The next wave of edtech growth isn’t being engineered in boardrooms or classrooms. It’s unfolding in bedrooms, dorm halls, and digital chat groups – where students turn smartphones into production studios and learning platforms into launchpads. Armed with ring lights and revision hacks, Gen Z creators are transforming how education is marketed, consumed, and experienced.

As the creator economy collides with online learning, edtech firms increasingly tap into student-led content to drive adoption and engagement. These are not traditional brand ambassadors. They’re 17-year-olds making calculus go viral on TikTok, undergraduates breaking down coding concepts on YouTube, and peer influencers creating community-led momentum that no ad spend can replicate.

It’s a shift that goes beyond marketing. The rise of peer co-creation is shaping the very future of digital education, raising questions about influence, equity, and outcomes. And as both Western and Asian edtech platforms double down on this strategy, one thing is clear: the line between learner and creator is rapidly disappearing.

Students take control of the edtech narrative.

This behavioral shift isn’t accidental. It’s a direct outcome of how Gen Z and Gen Alpha navigate the world: socially networked, algorithm-aware, and deeply influenced by peer credibility.

For today’s learners, discovering an edtech platform through a classmate’s Instagram Reel or a late-night TikTok “study with me” session holds more weight than a polished brand campaign. Tutorials, crash courses, and day-in-the-life videos now double as endorsements, often outperforming official content in reach and relatability.

Behind the scenes, edtech companies are starting to adapt. Instead of focusing solely on institutional partnerships or top-down content strategies, platforms nurture creator ecosystems. Sometimes, they quietly offer toolkits, early access, and micro-incentives to student influencers who generate organic traction. The logic is clear: trust is the new currency, and students trust each other.

This peer-powered loop doesn’t just drive engagement – it shapes product design, fuels viral growth, and turns users into evangelists. For edtech brands seeking to scale in saturated markets, the most strategic growth play may be letting students take the mic.

Khan Academy builds influence through relatability.

In the US, Khan Academy is leaning into student-powered storytelling without making a spectacle of it. While the platform’s core content remains institutionally produced, its growth on social media owes much to an informal network of young creators – high schoolers and college students explaining how Khan helped them prep for the SATs, ace AP exams, or survive algebra.

Rather than launching overt influencer programs, Khan Academy benefits from what marketers might call “earned influence.” Creators like Thomas Frank—whose YouTube channel has over 3 million subscribers and more than 183 million views – frequently reference tools like Khan Academy in their tutorials. These mentions – organic, peer-driven, and peppered with personal success stories – carry a resonance that brand messaging rarely matches.

The result? A constant stream of creator-led endorsements embedded in motivational reels, test prep rundowns, and “study with me” live streams. The platform’s visibility continues to grow not through ads but through creators who view Khan as part of their academic survival toolkit. For students, it’s not just a resource. It’s a badge of belonging.

Classplus taps regional creators to drive depth over scale.

In India’s competitive edtech landscape, Classplus has carved a distinct path by empowering educators to run their online classrooms. But increasingly, it’s students who are amplifying its reach. On Instagram, ShareChat, and even WhatsApp groups, testimonials and tutorials recorded by learners in Hindi, Tamil, and Bengali are helping the platform penetrate beyond metro cities into India’s vast tier-2 and tier-3 markets.

These are not slick influencer campaigns. Often filmed on low-budget phones with minimal editing, the content reflects real student experiences – test scores, improved confidence, or simply how a Classplus module helped crack a tough exam concept. The authenticity resonates, especially among first-generation digital learners seeking guidance in their native language.

Classplus hasn’t ignored the trend. The company has begun quietly supporting these student creators by spotlighting their content on its official channels and offering resources to help structure their narratives. In some cases, creators have even evolved into local brand champions – hosting peer workshops, leading Telegram study groups, and shaping how the platform adapts to regional needs.

While many edtech players chase national scale, Classplus is betting that peer-led credibility in small communities may prove more sustainable (and more powerful) than mass-market advertising.

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Zenius turns TikTok into a learning laboratory.

In Indonesia, Zenius is rewriting the rules of student engagement by meeting Gen Z exactly where they are – on TikTok. The platform, which offers curriculum-aligned content for K-12 learners, has seen a surge in student-driven explainers, study hacks, and motivational clips that blend humor with academic rigor. What might once have been dry exam prep is now delivered with trending sounds, meme formats, and an unmistakably local voice.

Rather than competing for attention, Zenius has embraced this creative energy. Its team actively encourages students to remix educational content into short-form videos and even runs nationwide creator challenges to spark participation. Top-performing videos – like a viral breakdown of Newton’s laws using motorbike stunts – don’t just boost app downloads. They position Zenius as a platform that understands and reflects the student mindset. Zenius’s own TikTok account, @zeniuseducation, has built a substantial following, demonstrating the platform’s resonance with Gen Z audiences in Indonesia.

The strategy taps into more than entertainment. By enabling students to co-create and share learning moments, Zenius is fostering a sense of ownership and community. Creators become informal tutors, and learning transforms into a social experience – one that travels through peer networks far faster than traditional classroom methods.

For a generation that learns in bursts, scrolls for validation, and values authenticity over authority, Zenius is proving the future of education might look a lot more like the For You Page.

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The influence dilemma behind student-led learning

As student creators gain traction, edtech companies navigate a delicate balance between engagement and responsibility. What happens when learning starts to look more like content creation? For every viral study hack or exam tip that spreads across TikTok or YouTube Shorts, there’s the risk of misinformation, burnout, or unintended pressure to perform for views.

Experts are divided. Some argue that co-creation fosters deeper learning, with students reinforcing their knowledge by teaching others. For example, an academic review of TikTok’s role in education cautioned that while it increases engagement, the brevity and virality of the content can undermine conceptual depth and accuracy, especially when non-experts are involved. 

Others warn that when education is filtered through the lens of likes and shares, rigor can give way to popularity.

There’s also the question of transparency. As platforms begin to reward creators – either through visibility, free subscriptions, or direct payments – questions around sponsorship disclosure and authenticity are becoming harder to ignore. In a space where trust is everything, even the perception of promotion can erode credibility.

Mental health concerns are mounting, too. Students doubling as creators often juggle schoolwork with self-imposed content calendars, leading to stress, screen fatigue, and anxiety around performance metrics. Without clear boundaries or institutional support, the model risks amplifying the very challenges it aims to solve.

-From the study: TikTok’s Influence on Education, ResearchGate

The blending of learning and influence isn’t inherently flawed, but it demands stronger guardrails. If student creators are to shape the future of education, platforms will need to offer more than visibility. They’ll need to offer support.

Learning becomes a networked, creator-powered ecosystem

The convergence of student influence and educational technology is no passing trend; it’s reshaping how learning is discovered, delivered, and defined. What began as a handful of creators posting revision tips has evolved into a decentralised learning ecosystem where peer networks hold as much sway as professional educators.

Many edtech brands are adapting. Some invest in tools that allow creators to track engagement and refine their content. Others are experimenting with monetisation models, giving high-performing student educators a path to income or certification. Features once exclusive to influencer platforms – analytics dashboards, branded content guidelines, creator portals – are quietly being layered into the backends of learning apps.

The implications are global. In the West, the trend is accelerating around standardised testing, college prep, and niche STEM content. In Asia, it’s unlocking growth in local language education and expanding access in low-bandwidth, mobile-first environments. While the pace may differ, the destination is the same: education that is personalised, social, and driven by those closest to the experience.

For brands, the message is clear. Students aren’t just users anymore. They’re builders of trust, momentum, and meaning. And in a market where attention is earned – not bought – platforms that empower them will lead the next generation of education.

Why this matters for brands

For brands operating in or adjacent to education, the rise of student creators is both a growth lever and a governance challenge. The decentralisation of influence, from institutions to peers offers unmatched authenticity and reach but also introduces new variables around accuracy, accountability, and impact.

The platforms that will lead are not those that simply ride the trend but those that help shape it responsibly. That means investing in tools that empower young voices while embedding safeguards: content verification, mental health resources, and transparent disclosure practices. Aligning with creators is no longer just a marketing strategy; it’s a responsibility.

Students have become trusted messengers in a market where attention is earned, not bought. But with that trust comes a new mandate for brands: to amplify wisely and build ecosystems that value innovation and integrity.

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You’re watching a livestream. A pair of sneakers flash on screen, not as a hard sell, but as part of the host’s outfit. Before the segment ends, you’ve clicked, carted, and checked out, without ever intending to shop.

This is ambient shopping.

In 2025, 69% of consumers report making purchases while doing something else: scrolling through social media, watching content, or listening to a podcast. The shopping journey has diffused into everyday digital moments, becoming less of an event and more of a background behaviour.

What used to be a deliberate act – searching, comparing, deciding – now happens through exposure. Commerce has folded itself into the scroll, the stream, the story.

This isn’t just a shift in attention span. It reflects a new consumer posture, where intent is optional and interaction is often unconscious.

The Context Collapse of Commerce

Shopping no longer requires a shift in mindset. It happens mid-scroll, mid-stream, mid-conversation, folded into the same feed as entertainment, news, and personal updates.

The boundaries that once separated commerce from content have eroded. A beauty tutorial triggers a purchase. A meme account becomes a storefront. Livestream hosts don’t just entertain; they convert.

This is the new consumer environment: one feed, many functions. People don’t open shopping apps with intent. They encounter products passively, in spaces curated for relevance, not retail.

Brand Signal: Amazon x MrBeast
In 2024, Amazon partnered with YouTube creator MrBeast to produce Beast Games, a Prime Video series built around high-stakes, creator-driven competition. While not a direct shoppable integration, the collaboration signals Amazon’s long-game strategy: embedding its brand deeper into entertainment ecosystems where Gen Z and millennial audiences already spend time. As retail and media converge, partnerships like these reflect how commerce can grow ambiently through cultural relevance and presence, not just transactions.

In 2024, social commerce accounted for an estimated 19% of global ecommerce.

Social platforms have adapted fast. TikTok’s algorithm surfaces trending items before users realise they’re in demand. Instagram’s native checkout makes the path from discovery to purchase nearly invisible. Shoppable links, tagged products, and dynamic ads create an ecommerce layer that moves with the user.

There’s no funnel here. Just frictionless moments where curiosity meets convenience.

Designing for the Distracted

In a world of ambient shoppers, attention is fleeting and rarely focused. Products are chosen in seconds, often without sound, sometimes without context. Design has to do more with less.

For brands, this means optimising for recognition, not explanation. Packaging needs to pop on a 6-inch screen mid-scroll. Labels must convey function at a glance. Logos should be legible when compressed into a corner of a carousel ad.

Functionality also shifts. Shoppers aren’t always in a buying mindset, so products that solve immediate needs, such as hydration, energy, skin repair, and comfort, are more likely to convert. In beauty and personal care, this has driven a wave of minimalist formats: stick balms, on-the-go sprays, and single-dose sachets. In food, snackable and resealable dominate.

The sensory layer matters. Swipeable palettes shimmer under livestream lighting, stickers shift colour in motion, and packaging textures mimic velvet or gloss, begging for thumb contact. These cues don’t explain the product; they tempt the finger before the brain can even catch up.

Ambient shopping is designed without a captive audience. Relevance has to surface instantly, or it’s lost.

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Ambient Influence – From Intent to Impulse

The traditional path to purchase is dissolving. Search, compare, decide – these steps still exist but no longer happen in sequence. In ambient shopping, influence works in reverse. Exposure comes first. Intent may never form.

Context drives the sale: who shared the product, where it appeared, and what mood the consumer was in. Algorithms precisely track these signals, building behavioural clusters that predict, not prompt, buying moments.​

Brand Signal: Sephora’s Instagram Shoppable Posts
Sephora, a global beauty retailer, has effectively utilised Instagram’s shoppable posts to streamline the customer journey from discovery to purchase. Sephora allows users to explore product details and make purchases without leaving the app by integrating product tags into their posts and stories. This strategy has enhanced the shopping experience by reducing friction and meeting consumers where they are most engaged.

A user who lingers on fitness content might be served hydration tablets in the next reel. Someone who pauses on travel vlogs sees compression socks, not because they searched for them, but because the algorithm anticipates utility.

This isn’t personalisation as we knew it. It’s predictive proximity – placing the right product near the right emotion, habit, or setting. Instagram and TikTok deploy dynamic ad creatives that shift based on what users last hovered over, paused on, or bookmarked, even if they never clicked.

Every swipe, scroll, and second becomes part of a real-time model that interprets potential intent from ambient behaviour. That interpretation drives conversion.

The Market Research Mandate

Understanding ambient shoppers requires more than surveys and segmentation models. These consumers may not recall what they bought, let alone why. Intent is ambient, actions are reflexive, and memory is unreliable.

Market research tools—built around conscious decision-making—fall short. What’s needed is continuous visibility into behaviour as it unfolds. Passive metering, in-the-moment mobile intercepts, and digital ethnography are becoming essential to decoding this new mode of commerce.

Brands are replacing static personas with dynamic behavioural profiles, updated in real time through telemetry: app swipes, click paths, video completion rates, and dwell time. This data doesn’t just measure attention; it reveals patterns invisible to the consumer.

Ethnographic insight is also evolving. Researchers now observe not just what people say they do but how they behave when no one’s asking. Ambient commerce, by nature, hides in plain sight. To surface it, insight teams are embedding themselves within ecosystems – gaming platforms, live stream chats, private group DMs – where shopping happens without ever being called shopping.

Why It Matters

Ambient shopping disrupts marketing, product timing, UX, packaging, and platform strategy. Brands that fail to adapt may not only lose relevance; they may simply fade from view.

Brand Signal: MAC Cosmetics

MAC Cosmetics has leaned into AR-powered try-on tools, allowing Instagram users to experiment with lipstick shades in real time. These filters helped turn scroll time into trial time, extending product discovery into personal content streams. 

The implication is clear: brands that rely solely on declared data will miss what matters. To serve the ambient shopper, research must become ambient too.

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What’s Next: Invisible Interfaces, Voice Commerce, and Haptic Nudges

Shopping is dissolving into digital life. Sometimes that happens in a social feed. But increasingly, it occurs in a voice command, a wearable, a smart mirror, a YouTube scroll, or a fridge notification. The next wave of ambient shopping will be always on, always listening, always ready to act.

These moments are powered by a new layer of frictionless tech, voice-first commerce, smart home replenishment systems, in-car commerce experiences, and ambient computing that adapts to real-time behaviour.

Brand Signal: Walmart’s AI-Powered In-Home
In 2024, Walmart rolled out an AI feature that automatically restocks essentials in customers’ refrigerators based on usage patterns. By integrating replenishment with its InHome delivery service, Walmart has moved purchase decisions from conscious action to predictive automation.

Brand Signal: In-Car Payments Go Mainstream
As of 2024, fourteen global automotive brands offer in-car commerce solutions across fifteen countries. From paying for parking and fuel to ordering food, these systems turn dashboards into checkout counters, merging mobility with purchase convenience.

Smart assistants are already facilitating purchases through simple voice commands. But as they integrate with recommendation engines and personal data ecosystems, they’ll shift from reactive tools to proactive curators. A fridge that restocks based on dietary shifts. A speaker who suggests skincare before seasonal dryness hits. These systems won’t ask what you want. They’ll anticipate what you’ll need, then quietly deliver it, embedded into the devices that already know your routine.

Wearables and haptics will deepen the loop. Wearable-triggered shopping moments are already in play – whether it’s a subtle wrist vibration during a product drop, or biometric signals prompting contextual offers in sync with mood, movement, or health data.

Even ambient environments are joining in. TVs enable one-click buys mid-show, car dashboards suggest pit-stop promotions, and public displays respond to proximity and profile. Shopping doesn’t interrupt the experience; it rides alongside it. It’s not just ecommerce anymore; it’s ambient computing in retail, where the interface fades and the environment itself becomes the point of sale.

The future of retail isn’t about transactions. It’s about presence. The most successful brands will be those that adapt to being everywhere without feeling intrusive.

The Commerce You Don’t See Coming

The most powerful shopping moments no longer look like shopping. They’re quiet, quick, and nearly invisible, tucked between the stories we watch, the songs we stream, the feeds we skim. And yet, they’re redefining how products are discovered, evaluated, and bought.

Brands that chase attention will lose to those that understand absence. Ambient shoppers don’t want to be interrupted. They want relevance to find them – seamlessly, silently, when the moment feels right.

This isn’t about optimising for clicks. It’s about designing ecosystems that respond to presence, not prompts. Shopping becomes part of the atmosphere, not an activity. The opportunity lies not in louder campaigns, but in quieter cues – signals that align with context, emotion, and rhythm.

As digital behaviours blur and physical spaces become interactive, the lines between life and commerce will continue to dissolve. Invisibility, not innovation, will define the winners. The question for brands is no longer how to break through, but how to blend in – with precision, purpose, and a deep understanding of the shopper who never meant to shop.

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Rising inflation and economic uncertainty were expected to put an end to discretionary spending for middle-income households. Instead, consumers are making room for indulgence. Across the US, UK, and Europe, households earning moderate incomes continue to prioritise non-essential purchases at rates far closer to affluent consumers than economic models predicted. McKinsey’s 2024 Global Consumer Sentiment Survey found that 42% of middle-income respondents in developed markets still plan to spend on travel, dining out, and personal care in the next year, just nine percentage points lower than high-income households.

The resilience of discretionary spending in the face of rising costs defies conventional economic assumptions. It is not a case of irrationality or denial. It reflects a shift in how consumers measure value. After years of pandemic-driven disruption, middle-class buyers are increasingly framing small luxuries as essential to emotional well-being, not as reckless spending. An affordable meal out, a short domestic trip, or a new skincare product carries more than monetary worth. It represents normalcy, reward, and agency in an environment where larger financial goals often feel less attainable.

This trend is not a short-term reaction to inflation, nor is it purely sentimental. It is structurally rational behaviour shaped by stress, lifestyle adjustment, and evolving definitions of security. Spending on modest treats provides a sense of control and immediacy when long-term stability—home ownership, retirement savings—feels increasingly out of reach. Consumers are not abandoning caution; they are recalibrating what prudence looks like in real terms.

Understanding this shift is critical for brands, retailers, and policymakers. Indulgence spending among the middle class is not a deviation from rational economic behaviour. It is an adaptation to new realities, where emotional resilience and quality of life have become primary considerations alongside price and necessity.

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Tight Budgets, Sharp Choices

The pressure on household budgets is real. Inflation has driven up the cost of essentials—housing, food, energy—leaving less flexibility for discretionary categories. Yet rather than abandoning non-essential purchases altogether, middle-class consumers are reprioritising with striking precision. The pattern is visible across the US, UK, and Europe: subscription services are among the first to be cancelled, big-ticket electronics are postponed, and plans for major home renovations are shelved. But the impulse to carve out space for small luxuries remains intact.

KPMG’s 2024 Middle-Class Financial Priorities report highlights this shift. In a survey of households earning between 75% and 150% of median income, nearly 60% reported cutting back on monthly expenses such as media subscriptions and dining delivery apps. However, the same respondents overwhelmingly indicated an intention to preserve budget for “quality of life” items, including occasional dining out, personal care products, and leisure travel under 500 miles. The data suggests that discretionary spending is not vanishing—it is being filtered through a more selective lens.

A similar rebalancing is evident in Europe. OECD research published earlier this year shows that while the ownership of new vehicles among middle-income households declined by over 8% between 2022 and 2024, spending on local travel, cultural events, and speciality food purchases held steady. In the UK, Deloitte’s 2024 consumer tracker found that middle-income households were 30% more likely to describe smaller, experiential purchases as “essential for well-being” than they were before the pandemic.

The underlying dynamic is a redefinition of value. Consumers are moving away from evaluating purchases solely on cost or prestige. Instead, the metric is experiential reward—whether a purchase delivers emotional uplift, stress relief, or a sense of personal investment. A $50 skincare product or a weekend away is justified not by indulgence for its own sake, but by what it represents: a manageable, affirming investment in quality of life.

This sharpening of priorities is not a retreat from financial responsibility. It is a recalibration. Households are preserving choice and pleasure even as long-term goals grow more distant. The middle-class response to inflation is not to close the wallet entirely, but to spend carefully, reinforcing emotional resilience where it matters most.

Where the Money Is Still Flowing

The resilience of middle-class discretionary spending becomes clearest when looking at where the money continues to move. Small luxuries, particularly those offering immediate personal gratification without long-term financial strain, are absorbing a disproportionate share of discretionary budgets. These are not extravagant purchases but considered indulgences—choices that allow consumers to feel rewarded without incurring future economic risk.

Dining out remains one of the strongest performing sectors. Mastercard SpendingPulse data from early 2024 showed that spending at fast-casual and premium-casual restaurants in the US rose by 8% year-on-year, even as fine dining bookings declined. Consumers are trading down from high-end experiences but refusing to give up the social and emotional value of meals shared outside the home. In the UK, Statista reports that visits to casual dining chains increased by nearly one-fifth compared to 2022 levels, concentrated among households earning £30,000 to £70,000 annually.

Beauty and skincare purchases are following a similar trajectory. McKinsey’s 2024 Global Beauty Survey found that middle-income consumers accounted for nearly half of the growth in skincare sales across Europe and North America, often favouring mid-tier brands offering “clinical-grade” results at accessible prices. Rather than abandoning beauty spending, buyers are shifting toward products that promise tangible outcomes—improved skin health, self-care benefits—over prestige branding. The emphasis is not on conspicuous consumption but on self-affirmation.

Domestic travel, particularly short-haul trips, has also proven remarkably resilient. According to Mastercard’s travel trends report, bookings for domestic leisure trips under 300 miles rose by 12% in the US during the past year, primarily driven by middle-income households. European markets such as France and Germany showed parallel trends, with regional rail and car rental bookings outperforming international air travel. Travel, even scaled down, remains a critical outlet for recreation and stress relief, viewed as a justifiable investment rather than a luxury.

Personal wellness has evolved from a niche concern to a consistent budget item. Deloitte’s 2024 Health and Wellness Tracker found that expenditures on fitness apps, meditation subscriptions, and nutritional supplements rose by nearly 15% among middle-income consumers compared to 2022. Spa treatments and boutique fitness sessions also saw modest but steady gains, especially when bundled into affordable packages. Wellness is increasingly framed not as optional self-indulgence but as proactive health maintenance—a narrative that middle-class consumers embrace even under financial strain.

What ties these sectors together is not mere resilience but strategic prioritisation. Consumers actively choose experiences and products that deliver emotional payoff without undermining longer-term financial goals. Small luxuries have become part of how households navigate financial pressure, balancing restraint with resilience.

How Indulgence Looks Different Around the World

The appetite for small luxuries is global, but its expression varies sharply across markets. Cultural context, inflationary pressure, and recovery patterns from the pandemic shape how and where middle-class consumers indulge.

In the United States, experience is taking precedence over material accumulation. Mastercard’s 2024 SpendingPulse report shows that while retail sales for durable goods have slowed, spending on travel, dining, and entertainment continues to climb. Middle-income households prioritise activities that create memories and offer a sense of immediacy, even as they pull back on home goods and apparel. The pattern reflects a broader recalibration, where the value of money is increasingly measured in lived experience rather than possessions.

The United Kingdom mirrors this behavioural split, though with sharper trade-offs. Ipsos data published earlier this year indicates that middle-income British households are aggressively trading down on everyday essentials—switching to discount supermarkets and delaying home improvements—while deliberately protecting spending on experiential categories. Budget airline bookings, concert attendance, and dining at independent restaurants remain surprisingly resilient. The message is clear: not all spending is negotiable, even under pressure.

In continental Europe, the indulgence lens often narrows toward artisanal quality. In France and Germany, Euromonitor reports that while overall household budgets have tightened, purchases of artisanal food, skincare, and local leisure travel have held steady or even grown modestly. Consumers are not abandoning discretionary spending, but are redirecting it toward smaller, more meaningful pleasures that emphasise craftsmanship, locality, and authenticity.

Southeast Asia presents a different dynamic, driven by digital acceleration and aspirational consumption. In Singapore, Indonesia, and the Philippines, middle-income consumers are investing in affordable upgrades—beauty products, domestic travel, and entry-level tech such as smartphones and wearable devices. According to Bain & Company’s 2024 Southeast Asia Digital Economy Report, there has been a surge in beauty e-commerce, with mid-tier brands seeing the fastest growth among urban middle-class buyers. Here, indulgence is closely tied to self-improvement and digital connectivity rather than traditional luxury markers.

China and India present a distinct dynamic. In China, middle-class consumers focus on premium health, wellness, and education-related services. Mastercard’s 2024 China Consumption Outlook shows strong growth in short domestic leisure travel, boutique fitness memberships, and “new luxury” beauty brands that offer substance over logo appeal. In India, indulgence is often family-centred. Euromonitor data highlights that spending on family experiences—mall outings, cinema, casual dining, and affordable domestic holidays—is being prioritised, even as households economise on electronics and apparel. The middle class is seeking small windows of joy that offer collective, not just individual, payoff.

Across these regions, indulgence spending is far from homogeneous. It is shaped by cultural narratives about success, wellness, and emotional reward. Yet the underlying behaviour is consistent: even under inflationary strain, middle-income consumers are unwilling to surrender the experiences and products that sustain a sense of control, progress, and personal value.

Why Indulgence Feels Necessary, Not Excessive

The persistence of small luxuries in strained economic times is not a matter of consumer irrationality. It is a rational psychological response to prolonged stress, uncertainty, and shifting social norms. For many middle-class households, small indulgences have moved beyond occasional rewards to become a form of emotional maintenance—a way to reassert agency and sustain morale when broader financial goals feel increasingly distant.

Much of this shift can be traced to the post-pandemic “live for today” mindset. After years of deferred plans and disrupted routines, consumers across income levels have shown a greater willingness to prioritise present-day satisfaction. Behavioural economists point to the acceleration of hedonic adaptation—the tendency to return to a baseline level of happiness despite external changes—as a key factor. When future security feels less certain, spending on immediate emotional uplift becomes a practical way to protect mental well-being.

American Psychological Association research on stress-related spending supports this view. A 2024 report found that nearly 60% of middle-income consumers in the US admitted to occasional “treat spending” as a coping mechanism, with the majority framing such purchases not as extravagance, but as essential self-care. Similar patterns emerged in the UK and Singapore, where smaller, experience-driven expenditures were linked to lower reported stress levels in middle-income groups.

Social behaviour further reinforces the normalisation of indulgence. Small splurges—dining out, a weekend getaway, a new skincare regimen—are highly visible on platforms like Instagram and TikTok. Sharing these moments has become part of how consumers construct narratives of resilience and self-investment. The effect is cumulative. What once might have been considered unnecessary spending is now broadly perceived as a reasonable way to manage life’s pressures.

Rather than retreating into austerity, many middle-class consumers are making conscious choices to maintain emotional balance through manageable rewards. In modern economic conditions, where traditional markers of financial progress are harder to achieve, these decisions are not acts of recklessness. They are strategies for preserving stability, dignity, and optimism in everyday life.

Small Luxuries, Big Opportunities

For brands, the persistence of small indulgences offers more than a temporary sales opportunity. It signals a deeper shift in how consumers assign value—one that demands careful strategic recalibration. Positioning products as accessible rewards or emotional enhancers, rather than as markers of status or success, will increasingly define market relevance.

Middle-class consumers are not looking for extravagant gestures. They are seeking personal moments of satisfaction, convenience, or self-expression that fit into constrained budgets. Products that deliver relaxation, confidence, or small affirmations of progress resonate far more than those that lean heavily on traditional luxury cues. In this environment, storytelling around personal value matters more than aspirational branding. A meal kit that saves time and creates family rituals, a skincare serum that represents self-care rather than vanity, a local mini-break that restores mental clarity—these are the narratives gaining traction.

The danger for brands lies in misreading the room. Overemphasising luxury, exclusivity, or aspirational distance risks alienating a consumer base that values relatability and tangible benefit over status. Innovation must centre on affordability without sacrificing the experience of quality. Smart packaging, modular services, and tiered product lines are helping some brands maintain margins while broadening emotional appeal.

Real-time market research is critical to navigating these shifts. Understanding which categories of small luxuries matter most—and how definitions of indulgence vary between regions, income brackets, and life stages—allows brands to tailor offerings with precision. Blanket assumptions about “affordable luxury” no longer hold. The brands that invest in nuanced, behaviour-led insights will be the ones best positioned to capture loyalty in an economy where emotional and financial resilience are increasingly intertwined.

Indulgence in an Age of Restraint

Discretionary spending among middle-income consumers is too often dismissed as irrational, a stubborn refusal to accept economic reality. This view misses the point. Small indulgences are not acts of denial. They are structural adjustments to a world where traditional financial milestones—home ownership, long-term savings, upward mobility—have become harder to secure. Preserving moments of joy, autonomy, and emotional stability has become a rational survival strategy.

Understanding these patterns is critical for anyone forecasting the next phase of consumer behaviour. Micro-indulgence is more than a passing phenomenon. It is a leading indicator of broader consumer sentiment, revealing how confidence, stress, and hope are negotiated at the household level. Brands and policymakers that fail to track these shifts will misread the market, mistaking emotional recalibration for economic irrationality.

At Kadence International, our global research shows that middle-class indulgence is not a short-term reaction to inflationary pressure. It is an embedded behavioural shift, one that will continue to shape spending across sectors well beyond the current cycle. Those who frame their growth strategies around emotional consumption, rather than rigid income segmentation, will be best positioned to capture resilience spending in an economy where financial caution and the pursuit of quality of life are no longer at odds, but deeply intertwined.

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Across the world’s fastest-growing consumer markets, one force is reshaping purchasing behaviour, product design, and service delivery: women. From Jakarta to Los Angeles, women are no longer a niche segment—they’re central to growth itself. In the US and UK, they already influence over three-quarters of consumer spending. In Asia, their economic clout is rising even faster, redrawing the map of modern consumption.

What’s notable isn’t just the scale of that influence—it’s the nature of the change. In emerging markets, women are leapfrogging traditional consumption curves. According to McKinsey, 47% of women in countries like India, Vietnam, and Indonesia say they plan to increase spending on categories tied to personal growth—wellness, education, digital tools—compared to just over one in four women in advanced economies. This isn’t just a response to rising incomes; it reflects shifting expectations about autonomy, quality of life, and long-term self-investment.

From single professionals in China to ageing populations in Japan and Singapore, women are redefining growth on their own terms. They’re fueling demand for high-touch services, longevity-focused health tech, and mobile-first commerce. In Southeast Asia, young women are using digital platforms not just to consume—but to build businesses and financial independence.

This is not a trend. It’s a structural realignment. The She-conomy spans geographies, life stages, and every category of spend. For brands, marketers, and policymakers, the challenge isn’t acknowledgment—it’s action: understanding how women are reshaping demand, and where that momentum is headed next.

Different Markets, One Direction

The rise of female economic power doesn’t follow the same path everywhere—but the momentum is global. In India, government-backed financial inclusion through schemes like Jan Dhan Yojana has enabled more than 300 million citizens—many of them women—to open first-time bank accounts. This structural shift in access is now fueling demand for education, micro-loans, and digital retail across urban and rural markets. Similarly, Indonesia’s regulatory push around e-commerce transparency has helped build consumer trust, enabling a surge in women-led digital businesses on platforms like Tokopedia and Shopee. Nykaa, a beauty marketplace founded by a former investment banker, went public in 2021—marking a milestone in female-focused consumer growth.

Image credit: Proctor & Gamble

Procter & Gamble’s “Always #LikeAGirl” campaign not only redefined adolescent hygiene marketing, but also reshaped its internal product innovation cycle. After the campaign’s success—reaching over 90 million views globally and boosting brand recall by 50 percent—the company invested in localized product design for underserved markets, including pad sizes tailored for Southeast Asian schoolgirls. The initiative drove a double-digit lift in brand penetration across key markets and remains a benchmark in behaviour-led brand transformation.

In China, women are redefining middle-class aspiration. Deloitte’s 2023 research shows that women in Tier 1 and 2 cities are more likely than men to purchase premium goods across skincare, electronics, and wellness. These choices are not about luxury—they’re about control over value. Many are now the primary household spenders, even in dual-income families.

In the US and UK, women already drive the majority of consumer spend—but their influence is evolving. They’re outspending men not just in traditional categories, but also in fintech and auto services. A 2024 NielsenIQ study found their purchase journeys are longer, more research-driven, and shaped by peer networks—prompting brands to rethink UX and communications from the ground up.

Southeast Asia may offer the clearest view of how quickly women’s economic roles are evolving. In markets like Indonesia and Vietnam, digital access has unlocked dual roles: consumer and entrepreneur. Platforms like TikTok Shop and Shopee Live are powering a wave of direct-to-consumer businesses led by women—often without physical storefronts. Bain & Company reports that in mobile-first economies, women now account for a rising share of all digital transactions.

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Where Women Are Rewriting the Rules

The impact of female consumers extends well beyond traditional categories like beauty and household goods. The real shift lies in sectors once built with male defaults, where women are now setting new expectations—and rejecting outdated design assumptions.

In personal finance, women are adopting mobile budgeting tools, peer-to-peer lending, and investment platforms at rising rates—especially when these tools align with their financial priorities. In Western markets, platforms like Ellevest and Emma promote financial empowerment. In Asia, the trend is more practical: Indian women using Google Pay or PhonePe may not see themselves as investors, but their steady use of digital finance tools signals growing engagement.

In mobility, safety and accessibility are guiding new design priorities. Ride-hailing platforms across Southeast Asia have introduced women-only drivers, privacy features, and emergency tools as core service offerings. In cities like Bangkok and Jakarta, working women are using these services more frequently, reflecting how tailored features drive adoption, according to Grab’s 2023 regional data.

Health and wellness, once narrowly defined, are now among the most rapidly diversifying sectors for female consumers. Femtech is moving beyond fertility into menopause care, hormone diagnostics, and cycle monitoring. In Singapore and Japan, women over 45 are emerging as key adopters of wearable health tech and at-home diagnostic kits, reflecting both aging demographics and demand for greater autonomy. In Vietnam and the Philippines, startups are addressing affordability and discretion through telehealth platforms and pharmacy access tailored to women across life stages.

These shifts reflect decades of economic, social, and technological change converging in real time. What is different now is visibility. The women’s market is no longer niche—it is investable, influential, and forcing transformation in sectors not traditionally shaped by female demand, including fintech, mobility, and health tech.

Rethinking Design for the Female Majority

Consumer behaviour is evolving faster than the systems built to support it. Despite women driving growth across nearly every sector, many products remain designed around male defaults—whether by oversight or inertia. In fields like automotive, banking, healthcare, and workplace technology, critical design choices still overlook the needs and realities of female users.

Nowhere is this design mismatch clearer than in financial services. Across markets, women tend to value stability, long-term planning, and goal setting over short-term speculation. Yet many platforms still emphasise speed, risk, and accumulation. A 2023 Oliver Wyman survey found that over half of women in Southeast Asia viewed financial products as inaccessible or irrelevant—not because of digital literacy, but because the products failed to reflect their priorities.

Healthcare reveals one of the most persistent blind spots. For decades, male-centric clinical research has left significant gaps in diagnostics and treatment for women. These oversights still shape healthcare delivery and insurance coverage. In Japan and Singapore, women over 50 are among the fastest-growing patient segments, yet services for chronic conditions, menopause, and mobility are often limited or unaffordable. Femtech startups are stepping in, but without the scale or policy support to reach the broader market.

Consumer technology still lags in addressing women’s needs. Smartphones rarely include standard safety features designed with women in mind. Fitness trackers overlook menstrual and hormonal health, and voice assistants often reinforce gender bias. In some markets, this leads to disengagement. In other countries, it fuels innovation: in India and the Philippines, women-led startups are designing platforms from scratch, prioritising safety, affordability, and multifunctionality.

For brands, the challenge is not cosmetic. Designing for women demands more than surface-level updates. It means rethinking assumptions embedded in product development, data models, and leadership itself. As the She-conomy grows, so do the costs of exclusion. Closing the design gap requires leadership accountability—not just marketing rhetoric.

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What Not to Do When Marketing to Women

Don’tWhy It Fails
Gendered design shortcuts often alienate modern female consumers who prioritise function over form.Treating all women as one group ignores differences in age, culture, income, and priorities.
Don’t lead with empowerment clichés“You go girl” slogans ring hollow if the product lacks practical value or doesn’t solve a real need.
Don’t assume women want pinkGendered design shortcuts often alienate modern female consumers who prioritize function over form.
Don’t condescend with messagingOversimplified language or tone that assumes low knowledge damages trust and credibility.
Don’t rely on stereotypesPositioning women only as caregivers, beauty-focused, or emotional overlooks their broader influence and aspirations.
Don’t retrofit male-first productsAdapting products originally built for men often leads to poor usability and overlooked needs.
Don’t ignore life stagesFocusing only on young women misses major opportunities among midlife and older female consumers.
Don’t fake inclusionRepresentation must go beyond the ad campaign—real credibility comes from leadership, product, and service decisions.

Missing the Market by Missing the Point

The commercial case for investing in women is well established, but execution continues to fall short. Brands still underestimate the complexity of female consumer behaviour—not due to a lack of data, but because of how that data is misread or dismissed. Treating women as a monolith remains one of the costliest errors in modern marketing.

In the US and UK, many campaigns have embraced empowerment messaging while ignoring product relevance, pricing, or usability. Ads that celebrate confidence often fail when paired with offerings that fall short of real needs. The backlash is commercial as much as cultural. A 2023 Deloitte survey found that over one-third of women aged 25 to 45 stopped buying from brands they felt misunderstood them. The figure was even higher in India and Indonesia, where younger women are more likely to switch brands and shape peer behaviour online.

The issue is not intent but misalignment. Many of the fastest-growing brands in women-led markets succeed by focusing on function rather than messaging. In Vietnam, one mobility app gained traction not through slogans, but by addressing concerns raised by female riders—identity checks, well-lit pickup points, and transparent routing. Adoption among working women grew without a single reference to empowerment.

Companies that invest in contextual insight are outperforming. In Japan, a healthcare retailer overhauled store layouts after research showed that women over 60 were avoiding certain aisles due to privacy concerns. The brand responded with discrete consultation areas, improved lighting, and redesigned shelving. Within a year, footfall among older female customers rose by nearly 30 percent.

What Women Want (From Brands)

NeedWhat It Looks Like in Practice
RelevanceProducts designed for real needs, not stereotypes—e.g. femtech beyond fertility, financial tools that reflect life goals.
UsabilitySeamless design, not just surface-level inclusion—e.g. ride-hailing safety features, discreet health services.
AffordabilityAccessible pricing without sacrificing quality—especially in fast-growing markets like Vietnam and India.
Trust & TransparencyClear language, evidence-based claims, and no pinkwashing—particularly in health, finance, and wellness.
RepresentationWomen reflected in design teams, leadership, and brand storytelling—not just the marketing campaign.
AdaptabilityServices that shift with her life stage—e.g. elder health tech in Japan, career-focused financial planning in the US.
Privacy & SafetyBuilt-in protections in tech, mobility, and healthcare—not retrofitted add-ons.
Cultural RelevanceLocalized products and services that reflect regional values, needs, and constraints—not one-size-fits-all solutions.

Why Understanding Women Is No Longer Optional

The She-conomy is not a passing phase. It reflects a structural shift in global spending power, accelerating across both developed and emerging markets. The error lies in expecting it to resemble earlier waves of women’s influence, limited to specific categories or life stages. Today, women are shaping not just what gets purchased, but how products are designed, services delivered, and brands evaluated.

At Kadence International, we see this shift firsthand. Our studies show women driving outsized momentum in sectors such as personal finance and tech-enabled healthcare. What stands out is their behavioral precision: women are more selective, more digitally fluent, and more likely to switch brands based on trust, relevance, and values. While many claim to design for women, few engage with the complexity behind that label—spanning income, culture, and lived experience.

This is no longer about targeting a segment—it’s about rethinking how demand itself is defined. Behavioural segmentation, real-time research, and co-creation are no longer strategic extras. They are foundational tools in a consumer economy increasingly shaped by women’s expectations, choices, and values. The companies succeeding are not simply measuring sentiment; they are building systems that evolve with it.

For brands and policymakers, the stakes are no longer theoretical. Designing for yesterday’s consumer while today’s buyer reshapes the rules is a fast path to irrelevance. The She-conomy is not a trend to follow—it is the future to build for. Those who fail to act will not merely fall behind. They will lose the right to be in the conversation.

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When wallets tighten, lipstick sales often loosen.

Beauty counters are buzzing across the US and UK – even as consumers pull back on big-ticket splurges like fashion, tech, and travel. Luxury lipsticks, skincare serums, and fragrances are flying off shelves, offering shoppers a small but satisfying escape from financial uncertainty.

It’s a familiar phenomenon with a new edge. Known as the “lipstick effect,” this pattern sees consumers trading down on larger purchases while indulging in little luxuries that deliver an instant emotional lift. But today’s version is shaped not just by economic pressures – but also by a cultural obsession with self-care.

In recent weeks, prestige beauty sales have proven remarkably resilient. According to Circana (formerly NPD Group), the U.S. prestige beauty market experienced an 8% growth in the first half of 2024, reaching $15.3 billion. In the UK, similar trends are playing out, with consumers leaning into beauty rituals to brighten up bleak headlines.

And it’s not just older shoppers who are clinging to old habits. Younger consumers – especially Millennials and Gen Z – drive this feel-good spending, treating beauty buys as affordable wellness investments in anxious times.

Younger Consumers Lead the Way

While beauty spending cuts across generations, younger consumers are shaping what small luxury looks like today.

Millennials and Gen Z – already steeped in self-care culture – keep beauty at the top of their shopping lists, even as they cut back on bigger lifestyle purchases like fashion or tech. For these consumers, beauty buys are less about occasional splurges and more about everyday wellness routines.

Fragrance layering, skincare rituals, and makeup experimentation have become embedded in how younger shoppers navigate stress and self-expression. Beauty products are positioned not just as cosmetics but as affordable tools for relaxation, creativity, and confidence.

Social media continues to fuel this behaviour, turning beauty trends into global moments overnight. Viral skincare products, fragrance hacks, and affordable luxury recommendations constantly shape younger shoppers’ wishlists.

For a generation that values both experience and accessibility, small luxuries in beauty offer the perfect balance – indulgent enough to feel special and practical enough to justify the spend.

market-research-brief

How Beauty Retailers Are Responding

Beauty retailers are moving quickly to meet consumers where they are – in search of small luxuries that feel special and attainable.

Premium beauty brands are expanding their ranges of travel-sized products, mini sets, and giftable formats to capture demand from shoppers looking for affordable indulgences. Retailers like Sephora and Ulta Beauty in the US have invested heavily in “trial and discovery” zones, allowing consumers to experiment with high-end skincare, makeup, and fragrance at lower prices.

In the UK, while mass-market chains like Boots may not operate in the luxury segment, they are leaning into accessible self-care with curated beauty edits, exclusive product bundles, and limited-time offers – helping cost-conscious consumers stretch their budgets without sacrificing quality.

Luxury fragrance brands are also innovating, offering layering bars, engraving stations, and bespoke consultation services in flagship stores, creating memorable experiences around smaller purchases.

Online, digital personalisation has become a powerful tool. Beauty retailers are enhancing their platforms with tailored product recommendations, virtual try-ons, and rewards programs designed to keep shoppers engaged between purchases – reinforcing beauty as a repeat treat rather than a rare splurge.

For the industry, this pivot toward small luxuries isn’t just a response to the moment – it’s emerging as a long-term strategy for growth in a market where big-ticket spending remains unpredictable.

Luxury Brands Winning with Small Indulgences

Tom Ford Beauty – Turning Wellness into a Fragrance Success

Luxury-Beauty-Tom-Ford

Image Credit: Escentual
Background

Tom Ford Beauty, under Estée Lauder Companies, is best known for its ultra-luxurious positioning in fragrance and beauty. But as consumer demand shifted toward wellness and self-care, the brand saw an opportunity to evolve its narrative beyond glamour and sensuality.

Strategy

In 2024, Tom Ford Beauty launched Bois Pacifique, a fragrance inspired by founder Tom Ford’s childhood memories of Big Sur, California. The product was positioned within the growing wellness fragrance space – marketed as a calming, nature-inspired scent designed for emotional well-being.

Beyond the product, Estée Lauder doubled down on its ambitions for Tom Ford Beauty following its $2.8 billion brand acquisition in late 2022. The brand leaned on storytelling, innovation, and the strength of its global distribution network to fuel growth.

Outcome

  • Bois Pacifique is projected to generate $50 million in sales within its first launch year.
  • Prior to the acquisition, Tom Ford Beauty reported nearly 25% net sales growth in its fiscal year ending June 2022.
  • Estée Lauder has set an ambitious target for Tom Ford Beauty to reach $1 billion in annual net sales by the end of 2024.

(Sources: Vogue Business, Luxury Tribune)

YSL Beauty – Leveraging Digital Influence for Small Luxury Growth

Luxury-Beauty-YSL-Beauty

Image Credit: Fashion Gone Rogue

Background

Yves Saint Laurent (YSL) Beauty, part of L’Oréal Group, is a leading player in prestige beauty with a strong foothold in fragrance, makeup, and skincare. Recognising the power of digital culture – especially among Gen Z and Millennials – YSL Beauty has heavily invested in influencer-driven marketing and social media campaigns.

Strategy

Throughout 2023 and early 2024, YSL Beauty collaborated with high-profile celebrities like Dua Lipa while boosting its presence across TikTok and Instagram. The brand amplified visibility during key moments like Fashion Week, creating shareable content and interactive campaigns that resonated with younger, trend-savvy consumers.

Product innovation also remained at the heart of YSL Beauty’s strategy, with mini-sized offerings and discovery sets crucial to driving trial and engagement.

Outcome

  • YSL Beauty recorded a 94% surge in Earned Media Value (EMV) between April 2023 and March 2024.
  • Total impressions increased by 109%, reaching 9.1 billion during the same period.
  • The brand saw a 314% year-over-year growth in TikTok EMV, underscoring its success in capturing younger audiences on digital platforms.
beauty-trends-report

Why This Trend May Last

What began as a response to economic uncertainty is fast becoming a new consumer habit – and beauty brands are betting it’s here to stay.

Unlike larger discretionary purchases, beauty products deliver instant gratification and emotional value. A new lipstick, a signature scent, or a skincare upgrade offers a quick mood boost — often for the price of a night out or less. In uncertain times, that balance of affordability and emotional return on investment is hard to beat.

The growing cultural emphasis on self-care is also reinforcing this behaviour. For many consumers — especially younger ones — small beauty purchases are no longer occasional splurges but regular acts of personal wellness. A face mask or fragrance isn’t just about appearance — it’s tied to relaxation, routine, and identity.

Even if economic conditions improve, retailers and brands are unlikely to abandon strategies built around accessible luxury. Discovery sets, travel-sized products, and personalised shopping experiences are proving effective at driving loyalty and repeat purchases.

Beauty’s resilience in the face of economic pressures offers a glimpse of how future retail may evolve: not necessarily bigger, but smarter — built on emotional connection, small indulgences, and everyday moments of joy.

For consumers navigating an unpredictable world, the little luxuries may well become the ones that last.

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The global tech retail market is slowing. Consumers who once chased every new release are now holding off, thinking harder, and stretching upgrade cycles across devices – from phones to wearables to home tech. What’s changed isn’t just price sensitivity; it’s mindset. The old rhythm of new-for-new’s sake is being replaced by a more deliberate calculation: Is this upgrade worth it?

Behind that shift are macroeconomic pressures that haven’t let up. Interest rates remain high, currencies are volatile, and fresh tariffs – particularly between the US and China – are reshaping buying decisions. Even the major players are feeling it. Apple posted a year-on-year decline in iPhone sales, while Samsung saw a temporary lift as consumers rushed to buy ahead of expected price hikes. In both cases, caution, not innovation, drove behaviour.

The shift is generational too. Gen Z, long viewed as the frontline for early tech adoption, is starting to show signs of saturation. They still care about technology – but now they’re weighing durability, repairability, and long-term functionality over simply owning the newest device. The behavior is less impulsive, more selective.

This isn’t a rejection of innovation. It’s a recalibration. And it has real implications for how the world’s biggest technology companies market, price, and position their next wave of products.

The Shrinking Upgrade Window

Consumers aren’t replacing their tech as often as they used to. The once-standard two-year smartphone upgrade has stretched into a multi-year wait, with buyers holding onto devices for longer – sometimes much longer. It’s not just caution in a soft economy; it’s a growing sense that new releases simply aren’t offering enough to warrant the swap.

At Verizon, leadership recently acknowledged the shift. The average smartphone replacement cycle has crept past 3.5 years, a far cry from the predictable two-year rhythm that once drove steady sales. Apple users, too, are waiting longer, with data showing a noticeable lengthening of ownership compared to five years ago. It’s a trend driven partly by pricing, partly by the reality that last year’s model is still more than good enough.

Laptops are on a similar track. The three- to five-year refresh cycle is no longer a given. Consumers are holding off until their machines physically break or performance lags in a noticeable way. Best Buy’s CEO recently pointed to a lack of meaningful innovation as a reason buyers aren’t feeling urgency. And with cloud computing and browser-based software doing more of the heavy lifting, the need for higher-end specs is flattening for everyday users.

Televisions, too, are staying in homes longer. Improvements in display technology have plateaued from a consumer benefit perspective, and with software updates extending the life of streaming-enabled TVs, most households see no need to upgrade unless there’s a failure. Brands that offer long-term software support – up to seven years in some cases – are winning loyalty from customers who prefer durability over dazzle.

Even wearables, a category once defined by rapid iteration, are feeling the shift. Consumers are growing more selective, favouring meaningful innovation like medical-grade sensors or long battery life over iterative changes in design or interface. Replacement cycles are expanding, especially as prices climb and expectations rise.

In Southeast Asia, a surge in mid-tier smartphones is driving sales, suggesting buyers still want new tech – but they want it to stretch further. In contrast, consumers in the US and UK are sticking with their devices for three or four years, increasingly weighing whether an upgrade will deliver genuine daily impact.

Research-brief

Economic Pressures Meet Consumer Pragmatism

Inflation has eased slightly in some markets but remains a persistent factor shaping consumer behaviour worldwide. In the US and UK, interest rates remain elevated, keeping credit card debt expensive and discretionary spending under pressure. Across Europe and Japan, wages have struggled to keep pace with core price increases, dampening retail confidence. And in high-growth regions like Southeast Asia, India, and China, economic uncertainty is pushing consumers toward more deliberate purchase decisions.

In the US, the impact is already visible. Retailers are reporting softer demand in key electronics categories, while store traffic has declined year-on-year. Online, browsing activity remains strong, but cart abandonment is climbing – particularly for products over the $500 mark. It’s not that consumers aren’t interested; they’re just taking longer to commit. The same story is playing out in the UK, where buyers are increasingly opting for refurbished tech, financing options, or delaying non-essential upgrades entirely.

In India and Southeast Asia, frugality doesn’t mean silence – it means selectivity. Consumers are still engaging, but through a different lens. Mid-tier smartphones and high-functionality budget laptops are outperforming premium models. Retailers in these markets report growing traction for bundled offers and longer warranty terms, as value and reliability edge out brand prestige.

Indonesia offers one of the clearest signals of this recalibrated mindset. Consumers there continue to spend, but with more scrutiny. Brand loyalty is softening, and trial is rising – especially for newer entrants that offer durability and local relevance. Many shoppers are trading up slowly, looking for technology that serves multiple roles, rather than devices that signal status or trend.

China, long a bellwether for tech enthusiasm, has shown uneven recovery in the retail sector. Urban consumers remain engaged, but rural and lower-tier city shoppers are increasingly budget-conscious. Brands with local manufacturing and flexible pricing structures are gaining share.

In Japan, where tech adoption tends to skew practical, the economic slowdown has reinforced existing behaviours. Consumers are delaying replacements, relying more on service programs, and opting for features that serve real lifestyle utility – especially among older demographics.

Retailers and manufacturers across all regions are adjusting accordingly. In-store messaging is shifting from “newest” to “smartest.” Online platforms are pushing price-match guarantees, extended return periods, and loyalty perks over flash launches. What used to be a race for innovation has become a contest of value – and the companies that acknowledge that shift early are seeing steadier results.

Gen Z Hits Pause

For years, Gen Z was seen as the tech industry’s sure bet – the cohort most likely to queue for launches, post the unboxing, and evangelise the next upgrade. But the momentum has shifted. While their interest in technology hasn’t faded, their expectations have evolved. Now, the question isn’t “what’s new?” but “what fits?”

Rising costs have played a role, but this is more than economics. It’s a cultural recalibration. Among younger consumers, there’s a growing rejection of hyper-consumption in favour of intentionality. The latest phone isn’t an automatic buy. The better question is whether it adds something meaningful to life – fewer Gen Z consumers are upgrading for status alone.

That shift is fuelling the refurbished and secondhand tech market, which has seen steady growth in the US, UK, and across Southeast Asia. Platforms offering certified pre-owned devices, especially smartphones and laptops, are seeing strong engagement from younger demographics. For many, it’s not just about price – it’s about extending the life of a product and avoiding unnecessary waste.

Aesthetic trends are moving in parallel. There’s a rise in what some in the industry are calling “tech quiet luxury” – products that prioritise function, minimalism, and long-term reliability over flash. Sleek, understated design is winning out over bold colours or feature overload. The appeal lies in gear that integrates cleanly into life, not tech that dominates it.

Online, the social narrative is shifting too. Gen Z’s digital footprint shows less excitement around launch-day content and more focus on utility. The rise of “why I didn’t upgrade” posts is telling. Influencers now get traction by explaining how they kept the same phone for four years, or why buying secondhand was the smarter move. The underlying message isn’t anti-tech – it’s pro-agency.

Brands are adjusting their messaging in kind. Marketing language has toned down the superlatives. Features are framed around real-life relevance – sleep tracking for mental health, battery life that actually lasts a weekend, cameras that work well in low light for night outs. There’s less interest in what a device can do, and more focus on what it should do, consistently.

Why Selling Smarter Is the New Selling Faster

Retailers and manufacturers are no longer assuming the upgrade cycle will take care of itself. As consumers grow more cautious with their tech spending, the industry is adapting – not by accelerating the push for newness, but by reengineering the value proposition.

Trade-in programs are now a core feature of the sales funnel. In the US and UK, major electronics chains have expanded their platforms to offer instant credit for used devices, with bonuses tied to specific models or upgrade windows. The aim isn’t just to incentivise sales, but to soften the sticker shock and signal circular value. In India, trade-ins have gone further. E-commerce platforms have introduced programs that accept non-functional phones and appliances – opening up access to affordable upgrades even for consumers sitting on obsolete tech.

Manufacturers are adjusting their product mix in parallel. Samsung’s A-series smartphones have become a centrepiece of the brand’s value-tier portfolio, offering everyday functionality without the premium markup. Apple, long a symbol of high-end exclusivity, is now leaning into the same logic. The latest iteration of its SE line – and more recently, the iPhone 16e – has quietly outperformed expectations, especially among younger buyers and in cost-sensitive markets.

Support for longer device life is becoming a differentiator. Retailers are offering extended warranties, low-cost protection plans, and – critically – greater support for self-service repair. The “right to repair” movement, once niche, has reached mainstream awareness in the US and Europe, pushing brands to make replacement parts and documentation publicly available. Some have gone further, offering repair kits and in-store diagnostics to extend product life without voiding warranties.

In Southeast Asia, telcos and electronics retailers are updating their messaging to meet the moment. Campaigns that once emphasised speed, camera quality, or size now lean into durability, battery longevity, and environmental impact. Flipkart, for instance, has repositioned its marketing language to speak to responsibility, not just features. These aren’t surface-level tweaks – they’re recalibrations shaped by a consumer mood that’s moved past launch-day glitz in favour of durability and long-term value.

Retailers that can respond to this shift without undermining revenue goals are likely to retain customer loyalty. The challenge now is delivering upgrades that feel earned, not obligatory – and that means competing not just on innovation, but on usefulness and trust.

Innovation Isn’t Dead. But It’s on Trial.

The appetite for innovation isn’t gone – it’s just more selective. As upgrade cycles stretch and wallets tighten, consumers are no longer lured by incremental improvements. They’re still willing to invest in technology, but only when the payoff feels tangible.

Devices that deliver clear, differentiated value are still commanding attention. Foldables, once a novelty, have matured into a legitimate category. Samsung’s Galaxy Z Flip and Fold lines continue to draw interest, not just for the form factor, but for the utility – larger displays in a pocket-sized profile, and new modes of productivity. Google’s Pixel 8 Pro, powered by its custom Tensor chip, is earning traction for its AI-driven tools that enhance real-world usage – from call screening to image editing – without relying on buzzwords.

Apple’s Vision Pro, meanwhile, may not be a mass-market product yet, but it offers a case study in how anticipation builds when the innovation is clear. Its launch was met with skepticism on price, but its mixed-reality interface and potential as a new computing platform still turned heads. Early adopters aren’t buying features – they’re buying futures.

What’s changed is the level of scrutiny. Consumers aren’t rejecting high-end tech; they’re applying higher standards. Battery life must hold up in real use, not just lab tests. Cameras must perform in varied conditions, not just daylight. AI features need to do something meaningful, not just inflate a spec sheet.

That’s changing the language of marketing. Across the US, UK, and Asia, brands are pulling back on superlatives and pushing use cases. Proof-of-benefit now matters more than megapixel counts or processing speeds. Instead of promoting what’s new, marketers are being forced to answer, “Why now?”

For companies that can deliver answers that resonate – whether through new form factors, smarter chips, or lifestyle utility – there’s still room to win. But unlike before, consumers aren’t just asking whether something works. They’re asking if it’s worth disrupting their routine for.

Global Trends in Divergence

While the broader trajectory of tech consumption is moving toward caution and selectivity, the pace and shape of that shift varies across markets. Cultural norms, economic stability, and consumer trust in brands all play a role in how – and when – people decide to upgrade.

In the US, the shift has been shaped by economic pressure and high consumer debt. Shoppers are taking longer to replace their devices, with the average upgrade cycle now stretching to 3.5 years. Refurbished phones and lower-tier models are gaining traction, especially among Gen Z and older millennials. Brand loyalty remains strong, but purchase decisions are being filtered through a sharper value lens.

The UK follows a similar pattern, though with more aggressive adoption of SIM-only plans and long-term laptop use. Brand messaging emphasises durability and repairability more, and buyers are more willing to switch between ecosystems if they perceive better value.

In Japan, where consumer electronics are deeply embedded into everyday life, the trend is even more conservative. Many households prefer to maintain well-functioning older devices, especially in categories like home tech. The appetite for premium remains – but only if it’s built to last.

Emerging markets present a more nuanced picture. In India and Indonesia, demand continues to grow, but through a pragmatic filter. Consumers still want to upgrade, but they’re making trade-offs between features and affordability. Entry-level and mid-range Android models dominate, and demand for value-driven smart TVs is rising. Device repair shops are also thriving, offering affordable fixes that extend product life.

Germany reflects yet another dimension – green consciousness. There, sustainability is not just an ethical add-on; it’s a purchase driver. Consumers are increasingly seeking eco-certified products, energy efficiency, and software support that extends a product’s usable life.

These regional divergences remind us that consumer behaviour doesn’t shift in a straight line. Global brands must not only read the macro trends, but understand the local motivations underneath them.

Regional Snapshot 

RegionConsumer SentimentAverage Upgrade CyclePopular Segments
USCautious3.5 yearsBudget, Refurbished
UKValue-driven3 yearsSim-only phones, Laptops
JapanConservative4–5 yearsHome tech, Premium older models
IndiaMixed2–3 yearsMid-range Android, TVs
IndonesiaBudget-first2–3 yearsEntry smartphones, Repairs
GermanyGreen-conscious4 yearsEco-friendly, Long-life gear

The Next Era of Tech Retail Is Measured, Not Mass-Market

The slowdown in tech upgrades isn’t a phase. It’s a reckoning. Consumers are no longer buying into the rhythm of annual releases and short-term novelty. The next era of consumer tech will be defined not by what’s new, but by what’s necessary – and by how well brands can prove their relevance beyond launch day.

The companies that will thrive over the next five years aren’t the ones with the biggest product pipeline. They’re the ones building around lifecycle value – prioritising modularity, software longevity, and service ecosystems that extend the relationship between user and device. Subscription-based diagnostics, AI-powered support, and upgradeable components are already reshaping how loyalty is earned – and how revenue is sustained without constant churn.

It’s a shift in strategic fundamentals. Margins may compress as consumers stretch the life of their hardware, but brands that invest in intelligent add-ons, system integration, and health or sustainability functionality will find new pathways to relevance. A camera upgrade isn’t enough. Neither is a new colour. If it doesn’t serve a deeper role in how we manage health, reduce waste, or improve everyday decision-making, it won’t pass the new test of value.

That also means guesswork is no longer good enough. The consumer calculus is changing fast, and brands need real insight – beyond sentiment, beyond surveys. They need to know who’s holding back, why they’re hesitating, and what would tip the balance. That’s where market research steps forward – not as validation, but as vision.

We’re not watching a slowdown. We’re witnessing a reset. The expectations have changed, the thresholds have risen, and the reward now goes to those who understand behaviour before it hits the balance sheet.

I’d frame it this way: the most powerful upgrade a brand can offer today isn’t a new feature – it’s foresight.

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As households pull back on travel, fashion, and tech upgrades, one category remains oddly resilient: pet care. UK pet spending rose by 3.2% in volume in Q1 2024, even as overall consumer goods slowed. In the US, Chewy’s latest earnings show revenue up 5.6% year over year. Globally, this category isn’t just weathering economic pressure – it’s gaining strength.

What the Numbers Say Around the World

Pet spending continues to grow in markets where most discretionary categories are flat or falling. In Asia, it’s becoming a proxy for emotional investment, household identity, and lifestyle shifts.

China’s pet care market reached $13.6 billion in 2023, nearly double its size in 2018. Growth is strongest among younger consumers in Tier 2 and Tier 3 cities, where pets increasingly replace traditional family roles. Brands are competing on transparency, nutrition, and health—not just aesthetics.

In Japan, pet ownership has plateaued, but spending per pet is rising – especially in the senior care segment. One in three dogs is now elderly. Owners are investing in supplements, mobility products, and pet monitoring tech. High insurance uptake and new health startups reflect a market shaped by the ageing of both pets and owners.

India’s market is now worth over $1 billion and growing at 20% annually. Urban consumers are moving from basic kibble to breed-specific diets, vet-on-call platforms, and DTC food brands. In Tier 1 cities, pets are increasingly seen as dependents.

Southeast Asia is surging. In Indonesia, halal-certified pet food is expanding fast among Gen Z and millennial Muslim households. In Singapore, pet-friendly condo designs and bundled digital pet services are reshaping the urban pet economy.

In each market, pet care is performing well and outperforming adjacent categories. Brands tracking the future of loyalty would do well to start here.

The Rise of the Pet-First Household

Pets are no longer peripheral. In many markets, they’ve become central. Budgets reflect it. So do routines, relationships, and expectations.

In the UK and US, Millennials and Gen Z are treating pets more like dependents than companions. For many, a pet arrives before a partner or child. This shift in household dynamics is reshaping spending habits. Food quality, preventative care, and even birthday celebrations are now routine.

In Japan, pets are becoming emotional anchors. The demand for stimulation toys, wearable monitors, and products for elderly animals reflects the number of owners who are filling care roles with pets.

In India and Indonesia, dogs and cats are now common in middle-class homes. In India, new pet parents are opting for nutrition consults and digital vet services early. In Indonesia, younger Muslim owners prioritise halal compliance, placing cultural fit on par with cost.

In space-constrained cities like Singapore, developers are building in pet zones. Condos market dog parks as amenities. Consumers may cut back on dining out, but continue spending on wellness plans for pets.

What Gets Cut, What Gets Kept

Inflation and higher interest rates have reshaped household budgets. Travel is down, tech purchases are delayed, and dining out has slowed, but pet care continues to hold firm.

In Japan, electronics and beauty are slipping, but veterinary visits remain consistent. In the UK, shoppers skip fashion but keep pet subscriptions. In the US, gym memberships decline while wellness spend on pets holds steady.

In India, mid-premium pet brands are outperforming projections. First-time owners are forming habits early and holding to them. In rural areas, cutbacks tend to hit entertainment before pet goods.

In Southeast Asia, households are scaling back on bulk essentials but still keeping up with pet care. Singaporeans are delaying home upgrades while renewing grooming memberships and upgrading pet tech.

These aren’t luxuries. They’re anchored in attachment. And that makes them more durable than many price-driven categories.

Brands and Retailers Follow the Loyalty

While other categories fight to stay in the basket, pet care is building momentum. Brands aren’t just holding on – they’re leaning in.

In the UK, supermarkets and specialty retailers are expanding premium lines. Pets at Home is scaling up subscriptions, grooming, and in-store vet services. The strategy isn’t about convenience – it’s about becoming routine.

In Japan, startups now offer genetic tests, mobility tracking, and remote health checks. Loyalty here is built on reassurance.

In India, digital-first brands focus on personalised nutrition and wellness bundles. Urban professionals are choosing care that fits their lifestyle – not just their budget.

In Southeast Asia, Indonesia’s halal-certified brands are growing. In Singapore, bundled food, grooming, and insurance on a single digital platform are setting new expectations.

The most resilient brands aren’t chasing promotions. They’re building stickiness.

The Subscription Model Comes Home

One reason pet care is proving so resilient: it’s tailor-made for subscriptions. Chewy’s Autoship model now accounts for over 70% of its revenue. Pets at Home’s subscription grooming and wellness plans are driving retention in the UK. And in India, platforms like HUFT and Supertails are building subscription boxes with food, treats, and supplements that mirror human wellness kits.

Recurring revenue in this category isn’t driven by convenience – it’s driven by rhythm. Feeding, grooming, walking, and checking in on a pet’s health are baked into daily life. And that makes pet subscriptions feel essential, not optional.

The result for retailers is a category with unusually high retention and low churn. For insight professionals, it’s a cue to rethink how LTV is calculated, especially in categories with strong emotional anchors.

The New Metrics of Loyalty

Traditional loyalty metrics miss much of what’s happening in pet care. This isn’t just about repeat purchases or basket size. It’s about trust, consistency, and emotional significance.

Consumers aren’t just loyal because the price is right. They’re loyal because switching feels risky. Because their pet depends on it. Because the product has become part of the household operating system.

That shifts the role of market research. Instead of only tracking NPS or discount redemption, we need to look at embeddedness: How often is a product repurchased without prompting? How quickly is a referral made after a good outcome? Does the customer describe the brand using human relationship language?

Brands that understand these cues, especially in high-growth markets, will outpace those still optimising for price elasticity.

The Emotional ROI of a Full Bowl

Pet care isn’t just holding its ground. It’s changing how people define value.

Emotional value is rarely tracked as closely as price sensitivity. But it should be. Consumers will pause a subscription without thought, yet go out of their way for their pet’s preferred brand.

This kind of spending rarely shows up in top-line figures. It’s visible in retention curves, renewal rates, and what households protect first. In Japan, pet purchases are about continuity. In Singapore, pet tech provides reassurance. In India, ownership blends aspiration with emotional attachment.

The spending logic isn’t indulgent. It’s rooted in what feels stable when everything else isn’t.

The implication for brand and insight teams is structural. Emotional categories are not cut; they become the new baseline.

One lesser-known brand that illustrates this shift is Heads Up For Tails in India.

Case Study: Heads Up For Tails (India)

Founded in 2008, Heads Up For Tails (HUFT) began as a niche pet accessories brand in India. Over the years, it has evolved into a comprehensive pet care company, offering a range of products and services tailored to the Indian market. Recognising the growing trend of pet humanisation, HUFT expanded its offerings to include premium pet foods, grooming services, and wellness products. By 2023, the brand had established over 50 retail outlets across major Indian cities, complemented by a robust e-commerce platform.​

HUFT’s strategy centres on understanding the emotional bond between pets and their owners, positioning itself as a partner in pet parenting rather than just a retailer. This approach has resonated with India’s urban pet owners, who increasingly view their pets as integral family members. The brand’s emphasis on quality, customisation, and community engagement has fostered strong customer loyalty, even as consumers become more selective in their discretionary spending.​

In a market where pet care is still emerging as a significant sector, HUFT’s growth underscores the potential for brands that align with evolving consumer values and behaviours. Their success illustrates how a deep understanding of local culture and consumer psychology can drive brand relevance and resilience.

What Pet Spending Teaches Us About the Next Consumer Economy

Pet care doesn’t just tell us where spending is strong. It tells us what matters when everything else is negotiable.

In every market where discretionary spending is tightening, this category is holding. Not because it’s a luxury, but because it’s emotionally embedded. It’s part of the household rhythm. It reflects identity, routine, and care.

This has implications far beyond dogs and cats. Categories that can build this kind of trust and meaning – through consistency, embedded services, and emotional utility – stand to inherit the next wave of loyalty. Not the kind driven by points or perks, but the kind that lives in habits, values, and daily life.

For insight teams, the takeaway is clear: the future of consumer behavior won’t be measured in what people want. It will be measured in what they refuse to give up.

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Veterinary care is undergoing a transformation that few outside the pet industry have fully registered. Quietly, and with surprising speed, it is becoming one of the most innovative frontiers in healthcare delivery – spurred not by institutions or regulators, but by consumer behaviour.

The catalyst was COVID-19. As lockdowns confined millions to their homes, pet adoption surged worldwide. Between 2020 and 2022, more than 23 million American households acquired a new pet, according to the ASPCA. The UK saw a 20% increase in pet ownership during the same period, while markets like Singapore, Indonesia, and Thailand reported double-digit growth in first-time pet ownership, particularly among urban millennials and Gen Z. Today, nearly 60% of households in Southeast Asia’s major cities own at least one pet.

But what followed the adoption boom was something more profound: a redefinition of what pet care should look like. In a world of same-day grocery delivery, wearable glucose monitors, and always-on digital banking, pet owners began demanding the same immediacy, visibility, and personalisation from veterinary services. Convenience became table stakes; transparency became non-negotiable. And traditional clinics – often booked weeks out, with variable pricing and limited hours – found themselves out of sync with rising expectations.

Into this gap stepped a new breed of service: subscription-based, digital-first veterinary platforms. These companies don’t just offer reactive care – they promise continuous access, proactive advice, and predictable costs. Enabled by mobile technology and fueled by a consumer base fluent in subscriptions – from fitness to food to finance – these platforms are not only meeting demand, but redefining it.

This isn’t a Western phenomenon alone. Across Southeast Asia, mobile-native consumers are bypassing legacy systems entirely, engaging with vet care the way they engage with mobility, entertainment, and finance – via app, on demand, and often as part of a bundled service.

What’s emerging is not an add-on to the veterinary industry – it’s a parallel infrastructure. Subscription-based pet care is changing not just how services are delivered, but how they’re valued, experienced, and expected. The shift is quiet, but its implications are structural, global, and irreversible.

The Perfect Storm Behind the Shift

The rise of subscription-based, digital-first veterinary care didn’t happen in a vacuum. It was the product of mounting structural strain in the veterinary industry, colliding with a generational realignment in how consumers engage with health and wellness. What’s happening now is less a trend than a correction – one shaped by workforce shortages, behavioural shifts, and evolving definitions of convenience.

At the heart of this transformation is a growing imbalance between supply and demand. In the United States, the American Veterinary Medical Association projects a shortfall of nearly 15,000 veterinarians by 2030. In the UK, the British Veterinary Association has sounded the alarm over staffing shortages exacerbated by Brexit and post-pandemic burnout. Across Southeast Asia, where veterinary infrastructure has long lagged behind growing pet ownership, access to licensed professionals remains patchy – especially outside major cities.

The result is a system under pressure: overbooked clinics, rising costs, and long wait times for even routine care. These inefficiencies are increasingly incompatible with a consumer base accustomed to real-time digital access in nearly every other domain of life.

That base is also changing. Millennials and Gen Z now account for the majority of pet owners in many countries. In the US, 76% of Gen Z and 71% of millennials own pets, according to a 2023 report by Packaged Facts. These generations have grown up with mobile-first services, expect subscription-based billing, and value transparency over tradition. They’re less loyal to institutions, more loyal to user experience.

But the shift isn’t purely generational – it’s behavioural. Consumers are no longer looking to engage with veterinary services only when something goes wrong. They want ongoing access, reassurance, and preventative care for pets as part of a broader wellness lifestyle. In this model, a once-episodic service – one that was reactive by design – is being reimagined as a continuous relationship.

The demand for immediacy is also driving pricing innovation. Traditional clinics often operate on a fee-for-service basis with little predictability for clients. Subscription models offer a clear alternative: fixed monthly pricing, bundled services, and easy cancellation. It’s a format consumers understand intuitively – one that reduces friction and increases perceived value, even when the actual services may overlap with those offered by brick-and-mortar practices.

These forces – professional shortages, digital behaviour, rising expectations – have created a perfect storm. But it is consumers, not companies, who are setting the pace of change. Their demand for continuity, control, and convenience is rewriting the rules of engagement in pet care. Traditional models are being redefined not by what they lack, but by what they can no longer offer at scale.

The Rise of Subscription-Based Vet Care

If the traditional veterinary model is under strain, subscription-based platforms are capitalising on the gap, not just by digitising care, but by reframing what care means altogether.

At the centre of this shift is a new breed of veterinary service providers offering care plans that emphasise access, continuity, and convenience. Unlike conventional clinics, which are often bound by geographic reach, hours of operation, and one-off appointment models, these platforms offer a digital front door to veterinary support – always open, always responsive.

In the United States, startups like Fuzzy and Pawp have led the charge. Fuzzy offers members 24/7 live vet chat, medication delivery, and access to care plans for chronic conditions – all through a monthly subscription that ranges from $20 to $40. Pawp, which launched in 2020, delivers flat-fee emergency fund access and unlimited telehealth consults for under $25 per month. These companies are less interested in replacing brick-and-mortar clinics and more focused on becoming the first – and frequent – point of contact. Their services are designed around reassurance, convenience, and wellness, rather than surgical procedures or complex diagnostics.

In the UK, Joii Pet Care has gained traction by offering video consults and symptom checkers targeted at affordability and access. Developed by a team of experienced vets and tech entrepreneurs, the app aims to fill care gaps, particularly for lower-income households or those living in rural areas where local clinics are sparse. With prices starting under £25 per consultation or bundled into wellness plans, Joii represents a different approach: one rooted in cost democratisation without sacrificing clinical oversight.

Across Southeast Asia, where veterinary infrastructure varies widely, digital-first models are leapfrogging outdated systems. In cities like Jakarta, Bangkok, and Manila, startups are building integrated ecosystems that combine e-commerce, on-demand consults, vaccination reminders, and home diagnostics – all accessible via mobile app. In these markets, where smartphone penetration is high and traditional vet coverage is limited, the subscription model isn’t just disruptive – it’s foundational.

What all these models share is a fundamental redefinition of veterinary care as a service layer, not a physical location. This service is anchored in several common features:

  • Always-on access: 24/7 chat and video support, eliminating the need to wait for clinic hours.
  • Tiered pricing: Monthly plans that bundle consults, medications, supplements, or diagnostic tests.
  • Proactive care: Wellness tracking, behaviour coaching, and early intervention, rather than reactive treatment.
  • Integrated delivery: Some platforms even include food, flea treatments, or insurance coverage – shifting from care to full-lifecycle pet management.

From a business standpoint, the subscription model offers strong appeal: predictable recurring revenue, high engagement, and greater lifetime value per customer. For consumers, the model reduces decision fatigue. Instead of weighing every vet call against cost or necessity, pet owners can access care fluidly, often leading to earlier interventions and stronger long-term outcomes.

Crucially, the value isn’t just in the care provided – it’s in the perception of partnership. These platforms don’t operate like service providers; they position themselves as guides, helping owners navigate an increasingly complex pet wellness landscape. This relationship-first framing plays especially well with younger consumers, who prioritise trust and transparency in brand interaction.

Subscription-based vet care isn’t about replacing traditional clinics. It’s about meeting the unmet needs those clinics were never designed to solve – ongoing reassurance, flexible support, and access untethered from geography or schedule. And in doing so, these platforms are setting new benchmarks for what modern pet healthcare looks like, not just in the West, but in digital-first economies around the world.

Regional Perspectives in Transformation

While the shift to digital-first, subscription-based veterinary care is global in momentum, its expression varies significantly by region. Regulation, consumer behaviour, infrastructure, and healthcare norms all influence how the transformation unfolds – and where it gains traction fastest.

United States: Infrastructure Meets Expectation

The US remains the most mature market for pet telehealth, fueled by high rates of pet ownership, established digital payment infrastructure, and a consumer base accustomed to subscriptions across lifestyle categories. Companies like Fuzzy, Pawp, and Dutch have rapidly scaled, supported by favourable funding environments and growing regulatory flexibility.

The American Veterinary Medical Association has gradually updated telemedicine guidelines to reflect new realities, allowing licensed vets to establish a veterinary-client-patient relationship (VCPR) remotely in some states. This flexibility has given startups room to innovate while enabling hybrid models that bridge virtual triage and in-person escalation.

Consumer readiness has also played a role. With 97% of US households owning a smartphone and nearly 80% of millennials identifying as pet parents, mobile-based care isn’t a leap – it’s a natural extension of how health, finance, and lifestyle are already managed.

United Kingdom: Bridging Gaps with Affordability

In the UK, the rise of digital veterinary services has followed a different path – less about convenience, more about access and affordability. NHS-like expectations of care spill into pet ownership culture, where cost sensitivity often leads to delayed treatment or skipped appointments.

Joii and FirstVet have gained traction by offering consults at fixed, low prices, targeting underserved households and rural regions. These services are often paired with employer benefits or pet insurance providers, forming integrated care bundles that mirror human healthcare delivery.

Regulation is catching up, but remains a barrier in some respects. The Royal College of Veterinary Surgeons (RCVS) still requires an in-person relationship to prescribe most medications, limiting the scope of pure-play digital models. Still, the appetite for innovation is evident, especially among younger consumers facing cost-of-living pressures and limited clinic access.

Southeast Asia: Mobile-First and Rapidly Scaling

In Southeast Asia, subscription-based pet care is not just a convenience – it’s becoming foundational. In high-density cities like Jakarta, Bangkok, and Ho Chi Minh City, veterinary infrastructure hasn’t kept pace with urban pet ownership. Clinics are often understaffed or geographically uneven, while demand for care is growing sharply among younger, mobile-first consumers.

Here, digital platforms are leapfrogging legacy systems, integrating consults, treatment reminders, product delivery, and even vaccination records into a single app. The model resembles fintech and telemedicine rollouts in the region: rapid, mobile-led, and often driven by startups with regional or pan-Asian ambitions.

Unlike in the West, where subscription models compete with entrenched systems, Southeast Asia’s innovators are building the baseline infrastructure from the ground up. For many new pet owners in the region, a subscription-based vet app isn’t a supplement – it’s the only vet they’ve ever known.

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Brand Spotlight: Pawp

Image credit: Pawp

Few companies have captured the shift in pet care delivery as clearly as Pawp. Launched in 2019, the US-based startup built its model around a simple idea: pet owners want immediate access to expert care without unpredictable costs. For a monthly fee of around $24, subscribers receive unlimited 24/7 access to licensed veterinarians via chat or video, along with an annual $3,000 emergency fund that covers life-threatening situations.

It’s not insurance, and it’s not a replacement for in-person care. Instead, Pawp positions itself as the first point of contact – triaging concerns, offering advice, and filling the gap between full-service clinics and reactive emergency visits. The service is especially appealing to urban renters, multi-pet households, and younger owners accustomed to managing health, banking, and food delivery through their phones.

Adoption accelerated during the pandemic, as pet ownership hit record highs and consumers became more comfortable with telehealth. By 2022, Pawp had expanded nationwide. But its biggest leap came in 2023 when Walmart integrated the service into its Walmart+ membership. For millions of members, a vet became one tap away, included in their monthly subscription. That partnership wasn’t just a distribution win – it marked a cultural shift, signalling that veterinary access, like streaming or grocery delivery, could be bundled into everyday life.

Pawp’s model reflects a broader recalibration of how pet owners think about care. The unlimited access reduces the threshold for engagement – owners no longer hesitate over whether a question is “worth” asking. Instead, they ask more, earlier, and often. This changes the rhythm of care, encouraging prevention over reaction and making the pet-health relationship feel continuous rather than episodic.

While competitors have emerged, few match Pawp’s combination of on-demand triage and financial safety net. The company has also moved into employer benefits and financial services, appearing in bundled perks from credit cards and HR platforms. For traditional clinics, this model doesn’t displace in-person care – but it does rewire when, how, and why pet owners seek help.

What Pawp proves is that subscription care isn’t just a pricing structure – it’s a behaviour model. And for millions of pet owners, it’s quickly becoming the default.

Traditional Clinics at a Crossroads

The rise of subscription-based, digital-first platforms presents traditional veterinary practices with a pivotal question: resist, retreat, or reconfigure?

For decades, veterinary care has been defined by brick-and-mortar clinics. The model was straightforward – appointments, procedures, prescriptions. But this model was never designed for today’s expectations: 24/7 access, real-time answers, preventative guidance, and fixed-cost transparency. As new entrants deliver on these demands digitally, traditional clinics are being forced to confront their own structural limitations.

Some view the trend as a threat to their clinical authority and client relationships. But framing this evolution as competition misses the larger opportunity. In truth, these models don’t replace what clinics do – they fill the spaces in between. And for practices that embrace this reality, digital platforms offer not a threat but a strategic partner.

Hybrid care is emerging as a viable solution. Clinics that incorporate virtual consults – either independently or through collaboration with subscription providers – can triage non-emergency cases more efficiently, free up in-clinic capacity, and reduce staff burnout. This is especially critical as workforce shortages continue to mount. By adding a digital layer, clinics can serve more patients without diluting the quality of care.

The integration opportunity extends further. Clinics that lean into wellness plans, recurring product bundles, or asynchronous follow-ups are finding new ways to generate revenue, build loyalty, and align with how modern pet owners think. The shift from transactional care to relational care – something digital-first platforms do exceptionally well – can be mirrored within physical practices through smarter use of CRM systems, automated reminders, and bundled service pricing.

However, cultural shifts may prove more challenging than technological ones. Pricing transparency, a cornerstone of the subscription model, forces clinics to re-evaluate the traditional ambiguity around fees. Similarly, expectations around always-on access mean that practices must reconsider staffing models, triage protocols, and customer service norms.

Still, the alternative is stagnation. Pet owners will increasingly gravitate toward models that give them more control, clarity, and connection. If clinics don’t evolve in parallel, they risk becoming not obsolete, but peripheral – consulted only in crisis, instead of trusted across the care journey.

The path forward for traditional veterinary care isn’t defensive – it’s adaptive. The future belongs not to those who replicate digital models, but to those who integrate them with the irreplaceable expertise of in-person care.

What Subscription Care Reveals About Consumer Psychology

The growth of subscription-based veterinary care cannot be explained by technology alone. At its core lies a deeper psychological shift: the redefinition of care from a transactional act to an ongoing relationship – one that is emotional, preventative, and embedded in daily life.

Pet owners are no longer engaging with veterinary services purely out of necessity. They are engaging out of responsibility and routine, adopting the behaviours they’ve internalised from human wellness – preventative check-ups, continuous monitoring, and personalised guidance – and projecting them onto their animals. This is not sentimentality; it’s behavioural logic. Pets are increasingly viewed not as dependents, but as extensions of the self. Caring for them is seen as a reflection of competence, compassion, and control.

Subscription models tap directly into this psychological orientation. The fixed monthly fee does more than spread out cost – it reduces decision friction. Owners no longer have to weigh whether a behaviour warrants a $90 consult. They can simply ask. This freedom from hesitation leads to greater engagement, earlier intervention, and – crucially – higher customer satisfaction.

The format itself matters. Subscriptions create a psychological contract: a sense that care is ongoing, not contingent. This fosters trust and encourages owners to interact with the service even when nothing seems urgent. As usage increases, so does perceived value – making cancellations less likely and loyalty more resilient, even in times of economic pressure.

This model also aligns with modern consumers’ preference for predictability over spontaneity, especially among Gen Z and millennials. These cohorts are more likely to use budgeting apps, mental health platforms, and fitness subscriptions than previous generations. In this landscape, paying monthly for a responsive, wellness-oriented vet service doesn’t feel like an expense. It feels like a responsible default.

The emotional context is equally significant. Pet health triggers the same anxiety as human health, often without the institutional support systems or insurance coverage. Subscription care offers not just medical advice, but peace of mind – a buffer against uncertainty that is worth paying for, even if it’s never used.

What we’re witnessing is not just a new way to deliver veterinary services. It’s a new way to frame value, build trust, and establish relevance in the lives of modern pet owners – anchored as much in psychology as in medicine.

From Reactive to Relationship-Based Care

The next frontier in pet healthcare will not be built solely on digital access – it will be defined by intelligence, personalisation, and integration. Subscription models have laid the foundation. What comes next is an ecosystem where care is continuous, contextual, and increasingly predictive.

Already, we’re seeing early signals. AI-enabled symptom checkers and triage bots are improving accuracy and efficiency in first-line responses, particularly in high-volume markets like the US and UK. Wearables are moving beyond step tracking, offering real-time insights into sleep quality, heart rate variability, and behavioural anomalies – data that can trigger interventions before a clinical symptom emerges. And at-home diagnostics, from microbiome testing to genetic screening, are making it possible to detect risk factors earlier than ever before.

As these tools mature, the role of the veterinarian will evolve. Less gatekeeper, more guide. Less episodic expert, more integrated partner. Pet care will mirror the best of modern human healthcare: digitally enabled, insight-driven, and co-managed by both professional and consumer. The brands and clinics that succeed will be those that understand not just what services to offer, but how to build lasting relevance in a world of empowered pet parents.

In this landscape, market research becomes more essential – not less. Understanding the emotional, cultural, and behavioural drivers behind pet care decisions is critical to navigating what’s next. Data alone can reveal what consumers are buying; insight reveals why – and what they’ll demand next. Whether it’s segmenting how Gen Z in Bangkok approaches preventative pet care, or tracking the adoption curve of tele-vet platforms among suburban households in Manchester, the businesses that win will be those that treat insight as strategy, not a sidebar.

The future of veterinary care is not about digitising the past. It’s about reshaping the relationship between pet, owner, and provider. What began as a convenience – subscriptions, on-demand chat, symptom checkers – is becoming an expectation. The logic of episodic care is giving way to a relationship economy, where value is measured not just in outcomes, but in consistency, confidence, and care continuity.

Veterinary practices, platforms, and brands alike face a choice. Compete on service, or compete on understanding. In an age of intelligent pet wellness, the latter will shape the next generation of care.

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Even as consumers trim expenses in travel, fashion, and dining out, there’s one area where spending continues to climb: their pets.

The global pet care market is now worth over $324 billion, with projections putting it close to $600 billion by 2033. In the United States alone, Americans are expected to spend more than $150 billion on their pets this year – up from $136 billion just two years ago. That’s roughly $1,700 per pet-owning household.

What’s driving the boom isn’t just more pets – it’s more premium care. Owners are trading up to organic diets, breed-specific supplements, and wearable health trackers. Subscriptions for virtual vet services and home delivery of fresh pet meals are becoming routine. Industry analysts say the trend reflects the growing “humanisation” of pets, where wellness standards once reserved for people are now expected for animals, too.

Here at Kadence International, we’re seeing this shift play out across markets. Consumers might delay upgrading a phone or cut back on takeout, but they continue to invest in pet wellness – whether it’s probiotic chews, allergy relief supplements, or DNA testing kits. The behaviour is less about indulgence and more about prioritising the quality of life for their animals.

The premiumisation of pet care is quickly moving from niche to norm – redefining how pet owners allocate household budgets and how companies compete in one of the most resilient sectors of consumer spending.

Rising Demand in Emerging Markets Reshapes the Global Pet Economy

The pet care boom is no longer centred solely in the West. Markets once considered secondary – particularly across Asia and Latin America – are rapidly becoming the industry’s main growth engines, reshaping supply chains, product innovation, and competitive strategy.

China, long known for its production of pet goods, is now a consumption powerhouse. Urbanisation, rising incomes, and a generational shift in attitudes toward pet ownership have driven the country’s pet economy past 270 billion yuan ($37 billion USD) in 2024, according to data from iiMedia Research. Functional pet foods, insurance services, and AI-enabled pet tech are flourishing in cities like Shanghai and Beijing, where single-person households and delayed family planning are accelerating the “pet as child” dynamic.

In Southeast Asia, pet ownership is rising fastest among millennials and Gen Z, particularly in Vietnam, Indonesia, and Thailand. Here at Kadence International, our fieldwork suggests that first-time pet owners in these markets are skipping entry-level products entirely – jumping straight into grain-free diets, subscription-based care boxes, and app-based training services. This leapfrogging effect mirrors what happened in fintech across emerging markets: consumers are building their relationship with brands in the premium tier from day one.

Meanwhile, in Brazil – the second-largest pet care market globally after the U.S. – veterinary services and pet health plans are expanding beyond affluent neighbourhoods. Brazilian households spent an estimated $9 billion USD on pets in 2023, with wellness products now part of everyday grocery retail.

Even mature markets are shifting internally. In Japan and South Korea, birth rates are at historic lows, and a growing number of households treat pets not just as companions, but as emotional and psychological anchors. As a result, the types of products being purchased – from calming diffusers to mental stimulation toys – are changing the definition of core pet care categories.

This reshaping of the global pet economy isn’t just a redistribution of revenue; it’s altering the cultural context of pet ownership. The premium boom may have started in North America, but the future of pet wellness is being co-authored in Jakarta, São Paulo, Seoul, and beyond.

Premiumisation in Pet Food and Supplements Redefines the Bowl

A decade ago, premium pet food meant a slightly higher protein count or a label with fewer artificial additives. Today, it means bioavailable nutrients, functional botanicals, customised formulations, and health claims that would feel at home in a human wellness catalogue.

The line between nutrition and therapy is blurring – and the market is responding. In 2023, sales of premium pet food grew at nearly double the rate of standard pet food globally, according to Euromonitor International. Functional claims – supporting gut health, mobility, immune strength, or anxiety reduction – have moved from the margins to the centre of packaging in the U.S., UK, Japan, and South Korea. Shoppers are no longer choosing between brands; they’re choosing between outcomes.

Consumer behaviour is shifting accordingly. Mintel reports that more than half of U.S. dog owners now actively seek out food with added health benefits, while one in three expect brands to personalise recommendations based on age, breed, or health status. In the UK, pet owners are increasingly mirroring their own dietary ethics, gravitating toward organic and even plant-based options. In Japan, ageing pets are driving demand for easier-to-digest meals and portion-controlled packaging that reflects pharmaceutical precision.

Supplements have quietly become one of the fastest-growing segments in the category. Once the preserve of niche online retailers, they are now a fixture in big-box pet stores and veterinary clinics. Calming chews, joint support powders, and probiotic drops are increasingly purchased not in response to a diagnosis but as part of a preventive care routine. Subscription models are flourishing in this space – not for convenience alone, but because owners want continuity in their pets’ health regimen.

What’s emerging is a recalibration of value: not measured by bulk or brand familiarity, but by purpose. The pet food aisle is no longer just a product display – it’s a wellness portfolio, curated by consumers who increasingly expect the same standard of care for their pets that they do for themselves.

The App Will See You Now

Veterinary care is no longer confined to the clinic. A growing share of pet owners are now managing health check-ins, nutrition planning, and behavioural advice through digital platforms – often without ever leaving home. In many markets, this is less a futuristic leap and more a pragmatic pivot driven by convenience, cost concerns, and a shortage of veterinarians.

The surge in telehealth for pets began during the pandemic, but it has since evolved into a new tier of service. Platforms like Pawp, Fuzzy, and Joii offer 24/7 vet consultations, monthly wellness plans, and AI-supported symptom triage. These aren’t replacing traditional care entirely, but they are reshaping the front line – handling minor concerns, triaging emergencies, and maintaining continuity between physical visits.

In the United States, pet telemedicine visits increased more than 300% between 2020 and 2023, according to data from the American Veterinary Medical Association. In the UK, the British Veterinary Association reported that one in five pet owners had used digital vet services in the past year. And in Southeast Asia, where access to veterinary professionals remains limited in many regions, digital care is emerging not just as an option but as infrastructure.

Tied closely to this trend is the rise of subscription-based wellness. What began with monthly deliveries of flea and tick medication has grown into a service model that includes customised food plans, behavioural coaching, supplements, and diagnostics – often bundled through a single platform or mobile app. Some services even offer annual blood testing with doorstep collection, designed to catch early signs of illness before symptoms surface.

The value proposition is as much about predictability as it is about health. For time-poor, urban pet owners – especially millennials and Gen Z – these services streamline routines and reduce the anxiety of not knowing when or how to act. They also lock in brand loyalty in a category where switching costs are otherwise low.

What makes this shift notable isn’t just the tech adoption – it’s the reframing of pet care as a continuous service, rather than an episodic, event-based expense. As competition grows and platforms race to add value, the veterinary space may be next in line for the kind of disruption already seen in human primary care.

Brand Spotlight: Butternut Box

Image credit Butternut Box

Launched in the UK, Butternut Box has become one of Europe’s fastest-growing premium pet food brands by reimagining how pet meals are made, marketed, and delivered. What began as a small direct-to-consumer startup offering fresh, human-grade dog food has evolved into a major player in the pet wellness space, known for its personalised subscription model and health-first messaging.

Every meal is pre-portioned, vet-approved, and tailored to the pet’s dietary needs – whether age, breed, or health condition. As demand for functional nutrition surged, Butternut Box expanded its offering to include treats, supplements, and, most recently, fresh food for cats.

The company has seen rapid growth. Revenues jumped significantly in 2023, and subscriber numbers continue to climb as the brand expands into new markets across Europe. Recent acquisitions and infrastructure investments are helping it scale beyond the UK, with operations now live in Ireland, the Netherlands, Belgium, and Poland.

Much of the brand’s appeal lies in its ability to align with pet owner expectations – offering transparency, convenience, and clear health outcomes. Its packaging, product formulation, and tone of voice are all geared toward the modern, wellness-minded consumer who wants more than just “better kibble.” And with fresh food sales rising across the industry, Butternut Box is well-positioned to lead the charge.

As the definition of pet health evolves, Butternut Box exemplifies how brands can thrive by staying close to consumer values. Its growth underscores a larger shift: pet owners aren’t just buying food – they’re investing in long-term wellness. And they’re choosing brands that make that easy, measurable, and personalised.

The Psychology Behind the Spend

Rational budgeting has never fully explained pet ownership. But in a year where inflation has squeezed discretionary spending across sectors, the continued rise in pet wellness expenditure points to something deeper: emotional economics.

In the United States, 62% of pet owners say they are spending “the same or more” on their animals despite cutting back in other parts of their lives, according to a 2024 survey by Morgan Stanley. And it’s not just petting parents in affluent neighbourhoods. In Brazil, where real incomes have fluctuated over the past two years, pet care remains one of the most resilient retail categories, particularly among single-person households and retirees.

What’s driving this behavior isn’t just brand marketing or a surge in new product availability – it’s a cultural shift in the perceived role of pets. In many homes, animals are no longer companions; they’re emotional extensions of the self. Pet care spending is often framed not as an expense, but as an expression of identity, responsibility, and affection. That makes it far less vulnerable to economic headwinds.

There’s also the matter of control. In periods of uncertainty, consumers tend to focus on the things they can manage. For pet owners, that increasingly means doubling down on wellness – purchasing products and services that promise safety, health, and longevity. In this way, premium pet care has become part of a broader coping strategy: a way to nurture stability in an unstable world.

Consumer researchers are watching this closely. “What we’re seeing is a shift from reactive to anticipatory spending,” said one behavioural analyst in a recent study published by Mintel. “It’s no longer just about solving a problem – it’s about preemptively protecting what matters most.”

The implication for brands is significant. Emotional drivers are shaping not just what consumers buy, but how they engage – with higher expectations around transparency, ethics, and personalisation. It’s no longer sufficient to claim that a product is “good for pets.” Increasingly, it has to feel like the right decision for the person making it.

What Comes Next for Pet Wellness Brands

The shift in consumer behaviour is now being mirrored in boardrooms and investment portfolios. Private equity firms, legacy conglomerates, and health tech startups are all converging on a singular conclusion: pet care is no longer a recession-proof niche – it’s a lifestyle category with global, cross-demographic appeal.

In the past 24 months, more than a dozen pet wellness platforms have closed Series A or B funding rounds in excess of $20 million. Unilever acquired a majority stake in pet supplement brand Nutrafol Pets. Mars, already dominant in veterinary services through its ownership of Banfield and VCA, is doubling down on diagnostics and AI tools through its Kinship division. Even players outside the category – like Nestlé and L Catterton – have quietly expanded their holdings in high-growth pet food startups.

This capital infusion is reshaping not just how pet products are developed, but how they’re delivered. Subscription platforms are building vertically integrated ecosystems. Diagnostics companies are exploring partnerships with tele-vet apps. Consumer goods firms are rethinking packaging, sustainability, and supply chains to appeal to increasingly values-driven buyers.

To make sense of the momentum, here’s a snapshot of key growth areas attracting attention:

Emerging Investment Hotspots in Pet Wellness

CategoryWhy It’s GrowingNotable Moves (2023–2024)
Functional Pet FoodRising demand for therapeutic and preventative nutritionNestlé invests in JustFoodForDogs
Tele-Veterinary ServicesExpanding access, convenience, and lower cost barriersFuzzy and Pawp secure $25M+ in funding rounds
Pet SupplementsProactive health management among Gen Z and millennialsNutrafol Pets launches in North America
Diagnostics & Health TechEarly detection, personalisation, and longevity trendsMars launches pet DNA and microbiome services
Subscription-Based ModelsStrong retention, DTC control, consumer preferencePetPlate, BarkBox expand internationally

The next wave of competition won’t be driven solely by who has the best product – but by who owns the end-to-end relationship with the pet owner. As wellness becomes the defining lens through which pet care is viewed, brands will need to operate more like healthcare providers than traditional retailers.

The opportunity is enormous, but so is the expectation. The bar has been raised – by consumers, by capital markets, and increasingly, by the animals themselves, whose needs are now tracked, monitored, and optimised in real time.

A Wellness Revolution Still in Its Infancy

If the past five years marked the emergence of premium pet care as a trend, the next five will define it as an expectation. The convergence of health, data, and digital delivery has already reshaped human wellness; now it’s doing the same for animals – at speed and scale.

What we’re seeing is a new phase of maturity in pet ownership globally. In emerging markets, where pet care was once utilitarian, consumers are leapfrogging into advanced wellness behaviours – driven by rising incomes, smaller households, and increased digital access. In mature markets, the shift is more psychological: pets are not just part of the family, they are central to it, prompting a level of intentionality in purchase decisions that echoes human healthcare.

This signals not just a market opportunity, but a transformation in mindset. We expect to see a rise in predictive care models powered by biometric monitoring, AI-driven nutrition plans, and services that adapt in real time to the pet’s lifecycle or environment. The role of the vet will likely evolve, too – becoming more consultative and tech-enabled, supported by home diagnostics and subscription wellness ecosystems.

And while consumer demand is shaping the future, it’s also setting new standards. Transparency, traceability, and ethical sourcing will become baseline requirements. Products that once stood out for being “premium” will be judged instead by how well they anticipate needs, reduce friction, and integrate into a seamless care experience.

This is no longer a pet product story – it’s a consumer behaviour story unfolding across borders, cultures, and categories. As the definition of wellness continues to evolve, so too will the expectations around how we care for the animals in our lives.

The brands that succeed won’t just sell to pet owners. They’ll understand them – intimately, culturally, and contextually. That’s where the future of the pet industry will be shaped.

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Passive loyalty is a thing of the past. Consumers are no longer swayed by points that take years to accumulate or discounts buried in the fine print. What once worked – simple earn-and-burn loyalty programs – now feels outdated when convenience, exclusivity, and instant gratification reign supreme.

Retailers are rewriting the rules. Loyalty is no longer free; it’s a product. From fashion and beauty to tech and travel, brands are introducing paid membership tiers that promise more than just savings. The shift isn’t subtle. Airlines are layering subscription perks onto frequent flyer programs, e-commerce giants are testing premium memberships, and direct-to-consumer brands are betting on exclusivity to drive retention. But as the subscription economy matures, cracks are starting to show.

Consumers are resisting an overload of memberships and scrutinising whether the cost is justified. Some brands have thrived by offering tangible value, while others have struggled to justify their fees. The challenge isn’t just attracting subscribers – it’s keeping them engaged without alienating price-sensitive shoppers.

Understanding Consumer Expectations in the New Loyalty Landscape 

Loyalty is no longer about collecting points; it’s about perceived value. Consumers have become more selective, weighing every subscription against its actual benefits. A decade ago, signing up for a loyalty program was a no-brainer. Today, even well-known brands face scrutiny when asking customers to pay for access.

Subscription fatigue is real. In a crowded market where streaming, food delivery, and retail memberships compete for the same wallet share, consumers are reevaluating what they truly need. A high annual fee isn’t a deal-breaker if the perks outweigh the cost, but brands that fail to deliver meaningful benefits see churn rates climb fast.

Personalisation is the new battleground. Generic rewards don’t cut it anymore; shoppers expect loyalty programs tailored to their behaviour. The most successful models use data to refine offerings, creating a sense of exclusivity without shutting out budget-conscious consumers. When done right, a well-structured loyalty program shifts the conversation from cost to value, keeping customers invested long after the first purchase.

Types of Loyalty Models in the Subscription Economy

Brands are adopting diverse loyalty models that blend traditional rewards with subscription-based benefits to retain customers. These models cater to varying consumer preferences and spending habits, ensuring a personalised and engaging experience. 

Here are the primary types:

  • Paid Memberships with Exclusive Benefits
    • Club Factory VIP (India, China, Southeast Asia): The E-commerce platform Club Factory offers a VIP membership where AI predicts purchasing behaviour and provides personalised discounts on frequently bought products. This approach ensures members receive tailored deals, enhancing shopping efficiency and satisfaction.
    • Watsons Elite (Hong Kong, Malaysia, Singapore, Thailand, Philippines): Watsons, a leading health and beauty retailer, offers a paid loyalty program that offers cashback on purchases, VIP in-store services, and early access to product launches. This blend of financial incentives and exclusive experiences creates a sense of privilege among members.
  • Tiered Loyalty Programs with Subscription Elements
    • MATCHESFASHION (UK): This luxury fashion retailer employs a tiered loyalty system where customer spending determines their membership level. Higher tiers unlock benefits such as priority access to new collections, personal shopping services, and exclusive event invitations, encouraging increased spending and brand engagement.
    • Trendyol (Turkey): A prominent e-commerce platform, Trendyol offers a tiered loyalty program with regionalised perks, including expedited shipping and special discounts. The program adapts to local market preferences, ensuring relevance and appeal to a diverse customer base.
  • Hybrid Models: Freemium Loyalty with Paid Upgrades
    • Karma (Global): Karma offers a free service that alerts users to price drops on desired products. Members gain access to premium features like cashback on purchases and exclusive deals for a subscription fee, blending cost-free benefits with enhanced paid options.
    • Blibli Plus (Indonesia): Blibli, an Indonesian online marketplace, offers a loyalty program with basic membership for free and standard benefits. Subscribers to Blibli Plus receive additional perks such as express delivery and special promotions, catering to casual shoppers and frequent buyers.
  • Experiential Subscriptions for Community and Access
    • Beauty Pie (UK, US): Beauty Pie operates on a membership model where subscribers can access luxury beauty products at near-factory prices. This approach demystifies product markups and offers members significant savings, fostering a community of informed beauty enthusiasts.
    • Public Lands (US): Focusing on outdoor gear and experiences, Public Lands offers a subscription that allows members access to exclusive events, workshops, and early product releases. This model emphasises community building and experiential value over traditional discounts.

Designing Loyalty Programs for a Future-Proof Strategy

Retailers must craft loyalty programs that not only attract customers but also adapt to shifting consumer behaviours and market dynamics. The following strategies offer a blueprint for developing resilient and appealing loyalty initiatives:

  • Exclusive but Accessible: Pricing Memberships Wisely
    • Dynamic Pricing Strategies: Dynamic pricing allows retailers to adjust membership fees based on demand, market trends, and customer segments. This approach ensures memberships remain attractive to a broad audience while maximising revenue. For instance, offering lower fees during off-peak seasons can entice price-sensitive customers to join.
    • Freemium Models: Introducing a free basic tier with optional paid upgrades can lower the barrier to entry, allowing customers to experience core benefits before committing financially. This model has been effective in increasing user acquisition and providing a pathway to upsell premium features.
  • Hyper-Personalisation: Making Memberships Indispensable
    • AI-Driven Personalisation: Leveraging artificial intelligence to analyze customer data enables the creation of tailored experiences and offers. Personalised recommendations and exclusive deals based on individual preferences can significantly enhance member engagement and satisfaction.
    • Behavioural Segmentation: By segmenting members based on purchasing habits and engagement levels, retailers can deliver customised rewards and communications, fostering a deeper connection and increasing loyalty.
  • Flexibility and Modular Benefits: Adapting to Consumer Preferences
    • Customisable Perks: Allowing members to select benefits that align with their interests – such as free shipping, exclusive discounts, or early access to products, can enhance the perceived value of the membership.
    • Short-Term and Seasonal Subscriptions: Offering flexible membership durations caters to customers hesitant about long-term commitments, allowing them to engage with the brand on their terms.
  • Beyond Discounts: Experiential and Social Rewards
    • Exclusive Events and Content: Hosting member-only events and workshops or providing access to unique content can create a sense of community and exclusivity, differentiating the program from competitors.
    • Community Building Initiatives: Encouraging members to participate in forums, social media groups, or referral programs fosters a sense of belonging and turns loyal customers into brand advocates.
  • Sustainability and Ethical Perks: Aligning with Values
    • Eco-Friendly Incentives: Rewarding sustainable actions like recycling or choosing eco-friendly products appeals to environmentally conscious consumers and strengthens the brand’s commitment to sustainability.
    • Charitable Contributions: Allowing members to donate rewards or a portion of their purchases to charitable causes can enhance the program’s appeal to socially responsible customers.

Brands Getting Loyalty Right

  • Lookiero (Spain, France, UK) – Subscription-based personal styling with loyalty tiers.
    Lookiero offers a curated fashion subscription service where customers receive personalised outfit selections. The brand’s loyalty tiers reward frequent subscribers with discounts, early access to limited-edition collections, and styling credits, creating a mix of exclusivity and practical savings.
  • Asia Miles (Hong Kong) – Multi-partner travel rewards program
    Asia Miles, launched by Cathay Pacific, is a travel rewards program that collaborates with multiple airlines and over 800 partners across the dining, retail, and hospitality sectors. Members earn miles through various activities and can redeem them for flights, hotel stays, and lifestyle rewards. This extensive partner network enhances the program’s value proposition, offering flexibility and a wide range of redemption options.
     
  • GrabRewards (Southeast Asia) – Multi-service platform with an integrated loyalty program
    Grab, a leading super-app in Southeast Asia, integrates its GrabRewards loyalty program across services like ride-hailing, food delivery, and digital payments. Users earn points for each transaction, which can be redeemed for discounts, vouchers, or premium services. The program features tiered memberships – Member, Silver, Gold, and Platinum – offering escalating benefits such as priority bookings and exclusive deals, effectively encouraging increased usage and customer retention.

The Future of Loyalty in the Subscription Economy

As the subscription economy continues to evolve, retailers are increasingly turning to advanced technologies to enhance their loyalty programs. Artificial intelligence and blockchain are at the forefront of this transformation, offering innovative solutions to meet the dynamic expectations of modern consumers.

AI-Powered Personalisation

Artificial intelligence enables retailers to analyze vast customer data, facilitating highly personalised experiences. By leveraging AI, brands can predict purchasing behaviours, tailor rewards, and deliver targeted promotions that resonate with individual preferences. For instance, Tesco plans to expand its use of AI to personalise shopper experiences, utilising data from its Clubcard loyalty scheme to suggest healthier choices and reduce waste.

AI-driven chatbots and virtual assistants enhance customer engagement by providing real-time support and personalised recommendations. These tools not only improve the customer experience but also gather valuable insights that can be used to refine loyalty strategies. Wendy’s, for example, has introduced an AI-based loyalty platform that analyzes customer data to create tailored offers and rewards, thereby strengthening brand loyalty.

Blockchain-Based Loyalty Programs

Blockchain technology offers a decentralised and transparent framework for loyalty programs, addressing common challenges such as fraud, data security, and interoperability. By tokenising loyalty points, retailers can provide customers with flexible and transferable rewards that can be redeemed across multiple platforms and partners. This approach not only enhances the value proposition for customers but also fosters a sense of community and engagement.

For example, Singapore Airlines’ KrisPay program utilises blockchain to convert air miles into digital tokens, allowing members to spend them seamlessly with participating merchants.

Similarly, startups like Blackbird are exploring blockchain-based loyalty solutions to connect restaurants with patrons and offer rewards in the form of digital assets.

Integration of AI and Blockchain

The convergence of AI and blockchain technologies holds significant promise for the future of loyalty programs. AI can analyze blockchain-stored data to provide deeper insights into customer behaviour, enabling more precise personalisation and dynamic reward structures. Conversely, blockchain ensures the security and transparency of the data used by AI systems, fostering trust among consumers.

This integration can lead to the development of smart contracts that automatically adjust loyalty rewards based on real-time customer interactions and predefined criteria. Such systems can enhance efficiency, reduce administrative costs, and provide customers with immediate gratification, strengthening brand loyalty.

Emphasis on Ethical and Sustainable Practices

Modern consumers are increasingly conscious of ethical and environmental issues. Retailers can leverage this awareness by incorporating sustainability and ethical considerations into loyalty programs. For instance, offering rewards for eco-friendly purchases or supporting charitable causes can resonate with socially responsible customers, fostering deeper emotional connections with the brand.

Incorporating transparency through blockchain can further enhance credibility, as customers can verify the ethical sourcing and sustainability claims of products. This approach not only aligns with consumer values but also differentiates the brand in a competitive market.

The Rise of Experiential Rewards

Beyond traditional discounts and points, there is a growing trend toward offering experiential rewards that provide unique value to customers. These can include exclusive access to events, personalised services, or early product releases. Such experiences can create lasting memories and emotional bonds between the customer and the brand.

For example, luxury brands increasingly offer personalised shopping experiences or invitations to exclusive events as part of their loyalty programs, enhancing the perceived value and exclusivity associated with the brand.

Loyalty programs are undergoing a significant transformation. Brands are shifting from traditional point-based systems to subscription-based models, offering exclusive benefits to paying members. This strategy aims to foster deeper customer engagement and secure steady revenue streams. 

However, as consumers face an increasing number of subscription options, they are becoming more discerning, leading to potential subscription fatigue. To navigate this challenge, retailers must ensure their loyalty offerings provide genuine value and personalised experiences. Leveraging advanced technologies, such as artificial intelligence, can help tailor these programs to individual preferences, enhancing customer satisfaction and retention. 

Addressing the digital divide is crucial; as loyalty programs increasingly rely on apps, individuals without smartphones may feel excluded, missing out on exclusive deals and services. Retailers need to consider inclusive strategies to accommodate all customers. 

The future of retail loyalty lies in balancing exclusivity with accessibility, leveraging technology for personalisation, and ensuring inclusivity to foster genuine customer loyalty.

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