintech firms and traditional financial institutions. The growth of UPI, which neo-banks heavily rely on, is another testament to how public policy has facilitated financial innovation.

As neo-banks continue to grow, their ability to integrate underserved populations into the formal financial system has broader implications for economic development. By democratizing access to banking, they are not just meeting the needs of India’s youth but also contributing to the country’s long-term economic resilience.

Comparative Lens: How India Stands Out

India’s neo-bank adoption is part of a larger regional trend, but certain factors make its growth trajectory unique. Compared to its Southeast Asian neighbors, India has a distinct mix of demographic advantages, technological infrastructure, and regulatory challenges that shape its neo-banking landscape.

Here’s how India compares with these markets:

AspectIndiaSingaporeMalaysiaPhilippines
Neo-Bank Adoption67% of respondents use or have used neo-banks66%, led by high smartphone penetration62%, with strong focus on convenience67%, heavily reliant on mobile banking
Primary DriversConvenience, low fees, and digital servicesHigh trust in digital-first institutionsAffordable fintech servicesCustomer service and ease of use
ChallengesSecurity concerns and limited service optionsSmall market size, regulatory clarityTrust in legacy banks still significantLower internet penetration in rural areas
Government RoleUPI, Digital India initiativesStrong fintech ecosystem, MAS supportPublic-private collaboration on fintechLagging fintech adoption support
Demographic AdvantageYoung, tech-savvy population Wealthy, digitally literate populationBalanced mix of urban and rural usersUrban growth driving fintech adoption

Key Observations:

  1. Adoption Rates: India matches the Philippines in adoption rates at 67%, despite differences in population size and banking infrastructure.
  2. Government Support: India’s proactive government initiatives, such as UPI and open banking frameworks, provide a robust foundation for neo-bank growth, unlike the slower regulatory progress seen in the Philippines.
  3. Challenges and Opportunities: Security concerns are a shared challenge across markets, but India’s vast young population and expanding digital reach give it unmatched potential for neo-bank proliferation.

India’s sheer scale and demographic profile set it apart from its regional counterparts. While Singapore leads in trust and Malaysia excels in convenience-driven adoption, India’s combination of innovation and policy support positions it as a leader in the neo-bank revolution across Southeast Asia.

A Competitive Landscape

The rise of neo-banks has not gone unnoticed by traditional banking giants. Many are now exploring partnerships with fintech companies to remain competitive, while some, like ICICI and HDFC Bank, have launched their own digital offerings to retain their customer base.

Despite these efforts, neo-banks’ lean structures and focus on user experience give them an edge. Their ability to integrate with popular payment platforms, budgeting tools, and investment services makes them particularly appealing to Millennials and Gen Z, who prefer consolidated, intuitive financial ecosystems.

Key Finding #3: Challenges for Neo-Banks in India

Despite their growing popularity, neo-banks in India face significant challenges in their quest for widespread adoption. The most pressing concern is security and trust, cited by 67% of respondents as a barrier to fully embracing digital-only banking. For a population that has historically relied on well-established banks with physical branches, neo-banks must overcome skepticism about the safety of their platforms and the privacy of sensitive financial data.

India’s fintech space has seen its share of high-profile security breaches, which have contributed to these concerns. For instance, in 2022, the personal data of millions of users from a popular digital payment app was reportedly leaked online, raising alarms about the vulnerabilities of digital financial services. Although neo-banks are investing heavily in cybersecurity measures, such incidents make it challenging to build trust, particularly among first-time users.

Another hurdle for neo-banks is their limited service offerings compared to traditional banks. While neo-banks excel in day-to-day financial management—such as payments, savings, and money transfers—they often lack critical features like loans, credit cards, or mortgage options. For many users, these omissions make neo-banks a supplemental rather than primary banking choice.

The regulatory environment also plays a role. Neo-banks in India operate in partnership with traditional banks, as the Reserve Bank of India (RBI) does not currently permit fully independent digital banks. This dependency can limit the scope of services and innovation that neo-banks can provide.

To remain competitive, neo-banks must address these barriers head-on. Enhancing transparency around security protocols, expanding service offerings, and strengthening partnerships with traditional banks are crucial steps toward winning the trust of India’s young consumers. As the market matures, the ability to overcome these challenges will determine whether neo-banks can evolve from niche disruptors to mainstream players in India’s financial ecosystem.

What’s Next for Neo-Banks in India?

The future of neo-banks in India is bright but will require strategic evolution to sustain momentum. One key development will likely be increased partnerships between traditional banks and fintech companies. These collaborations will help neo-banks navigate India’s regulatory landscape, which currently restricts fully independent digital banks. By leveraging the infrastructure and licenses of established banks, neo-banks can expand their reach while addressing compliance requirements.

Security and trust, consistently highlighted as barriers, are also areas ripe for improvement. As neo-banks continue to invest in advanced cybersecurity protocols—including biometric authentication, encryption, and real-time fraud detection—they can reassure customers about the safety of their platforms. Transparent communication about these measures will be essential for building long-term trust.

Expanding service offerings is another critical priority. Neo-banks have primarily focused on payments, savings, and money management, but the next phase will likely include loans, investment products, and credit facilities. These additions will allow neo-banks to transition from supplementary services to full-fledged financial ecosystems, increasing their appeal as primary banking providers.

As smartphone penetration deepens and India’s digital infrastructure improves, neo-banks are also expected to play a greater role in financial inclusion. By innovating to meet the unique needs of rural and underserved communities, these platforms can help bridge the gap between India’s urban and rural economies, fostering equitable growth.

India’s journey toward becoming a global fintech powerhouse is just beginning. With a young, tech-savvy population at the helm, supported by progressive government policies and relentless innovation, the future of banking in India is undoubtedly digital—and it’s already here.

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The consumer goods industry is at a pivotal moment, driven by evolving consumer preferences, new technologies, and growing sustainability concerns. As consumers become more empowered by digital tools and increasingly focused on environmental and social responsibility, the traditional methods of doing business are being rapidly redefined. From personalized products to new digital-first experiences, these changes are forcing businesses to stay agile and innovative to remain competitive in a crowded market.

In this blog, we’ll explore the four trends that are set to disrupt the consumer goods sector in 2025: the growth of direct-to-consumer (DTC) strategies, the rise of hyper-personalized products, the shift towards sustainability and the circular economy, and the power of social commerce. These trends offer exciting opportunities for businesses to stay ahead and capitalize on emerging consumer demands.

Trend 1: Direct-to-Consumer (DTC) Expansion

Brands are increasingly bypassing traditional retail channels and embracing Direct-to-Consumer (DTC) strategies to establish stronger customer relationships and gain greater control over the buyer journey. With the growth of advanced e-commerce platforms and personalized marketing, businesses are now able to engage directly with consumers, eliminating intermediaries and enabling a more customized, efficient shopping experience.

By adopting DTC strategies, companies can own the customer relationship and the valuable data it generates. This access allows businesses to gain deeper insights into consumer behavior, preferences, and buying patterns, which can then be leveraged to improve product offerings, customer service, and marketing efforts. Furthermore, cutting out intermediaries means higher margins for brands, as they can set their prices and control their distribution channels without relying on third-party retailers.

However, this shift towards DTC also demands innovation in digital marketing, logistics, and fulfillment operations. To successfully build and scale DTC models, brands need to invest in e-commerce technology, data analytics, and effective customer engagement strategies. 

As more brands pivot to this model, the competitive landscape will be increasingly defined by those that can offer seamless and personalized experiences directly to the consumer.

Case Study: Warby Parker’s DTC Success

Warby Parker, the eyewear brand known for its direct-to-consumer model, has successfully disrupted the traditional optical retail industry. By cutting out the middleman, Warby Parker offers stylish, high-quality eyewear at a fraction of the price charged by traditional retailers. The company leverages its strong online presence, innovative at-home try-on programs, and personalized service to engage customers. With the added benefit of owning valuable customer data, Warby Parker has been able to enhance product development and create more tailored marketing strategies, boosting customer loyalty and expanding its reach. The brand’s approach demonstrates how DTC models not only provide cost advantages but also foster a deeper connection with consumers.

Trend 2: Hyper-Personalized Products

Consumers are increasingly seeking products that are tailored to their individual preferences, whether it’s skincare developed based on DNA testing or food options that can be customized to dietary needs. This demand for personalization is reshaping industries, and advances in data analytics and manufacturing technologies are enabling mass personalization at scale. Companies are no longer simply offering one-size-fits-all products; they are developing customized solutions that meet the unique needs of each consumer.

This trend is changing the way brands approach product development and inventory management. With data-driven insights, businesses can create more targeted offerings, reduce waste, and ensure products align with consumer desires. Personalized products also require a shift in supply chain strategies as brands move from mass production to more flexible, on-demand manufacturing processes that can efficiently meet the demand for customization.

By offering unique, customized solutions, businesses can differentiate themselves in a crowded marketplace. This hyper-personalization creates a competitive edge, enabling brands to build stronger customer loyalty and foster deeper emotional connections with consumers. However, the shift to mass personalization also requires significant investment in technology and consumer data insights to accurately predict and meet individual preferences.

As brands navigate this space, they must ensure they are using data responsibly while delivering value that resonates with the consumer’s personalized experience.

Case Study: Casetify – Revolutionizing Personalized Phone Accessories

Casetify, a Hong Kong-based brand, has transformed the phone accessory market by offering highly personalized products. The brand allows customers to design custom phone cases by uploading their own photos, artwork, or choosing from a wide variety of pre-designed templates. This level of personalization has made Casetify a standout in the crowded phone case market, appealing to consumers who want unique, custom-made accessories that reflect their personal style.

Casetify’s user-friendly platform makes the customization process seamless, enabling users to create a wide range of products—from phone cases to tech accessories—tailored to their specific tastes. By offering this hyper-personalized experience, Casetify has positioned itself as a leader in the growing trend of mass customization in consumer goods, fostering a deeper connection with its customer base and enhancing brand loyalty.

Trend 3: Circular Economy and Sustainable Practices

Sustainability is no longer optional for businesses; it has become a critical factor in consumer decision-making. With increasing consumer awareness around environmental issues, brands are under pressure to reduce waste and embrace the circular economy. Practices such as refillable packaging, the use of recycled materials, and take-back programs are becoming standard, as more consumers favor brands that demonstrate a commitment to sustainability.

This shift requires companies to rethink product design and lifecycle management. The traditional model of “take, make, dispose” is being replaced by a more sustainable approach, where products are designed with their entire lifecycle in mind. Companies are focusing on creating products that can be reused, recycled, or upcycled, thus minimizing waste and reducing their environmental impact.

The demand for sustainable products not only appeals to eco-conscious consumers but also helps businesses meet growing regulatory demands. Governments are increasingly implementing stricter environmental regulations, and companies that prioritize sustainability will be better positioned to comply with these rules. Furthermore, businesses that embrace the circular economy can create new revenue streams by incorporating recycling and re-commerce initiatives. This includes reselling pre-owned products, offering trade-in programs, or utilizing recycled materials for new product lines, thus contributing to a more sustainable and profitable business model.

As sustainability continues to shape consumer expectations, companies that lead the way in circular practices will gain a significant competitive edge in the marketplace.

Case Study: Finline Furniture – Pioneering Circular Economy in Furniture

Finline Furniture, a UK-based company, is taking an innovative approach to sustainability by refurbishing old couches into new products, contributing to the circular economy. Rather than letting used furniture end up in landfills, Finline gives it a second life through careful refurbishment and reupholstery. This process not only reduces waste but also minimizes the environmental impact of manufacturing new furniture.

By embracing this circular model, Finline Furniture helps promote sustainability in the home furnishings industry. The company’s approach offers customers an eco-friendly option for updating their furniture without the environmental cost associated with purchasing brand-new items. This commitment to sustainability is a key differentiator in an increasingly eco-conscious marketplace, and it underscores how companies can innovate to reduce their carbon footprint while offering high-quality, sustainable products.

Trend 4: The Influence of Social Commerce

Social media platforms are becoming dominant sales channels as consumers increasingly discover, research, and purchase products directly from their feeds. From Instagram to TikTok, platforms are evolving into marketplaces where products can be bought with a few taps. Influencer-driven campaigns, live shopping events, and shoppable posts are driving impulse purchases and fostering deeper brand loyalty, making social commerce a critical part of any modern marketing strategy.

This shift is prompting businesses to reallocate marketing budgets toward social-first strategies as companies seek to tap into the massive potential of social media-driven sales. Social commerce requires seamless integration between content and commerce, providing a frictionless experience for customers. Whether it’s a product showcased in a story or a livestream event, the ability for users to purchase directly from their social feed is changing the way consumers interact with brands.

Additionally, social commerce is increasing reliance on micro and nano influencers, who offer higher engagement rates and a more authentic connection with their audiences. Brands are moving away from traditional celebrity endorsements, instead choosing smaller influencers who resonate more personally with niche communities. This strategy not only builds trust but also drives higher conversion rates, making influencers a valuable asset in social commerce campaigns.

The rise of social commerce represents a fundamental shift in how brands approach sales, with the lines between content creation and retail becoming increasingly blurred. As this trend continues to grow, companies that successfully integrate social media into their sales strategy will be well-positioned to lead in the evolving digital marketplace.

Case Study: Shopify – Empowering Social Commerce for Merchants

Shopify, a leading e-commerce platform based in Canada, has significantly transformed the way businesses engage with consumers through its robust social commerce tools. By allowing merchants to sell directly on platforms like Facebook and Instagram, Shopify has enabled businesses to integrate their online stores seamlessly with social media, creating a more immersive shopping experience for consumers.

This integration enhances the social shopping experience by allowing customers to browse, discover, and purchase products without leaving the platform. Shopify’s social commerce tools include features like shoppable posts, Instagram checkout, and Facebook’s marketplace integration, making it easier for businesses to convert social media engagement into actual sales.

The platform’s social commerce features have proven to be especially beneficial for small and medium-sized businesses, enabling them to reach new audiences and increase conversions. By connecting their Shopify stores directly to social platforms, merchants can track engagement and optimize their social commerce strategies, ensuring better targeting and a more personalized shopping experience.

Shopify’s continued innovation in social commerce exemplifies the growing importance of integrating e-commerce with social media platforms. As social commerce continues to gain traction, Shopify’s tools are helping merchants of all sizes thrive in the competitive digital marketplace.

Final Thoughts

The trends reshaping the consumer goods industry—Direct-to-Consumer expansion, hyper-personalized products, sustainability initiatives, and the rise of social commerce—are not just passing fads but transformative shifts. These trends are fundamentally changing how brands engage with consumers, how products are designed and marketed, and how businesses operate in a rapidly evolving landscape. As consumer expectations continue to evolve, brands must stay agile and embrace innovation, sustainability, and digital-first strategies to remain competitive.

To stay ahead of the curve and capitalize on these disruptions, businesses must prioritize customer-centric solutions, invest in sustainable practices, and leverage the power of digital transformation.For more insights into the latest trends and strategies shaping the future of the consumer goods industry, subscribe to Connecting the Dots, our monthly e-newsletter. Stay informed, stay inspired, and lead the change in your industry.

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The animal health industry is entering a transformative phase at the intersection of technology, science, and growing consumer awareness. With increasing recognition of its vital role in food security, zoonotic disease prevention, and the rapidly expanding pet care market, the sector is evolving to meet complex global challenges.

From precision technologies to sustainable innovations, animal health is no longer just about care—it’s about creating systems that are efficient, data-driven, and responsive to modern needs. In fact, the World Organization for Animal Health (WOAH) reports that over 75% of emerging human infectious diseases originate in animals, highlighting the critical importance of advancements in this field.

This blog explores four key trends poised to redefine animal health in 2025, offering a glimpse into the future of veterinary care, disease prevention, and sustainability.

Trend 1: Growth of Telemedicine and Digital Health Tools

Telemedicine is revolutionizing animal health by making veterinary care more accessible, data-driven, and cost-efficient. Through virtual consultations and the growing adoption of wearable devices, pets and livestock can now receive timely medical attention without the need for frequent in-person visits. This trend is reshaping how animal health is monitored and managed, particularly in rural or underserved areas where access to veterinary services has traditionally been limited.

Wearable devices, such as smart collars and health trackers, are providing real-time insights into animals’ vital signs, activity levels, and behavioral patterns. This continuous data stream enables early detection of illnesses, allowing for faster intervention and improved outcomes. According to a 2024 report by Grand View Research, the global animal telehealth market is projected to grow at over 17% annually, driven by advancements in technology and increasing pet ownership.

For livestock managers, digital health tools offer significant cost savings by streamlining herd management and reducing reliance on emergency veterinary visits. Remote health monitoring also minimizes disruptions to farming operations while ensuring the overall health and productivity of animals.

As telemedicine becomes more sophisticated and widely adopted, it is transforming veterinary care into a proactive, technology-driven practice that benefits both pets and livestock. This shift not only improves animal health outcomes but also enhances convenience and affordability for owners and caretakers.

Case Study: VetTriage’s Remote Consultations for Exotic Species

VetTriage, a telemedicine service based in Las Vegas, Nevada, has expanded its offerings to include remote consultations for exotic animal species. By utilizing video conferencing and digital diagnostic tools, veterinarians can assess and advise on the care of exotic pets, such as reptiles, birds, and small mammals, without the need for the animal to be transported. This approach minimizes stress for the animals and reduces logistical challenges for owners. For example, a case study published in Frontiers in Veterinary Science detailed how VetTriage provided remote guidance for a client with a pet iguana exhibiting signs of respiratory distress. Through video consultation, the veterinarian recommended immediate environmental adjustments and arranged for in-person follow-up care, effectively managing the situation without initial physical examination.

Trend 2: Advancements in Vaccination and Disease Prevention

The animal health industry is seeing a breakthrough in disease prevention, driven by innovative vaccine technologies such as mRNA-based vaccines and edible vaccines. These new-generation solutions are poised to combat zoonotic diseases, which can jump from animals to humans, and address challenges in livestock care by making vaccination easier, more effective, and scalable.

Traditional vaccines often face logistical hurdles, such as the need for a cold chain to maintain efficacy, especially in remote or developing regions. mRNA-based vaccines, already proven in human health, offer a promising alternative. These vaccines can be more stable at higher temperatures, significantly reducing cold chain dependency and making distribution easier and more cost-effective. Additionally, edible vaccines—delivered through food or water—can simplify the vaccination process for livestock, lowering costs for farmers and minimizing handling stress on animals.

This innovation is particularly critical in agriculture, where disease outbreaks can lead to significant economic losses. For instance, mRNA vaccines could prevent livestock diseases like Foot-and-Mouth Disease (FMD), which devastates animal populations and disrupts trade. By improving disease prevention, these technologies reduce the impact of outbreaks on agriculture, helping stabilize food supply chains.

The potential of these vaccines extends beyond agriculture—by addressing zoonotic diseases, they improve global health security, reducing the risk of outbreaks that could threaten human populations. This makes them an essential part of global efforts to combat emerging diseases, especially in regions with limited access to conventional vaccination methods. As these innovations continue to develop, they will offer scalable and cost-effective solutions, transforming the future of animal health care worldwide.

Case Study: Development of mRNA Vaccines for Avian Influenza in Livestock

In response to the avian influenza outbreak affecting U.S. dairy cows, researchers are developing mRNA vaccines to protect both animals and humans. The U.S. Department of Agriculture initiated trials in June 2024, administering a vaccine developed by the University of Pennsylvania to dairy calves. This approach aims to reduce virus transmission to dairy workers and mitigate the risk of human-to-human spread. The vaccine leverages mRNA technology, similar to COVID-19 vaccines, offering a rapid and adaptable solution to emerging infectious diseases.

Trend 3: Alternative Proteins for Animal Feed

As sustainability becomes a top priority, alternative proteins such as insect-based feeds, algae, and lab-grown ingredients are emerging as viable replacements for traditional animal feed sources. These alternatives are not only nutritionally equivalent to conventional feeds but also offer significant environmental benefits, making them key to the future of sustainable agriculture and aquaculture.

The traditional feed industry has long relied on ingredients like soy and fishmeal, which contribute to deforestation and overfishing. By shifting to alternative proteins, farmers and producers can reduce their environmental footprint, helping address critical challenges such as land-use change and biodiversity loss. Insect farming, for example, uses minimal space and water and can be a sustainable source of protein for both livestock and aquaculture. Similarly, algae-based feeds offer a rich source of omega-3 fatty acids and protein, essential for healthy animal growth.

These alternative feeds also contribute to lowering greenhouse gas emissions. Traditional feed production is resource-intensive, requiring large amounts of land and energy. In contrast, insect farming and algae production have a much smaller carbon footprint, making them crucial for meeting global sustainability goals.

As consumer demand for sustainably raised products increases, livestock and aquaculture producers are turning to these innovative feed solutions to meet both environmental and economic demands. Alternative proteins are becoming an essential part of the livestock and aquaculture sectors, ensuring a more sustainable and efficient future for animal farming worldwide.

Case Study: Krimanshi’s Micro-Algae-Based Animal Feed in India

Krimanshi, based in Jodhpur, Rajasthan, India, has developed a unique formulation for animal feeds using micro-algae. This innovation addresses the challenge that only 11% of farmers’ animal feed requirements are met by the feed industry, with many encountering adulterated feeds lacking quality assurance. By cultivating and harvesting micro-algae, Krimanshi has created a feed that not only meets nutritional needs but also increases milk production. This approach reduces reliance on traditional feed sources, promoting sustainability and enhancing productivity in the dairy sector.

Trend 4: Personalized Medicine for Pets

Advances in genomics and data analytics are revolutionizing the way we approach veterinary care, enabling personalized medicine for pets. Just as precision medicine is transforming human healthcare, targeted therapies and breed-specific diets are now being developed for animals. This shift is fueled by the growing demand for premium, customized pet care, as owners seek treatments tailored to their pet’s unique genetic makeup and health needs.

By analyzing a pet’s genetic profile, veterinarians can offer targeted treatments that not only improve health outcomes but also prevent or manage chronic conditions more effectively. For example, genomics can identify predispositions to certain diseases, allowing for early intervention and preventive care. Similarly, breed-specific diets, designed to address the unique nutritional needs of different breeds, are becoming more common, offering pets the highest quality of care suited to their individual requirements.

This trend is driving growth in the premium pet care segment. As consumers increasingly view pets as family members, they are willing to spend more on high-quality, personalized products and services. A report from Pet Food Industry in 2024 found that the demand for premium pet foods and health services grew by 15% globally, reflecting this shift toward customized care.

Personalized pet medicine also fosters innovation in diagnostics and therapeutic options. From AI-powered health monitoring tools to tailored pharmaceutical treatments, the industry is ripe for new solutions that cater to the specific needs of pets. As personalized medicine continues to evolve, it will not only improve the quality of life for pets but also set new standards for veterinary care.

Case Study: VetGen’s Genetic Testing for Personalized Pet Care in the UK

VetGen, a UK-based veterinary genetics company, offers genetic testing services that enable veterinarians to provide personalized care tailored to individual pets. By analyzing a pet’s genetic profile, VetGen identifies breed-specific health risks, allowing for early detection and prevention of potential health issues. This approach ensures that treatments and care plans are customized to the unique genetic makeup of each pet, enhancing overall health outcomes. For example, genetic testing can reveal predispositions to certain conditions, enabling proactive management and targeted interventions. This case exemplifies how personalized medicine is being applied in veterinary care to improve the well-being of pets through tailored health strategies.

Final Thoughts

The animal health industry is at the forefront of a transformative period, with trends like telemedicine, advanced vaccinations, alternative proteins for feed, and personalized pet care reshaping the landscape. These trends bridge the gap between science, technology, and sustainability, driving innovation in veterinary care, disease prevention, and the sustainability of agricultural practices. They not only address pressing global challenges like zoonotic diseases and food security but also enhance the well-being of animals, both pets and livestock, in more efficient and humane ways.

As these trends continue to develop, there are vast opportunities for industry stakeholders to engage, whether through investment, partnerships, or the adoption of new practices. By embracing these advancements, businesses can stay ahead of the curve and contribute to a more sustainable and healthier future for animals and humans alike.

For more insights into the latest trends and strategies shaping the future of animal health, subscribe to Connecting the Dots, our monthly e-newsletter. Stay informed, stay inspired, and lead the change in your industry.

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As 2024 comes to a close, we reflect on a year of unprecedented change across industries. Brands faced rising challenges, from sustainability demands to evolving consumer behaviors, and our reports and guides became essential resources for navigating this dynamic landscape.

From in-depth persona analyses to trend reports on critical shifts in industries like entertainment, finance, and travel, here are our top research reports and guides for 2024. Each offers actionable insights and strategies to help businesses prepare for the year ahead.

The Green Brand: A Comprehensive Guide to Sustainable Trends Reshaping Brands

Sustainability remained a top priority for consumers in 2024, and this guide provided essential strategies for aligning brands with evolving expectations. Drawing on extensive research, the report explored key areas such as carbon-neutral branding, responsible sourcing, and consumer demand for transparency. It also featured data on the rising willingness of consumers to pay more for eco-friendly products, with figures highlighting the growth of the global green product market. Businesses across industries found this guide invaluable for staying competitive in a sustainability-driven market.

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9 Fashion Buyer Personas

This comprehensive guide used consumer research to identify and analyze nine key personas shaping the fashion industry in 2024. Each persona was based on demographic, psychographic, and behavioral data, offering actionable insights into spending habits, preferred purchasing channels, and brand loyalty. The guide also highlighted the rise of resale markets and how sustainability concerns are influencing purchasing decisions, making it a critical resource for fashion marketers and retailers.

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Money Matters

This report delves into the six key fintech trends transforming the financial landscape in 2024. From the rise of embedded finance to the growing influence of Gen Z on digital payment adoption, it highlights the innovations reshaping consumer expectations. It also explores how businesses are leveraging fintech solutions to improve financial inclusion and streamline operations. Packed with insights, this report provides a roadmap for companies navigating the evolving fintech ecosystem.

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9 Travel Personas

Travel surged back in 2024, but with a new set of preferences shaped by the pandemic and evolving consumer priorities. This guide analyzed research data to outline nine travel personas, shedding light on their motivations, spending habits, and preferred destinations. Key findings included a notable rise in demand for sustainable travel and luxury experiences, offering actionable strategies for hospitality and tourism brands to attract diverse traveler segments.

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Next Wave Entertainment

This report captured the major shifts in media consumption, including the rapid adoption of short-form video and the increasing use of virtual and augmented reality in entertainment. Data-driven insights revealed how younger audiences are embracing decentralized platforms and interactive content, creating opportunities for innovative brand collaborations. The report served as a guide for media companies and marketers aiming to stay relevant in a fast-changing landscape.

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8 Financial Services Personas

This guide offered in-depth research on eight distinct financial services personas, derived from behavioral and transactional data. It examined each persona’s financial goals, preferred engagement channels, and decision-making processes. Insights included the rising importance of digital financial tools among younger consumers and the role of personalized advisory services for older demographics. The guide provided actionable strategies for financial institutions to tailor their offerings and improve client retention.

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8 Pet Parent Personas

The pet care industry saw continued growth in 2024, and this guide analyzed eight personas representing pet owners with diverse priorities. Research highlighted how factors like income, pet type, and lifestyle influence purchasing decisions, with an increasing trend toward premium and health-focused pet products. This guide became a go-to resource for pet brands aiming to connect with and serve their target customers effectively.

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UK Cost of Living Study

Rising living costs in the UK prompted consumers to adjust their spending habits, and this study captured those shifts with detailed data. It revealed a growing focus on budget-conscious purchasing, increased loyalty to affordable brands, and changing attitudes toward discretionary spending. Businesses across sectors used this report to understand and respond to the economic challenges shaping the UK market.

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9 Types of Restaurant Patrons and Their Personas

Dining preferences are more varied than ever, and this guide used data to outline nine personas representing today’s restaurant patrons. It provided insights into each group’s expectations, from ambiance and service to menu preferences and price sensitivity. With actionable strategies for tailoring experiences, the guide was a valuable resource for restaurant owners and marketers looking to stand out in a competitive industry.

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9 Grocery Shopping Personas

This guide identified nine shopper personas influencing the grocery industry, using behavioral data to reveal their preferences for in-store and online shopping. Findings included the growing importance of sustainability, convenience, and technology integration, offering retailers a clear path to meet evolving customer expectations. The guide became a cornerstone for businesses adapting to rapid changes in consumer shopping habits.

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The Modern Millennial

This report provided a data-rich examination of millennials, a generation reshaping industries worldwide. It explored their preferences for digital engagement, sustainable products, and personalized experiences, highlighting the key factors driving their purchasing decisions. With actionable insights, the report helped businesses understand how to align with the values of this influential cohort.

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Youth Attitudes Toward Governance in Southeast Asia

This study offered a deep dive into the perspectives of Southeast Asia’s youth, focusing on their priorities around governance, transparency, and accountability. Based on survey data, it revealed how young people are influencing policymaking and demanding more inclusive and ethical leadership. The findings were invaluable for governments, NGOs, and brands aiming to engage with this vocal and dynamic demographic.

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Changing Gears

The automotive industry is undergoing a significant transformation, and this report highlighted the key trends shaping its future. From the rise of electric vehicles to shifts in consumer preferences, it used data to forecast opportunities and challenges for brands in the sector. The report served as a strategic guide for businesses navigating a rapidly changing market.

Read moreFrom actionable persona guides to cutting-edge trend reports, these resources shaped how businesses approached 2024’s challenges and opportunities. Want to stay informed on the latest research and insights? Follow us on LinkedIn or subscribe to our newsletter below for updates that keep you ahead of the curve in 2025.

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As 2024 winds down, we look back at the topics that sparked the most engagement and conversations among our readers. From deep dives into emerging markets in Southeast Asia to an analysis of shifting consumer behaviors worldwide, these articles offered invaluable insights to marketers, researchers, and industry leaders.

Here are our top 13 articles of the year, with expanded summaries showcasing why each one resonated with our audience.

1. Unraveling Filipino Purchase Behavior

This article topped the charts in 2024, revealing the intricacies of Filipino consumer habits in a fast-changing economic and cultural landscape. The piece explored how family values influence purchasing decisions, from the prioritization of group-oriented purchases to the preference for brands that emphasize community and trust. Additionally, it unpacked how the rise of e-commerce and digital wallets is transforming shopping behaviors, creating opportunities for brands to deliver seamless, personalized experiences. The article’s rich blend of data and cultural insight made it a must-read for marketers aiming to succeed in this dynamic market.


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2. The Evolution of the Vietnamese Consumer in 2024

Vietnam’s consumer landscape has undergone a significant transformation in recent years, and this article provides an in-depth exploration of these changes. It examined the increasing affluence of Vietnam’s middle class, highlighting how this segment is driving demand for premium goods and services. The article also discussed the growing emphasis on sustainability, as Vietnamese consumers increasingly prioritize eco-friendly brands and products. Through real-world examples and expert insights, the piece underscored the importance of localized strategies for brands hoping to connect with this sophisticated and evolving market.

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3. 4 Luxury Market Trends to Watch in 2024 and Beyond

Luxury has always been synonymous with exclusivity, but this article demonstrated how the industry is adapting to the modern consumer. It delved into the rise of experiential luxury, where consumers value unique experiences over material possessions, and the growing demand for transparency and sustainability among high-end brands. The piece also explored the role of digital transformation in shaping customer expectations, from virtual showrooms to AI-powered personalization. These trends paint a vivid picture of an industry reinventing itself for the future, making the article essential reading for anyone navigating the luxury space.

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4. Thailand’s Electric Vehicle Market: A Future Powerhouse in Southeast Asia

As sustainability gains traction globally, Thailand has positioned itself as a rising star in the electric vehicle (EV) sector. This article examined the country’s strategic efforts to become a regional leader, driven by government incentives, infrastructure development, and collaborations with global automakers. It also discussed the growing consumer interest in EVs and hybrid models, highlighting key demographic trends that are shaping demand. For brands looking to invest in Southeast Asia’s green future, this article served as both an informative guide and a source of inspiration.

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5. Understanding Thai Consumer Preferences and Behaviours

Thai consumers are a blend of tradition and modernity, and this article unpacked the nuanced behaviors that define their purchasing decisions. From the enduring importance of cultural heritage to the growing influence of digital platforms, the piece explored how brands can bridge the gap between the old and the new. Additionally, it shed light on the impact of economic growth on spending habits, as Thai consumers increasingly seek premium and personalized products. By blending data with cultural storytelling, the article provided actionable takeaways for businesses targeting this market.

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6. The Impact of Consumer Food Choices on Singapore’s Food and Beverage Growth

In Singapore, food is both a cultural cornerstone and a booming industry. This article highlighted how shifting consumer preferences are reshaping the food and beverage sector, from the rise of plant-based diets to the growing demand for locally sourced ingredients. It also touched on the influence of government initiatives promoting sustainability and food security, creating opportunities for innovative brands to make their mark. With its rich insights and forward-looking analysis, this article offered a comprehensive look at one of Asia’s most vibrant markets.


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7. The Organic Wave: Global Trends and Consumer Attitudes Shaping the Future of Food

Organic food is no longer a niche market—it’s a global movement, and this article captured the driving forces behind its meteoric rise. It explored how consumer attitudes toward health, sustainability, and transparency are influencing the demand for organic products across different regions. The piece also delved into the challenges faced by organic brands, from supply chain complexities to maintaining authenticity in an increasingly competitive space. For those looking to understand the trajectory of organic food and its impact on global markets, this article provided a treasure trove of insights.

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8. The Evolution of Kids’ Media Consumption Habits

The way children engage with media is changing at lightning speed, and this article explored how technology and content are evolving to keep up. It analyzed the growing dominance of on-demand platforms, the impact of gamification on education, and the role of influencers in shaping young minds. Beyond trends, the piece also tackled the ethical considerations for brands entering this space, from privacy concerns to the need for age-appropriate content. Whether you’re in media, education, or marketing, this article was a compelling read on the future of kids’ entertainment.


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9. From Niche to Mainstream: The Unstoppable Rise of Organic Foods

What started as a trend has become a powerful shift in consumer behavior, and this article unpacked how organic foods are conquering supermarket shelves worldwide. It explored the role of certifications and trust in driving consumer confidence and how price sensitivity remains a barrier for mass adoption. By highlighting success stories from pioneering brands and analyzing data on purchasing trends, the article offered a roadmap for companies aiming to capitalize on the organic wave.

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10. Beyond the Runway: Insights into Fashion’s 9 Most Influential Buyer Personas

The fashion industry thrives on understanding its diverse consumer base, and this article introduced nine influential buyer personas shaping the market today. From eco-conscious millennials to trendsetting Gen Z shoppers, the piece provided a detailed profile of each persona, offering insights into their motivations, preferences, and spending habits. It also explored how brands can use these personas to tailor marketing strategies and enhance customer loyalty. For anyone in fashion or retail, this article was a masterclass in consumer segmentation.

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11. Gen Z Consumers in China in 2024

China’s Gen Z is a powerhouse demographic, driving trends not just locally but globally, and this article examined what makes them tick. It explored their preference for domestic brands, the importance of social commerce, and their emphasis on individuality and self-expression. With a wealth of data and cultural context, the piece painted a vivid picture of how this generation is reshaping consumption patterns and influencing global markets. Whether you’re a marketer or a brand strategist, this article provided essential insights into this key demographic.


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12. How Legacy Beauty Brands Adapt to Win Over Gen Z

As the beauty industry continues to evolve, legacy brands are rethinking their strategies to resonate with younger consumers. This article detailed how brands are embracing inclusivity, sustainability, and digital innovation to stay relevant in a crowded marketplace. From influencer collaborations to eco-friendly packaging, the piece highlighted the tactics that are helping legacy brands thrive. For those in the beauty sector, it was both a guide and an inspiration for navigating change.

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13. The Rise of Neobanks and the Impact on Traditional Banking

As traditional banks face growing competition from digital-first neobanks, this article explored the seismic shifts occurring in the financial sector. It discussed how neobanks are leveraging technology to deliver seamless, customer-centric services and why they are particularly appealing to younger, tech-savvy consumers. The article also considered the challenges for traditional banks and how they can adapt to this new landscape. With its forward-looking analysis, it provided a clear understanding of the future of banking.

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As we reflect on these standout articles from 2024, it’s clear that the pace of change across industries, markets, and consumer behaviors shows no signs of slowing. From the rise of electric vehicles in Southeast Asia to the shifting preferences of Gen Z globally, these insights have helped illuminate opportunities for brands to stay ahead.

Looking toward 2025, we anticipate even more transformative trends that will challenge conventional thinking and open new pathways for innovation. Stay tuned as we continue to explore the cutting-edge insights that will shape the future of consumer behavior and market research in the coming year.

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For years, millennials have been painted with broad, often misleading strokes—labeled lazy, entitled, and financially irresponsible. But is that the real picture? Our latest report, The Modern Millennial, aims to shatter these stereotypes and reveal the truth about how millennials approach work, spending, and their values.

As millennials move into their peak earning years, they’re shaping industries and redefining how we do business. This report breaks down eight powerful codes defining millennial consumer behavior, offering actionable insights for brands ready to connect authentically with this dynamic generation.

The report highlights eight distinct codes showing how millennials navigate their consumption choices based on their economic behavior and core values providing insights for brands aiming to connect meaningfully with this generation.

Download the report here

Code 1: Millennials Work Hard, Live Better

Millennials redefine work-life balance by prioritizing flexibility and personal well-being. Unlike previous generations, they don’t see work as a sole means to financial security but as part of a holistic life experience. This generation places high value on mental health, leisure time, and opportunities for self-improvement, which extends beyond traditional job benefits like salary. Brands today must recognize that work-life balance is not a perk but an expectation.

This shift has led many organizations to rethink their internal policies. Forward-thinking businesses have adopted flexible work schedules, remote options, and wellness programs. By providing mental health support, meditation apps, and gym memberships, companies align with the millennial desire for workplaces that care about well-being. This change isn’t just about retaining talent; it’s about fostering environments where employees can thrive professionally and personally.

From a millennial viewpoint, organizations failing to evolve risk losing top talent. The companies that succeed are those that understand that work-life integration is essential to productivity and job satisfaction. For millennials, career success isn’t measured only by paychecks but by quality of life, making holistic job satisfaction a crucial element in any recruitment strategy.

Code 2: Millennials Are Everyday Changemakers

Millennials use their purchasing power to support social and environmental causes. This generation is highly aware of the impact their choices have on the world and often makes deliberate decisions to support brands that share their values. They seek out companies prioritizing sustainability, fair labor practices, and environmental stewardship and expect them to be transparent about their initiatives.

Brands that actively contribute to social causes gain a competitive edge. Companies like Patagonia and TOMS have built their business models around giving back, which resonates deeply with millennials. For instance, Patagonia’s commitment to environmental activism, such as donating a portion of its profits to conservation efforts, has made it a favorite among socially conscious consumers. These brands don’t just market products; they sell a purpose that consumers can align with.

Millennials also expect authenticity. Greenwashing—when companies falsely claim to be environmentally friendly—is quickly exposed on social media. Brands need to walk the talk by embedding these values into their corporate structure rather than just marketing campaigns. The brands that millennials support demonstrate a genuine commitment to making the world a better place.

Code 3: Millennials Are Equality Champions

Diversity and inclusion are must-haves for millennials. This generation expects brands to promote diversity in their advertising and reflect these values internally. Representation matters, and millennials want to see a workforce that reflects the diversity of their world. This is more than just a trend; it’s a non-negotiable value for this generation.

Brands championing diversity, such as Ben & Jerry’s, have gained millennial loyalty by taking strong public stances on social justice issues. Companies must move beyond tokenism and ensure their efforts are authentic and impactful. Diversity initiatives should extend to all levels of the organization, from entry-level employees to the C-suite. Millennials want to see inclusive hiring practices, equal opportunities for advancement, and a genuine effort to eliminate systemic biases within companies.

Inclusion isn’t just about hiring a diverse workforce—it’s about fostering a workplace where everyone feels valued and heard. Companies that focus on building an inclusive culture are more likely to retain millennial employees, who are quick to leave environments that don’t live up to their diversity promises. Brands prioritizing equality will continue to resonate with millennials, who view their purchasing decisions as activism.

Explore case studies showcasing brands leading the charge for equality and how they reshape perceptions in our comprehensive analysis. Download the report now

Code 4: Millennials Are Smart Spenders

Frugal yet intentional, millennials navigate economic challenges by making informed spending decisions. This generation grew up during the financial crisis, which shaped their approach to money. They’re cautious but willing to spend on products that offer both value and ethical production. For millennials, quality and transparency matter more than brand loyalty.

Millennials often research extensively before making a purchase. They rely on reviews, price comparisons, and peer recommendations to ensure they’re making the best choice. As a result, brands need to be transparent about what they offer. Ethical considerations, such as sustainable sourcing or cruelty-free products, often influence their final purchasing decision. This focus on informed spending means that brands must be ready to provide proof of quality and social responsibility.

Millennials are also willing to switch brands if they feel they’re getting a better deal or more ethical products elsewhere. This fluidity means companies must work harder to retain millennial customers by offering real value. It’s not just about price but the product’s overall experience and ethical backbone. Brands that can balance cost with quality and transparency are the ones that win over millennial consumers.

Code 5: Millennials Are Brand Besties, Not Loyalists

Millennials’ loyalty is earned through shared values, not rewards programs. Unlike previous generations, who may have stuck with brands due to convenience or tradition, millennials want to build deeper, value-based relationships with the brands they support. This shift has forced companies to rethink how they engage with consumers, moving from transactional relationships to more meaningful connections.

Brands like Glossier have built communities around shared values and authenticity, creating a space where consumers feel like part of a larger movement rather than just customers. By fostering these connections, brands can engage millennials emotionally, leading to stronger, long-term relationships. For millennials, it’s not about points or discounts—it’s about feeling aligned with a brand’s mission.

This generation also values transparency. They want to see a company’s human side, whether through authentic storytelling or real engagement on social media. Brands that pretend to be something they’re not will quickly lose credibility with millennials. The brands that thrive maintain authenticity communicate openly and align their actions with their values.

Code 6: Millennials Are Always Online, Always Ahead

As digital natives, millennials expect seamless experiences across platforms. They grew up in a world where technology is an extension of their daily lives, and they demand that brands keep up. This means having a strong online presence, providing personalized experiences, and ensuring smooth transitions between digital and physical touchpoints.

Brands that leverage technology to enhance personalization stand out to this generation. Netflix and Spotify are prime examples, using data to curate personalized recommendations that make users feel understood. For millennials, convenience and personalization are paramount, and they gravitate toward brands that can deliver both without sacrificing quality. Companies must continuously innovate their digital strategies to meet these high expectations.

Moreover, millennials expect brands to be responsive and adaptive in real time. Slow websites, outdated apps, or clunky online shopping experiences can lead them to abandon a brand entirely. Brands must invest in cutting-edge technology to keep pace with the millennial consumer, ensuring their digital journey is smooth, engaging, and personalized.

Code 7. Millennials Crave Meaningful Content

Authentic storytelling is key to capturing millennials’ attention. This generation is skeptical of traditional advertising tactics and responds best to content that aligns with their values. For millennials, it’s not just about what you sell—it’s about the story behind it. They want to know the why behind a brand’s mission and how it aligns with their beliefs.

Meaningful content goes beyond product descriptions. It’s about creating narratives that reflect the values of your target audience. For example, Nike’s “Just Do It” campaigns often feature real stories of athletes overcoming adversity, resonating with millennials who value perseverance and authenticity. Brands that tell stories rather than just sell products foster deeper connections with their consumers.

Additionally, millennials engage more with content that sparks conversation or offers value beyond the product. Whether it’s educational, inspiring, or entertaining, the content must connect on a personal level. To capture millennial loyalty, they must move beyond superficial marketing tactics and create content that speaks to their audience’s values and desires.

Download the complete analysis to discover how brands are crafting compelling narratives that resonate with this audience and foster brand loyalty.

Code 8. Millennials Love a Good Throwback

Nostalgia is a powerful engagement tool for millennials. This generation finds comfort in revisiting the past, often reflecting on childhood memories or simpler times. Brands that reintroduce classic products or themes in modern contexts tap into this desire, creating emotional connections beyond mere product offerings.

Reebok, for instance, has successfully revived classic sneaker designs from the 90s, appealing to millennials who remember these styles fondly from their youth. This blend of the old and new allows brands to balance modern innovation and nostalgic charm. These throwback products evoke memories for millennials while fitting seamlessly into their contemporary lifestyles.

However, nostalgia marketing isn’t just about rehashing old ideas—it’s about recontextualizing them for today’s consumers. Brands must be thoughtful in how they incorporate nostalgia, ensuring that it feels relevant rather than forced. The best campaigns honor the past while staying true to the present, creating a sense of continuity that resonates deeply with millennials.

Find out how innovative companies are successfully tapping into nostalgia to drive consumer interest in our full report.

The Modern Millennial report provides a comprehensive look at how these codes shape consumer expectations and behaviors, offering actionable insights for brands to thrive in this evolving marketplace.

Ready to explore these insights further? 

Download the full report here to understand how to navigate the complexities of millennial consumerism and leverage their values for sustained success.

In the quiet corners of boardrooms and the backend of tech startups, Generation X is quietly shaping the world we live in today. Often sandwiched between the vocal Baby Boomers and the digitally dominant Millennials, Gen X has earned the nickname “the forgotten generation.” Yet, despite the lack of spotlight, this generation is at the helm of many of today’s most significant shifts—from the rise of digital-first workplaces to the reinvention of entire industries.

While not known for bold proclamations or hashtags, Gen X’s influence is undeniable. They are the steady hands steering organizations through periods of transition, whether by adopting cutting-edge technologies or fostering flexible work cultures. From the laid-back co-working spaces of Berlin to the bustling financial districts of New York, Gen X leads with pragmatism and a focus on solutions rather than fanfare.

Much like their journey from analog to digital, Gen X’s impact on the global stage has been one of quiet evolution rather than revolution. But as we look closer, the choices they’ve made—whether embracing remote work or championing financial prudence—have laid the groundwork for trends that future generations will continue to build upon. For brands and industries, understanding this “silent disruptor” is key to predicting what’s next in a world of constant change.

Debunking Gen X Myths

Generation X has long been cast in the shadows of its neighboring cohorts—seen as slackers in the ’90s and now overshadowed by the cultural clout of Millennials and Boomers. But these characterizations miss the mark entirely. The myth of Gen X apathy, born from an era of grunge music and ironic detachment, hides a far more compelling reality: this is a generation built on resilience, adaptability, and a work ethic forged in times of uncertainty.

Contrary to the slacker stereotype, Gen X entered the workforce during economic volatility and rapid technological change. They faced the collapse of traditional job security and had to navigate careers during the dot-com bust and the Great Recession. Far from being disengaged, Gen Xers became adept at reinventing themselves, pivoting industries, and learning new skills long before terms like “lifelong learning” became buzzwords. In fact, their agility in a shifting world has allowed many to rise to leadership positions today.

Another misconception? That Gen X has been eclipsed by the louder voices of Boomers and the digital prowess of Millennials. The truth is, while they may not court the same media attention, Gen X has been quietly leading from the middle, ensuring stability as they build bridges between the analog past and the digital future. This generation, often the last to remember a world without the internet, has seamlessly integrated into the digital age, using their tech savvy and pragmatism to guide industries through major transformations.

From shaping flexible work environments to championing mental well-being in the workplace, Gen X is proving they’re anything but passive. As we dispel these outdated myths, what becomes clear is their crucial role as the steady, reliable force behind today’s evolving workforce. Gen X may not be loud, but their impact is unmistakable.

From Analog to Digital: The Pioneers of Tech

Long before the world was swiping screens and talking to voice assistants, Generation X was cutting their teeth on dial-up modems, cassette tapes, and brick-sized cell phones. They witnessed the dawn of the internet and experienced the seismic shift from analog to digital in real-time. This unique perspective has positioned Gen X as the true pioneers of tech—early adopters who embraced new technologies and have become the leaders shaping today’s digital landscape.

While Boomers had to catch up and Millennials were born into a fully connected world, Gen X learned to adapt as technology evolved. They were the first to send an email, launch websites, and build businesses on early versions of the internet. This generation was at the forefront of industries that were being transformed by technology, whether in finance, media, or entertainment, and they led the charge with a blend of analog wisdom and digital innovation.

Today, many companies at the cutting edge of tech—whether in Silicon Valley or the fintech hubs of London—are helmed by Gen Xers who understand both the pre-digital and post-digital worlds. They bring a practical, no-nonsense approach to the digital revolution, avoiding the pitfalls of overhyping trends while still embracing innovation. Whether investing in AI, driving advancements in cybersecurity, or shaping the future of media, Gen X leaders use their dual perspectives to steer industries into the next phase of technological evolution.

In a world that often credits Millennials and Gen Z with driving digital transformation, it’s important to remember who paved the way. Gen X bridged the gap between past and future, analog and digital, and continues to be at the helm of the most critical industries shaping the future.

Balancing Act: Work, Life, and Well-being

Generation X, having grown up watching their Boomer parents navigate the demands of a work-first culture, came to the workforce with a different vision of success. Where Boomers often wore long hours and job loyalty like a badge of honor, Gen X took a more measured approach. They saw the cost of burnout, the toll of high-stress careers, and the strain on personal lives and decided that a better balance was not just ideal—it was essential.

For Gen X, work-life balance isn’t a trendy buzzword; it’s a necessity that has been hard-earned through years of juggling responsibilities. Many in this generation have built careers while simultaneously raising families and navigating both corporate ladders and PTA meetings. They’ve mastered the art of flexibility, often opting for careers that allow them to blend work and personal time, whether through remote work, flexible hours, or entrepreneurial ventures. Gen X is the generation that normalized the idea of working from home long before it became widespread, valuing autonomy and control over rigid office culture.

Mental well-being, too, is at the forefront of Gen X’s priorities. Having witnessed the emotional and physical strain of the Boomer “grind,” Gen X has taken a proactive approach to self-care and workplace wellness. They’ve been instrumental in shaping modern workplace policies prioritizing mental health, pushing for employee assistance programs, advocating for boundaries between work and personal life, and supporting more humane approaches to career growth. This generation has led the charge in rethinking what it means to be successful—not just in terms of money or status, but in terms of well-being and fulfillment.

As they enter their peak career years, Gen Xers seek balance, modeling a healthier way to work and live for future generations. Their ability to manage competing demands with pragmatism and grace has set the tone for a future where success isn’t just about climbing the corporate ladder but maintaining a life worth living.

Financial Prudence and Consumer Behavior

Generation X has often been dubbed the “middle child” of modern generations, but when it comes to financial habits, they’ve always been a step ahead in caution and pragmatism. Shaped by economic uncertainty and major disruptions like the 2008 financial crisis, Gen X has learned to approach money with a mix of practicality and wariness, ensuring they’re better prepared for the unpredictable than their younger counterparts.

Unlike Millennials, who tend to focus on experiences over savings, or Boomers, who invested heavily in home ownership and long-term employment, Gen X walks a fine line between spending and saving. They came of age during a time of skyrocketing credit card debt, rising home prices, and fluctuating job markets, making them more financially cautious. For many Gen Xers, the 2008 financial crash was a defining moment—one that reinforced the need for an emergency fund, diversified investments, and a more measured approach to risk.

With retirement looming closer than it is for Millennials, Gen X is heavily focused on building financial security. A generation that lived through both the dot-com bubble and the housing crash, they’ve learned the importance of not putting all their eggs in one basket. You’re likely to find a Gen Xer with a well-rounded portfolio, balancing stocks, bonds, real estate, and other assets. Their investment strategy, while conservative compared to the risk-heavy approach of younger generations, is designed to weather economic downturns and ensure long-term stability.

Consumer behavior among Gen X reflects this same prudence. They are less likely to chase trends and more likely to spend on products and experiences that offer real value. A desire for quality, longevity, and practicality informs their purchasing decisions. This generation reads reviews, compares prices, and seeks durability over flash. Brands that align with Gen X values of reliability, transparency, and longevity often win their loyalty.

Gen X remains a bastion of financial prudence in a world of instant gratification and consumerism. Their careful balancing of spending and saving, combined with a deep understanding of economic cycles, positions them as the generation most likely to weather future financial storms with resilience and foresight.

The Sustainability Shift: From Consumers to Conscious Advocates

For Generation X, sustainability wasn’t always at the forefront. As young adults, convenience was king, and the idea of environmental responsibility often took a backseat to the demands of juggling careers, raising families, and navigating the rapid pace of technological change. But over time, Gen X has undergone a notable shift—from being passive consumers to becoming active advocates for sustainability and ethical consumption.

As they’ve matured, Gen X has become increasingly aware of the environmental impact of their consumption habits. What began as an interest in recycling or reducing waste has evolved into a full-scale commitment to supporting eco-friendly brands and practices. Unlike younger generations who grew up with sustainability as a central narrative, Gen X’s journey toward environmental consciousness has been more gradual, driven by both personal experiences and a growing awareness of global environmental challenges.

Today, Gen X is one of the strongest proponents of sustainability, willing to pay more for ethically sourced and eco-friendly products. Brands that prioritize transparency in their supply chains, minimize their carbon footprints, and align with values of environmental stewardship are most likely to capture their attention—and their wallets. This generation’s desire for authenticity means they’re quick to spot greenwashing, holding companies accountable for living up to their promises of sustainability.

Gen X’s advocacy extends beyond personal consumption. Many in this cohort are now leading organizations or holding positions of influence, bringing their eco-conscious values into the workplace. Whether implementing sustainable business practices, reducing corporate waste, or supporting green initiatives, Gen X leaders are making a tangible impact on industries worldwide.

The transition from convenience-driven consumerism to conscious advocacy is one of Gen X’s most significant evolutions. In an era where sustainability is no longer optional but a necessity, they’ve proven that it’s never too late to adapt, evolve, and take responsibility for the future of the planet. Their practical, no-nonsense approach to sustainability is reshaping industries and setting a standard for generations to come.

Media and Entertainment: Tailoring Experiences for Gen X

When it comes to media consumption, Generation X straddles two worlds: the nostalgic pull of analog and the convenience of the digital age. This generation grew up with mixtapes and Saturday morning cartoons but also embraced the rise of streaming services and social media. Their tastes reflect this unique position, blending a love for classic content with a desire for the latest entertainment technology.

For Gen X, nostalgia is a powerful force. Reboots of ’80s and ’90s TV shows, remastered albums, and sequels to classic films aren’t just pop culture trends—they’re direct appeals to a generation that values the memories of their youth. Platforms like Netflix and Hulu have tapped into this sentiment by offering a mix of original programming and licensed content from decades past. Streaming services have allowed Gen Xers to revisit old favorites while seamlessly integrating new shows and films into their viewing habits.

At the same time, Gen X is far from stuck in the past. They were the first to embrace digital entertainment, from the early days of music downloads to today’s multi-platform streaming environment. Unlike Boomers, who may find themselves overwhelmed by the rapid pace of digital innovation, or Millennials, who are digital natives, Gen X finds comfort in navigating traditional and new media. Whether binge-watching the latest series on their smart TVs or listening to podcasts during their commute, this generation has adapted to the demands of the digital landscape without abandoning the media they grew up with.

This duality has made Gen X a driving force in the demand for a wide range of entertainment experiences. They value the ability to tailor their media consumption to fit their moods—sometimes seeking the comfort of nostalgia, other times exploring cutting-edge content on innovative platforms. They’re just as likely to sign up for the latest streaming service to dust off a vinyl record or attend a classic film screening.

Understanding this blend of nostalgia and innovation is key for brands and media companies. Gen X expects flexibility in their media choices, and they appreciate platforms that offer high-quality new content and access to the media that shaped their formative years. By catering to these preferences, companies can capture the attention of a generation that’s as comfortable in the digital age as they are reminiscing about the analog one.

Global Perspectives: Gen X Across Borders

While Generation X shares common experiences, such as the transition from analog to digital and the pursuit of work-life balance, their values and consumer behaviors are deeply influenced by the cultural contexts in which they live. From the fast-paced urban centers of the U.S. to the tech-savvy streets of Asia, Gen Xers around the world have developed unique perspectives shaped by local economies, social norms, and regional trends.

In the United States, Gen X emerged during an era of relative economic stability followed by seismic disruptions, such as the dot-com bubble and the 2008 financial crisis. This economic whiplash has led to a cautious and pragmatic approach to spending and saving. American Gen Xers prioritize financial security, investing in retirement funds, real estate, and education for their children. Still, they also indulge in experiences—travel, dining, and entertainment—as rewards for their hard work. They strongly advocate for sustainability, increasingly opting for eco-friendly products and transparent business practices.

Across Europe, particularly in countries like Germany and the UK, Gen Xers are known for their focus on quality and practicality. With a history steeped in craftsmanship and design, European Gen X values durability and functionality in the products they choose, preferring brands that reflect reliability. Financial prudence and a commitment to sustainability are key factors, with many opting for long-term investments in property and low-risk financial strategies. Their deep-seated commitment to environmentalism shapes both personal and professional decisions, as they support businesses and initiatives that champion green living.

In Asia, Gen X displays an impressive adaptability to rapid technological advancement. In countries like China and Singapore, this generation has seamlessly integrated into the digital economy, leading industries in finance, e-commerce, and technology. Gen X in these markets is known for its entrepreneurial spirit, balancing traditional family values with the fast-paced demands of modern business. While they appreciate convenience and digital innovation, many are still grounded in a respect for cultural heritage, seeking out brands that honor both tradition and forward-thinking innovation.

India’s Gen X, like their global peers, has also been shaped by rapid change, particularly in technology and economic growth. Known for their resourcefulness, Indian Gen Xers balance modernity with tradition, maintaining strong familial ties while embracing digital solutions in their professional and personal lives. Their consumer behavior reflects a dual focus: they seek value and quality in their purchases but are also highly tech-savvy, leveraging digital platforms for e-commerce, education, and entertainment.

In Southeast Asia, particularly in countries like Thailand and the Philippines, Gen X demonstrates strong ties to community and family. While they are digitally connected and innovative in their use of technology, they often prioritize decisions that benefit not only themselves but also their extended families and local communities.

Sustainability plays an increasingly significant role in purchasing decisions, with many supporting local businesses and eco-friendly products aligning with their environmental and social values.

Across borders, Gen X stands as a generation that balances tradition with innovation, financial security with personal indulgence, and local culture with global trends. While their specific behaviors may differ from region to region, the underlying values of resilience, adaptability, and a focus on the present and future remain the same. As global citizens, Gen X is shaping industries and consumer markets in ways that reflect their individual circumstances and the shared experiences of a generation that has witnessed—and adapted to—unprecedented global change.

Challenges and Opportunities for Brands

As Generation X enters their 50s and 60s, brands have a unique opportunity to engage a cohort that values practicality and authenticity while embracing digital convenience. This generation, which has often been overshadowed by the louder narratives surrounding Boomers and Millennials, is now poised to influence key markets with their distinctive approach to consumption and decision-making. For brands looking to connect with Gen X, understanding the challenges they face and the opportunities emerging from their evolving needs is critical.

The Need for Authenticity and Practicality

Gen X is known for their skepticism towards traditional advertising. They grew up in an era of mass media but quickly adapted to digital technologies, and they expect brands to speak to them with transparency and sincerity. Marketing campaigns that lean heavily on flashy promises or unproven trends will likely fall flat with this demographic. Instead, Gen X prefers brands that offer practical solutions to their current needs, whether it’s high-quality products, services that simplify their lives, or financial tools that help them plan for the future.

To engage Gen X, brands must highlight the tangible benefits of their offerings, focusing on long-term value rather than short-term gimmicks. According to a report by Kantar, 78% of Gen Xers say they are more loyal to brands that are honest about their products and services. Brands prioritizing transparency, durability, and functionality over trend-chasing will resonate with this group.

Digital Convenience with a Personal Touch

While Millennials and Gen Z are often lauded for their tech-savviness, Gen X was the first to embrace digital tools and platforms. They are comfortable shopping online, using digital financial services, and staying connected via social media. 

However, unlike younger generations, Gen X values personalized experiences, direct customer service, and digital convenience. This creates a challenge for brands to blend high-tech solutions with a personal, human touch.

Gen X expects efficiency in their digital interactions but also wants to speak to a real person when needed. Brands that provide seamless omnichannel experiences—where consumers can transition easily from digital to in-person service—will win over this demographic. For instance, financial services and healthcare industries can leverage this by offering user-friendly digital platforms combined with accessible, expert consultations.

guide-to-gen-z

Future Trends: What Will Matter to Gen X?

As Gen X ages, their priorities are shifting, and brands need to anticipate these changes. Key focus areas include health, financial security, and caregiving responsibilities as Gen Xers begin to care for aging parents while also planning for their retirement. The rise of telemedicine, home care services, and retirement planning tools are becoming increasingly important to this generation, with many seeking out brands that can address these specific needs with both practicality and innovation.

Here are some industries and products that will play a crucial role in Gen X’s future:

Industry/ProductWhy It MattersOpportunities for Brands
Aged Care & CaregivingWith Gen X now parenting their parents, caregiving services, home care solutions, and elder tech will surge.Offer digital caregiving platforms, home health devices, and in-home assistance tailored to their practical needs.
Health & WellnessAging concerns like preventative care, fitness, and mental health are rising.Brands should provide comprehensive health management apps, telehealth services, and accessible wellness products.
Retirement & Financial PlanningAs they approach retirement, Gen X is focused on financial stability and investment options.Financial brands can offer tailored retirement planning tools, investment apps, and educational resources.
Home Technology & SecurityMany Gen Xers are upgrading their homes for comfort and security in later years.Smart home technologies, from security systems to energy-efficient devices, will appeal to their desire for safety and sustainability.
Travel & LeisureWhile mindful of finances, Gen X is eager to experience meaningful travel, focusing on family-friendly or eco-conscious options.Brands can promote eco-friendly travel packages, family adventures, and loyalty programs that reward practical spending.
Personalized Consumer GoodsAs discerning consumers, Gen X looks for quality and customization in products, from fashion to tech gadgets.Brands offering personalized products, limited editions, and superior customer service will win their loyalty.

Aging with Tech: The Rise of Digital Health and Wellness

One of the most significant opportunities for brands lies in the intersection of health, aging, and technology. As Gen Xers prioritize their well-being, telemedicine, and wearable health tech will play a pivotal role in their lives. 

According to a recent study by Accenture, 60% of Gen Xers are open to telehealth services, and 45% already use some form of wearable technology to monitor their health​. Brands that provide easy-to-use, integrated solutions—such as apps that track health metrics or offer virtual consultations—will find a loyal audience.

Furthermore, mental health is becoming increasingly important for this generation. Having witnessed the stress-heavy lifestyles of Boomers, Gen X is now actively seeking tools and services that help them maintain work-life balance and reduce stress. Brands offering meditation apps, mental health resources, or flexible wellness programs can capitalize on this growing demand.

Financial Prudence Meets Digital Innovation

Financial security is a top concern for Gen X as they approach retirement. Many have experienced the 2008 financial crisis and remain cautious but increasingly turn to digital solutions to manage their money. Brands that offer innovative financial tools—whether through robo-advisors, digital banking platforms, or AI-driven investment apps—are well-positioned to serve this need. According to a report by Deloitte, 52% of Gen Xers use digital banking services regularly, and the number is expected to rise as more turn to apps for financial planning and retirement investments.

The Gen X Loyalty Factor: Winning with Consistency

Loyalty is critical for this generation. Unlike Millennials who tend to switch brands frequently, Gen X is more likely to stick with brands that meet their needs over the long term. This is an opportunity for brands to cultivate loyalty through consistent quality, excellent customer service, and rewards programs that offer real value. Offering long-term solutions, from investment products to healthcare plans, will foster trust and ensure Gen X returns as repeat customers.

The Legacy of Generation X

As the years pass, Generation X will not be remembered for making the loudest noise or demanding the most attention. Instead, their legacy will be defined by the quiet yet powerful ways in which they disrupted industries, reshaped workplace cultures, and adapted to the technological transformations that now drive our world. Often dubbed the “silent generation” of the modern age, Gen X’s influence is rooted in pragmatism, resilience, and a remarkable ability to balance tradition with innovation.

They bridged the analog and digital divide, led organizations through economic uncertainty, and pioneered shifts in everything from financial prudence to work-life balance. Far from being passive, Gen X has consistently found ways to shape the world on their terms, embracing change while maintaining their core values of practicality and loyalty.

They redefined the meaning of success, prioritizing mental well-being and sustainability long before these became mainstream topics, and they’re now leading in the global conversation on ethical consumerism and digital transformation.

As they continue to age, their role in society will only grow more significant. From guiding younger generations with their unique blend of wisdom and adaptability to shaping the industries of caregiving, health, and finance, Generation X’s legacy will be one of quiet, thoughtful leadership. Their ability to navigate complex challenges, coupled with a dedication to authenticity and practical solutions, has left an indelible mark on the world that will be felt for generations to come.

In the end, Generation X doesn’t need to shout to make an impact—they’ve already proven that their strength lies in the power of steady, deliberate disruption.

Like many developing countries, Indonesia‘s economic liberalization in the mid-1980s brought growth alongside inequality.

Urban centers thrived, attracting investment, jobs, and infrastructure, while rural areas lagged, widening the gap in living standards. This divide extends beyond income and development, shaping the distinct consumer behaviors seen today.

In urban areas, consumers are drawn to the convenience of modern retail formats like malls, hypermarkets, and e-commerce. Meanwhile, in rural regions, traditional markets and neighborhood stores remain the preferred choice, rooted in community ties and local customs. Understanding these contrasting buying behaviors is essential for brands navigating Indonesia’s vast and diverse market.

The Urban Retail Landscape of Indonesia

Modern retail dominates Indonesia’s growing urban centers. Cities like Jakarta, Surabaya, and Bandung boast sprawling malls, hypermarkets, and a robust e-commerce ecosystem. Urban consumers, with higher incomes and better access to technology seek convenience, variety, and efficiency in their shopping.

Malls are more than just shopping destinations; they are social hubs where people gather for entertainment, dining, and leisure. The rise of hypermarkets, offering a one-stop shopping experience, has further driven urban consumers away from traditional markets. E-commerce, fueled by Indonesia’s increasing internet penetration, has also reshaped shopping habits, allowing urban dwellers to make purchases from the comfort of their homes, particularly for fashion, electronics, and household items.

Key data & insights about Indonesia’s urban consumers:

  • Infrastructure improvements and the growing middle class drive urban retail growth.
  • According to a 2023 Nielsen report, urban households spend nearly 30% of their monthly income on modern retail and e-commerce, compared to 8% in rural areas.
  • Platforms like Tokopedia, Shopee, and Lazada have experienced rapid growth in cities, capitalizing on the shift toward digital purchasing and mobile payments.

Urban Consumer Behavior

Urban consumers in Indonesia exhibit distinct characteristics shaped by rapid urbanization, rising incomes, and a growing middle class. Key behavior patterns include:

  • Emphasis on Convenience and Speed: Urban consumers prefer quick, seamless shopping. They gravitate toward one-stop shops like malls and hypermarkets, where they can find a variety of products under one roof. Time efficiency is essential for busy city dwellers.
  • High Adoption of Digital Channels: Urban Indonesians are increasingly comfortable with digital shopping. E-commerce platforms like Tokopedia and Shopee have transformed purchasing habits, especially in fashion, electronics, and household goods. McKinsey reports that urban households are more likely to experiment with online shopping and are heavy social media users, although full adoption of e-commerce still faces hurdles​.
  • Brand Loyalty and Preference for Local Products: Despite exposure to global brands, Indonesian urban consumers strongly value local products, particularly in food and beverage categories. However, perception matters greatly—many consumers mistakenly believe international brands with localized marketing are Indonesian, giving global brands opportunities if they adapt effectively​.
  • Mobile and Social Media Usage: Urban consumers are heavy users of smartphones and social media platforms. However, despite high engagement in social media, trust issues with online payment systems mean that urban Indonesians still often hesitate to fully embrace e-commerce​.
  • Shift Toward Premium and Discretionary Spending: With rising disposable incomes, urban consumers are increasingly willing to spend on premium products and discretionary items such as travel, leisure, and personal electronics. This trend is expected to accelerate as more Indonesians join the consuming class by 2030​.

Example: Tokopedia’s Urban Expansion Strategy

Image Source: KrASIA

Tokopedia, one of Indonesia’s leading e-commerce platforms, recognized the rapid shift toward digital purchasing among urban consumers and developed a targeted strategy to capitalize on this growing trend. Tokopedia invested heavily in its logistics network to ensure same-day or next-day delivery in urban centers like Jakarta and Surabaya. This fast fulfillment option was a key differentiator for time-sensitive urban shoppers, who value convenience above all.

Tokopedia also launched hyper-targeted promotions and partnerships with local urban retailers, blending e-commerce with brick-and-mortar stores. As a result, they managed to capture a significant portion of the urban retail market. From January to May 2023, Tokopedia saw an increase in inter-island shipments, with the farthest shipment happening from Medan (North Sumatra) to Merauke (Papua). In addition to helping people meet their physical product needs, Tokopedia makes it easier for people to access digital products.

Tokopedia’s success illustrates how e-commerce platforms can tap into Indonesia’s urban consumer base by focusing on fast delivery, localized strategies, and convenience—meeting the high expectations of tech-savvy urban shoppers.

The Rural Retail Landscape in Indonesia 

In rural Indonesia, traditional markets and small neighborhood stores, known as warungs, remain the cornerstone of daily shopping for most households. These informal retail channels offer essential goods and serve as key social hubs for rural communities. Rural buying habits are deeply rooted in cultural practices and community ties, differing significantly from urban shopping behaviors.

Key data & insights about Indonesia’s urban consumers:

  • According to McKinsey, over 60% of rural consumers still rely heavily on traditional markets, even though modern retail formats are gradually entering these areas​.
  • Due to limited income and a cash-based economy, rural consumers are more likely to make frequent, small-value purchases. Cash transactions account for over 90% of retail purchases in these areas​.
  • The role of neighborhood stores remains significant because of limited access to larger, modern retail outlets and logistical challenges stemming from Indonesia’s geographical diversity, with thousands of islands and less-developed infrastructure​.

Consumer Behavior in Rural Indonesia:

  • Trust and Familiarity: Rural consumers tend to shop at stores with established trust with the vendor. Unlike urban consumers who prefer the efficiency of hypermarkets and e-commerce, rural buyers are more likely to develop long-term relationships with local shopkeepers.
  • Community-Centric Shopping: Rural shoppers often view traditional markets as social spaces where they can interact with friends and neighbors, making shopping a communal experience. The lack of infrastructure for larger retail chains often reinforces the need for these local markets to thrive.
  • Lower Brand Awareness: Rural consumers have lower brand awareness than urban consumers. Large marketing campaigns influence them and choose products based on price and familiarity.
  • Limited Adoption of Digital Transactions: E-commerce has not yet fully penetrated rural areas, with low levels of digital literacy and unreliable internet access being major barriers. Rural consumers typically prefer to see and touch products before purchasing, which challenges brands looking to expand online​.

Example: Indofood’s Success in Rural Markets

Image source: Seeking Alpha

Indofood, Indonesia’s leading food company, has successfully navigated the rural market through its widespread distribution network and focus on affordable, locally adapted products. By focusing on everyday essentials like instant noodles and snacks, Indofood has built a strong presence in rural communities. The company’s strategy involved partnering with local vendors and warungs, ensuring its products reached even the most remote regions.

Indofood’s localized pricing and packaging, such as smaller, affordable portions, have catered to the economic realities of rural consumers. The brand’s deep integration into the rural retail landscape showcases how companies can thrive by tailoring products and pricing to local needs​.

Drivers Behind the Urban-Rural Divide in Indonesia

The stark differences in consumer behavior between Indonesia’s urban and rural populations are shaped by a complex interplay of geographic, economic, and cultural factors. These underlying drivers help explain why urban areas lean towards modern retail formats while rural areas prefer traditional markets and local stores.

Geographical and Infrastructure Barriers

  • Fragmented Geography: Indonesia’s vast archipelago of over 17,000 islands creates logistical challenges for modern retail expansion in rural areas. Remote villages often lack the infrastructure needed for large retailers or e-commerce to penetrate these markets effectively. As a result, rural consumers continue to rely heavily on nearby traditional markets​.
  • Access to Technology and Internet: Urban centers enjoy better internet connectivity and mobile coverage, fostering the growth of e-commerce and digital payments. However, rural regions suffer from unreliable connectivity, limiting the adoption of online shopping and digital transactions. 

Economic Disparities

  • Income Levels: Urban households typically enjoy higher incomes, enabling them to spend more on premium goods and services. McKinsey reports urban consumers account for 55% of Indonesia’s GDP, driven by the increasing affluence of middle-class families​. In contrast, rural areas have lower purchasing power, driving consumers to prioritize affordability and essential goods​.
  • Discretionary vs. Essential Spending: Urban consumers allocate a significant portion of their income to discretionary spending, including fashion, electronics, and leisure, while rural households focus more on essentials like food and daily necessities​. This leads to differences in the types of products available in rural traditional markets versus urban malls and hypermarkets.

Cultural Preferences

  • Community and Trust: In rural areas, shopping is a community-centric activity, where trust in local vendors is crucial. Consumers prefer to buy from people they know and have established relationships with, reinforcing the role of neighborhood stores and traditional markets​.
  • Modern vs. Traditional Lifestyles: Urban consumers, influenced by globalization and digital media, are more open to adopting modern lifestyles and shopping habits. This includes using mobile wallets, loyalty programs, and online promotions. Meanwhile, rural consumers tend to stick to long-standing traditions and purchase behaviors that are less affected by global trends​.

Emerging Trends in Both Markets

  • Urban Retail: There is a clear trend toward premiumization in cities, with more urban consumers willing to pay for high-end products. Rising disposable incomes and greater exposure to international brands​support this trend. E-commerce is also rapidly growing, especially among younger, tech-savvy urbanites prioritising convenience and speed​.
  • Rural Shift: While traditional markets dominate, rural areas are starting to see the introduction of small-scale modern retail formats such as convenience stores. Brands are beginning to explore hybrid models that combine modern convenience with the local, community-driven experience that rural consumers value​.

Bridging the Divide: Opportunities for Brands in Indonesia

The urban-rural divide presents both challenges and opportunities for brands. Successfully navigating these markets requires a tailored approach that recognizes each consumer base’s unique needs and preferences. Brands that can adapt their strategies to cater to urban and rural shoppers stand to gain significant traction in Indonesia’s rapidly growing economy.

Strategy for Urban Markets

  • Digital Transformation and E-Commerce: In urban centers, brands must strengthen their digital presence. This includes investing in e-commerce platforms, mobile apps, and digital marketing strategies to meet the expectations of tech-savvy urban consumers. Offering features such as personalized shopping experiences, app-based promotions, and fast delivery services are key to success​.
  • Premiumization and Loyalty Programs: As urban consumers shift toward premium products, brands should leverage loyalty programs, exclusive online offerings, and partnerships with premium retailers to capture this growing segment. Creating a seamless omnichannel experience where physical and digital stores complement each other can enhance customer engagement​.

Strategy for Rural Markets

  • Local Trust and Personalization: Brands targeting rural markets should prioritize building trust and offering personalized, localized experiences. Partnering with traditional market vendors and warungs can help reach rural consumers who rely on these familiar channels. Smaller packaging and affordable pricing, tailored to the spending power of rural buyers, will also resonate with this demographic​.
  • Adapting Modern Retail Formats: Introducing modern retail formats, such as mini-marts and convenience stores, in rural areas can bridge the gap between traditional markets and modern trade. These stores should balance modern convenience and local appeal, offering products that rural consumers trust at prices they can afford​.

Hybrid Retail Models

  • Blending Traditional and Modern: A hybrid retail model may be key to succeeding across Indonesia’s urban and rural markets. Brands that combine the convenience of modern retail with the trust and familiarity of traditional channels can win over consumers from both demographics. For instance, local brands could experiment with smaller physical stores in rural areas offering e-commerce options for urban dwellers, creating an integrated shopping experience​.

Final Thoughts

Indonesia’s urban-rural divide presents a unique landscape where brands must balance modern retail innovations with deep-rooted traditional practices. While urban areas are hubs of growth, driven by rising incomes, digital adoption, and a shift toward premium products, rural areas remain anchored in trust, familiarity, and community-oriented commerce. The key to navigating this divide lies in developing nuanced strategies that respect these differences while capitalizing on the evolving retail dynamics in both markets.

Brands that succeed in Indonesia will be those that can not only cater to urban consumers’ demand for convenience and digital integration but also engage rural shoppers through personalized, trust-based relationships. Bridging this gap requires a hybrid approach—leveraging e-commerce, modern retail formats, and mobile technologies in urban regions while maintaining localized, affordable, and culturally relevant offerings in rural areas.

By aligning their strategies with these consumer behaviors and considering the economic and infrastructural challenges, brands can create a strong presence across both urban and rural markets. In doing so, they can secure a competitive edge in one of Southeast Asia’s most diverse and fast-growing markets, ensuring long-term success and customer loyalty.

When executed with precision and cultural sensitivity, this tailored, dual-market approach can unlock significant growth potential, allowing brands to thrive amidst Indonesia’s diverse and rapidly transforming retail environment.