Alexa, which stores have the best deals right now?
Once a futuristic notion, this question is now a reality for millions of consumers who rely on voice-activated devices for shopping lists, product recommendations, and more. As conversational AI becomes an integral part of daily life, voice-first commerce is reshaping brand engagement, challenging traditional marketing approaches, and unlocking new revenue opportunities.
But are brands truly ready for this shift?
While some have embraced the potential of conversational AI, others are scrambling to catch up, struggling to redefine their strategies at a time when hands-free shopping and personalised voice interactions are the norm.
The question isn’t whether voice commerce will dominate – it’s how soon. Brands that adapt quickly and strategically will set themselves apart in this voice-first future, while the rest risk being left unheard.
The Rise of Voice-First Commerce
Voice commerce is rapidly becoming a mainstream consumer behaviour.
The global voice recognition technology market is projected to grow to nearly $50 billion by 2029.
Consumer preferences are steering the surge in voice commerce, with hands-free convenience redefining how people shop, search, and interact. Smart speaker users now average 12.4 weekly tasks on their devices – nearly double the 7.5 recorded in 2017 – highlighting the growing integration of voice technology into everyday routines.
Brands must act now. This shift isn’t just about new tech; it’s about meeting customers where they are – on the go, multitasking, and expecting seamless experiences. For brands clinging to traditional e-commerce strategies, the window to pivot is closing.
How Conversational AI is Reshaping Brand Strategies
Conversational AI is transforming how brands interact with customers, pushing the boundaries of personalisation and engagement. Unlike traditional e-commerce, where interactions are largely visual and transactional, voice-first commerce creates opportunities for real-time, human-like conversations that build deeper connections.
Personalisation at Scale
AI-driven voice assistants use advanced natural language processing to deliver tailored recommendations. By analyzing past purchases, search history, and real-time preferences, these systems can create “segments of one,” offering highly personalised experiences. For example, a voice assistant can suggest a product refill based on a consumer’s purchase history or recommend a new service aligned with their preferences.
Improved Accessibility and Inclusivity
Voice technology breaks barriers, offering accessibility to older adults and individuals with visual impairments. For brands, this means tapping into previously underserved demographics and expanding their reach.
Enhanced Customer Service
Conversational AI is revolutionising customer support, from resolving issues instantly to guiding users through complex buying decisions. Voice assistants can handle inquiries 24/7, minimising wait times and enhancing satisfaction. Brands like Sephora and Domino’s have implemented conversational AI to simplify appointment bookings and food orders, creating frictionless customer journeys.
Challenges Brands Face with Conversational AI
The promise of conversational AI is immense, but its implementation comes with notable challenges that brands must overcome to fully leverage its potential.
Understanding Diverse Accents and Dialects
A significant barrier to effective conversational AI adoption is the ability to interpret diverse accents and dialects accurately. For instance, studies have shown that accents from regions like New York City, New Jersey, and Boston within the US market pose considerable difficulties for voice recognition systems. Distinct pronunciations and local slang in these areas often lead to misinterpretations, frustrating users and undermining trust in the technology. This highlights the need for brands to train AI models to handle linguistic nuances across regions and demographics.
Privacy and Data Security Concerns
Data privacy is another pressing issue. In a high-profile example, Italy’s data protection authority fined OpenAI 15 million euros for processing user data without adequate legal justification and transparency. The authority also cited inadequate age verification measures, exposing minors to potentially inappropriate content. These instances reflect broader consumer concerns about how personal data is collected, stored, and used in conversational AI systems.
Turning Challenges Into Opportunities
Brands that tackle these challenges head-on can gain a competitive advantage. Building AI systems that are linguistically inclusive and ensuring robust data privacy protocols will not only improve user experience but also foster trust among increasingly cautious consumers. Those proactively addressing these hurdles position themselves as leaders in the voice-first era, where reliability and consumer confidence are critical to success.
Brands Leading the Way with Conversational AI
As conversational AI becomes a cornerstone of voice-first commerce, some brands leverage its potential to drive engagement and boost sales. These early adopters offer valuable lessons for those looking to stay ahead of the curve.
Amazon’s Alexa: Setting the Standard for Voice Commerce
Amazon’s Alexa ecosystem has transformed how consumers shop, from reordering household essentials to discovering new products. With Alexa Skills tailored for brands, companies like Tide and Starbucks have seamlessly integrated into the consumer’s voice-enabled routine. Tide’s Alexa Skill, for instance, provides stain removal tips while subtly promoting its products, showcasing how conversational AI can blend utility with branding.
Sephora: Redefining Beauty Retail
Sephora has embraced conversational AI through virtual assistants that guide customers in selecting makeup and skincare products. By integrating its AI systems with Google Assistant, Sephora enables voice-driven appointment booking for beauty consultations, merging convenience with personalized recommendations. This approach not only enhances customer experience but also drives foot traffic to physical stores.
Case Study: Domino’s Frictionless Ordering Experience
Using Conversational AI
Image Credit: Shorty Awards
Since its founding in 1960, Domino’s Pizza has expanded to over 20,000 locations across 90 countries. A key milestone in this journey was the adoption of conversational AI to streamline operations and enhance customer experiences.
The Challenge
As consumer behaviour evolved, Domino’s recognised the need to offer more intuitive and convenient ordering methods. While effective, traditional online and phone orders lacked the seamless interaction modern consumers desired. The challenge was to develop a system capable of understanding and processing how customers express their orders, accommodating various accents, languages, and preferences.
The Solution
Image Credit: Google Cloud
In August 2016, Domino’s began exploring Natural Language Understanding Solutions (NLU) and ultimately selected Google’s Dialogflow for its scalability and robust NLU capabilities. This platform allowed Domino’s to handle the extensive range of customer intents and ordering options inherent in its menu. By leveraging over 60 years of customer service expertise, Domino’s developed “Dom,” an AI-powered chatbot integrated across multiple platforms, including Google Assistant-enabled devices. Customers could now place orders by simply saying, “Hey Google, talk to Domino’s,” initiating a conversational ordering experience.
Implementation
The implementation process involved training the AI to manage both simple and complex ordering scenarios, ensuring it could handle the diverse ways customers might place orders. The user-friendly interface facilitated rapid development and deployment, enabling Domino’s to efficiently meet or exceed project milestones. The AI system was designed to integrate seamlessly with existing operations, providing a consistent and reliable customer experience across various digital platforms.
Results
Image Credit: Google Cloud
The introduction of conversational AI surpassed Domino’s initial expectations. The AI-powered ordering system not only enhanced customer convenience but also improved operational efficiency. The system’s performance led to continuous refinement of the conversational experience, allowing Domino’s to stay ahead of customer expectations and adapt to new interaction patterns. This commitment to innovation reinforced Domino’s position as a leader in digital transformation within the food service industry.
Learning from the Leaders
These examples highlight the versatility of conversational AI across industries. By focusing on consumer needs – whether it’s saving time, offering expert guidance, or simplifying everyday tasks – brands can create meaningful voice interactions that drive loyalty and revenue.
For brands still on the fence, these success stories highlight an essential truth: conversational AI is not a passing trend but a transformative force that will define the future of customer engagement.
The Future of Conversational AI in Voice Commerce
The evolution of conversational AI is accelerating, with innovations poised to redefine how brands engage consumers in the coming years. This isn’t just an extension of existing technology; it’s a shift toward a more intuitive, predictive, and immersive future.
Natural Language Processing Reach New Heights
Advances in NLP enable voice assistants to understand context, sentiment, and even subtle nuances in conversation. This development allows brands to move beyond basic commands and create meaningful, two-way interactions that feel almost human. Imagine a virtual shopping assistant that remembers your preferences and anticipates your needs before you articulate them.
Integration with Immersive Technologies
Converging conversational AI with augmented and virtual reality promises a new dimension of voice-driven engagement. Consumers could soon “walk” through virtual stores guided by a voice assistant, combining the convenience of e-commerce with the immersive experience of physical shopping.
Predictive Voice Analytics for Proactive Engagement
Predictive analytics powered by AI will allow brands to forecast consumer behaviour with unprecedented accuracy. Voice assistants will be able to recommend products based on upcoming events, seasonal trends, or personal milestones, creating hyper-relevant shopping experiences.
Generative AI Redefining Personalisation
Generative AI will further enhance voice commerce by creating highly customised interactions. From crafting personalised product descriptions to generating dynamic recommendations during conversations, this technology ensures every interaction feels uniquely tailored to the consumer.
The Ethical and Privacy Imperative
As the future of conversational AI unfolds, ethical considerations will take centre stage. Brands must be transparent about how they collect and use voice data, addressing consumer concerns about privacy and surveillance. Building trust will be just as crucial as building technology.
How Brands Can Prepare for the Voice-First Era
To thrive in the age of conversational AI, brands must adopt a proactive, voice-first strategy. Success will depend on blending innovative technology with a deep understanding of evolving consumer expectations.
Invest in Voice-Ready Infrastructure
Brands need robust systems that integrate with conversational AI platforms like Alexa, Google Assistant, or proprietary solutions. This includes optimizing product listings for voice search, ensuring seamless compatibility with voice-activated devices, and developing APIs for real-time interactions.
Prioritise Multilingual and Inclusive Design
Global markets demand voice solutions that cater to diverse languages, dialects, and accents. Brands must train AI systems to understand regional nuances, making their offerings accessible to a broader audience. Inclusivity should also extend to designing interfaces for users with disabilities, tapping into underserved markets.
Focus on Data Privacy and Ethical AI
Building trust is critical in a voice-driven world. Brands should establish clear policies on data collection and usage, ensuring transparency with consumers. Adopting ethical AI practices, such as eliminating bias in voice recognition, will enhance credibility and foster loyalty.
Collaborate with AI Ecosystem Leaders
Partnerships with technology giants and AI innovators can accelerate voice-first strategies. Whether leveraging Google’s advanced NLP or collaborating with Amazon on Alexa Skills, aligning with established platforms ensures smoother implementation and greater reach.
Measure and Adapt Through Key Performance Indicators
Voice commerce success must be quantifiable. Brands should track engagement rates, voice search conversions, customer retention, and satisfaction. They can continuously refine their voice strategies by analyzing these insights to better meet consumer needs.
Prepare for a Voice-Only Future
While omnichannel strategies remain vital today, brands should experiment with voice-only campaigns and interactions. Developing exclusive voice-driven experiences will help them prepare for a future where voice commerce dominates.
The transition to voice-first commerce requires foresight and innovation. Brands that invest now in building their conversational AI capabilities will not only capture today’s opportunities but also shape the future of customer engagement.
The rise of conversational AI and voice-first commerce represents a massive shift in how consumers interact with brands. From streamlining purchases to creating deeply personalised experiences, voice technology revolutionises the customer journey. But this transformation comes with a challenge: brands must act swiftly and strategically to harness their potential.
As consumers prioritise convenience and personalisation, the question for brands is no longer whether to adopt conversational AI but how to do it effectively. The future belongs to those willing to innovate, adapt, and amplify their voice.
For brands willing to invest, the rewards are clear: deeper customer relationships, enhanced loyalty, and a competitive edge in the voice-first marketplace. The future of voice commerce isn’t distant—it’s unfolding now. Is your brand ready to be heard?
Get regular insights
Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

In Tokyo’s famed Tsukiji Market, chefs scrutinise every fish not only for quality but for its entire journey to their cutting board. QR codes are scanned, traceability records examined, and proof of origin demanded. This is no fleeting trend; it’s a direct response to escalating concerns over food safety and sustainability, amplified by recent high-profile scandals in the global seafood industry.
Recent years have revealed major flaws in seafood supply chains, raising serious concerns about safety and sustainability. One of the most alarming cases involved harmful chemicals found in shrimp exports from India, triggering global fears over contamination. Investigations into seafood fraud have uncovered widespread mislabeling, with fish species swapped and origins hidden. A study found that nearly a third of seafood samples were mislabeled, including high-demand fish like tuna and snapper. In Europe, farmed salmon and cod have been fraudulently sold as wild-caught, further eroding consumer trust. These scandals have intensified calls for stricter regulations and clearer labelling to rebuild confidence.
These scandals have shifted consumer priorities. A recent survey found that 72% of global consumers are willing to pay more for traceable, locally sourced seafood. Transparency is no longer a niche concern – it’s shaping purchasing decisions worldwide, from San Francisco to Berlin. The MSC reports that 71% of consumers now prioritise verified sourcing, signalling a major shift in market expectations.
The Rising Tide of Local Seafood Demand
Consumer demand for local seafood is growing rapidly, driven by a shift in priorities from price and convenience to trust and sustainability. In the US, UK, and Asia, buyers are increasingly seeking seafood with clear sourcing information, preferring options that can be traced back to responsible fisheries. This shift reflects a broader scepticism toward mass imports as consumers and regulators push for stricter oversight and higher standards. With local seafood often offering fresher quality and shorter supply chains, its appeal continues to expand beyond niche markets and into mainstream retail and dining.
In the US, demand for local seafood is surging. Since 2018, NOAA’s Seafood Import Monitoring Program (SIMP) has required importers to verify product origins, boosting confidence in traceability. A recent NOAA report found that local seafood consumption has risen 15% in five years, led by younger, eco-conscious shoppers. Retailers like Whole Foods and seafood markets are expanding their selection of sustainably sourced, locally caught products.
In the UK, sustainable seafood is no longer just a consumer preference – it’s influencing government policy. Since Brexit, the country has prioritised local sourcing as part of its food security and sustainability efforts. A recent WWF report found that nearly 60% of UK consumers actively seek sustainable seafood, with 42% favouring traceable, locally caught options.
Asia is seeing a similar shift. In Japan, Korea, and Singapore, consumers are moving away from mass imports, favouring sustainably sourced seafood with clear labelling. Japan has gone a step further, using blockchain to track seafood from catch to consumer, reinforcing the demand for transparency. Even in emerging markets like Thailand and Vietnam, locally sourced seafood is gaining ground, particularly in urban centres where awareness of sustainability is rising.
Regulatory pressure is accelerating the shift toward local seafood. The US and European Union have already tightened traceability requirements, and more governments are following suit. As seafood supply chains grow more complex, demand for verifiable, local sources is rising. Fisheries worldwide are under increasing pressure to adopt sustainable practices as both consumers and regulators push for greater accountability.
Once a niche preference, local seafood is now a major force in the global market, fueled by growing demand for trust, transparency, and sustainability.
The Psychology of the Plate
Consumers aren’t just looking for seafood – they’re looking for certainty. Emotional, cultural, and health concerns are driving the demand for traceable, local seafood. With food safety scandals still making headlines, trust has become the deciding factor in purchasing decisions.
Trust is now central to how consumers buy seafood. A 2023 World Economic Forum (WEF) report found that 68% of consumers prioritise transparency, with many refusing to buy from suppliers who can’t verify their sourcing. This push for traceability isn’t just about sustainability – it’s about restoring confidence in an industry shaken by fraud and contamination scandals.
Health concerns are another major driver of transparency. Reports of chemical residues and antibiotics in imported seafood have led consumers to rethink their choices. A recent Food Safety Alliance study found that 62% of consumers are willing to pay more for seafood with verified health certifications, seeing traceability as a safeguard against contamination.
The “locavore” movement – once focused on produce – now extends to seafood. Younger generations are leading the charge. A WWF survey found that 82% of US millennials are willing to pay more for sustainably sourced seafood, with Gen Z following closely behind. These consumers aren’t just thinking about sustainability; they’re also factoring in labour practices and ethical sourcing.
“Consumers today want to know where their seafood comes from, how it was sourced, and whether it was sustainably caught. Transparency is no longer a luxury; it’s an expectation,” said Dr. Simon Edwards, Director of Marine Sustainability at the MSC, in an interview with FoodNavigator.
This shift isn’t just about seafood – it reflects a broader change in consumer behaviour. As sustainability, health, and ethics become priorities, businesses that embrace transparency will gain a competitive edge in an increasingly conscious market.
Dock to Dish Revolution
Image credit: Dock to Dish
Dock to Dish, a US-based seafood cooperative, is changing how seafood reaches consumers and restaurants by directly connecting local fishermen with their market. Focused on sustainability and freshness, the program offers a direct line from the ocean to the table, ensuring both quality and a deeper connection to the communities that catch the fish.
Since its founding, Dock to Dish has expanded to multiple coastal regions, including the West Coast, and garnered partnerships with high-profile chefs and restaurants. In California, one such chef, Michael Cimarusti, is at the forefront of the program. Known for his work at Providence and Connie & Ted’s, Cimarusti values the opportunity to support local fishermen. “One of my big motivators as a seafood chef is to keep American fishermen fishing,” he says. “It’s a dying industry, like being a small farmer. It’s no different to me because they’ve been regulated and consolidated out of their livelihoods in many cases.”
For Cimarusti and others in the program, Dock to Dish offers a solution to a critical problem: the shrinking of small, independent fisheries. Sean Barrett, co-founder of Dock to Dish, often hears the question, “How come no one’s doing what the farmers are doing with vegetables and produce? Why isn’t anyone doing that for fish and seafood?”
The company’s approach stands out for its innovation in seafood distribution. By bypassing the traditional supply chain, Dock to Dish not only guarantees fresher seafood, but it also ensures that every step of the process aligns with sustainable practices and supports local economies.
Cornish Sea Salt and Traceable Fisheries
Image Credit: Cornish Sea Salt
Overview:
Cornish Sea Salt, a UK-based company, is leading the way in ensuring the traceability of seafood products through the use of blockchain and QR code technology. In an era when consumers demand greater transparency, Cornish Sea Salt offers an innovative solution by providing detailed information about the origin and journey of its seafood, reinforcing trust and accountability throughout the supply chain.
Since integrating blockchain and QR codes, Cornish Sea Salt has made a significant impact on the UK seafood market. Though specific sales figures remain confidential, the company’s use of cutting-edge technology has solidified its reputation as a leader in sustainable practices. In a market where consumers are increasingly concerned about the sourcing and sustainability of their food, this commitment to traceability sets the company apart.
The post-Brexit landscape has further amplified the demand for local sourcing in the UK, with companies like Cornish Sea Salt capitalising on this shift. As the country looks to secure food sovereignty and support domestic industries, the emphasis on “local-first” marketing has resonated deeply with consumers. Cornish Sea Salt has positioned itself as not just a provider of high-quality seafood, but also as a champion of local, traceable products – offering a product that consumers can feel good about purchasing.
This consumer demand for transparency is not an isolated trend. A 2023 study by the MSC revealed that 67% of global seafood consumers factor in sustainability credentials when making purchasing decisions. This growing preference for traceable, responsibly sourced products is a clear indication that consumers are prioritising the story behind their food, making it a crucial factor for brands aiming to stay ahead of the curve.
Challenges and Countercurrents
The demand for local, traceable seafood is rising, but scaling this model presents significant hurdles. From logistics to pricing, producers must navigate multiple challenges to meet growing consumer expectations.
Logistical Issues
Seafood’s short shelf life makes distribution a major challenge for local producers. Unlike imports that arrive frozen, fresh seafood must move quickly from dock to market. In coastal regions, getting fish to urban centres on time is a logistical race. A 2023 report from the National Fisheries Institute (NFI) found that inefficiencies can cause up to 10% of a catch to be lost before reaching consumers.
The Price Barrier
Sustainably sourced, traceable seafood often comes at a premium – one that not all consumers are willing to pay. An MSC study found that while 52% of consumers support sustainable seafood, many hesitate due to higher costs. Imported seafood benefits from economies of scale, making it cheaper and more competitive, leaving local producers struggling to match prices.
Regulatory Roadblocks
Inconsistent seafood labelling laws create obstacles for local producers. In the US, the Seafood Import Monitoring Program requires traceability for imports, but no equivalent standard exists for domestic seafood, giving foreign suppliers an advantage. The EU enforces stricter traceability rules, but local fisheries often struggle to navigate complex and conflicting regulations. Without universal standards, small-scale producers face an uphill battle in proving sustainability and compliance.
The Overfishing Dilemma
Rising demand for local seafood brings a risk: overfishing. Some US and European fisheries are already showing signs of depletion, according to a WWF report. Without stricter management, growing demand could put ecosystems under strain, threatening the very sustainability that local seafood markets depend on.
Why Local Seafood Makes Business Sense
The demand for traceable seafood isn’t just about ethics – it’s a smart business move. Companies investing in local sourcing are seeing higher margins and long-term profitability as consumers increasingly prioritise sustainability and transparency.
The Profitability of Traceability
Local seafood commands premium pricing, with consumers willing to pay more for ethically sourced, transparent products. Restaurants and retailers that highlight traceability are seeing increased customer loyalty, as trust in sourcing becomes a key driver of purchasing decisions. Businesses that invest in verification and sustainable practices are not only meeting consumer expectations but also securing higher margins in a growing market.
Retailers and Restaurants Are Cashing In
Retailers and restaurants are capitalising on the shift. Whole Foods has expanded its local seafood sourcing, selling premium-priced products with verified sustainability credentials. High-end restaurants and seafood chains are partnering with local fisheries, appealing to customers willing to pay more for quality and responsible sourcing.
Technology Is Fueling Transparency
Innovation is driving the growth of local seafood markets, with blockchain leading the way in traceability. In Asia, companies like Ocean Impact Organisation use blockchain to track seafood from catch to consumer. QR codes on packaging allow shoppers to verify a fish’s origin, catch method, and journey through the supply chain. This level of transparency has become a major selling point, especially in markets where trust has been shaken by seafood fraud and contamination.
Beyond blockchain, tech-fishery partnerships are improving traceability. IBM Food Trust, for instance, works with US fisheries to enable real-time tracking of seafood products. These collaborations help fisheries authenticate their catch and meet growing consumer expectations for transparency.
The Hook
The demand for local, traceable seafood isn’t a passing trend – it’s reshaping the food industry. A new generation of consumers is driving the shift, prioritising transparency, sustainability, and health over convenience. Recent seafood scandals have only accelerated the movement, reinforcing the need for a system built on trust.
Local seafood is no longer a niche; it’s the new standard. In the US, UK, and Asia, businesses embracing traceability and sustainability are leading a market that values authenticity and accountability. What was once an optional transparency measure – whether through blockchain or other tracking innovations – is now a competitive necessity.
Companies that fail to adapt risk falling behind. This shift isn’t about catering to a select group of eco-conscious consumers; it’s about meeting the expectations of a global market that demands proof at every stage of the supply chain. The case for traceable, local seafood is only growing stronger.
The next big catch isn’t in distant waters – it’s waiting at the local dock. For businesses, embracing local seafood isn’t just about meeting demand – it’s about shaping the future of the industry.
Get regular insights
Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The US Food and Drug Administration (FDA) has announced sweeping changes to how nutritional information is displayed on packaged foods. Under a rule proposed on January 14, 2025, food manufacturers would be required to feature a prominent “Nutrition Info box” on the front of most packages. This new labelling system aims to simplify consumer choices by categorising key nutrients – saturated fat, sodium, and added sugars – as “low,” “medium,” or “high,” offering a straightforward snapshot of a product’s health profile.
This initiative addresses mounting concerns over diet-related chronic diseases like diabetes and heart conditions, which place an increasing burden on public health systems. By streamlining how nutritional content is presented, the FDA seeks to empower consumers to make healthier choices quickly. The public has until May 16, 2025, to comment on the proposal, which could take effect as early as 2028 if finalised.
The proposal builds on recent FDA initiatives, including updates to the definition of “healthy” labelling and revisions to the Nutrition Facts panel. These efforts underscore a broader push for transparency and accountability in the food industry, setting the stage for a paradigm shift that could transform how consumers, manufacturers, and marketers engage with food products.
Countries like Australia, the UK, and Chile have pioneered FOP labelling systems, reshaping consumer behaviour and driving industry reform. The US now aims to join this global push for nutritional transparency, marking a critical step in aligning domestic policies with international trends.
Breaking Down the FDA’s Proposal
The FDA’s proposal represents a pivotal shift in how nutritional information will appear on packaged foods. At its core is the mandatory placement of a “Nutrition Info box” on the front of most packages, categorising saturated fat, sodium, and added sugars as “low,” “medium,” or “high” based on established dietary thresholds. This design aims to provide consumers with immediate, clear insights, eliminating the need to search for details on the back of the packaging.
The proposed changes respond to escalating public health challenges tied to diet-related conditions. With nearly 42% of American adults classified as obese, according to the Centers for Disease Control and Prevention (CDC), the FDA sees clear labelling as a vital tool to promote healthier dietary choices and combat chronic diseases.
Industry Reactions
Industry reactions to the FDA’s proposal have been divided. Health advocacy groups applaud the initiative’s potential to simplify nutrition labelling and encourage informed choices. Meanwhile, food manufacturers voice concerns over the costs of redesigning packaging and reformulating products. Some critics warn that simplified labels may sacrifice nuance, potentially misleading consumers about broader nutritional contexts.
Despite expected industry resistance, the FDA remains firm in its commitment to align US policies with global standards for nutritional transparency. The underlying message is clear: food manufacturers must evolve to meet the demands of a health-conscious consumer base.
Learning from Global Approaches to Nutritional Transparency
As the US moves toward implementing new nutrition labelling, lessons from countries like Australia, the UK, and Chile provide critical insights into the challenges and opportunities ahead. These case studies reveal how policy changes can reshape consumer behaviour and transform industry practices.
Australia: The Health Star Rating System
Australia’s Health Star Rating system, launched in 2014, rates foods on a 0.5 to 5-star scale to help consumers quickly gauge nutritional quality. Ratings consider key factors like sugar, sodium, and saturated fat, as well as beneficial elements such as protein and fibre, offering a balanced assessment of overall healthiness.
Impact on Consumer Choices:
Research shows the Health Star Rating system has reshaped consumer habits, particularly among health-conscious buyers. Products with higher ratings consistently drive sales, demonstrating the power of clear, accessible labelling in influencing choices.
Industry Adaptation:
Manufacturers have adapted by reformulating products to secure higher ratings, often lowering sugar and sodium levels. Many brands now feature star ratings prominently in marketing, using them to stand out in competitive markets.
United Kingdom: The Traffic Light Labeling System
The UK’s traffic light labelling system, launched in 2013, uses red, yellow, and green to indicate high, moderate, or low levels of calories, sugar, fat, and salt. This intuitive design offers consumers a quick and clear understanding of a product’s nutritional content.
Consumer Preferences:
Studies reveal the colour-coded system resonates with consumers, simplifying the identification of healthier choices. Shoppers consistently favour traffic light labels over numeric formats, especially during time-pressed grocery trips.
Influence on Buying Behavior:
The traffic light system has been linked to shifts in consumer purchasing patterns, with a measurable decline in sales of products marked with red indicators. This has prompted many manufacturers to reformulate products, particularly those high in sugar and salt, to avoid red labels and maintain competitiveness.
Chile and Latin America: Warning Labels for High-Risk Nutrients
Chile led the way in 2016 with mandatory warning labels, using bold black-and-white icons to flag products high in sugar, sodium, calories, or saturated fat. This model has since been adopted across Latin America, including Peru, Mexico, and Uruguay.
Impact on Product Development:
The warning labels spurred widespread product reformulation. Many companies lowered sugar content to avoid high-sugar warnings, a designation that risks alienating health-conscious shoppers.
Marketing Adjustments:
Marketing practices have also been affected, as products with multiple warning labels often face negative consumer perceptions. Some brands have shifted focus to promoting healthier product lines and emphasising natural ingredients to rebuild trust.
Key Takeaways
- Simplified, Visual Information Drives Change: Systems like traffic light labels and warning icons show that consumers respond well to clear, easily interpretable information.
- Reformulation as a Competitive Necessity: Mandatory labelling often pushes brands to improve nutritional profiles, particularly to avoid negative perceptions tied to high-risk nutrients.
- Consumer Education is Crucial: Transparency initiatives are most effective when paired with public education campaigns that help consumers understand and use the information provided.
- Balancing Regulation with Branding: US manufacturers will need to find ways to comply with FOP requirements without sacrificing brand identity, drawing inspiration from global strategies that blend health messaging with effective marketing.
The US now has an opportunity to leverage these global learnings, ensuring its approach not only improves public health outcomes but also fosters innovation and accountability across the food industry.
Consumer Trends and the Appetite for Transparency
US consumers are calling for greater clarity in food labelling. According to a 2023 International Food Information Council (IFIC) survey, 63% of Americans actively look for nutritional details when shopping, a sharp increase in recent years. Yet nearly half report feeling overwhelmed by current labels, underscoring the need for clear FOP solutions.
Generational Insights: Millennials and Gen Z Leading the Charge

- Millennials (Born 1981–1996):
Millennials are spearheading the clean-label movement, prioritising transparency and simplicity in ingredients. Compared to older generations, they are more likely to scrutinise labels for added sugars, sodium, and artificial additives, making clear labelling a key factor in their purchasing decisions. - Gen Z (Born 1997–2012):
Gen Z, raised in an age of instant access to information, demands quick, digestible details from brands. A 2024 NielsenIQ study found that 72% of Gen Z shoppers are willing to pay more for foods they consider healthier, with clear FOP labelling playing a pivotal role in influencing their perceptions.
These generational shifts have made transparency not just a preference but a baseline expectation for food brands, influencing how companies market their products and connect with their target audiences.
Transparency Reshaping Purchasing Behaviors
- Health-Conscious Choices:
Consumers are increasingly rejecting products that are perceived as unhealthy. FOP labels categorising nutrients as “low,” “medium,” or “high” will help shoppers avoid items high in added sugars, saturated fats, or sodium. - Trust as a Deciding Factor:
Transparency builds trust, and brands with clear, honest labelling are far more likely to secure consumer loyalty. A 2023 Label Insight report found that 94% of consumers favour brands they perceive as transparent. - Impact on Market Segments:
The number of products marketed as “natural,” “organic,” or “low-sugar” has already risen, and clearer labelling is expected to accelerate this trend. Conversely, brands with poor nutritional profiles may see consumers shift to competitors with healthier options.
Transparency is no longer optional – it’s a baseline expectation for today’s informed, health-conscious consumers. As the FDA’s FOP labelling proposal advances, brands that embrace this demand will position themselves to succeed in an increasingly competitive market.
The Role of Package Testing in Adapting to FOP Labels
Adapting to the FDA’s new labelling rules brings challenges but also opens doors for innovation. Market research, especially package testing, is critical for meeting regulatory demands while keeping consumers engaged. By leveraging targeted testing methods, brands can fine-tune packaging to deliver clear nutritional information and maximise consumer appeal.
A/B Testing: Fine-Tuning Label Design and Placement
A/B testing enables brands to compare FOP label designs and identify what best captures consumer attention. For example, testing can assess:
- Label placement, such as top-centre versus lower-left.
- Colour schemes that balance brand identity with regulatory compliance.
- Font size and style to enhance readability and impact.
By evaluating consumer preferences and purchase intent, A/B testing ensures packaging meets FDA standards without sacrificing visual appeal or branding.
Eye-Tracking Studies: Decoding Consumer Behavior
Eye-tracking studies provide detailed insights into how consumers engage with FOP labels. These studies help brands analyze:
- Label visibility: Which parts of the packaging draw attention first?
- Information retention: Are key nutritional details noticed and remembered?
- Purchase intent: How do FOP labels influence buying decisions?
By understanding visual patterns, brands can optimise label size, placement, and design to ensure critical information stands out in busy retail settings.
Message Testing: Highlighting What Matters Most
Message testing helps brands pinpoint the nutritional claims that resonate most with their audience. This includes:
- Testing phrases like “low sugar” or “high protein” to determine their influence on consumer perceptions.
- Simplifying complex nutritional concepts without compromising accuracy.
- Identifying regional and demographic differences in nutrient priorities to refine messaging.
Effective market research can uncover both opportunities and risks, such as the potential trade-offs between sugar reduction and perceived taste quality.
Real-World Examples of Package Testing Success
Investing in package testing equips brands to navigate the FDA’s FOP labelling rules with precision. These tools not only ensure compliance but also help optimise packaging to meet consumer expectations and build loyalty in an evolving, health-conscious market.
Nestlé: In Chile, where warning labels are mandatory, Nestlé used A/B testing to redesign packaging, reducing negative perceptions of sugar content while maintaining a family-friendly appeal. These changes, paired with product reformulation, boosted consumer trust.
Kellogg’s: In the UK, Kellogg’s used eye-tracking studies to refine traffic light labels, ensuring key nutritional data stood out. The result: improved consumer confidence and stronger alignment with health-conscious buyers.
PepsiCo: In Australia, PepsiCo conducted message testing before launching a low-sodium snack line. The term “reduced salt” was replaced with “balanced sodium,” which resonated better with consumers and drove sales growth.
Winning Strategies for Food Marketers
The FDA’s proposed labelling rules are more than a compliance hurdle – they’re an opportunity for brands to redefine their positioning and build consumer loyalty. By embracing strategic adaptations, companies can turn these regulations into a competitive edge, aligning their offerings with the priorities of health-conscious shoppers.
Reformulating Products to Improve Nutrition Profiles
Reformulating products is a powerful way to leverage FOP labelling, as healthier profiles naturally resonate with consumers. Labels categorising saturated fat, sodium, and added sugars as “low,” “medium,” or “high” will make products with better nutrition profiles stand out.
- Reducing Negative Nutrients: To avoid unfavourable designations, brands like General Mills have already reduced added sugars in cereals by nearly 16% over the past decade, reflecting evolving consumer priorities.
- Highlighting Positive Attributes: Adding fibre, protein, or vitamins not only meets health standards but shifts consumer focus toward benefits, positioning products as better choices in a crowded market.
Highlighting Positive Attributes Prominently on Packaging
Using FOP labels as part of a holistic packaging strategy allows brands to meet health-conscious expectations while maintaining a strong market presence.
- Strategic Placement: Integrating FOP labels with visually appealing branding elements – such as clean colour schemes or bold health claims – enhances shelf visibility and consumer appeal.
- Simplified Messaging: Clear phrases like “Heart-Healthy” or “Naturally Sweetened” resonate with today’s time-pressed shoppers, making complex nutritional benefits easier to understand.
Using Storytelling to Connect Labels with Brand Values
FOP labelling isn’t just about compliance – it’s a chance to tell a story. By linking labels to a brand’s mission, values, and health commitments, companies can create deeper consumer connections.
- Educating Consumers: Packaging and campaigns can explain FOP labels’ significance, empowering shoppers. For instance, highlighting efforts to reduce sugar can build trust while reinforcing a brand’s dedication to public health.
- Connecting to Broader Themes: Aligning FOP compliance with larger narratives like sustainability or community health can foster emotional connections. Oatly, for example, has tied its transparency efforts to environmental advocacy, earning loyalty from eco-conscious buyers.
- Tailoring Messaging: Personalised storytelling that addresses the unique health concerns of Millennials, Gen Z, or families makes brands feel relevant and relatable, strengthening alignment with their target audiences.
When done right, FOP labels can become a cornerstone of brand storytelling, merging compliance with authenticity.
Challenges for the Industry
The FDA’s new labelling rules place food brands at a pivotal moment. Compliance is non-negotiable, but for products with less favourable nutritional profiles, maintaining creative freedom and the market appeal becomes a steep challenge. Striking the right balance between regulatory adherence and brand identity will be crucial.
The Tension Between Compliance and Creative Freedom
FOP labelling requires brands to surrender valuable packaging space to standardised information on saturated fat, sodium, and added sugars. For indulgence-focused products, this shift is especially challenging, as packaging that once evoked luxury or cravings must now make room for health metrics that could dissuade buyers. This tension demands innovative solutions to integrate compliance without diluting brand identity.
Risks for Brands with Unfavorable Nutrition Profiles
For brands with high levels of added sugars, sodium, or saturated fats, FOP labeling poses significant risks.
- Erosion of Trust: Clear labels flagging “high” nutrient levels could undermine consumer confidence, particularly for brands already viewed as less transparent. Lost trust often redirects buyers to healthier competitors, compounding the challenge.
- Regulatory and Public Scrutiny: Poor nutrition ratings may invite criticism from advocacy groups or regulators. In Chile, for instance, sugary beverage manufacturers faced declining sales and reputational hits after the introduction of mandatory warning labels.
Addressing Challenges with Research-Driven Strategies
Proactive brands can navigate FOP challenges by leveraging data-driven strategies that align compliance with consumer expectations.
- Package Testing: Use A/B testing to assess design options that integrate FOP labels without sacrificing brand identity. Eye-tracking studies can ensure critical branding elements remain visible alongside required information.
- Product Reformulation: Reformulate products flagged as “high” in sugar, sodium, or fat. Market research can guide these changes by gauging their impact on taste perception and repurchase intent.
- Transparent Marketing: Build trust through campaigns that highlight efforts to improve nutritional profiles and educate consumers about balanced eating. Transparency fosters loyalty in a health-conscious marketplace.
- Segmented Messaging: Focus on market segments less swayed by FOP labels, such as indulgence-seeking consumers. Tailored messaging can emphasise flavour or premium ingredients over health metrics.
By tackling these challenges with research-backed strategies, brands can adapt to the FOP landscape without losing their identity. Quick, thoughtful action will enable companies to comply with regulations while positioning themselves as trusted, innovative leaders in a marketplace increasingly defined by health-conscious consumers.
Building Long-Term Consumer Trust
The FDA’s FOP labeling rules offer more than a compliance challenge – they’re a chance for brands to deepen connections with health-conscious consumers. Food brands can transform FOP labels into a foundation for lasting trust and loyalty by prioritising transparency and authenticity.
FOP Labeling as a Trust-Building Tool
FOP labels directly address consumer demands for transparency, providing health-conscious shoppers with the tools to make informed decisions. These labels can strengthen trust and highlight a commitment to well-being when integrated into broader brand narratives.
- Communicating Values: Transparent nutritional information signals accountability, fostering a perception of honesty that builds lasting loyalty.
- Engaging Consumers: FOP labels can inspire conversations, from social campaigns on nutrition to highlighting reformulation efforts. These touchpoints deepen relationships and position brands as advocates for healthier lifestyles.
The Importance of Authenticity and Avoiding “Healthwashing”
Transparency must go hand-in-hand with authenticity to avoid alienating consumers. Overstating or misrepresenting a product’s health benefits – a tactic known as “healthwashing” – can erode trust and harm a brand’s reputation.
- Aligning Marketing with Reality: Claims like “low sugar” must match FOP labels. Discrepancies between marketing and nutritional facts can confuse consumers and undermine confidence.
- Real Change Over Optics: Savvy consumers recognise superficial claims. Brands that genuinely reformulate products or invest in sustainable practices will outshine competitors relying on shallow narratives.
Brands That Have Used Transparency to Build Loyalty
Transparency has helped many brands stand out in competitive markets, proving that authenticity builds trust and loyalty:
- KIND Snacks: By displaying clear, front-of-package ingredient lists, KIND has cultivated a loyal following of health-conscious consumers who value simplicity and transparency.
- Nestlé: Faced with Chile’s mandatory FOP warning labels, Nestlé reformulated products to reduce sugar content and launched campaigns to explain these changes, reinforcing its commitment to public health.
- Chobani: With transparent sourcing and straightforward messaging, Chobani has earned a reputation for authenticity, resonating with consumers seeking honest, nutritious options.
Insights from Global Market Research
As the US moves toward implementing new nutrition labelling, lessons from global markets like Australia, the UK, and Chile provide a roadmap for navigating the shift. These countries’ experiences highlight both the challenges and opportunities that transparency brings to the food industry.
Australia’s Health Star Rating system demonstrates how simple, visual indicators can influence consumer preferences toward healthier options. However, its voluntary nature has led to inconsistent participation, particularly among less healthy brands. For US companies, this underscores the need for universal compliance to maintain trust and ensure meaningful impact.
The UK’s traffic light labelling system, featuring colour-coded indicators, has significantly shaped purchasing decisions, especially among families and younger shoppers. It has also spurred reformulation efforts, with brands lowering sugar and salt to avoid red labels. Transparency, as this system shows, not only informs consumers but also drives industry-wide changes. For US brands, adopting proactive reformulation strategies early could mitigate the reputational risks associated with unfavourable FOP labels.
Chile’s bold implementation of mandatory warning labels demonstrates how regulation can act as a catalyst for product innovation. The stark black-and-white warnings have led to a reduction in sales of high-sugar and high-salt products, but they’ve also opened the door for brands to introduce reformulated or alternative product lines. In a market where simplicity often equals clarity, US companies might consider how to balance compliance with consumer education to avoid potential misinterpretation of labels.
Market research is essential for navigating the complexities of FOP labelling. Tools like eye-tracking studies, A/B testing, and sentiment analysis help brands create labels that meet regulatory requirements while resonating with consumers. Package testing ensures that new labels align with broader brand messaging, maintaining trust during the transition.
For US brands, FOP labelling is an opportunity, not a constraint. By leveraging global best practices and investing in market research, companies can meet consumer demands for transparency while maintaining a competitive edge. The reward is clear: an empowered consumer base and a food industry rooted in trust and accountability.
Get regular insights
Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The potential ban of TikTok in the United States is more than a policy decision. It’s a reckoning for marketers and content creators who depend on the platform. TikTok’s advertising revenue exceeded $18.5 billion globally in 2024, with approximately $10 billion attributed to the US market alone. For creators, the stakes are even higher; TikTok is a critical income source, contributing an estimated $24.2 billion to the US GDP and supporting over 224,000 jobs. A ban would not only devastate these livelihoods but also redirect billions in ad revenue to competitors like Meta and Alphabet, fundamentally reshaping the digital marketing landscape.
At the core of this disruption is a hard truth: brands and creators do not own their followers. Platforms like TikTok hold the data, dictate access, and can vanish or change their rules overnight. The potential fallout from a ban highlights the need for marketers to rethink their strategies. Diversifying platforms, leveraging market research, and building direct connections with audiences are no longer optional – they’re essential to survival in an unpredictable digital ecosystem.
The Illusion of Ownership
Social media has given brands and creators unprecedented access to audiences – but the power dynamic has always been skewed. Platforms like TikTok, Instagram, and YouTube control the data, dictate the algorithms and ultimately decide who sees what. For marketers, this creates an illusion of ownership, masking a fundamental vulnerability: when a platform changes its policies or faces regulatory action, access to that audience can disappear overnight.
TikTok exemplifies the scale of this dependency. With over 121 million monthly active users in the US and 1.6 billion globally, it has become a cornerstone for brands targeting younger demographics.
In 2024, the average US adult spends 58.4 minutes daily on TikTok, up from 27.4 minutes in 2019. This five-year surge in engagement solidifies TikTok as one of the most captivating platforms in the digital landscape. For creators, TikTok offers a lucrative ecosystem, contributing billions in advertising and influencer revenue. However, this reach and revenue exist at the mercy of the platform’s continued operation.
History offers stark lessons on the risks of platform reliance. Vine’s abrupt shutdown in 2017 wiped out entire communities of creators and brands that had invested heavily in its ecosystem. Instagram’s move to a pay-to-play model, prioritising ads over organic reach, pushed many businesses to overhaul their strategies. YouTube’s recurring demonetisation policies have similarly left creators scrambling to replace lost income streams. Most recently, X (formerly Twitter) altered its monetisation model, tying payouts to engagement from Premium users and forcing creators to rethink how they generate revenue.
The lesson is clear: social media platforms are tools, not guarantees. Brands that fail to build independent, direct connections with their audiences risk losing more than visibility – they risk losing their entire foundation for engagement and revenue. As the TikTok ban looms, it’s a timely reminder that the only sustainable strategy is one that puts ownership of audience data back in the hands of brands and creators.
The Market Research Perspective
When platforms falter, market research becomes the ultimate safety net for brands. While social media metrics offer a glimpse into audience behaviour, they’re limited by the platform’s control over data. Market research tools, on the other hand, provide brands with the independence and depth needed to adapt in the face of disruption.
Understanding Audiences Beyond the Platform
Tools like social listening and sentiment analysis allow brands to track consumer behaviour and conversations across multiple channels, not just a single platform. These insights reveal what matters most to audiences – whether it’s sustainability, personalisation, or emerging trends – and help brands craft strategies that resonate even if access to a specific platform disappears. Audience segmentation further refines this understanding, enabling brands to pinpoint which demographics or regions align with their core values and products.
Identifying the Right Platforms
Market research also plays a pivotal role in identifying where brands should invest their resources. Not every platform appeals to every audience. For example, Gen Z users dominate TikTok, but Millennials are more active on Instagram, and professionals gather on LinkedIn. By analysing audience preferences and regional trends, brands can diversify their digital presence strategically, ensuring that no single platform dictates their success.
Pivoting in the Face of Disruption
The 2020 TikTok ban in India exposed the fragility of marketing strategies that depend on a single platform. With over 200 million users in India by 2020, TikTok was a key channel for reaching younger consumers. When the Indian government enforced the ban, citing national security and data privacy concerns, creators and brands were abruptly cut off from a massive audience. However, brands that had invested in understanding their audiences were able to pivot quickly, shifting their focus to platforms like Instagram Reels and YouTube Shorts. Bira 91, an Indian FMCG brand, used consumer insights to adapt its campaigns to Instagram Reels, targeting the same demographic. This data-driven strategy allowed the brand to recover a significant portion of its lost engagement, demonstrating the power of audience understanding and the ability to adapt swiftly to new platforms.
Similarly, Vine’s shutdown in 2017 left creators scrambling to maintain their digital presence. Vine had been one of the most influential platforms for short-form video content, but its sudden closure disrupted many creators’ revenue streams. Creators who had taken the time to understand their audiences and the type of content that resonated – whether humour, tutorials, or lifestyle inspiration – could transition smoothly to platforms like YouTube and Instagram.
King Bach, born Andrew Bachelor, is a prominent actor, comedian, and content creator who initially rose to fame with his short, humorous videos on the now-defunct Vine platform. He became one of the top creators on Vine before the platform was shut down in 2017. Unlike many creators who struggled to transition, King Bach quickly adapted his content to YouTube, growing his channel to millions of subscribers. His ability to understand and cater to his audience’s preferences, regardless of the platform, allowed him to maintain relevance and continue his success beyond Vine.
Recent changes to monetisation models on platforms like X (formerly Twitter) have highlighted the ongoing risks of platform dependence. X has shifted its creator payout structure, tying payments to engagement from Premium users rather than ad revenue. This change has forced many creators to rethink how they engage with their audience and generate income. TikTok’s ability to recover quickly after the India ban was possible because brands and creators understood the nuances of their audience, enabling them to adjust their content strategies and move to new platforms without losing significant revenue or engagement.
These examples provide a vital lesson: platforms are volatile, but understanding your audience isn’t. The ability to pivot to new platforms and adjust content to meet shifting audience expectations is not just a reactive tactic but a proactive strategy grounded in solid market research.
The Safety Net for the Future
Market research not only helps brands navigate disruptions but also empowers them to flourish in an unpredictable environment. By consistently analysing consumer behaviour, sentiment, and emerging trends, brands can anticipate changes and adapt proactively.
Building a Platform-Agnostic Strategy
For brands navigating the volatile world of social media, diversification is not just a safeguard – it’s a strategy for sustained growth. Relying on a single platform exposes marketers to the whims of algorithm changes, policy shifts, or outright bans. By adopting a platform-agnostic approach, brands can ensure their message reaches audiences across multiple channels, minimising risk and maximising visibility.
The Case for Diversification
Platforms rise and fall, but audience expectations remain constant. Consumers want engaging, relevant content delivered where they are. Diversifying across multiple platforms allows brands to maintain connections with their audiences, even when one platform’s reach is disrupted. For example, creators who transitioned from Vine to YouTube and Instagram maintained their visibility by adapting their content to the preferences of each platform’s audience. The same principle applies to brands that seek long-term resilience.
Actionable Steps for Marketers
- Cross-Promote Content
- Ensure your content isn’t confined to a single platform. Create variations that can live on YouTube Shorts, Instagram Reels, and TikTok simultaneously.
- Leverage cross-promotion to direct followers from one platform to another. For example, a TikTok video can include a call-to-action for a YouTube channel, ensuring audience migration if one platform falters.
- Leverage Owned Channels
- Establish and prioritise owned channels like websites, email newsletters, and apps. These channels give you direct access to your audience without relying on third-party algorithms.
- Offer exclusive content, early access, or special discounts to encourage followers to subscribe to your newsletter or download your app. Brands like Glossier have successfully used newsletters to maintain strong connections with their communities outside social media.
- Test New Platforms
- Experiment with new platforms to stay ahead of emerging trends. YouTube Shorts, LinkedIn, and niche apps like BeReal offer untapped opportunities to reach specific audiences.
- Monitor the performance of test campaigns to determine where your efforts yield the best results. For example, during TikTok’s early days, brands that embraced the platform reaped massive rewards as it became prominent.
Building a platform-agnostic strategy ensures that no single platform controls your access to your audience. By spreading content across multiple channels, cultivating owned platforms, and staying open to emerging trends, brands can future-proof their marketing efforts.
Owning Your Data
When algorithms dictate visibility and platforms hold the keys to audience access, owning your data is the ultimate form of independence. First-party data – the information you collect directly from your audience – allows brands to build lasting, direct relationships with consumers while insulating themselves from the volatility of social media platforms. This isn’t just a safeguard; it’s a proven driver of higher ROI and long-term success.
The Power of First-Party Data
Unlike third-party data, which is aggregated and often incomplete, first-party data is accurate, actionable, and uniquely tailored to your brand. Studies show that marketing campaigns leveraging first-party data see a 2x–5x higher ROI than those relying on third-party sources. By owning this data, brands can create personalised experiences, predict customer behaviours, and optimise engagement without the constraints of platform algorithms or external disruptions.
Strategies for Building Direct Engagement
- Email Campaigns with Value-Driven Content
- Email remains one of the most effective channels for engagement, with an average ROI of $36 for every $1 spent.
- Encourage users to subscribe by offering exclusive content, personalised recommendations, or early access to sales. For example, brands like Sephora use tailored email campaigns based on purchase history to drive repeat business.
- Subscription-Based Services
- Build direct, recurring revenue streams through subscription models. Offer exclusive content, VIP experiences, or premium products to subscribers.
- Examples include Patreon for creators or The New York Times’ subscriber-only journalism, both of which successfully monetise audience loyalty.
- Community-Building Tools
- Platforms like Discord, Slack, or private forums enable brands to create intimate, engaged communities where they can interact directly with their audience.
- These communities foster loyalty and allow brands to gather insights directly from their most invested users. For instance, fitness brand Peloton uses private Facebook and app-based groups to maintain a strong community connection.
As privacy regulations tighten and third-party cookies phase out, first-party data will only grow in importance. Brands that focus on building these direct connections now will have a significant competitive edge in the future. Owning your data means owning your audience – and in a landscape where platforms come and go, it’s the only way to ensure resilience and relevance for years to come.
Anticipating Audience Migration Patterns
When platforms falter, audiences don’t disappear – they migrate. Market research can help brands predict where their target demographics will go next, ensuring continuity in engagement. For instance, when TikTok was banned in India, many creators and audiences shifted to Instagram Reels and YouTube Shorts. Brands that anticipated this migration by monitoring audience preferences and testing campaigns on these platforms were able to adapt seamlessly, maintaining their presence and avoiding revenue loss.
Understanding Emerging Consumer Behaviors
Consumer habits are constantly evolving, driven by technology and cultural shifts. The rise of audio-only platforms like Clubhouse and Spotify Greenroom, as well as private social networks such as Discord, reflects a growing preference for more personalised and intimate digital interactions. Market research enables brands to identify these trends early, ensuring they can tailor their strategies to meet new demands. For example, brands that embraced podcast sponsorships and audio ads capitalised on the surge in audio consumption, creating authentic connections with their audiences.
Identifying Unmet Needs
Market research doesn’t just track existing trends – it uncovers gaps in the market that can guide new marketing initiatives. Predictive analytics and sentiment analysis allow brands to understand what consumers want but can’t yet find. For instance, a food brand analysing health-conscious consumer trends might discover a growing demand for plant-based proteins tailored to regional flavours. Acting on this insight could position the brand as a leader in an untapped category.
Predictive Analytics and Trend Analysis in Action
Predictive analytics transforms historical data into actionable forecasts, giving brands a strategic advantage. Consider how Netflix uses viewer data to anticipate trends in content preferences, ensuring its platform is always stocked with binge-worthy series. Similarly, fashion brands like Zara use trend analysis to predict seasonal demands, enabling them to produce and deliver popular items faster than competitors. These tools help brands remain proactive rather than reactive, turning insights into immediate action.
The Path to Proactive Marketing
Relying solely on past data or platform metrics is no longer enough in a digital ecosystem that changes by the day. Market research provides the foresight needed to anticipate disruptions and stay ahead of the curve. By predicting audience movements, understanding new behaviours, and identifying unmet needs, brands can not only navigate change but also lead it.
For marketers, embracing market research as a forward-looking tool is the difference between being caught off guard and setting the pace. In an unpredictable world, the brands that thrive will be those that see the next trend – or disruption – before it happens.
The Future Belongs to Prepared Marketers
The digital landscape has never been more uncertain. Platforms rise to dominance and fall from favour with increasing speed, leaving brands that depend on them vulnerable. The looming TikTok ban is not an isolated event – it’s a harbinger of the volatility that defines modern marketing. Those who cling to the illusion of platform permanence risk being swept away by the next disruption.
Prepared marketers understand that control is not given; it is taken. They are building direct connections with their audiences, harnessing the power of first-party data, and leveraging insights from market research to anticipate what’s next. They don’t wait for the ground to shift – they shape the terrain themselves.
Get regular insights
Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The technology industry, long known for its constant innovation, is about to undergo even more transformative changes in 2025. As emerging technologies continue to evolve and global dynamics shift, businesses will face new opportunities and challenges that will reshape the future of tech. From quantum computing breakthroughs to the rise of ethical AI and the expansion of edge computing, these trends are set to disrupt the way industries operate and how technology will drive progress.
In this rapidly evolving environment, staying ahead of the curve is essential for tech companies to remain competitive. Let’s explore the four key trends that will redefine the technology landscape in the coming year.
Trend 1: Quantum Computing Enters Commercialisation
After years of research and theoretical advancements, quantum computing is finally making the leap from academic breakthroughs to real-world applications. In 2025, quantum technology is poised to solve complex, data-intensive problems across industries like finance, healthcare, logistics, and beyond. Companies are beginning to harness the power of quantum computing to perform calculations and simulations that would have been unimaginable with classical computers. This shift marks the start of a new era in computing, where quantum algorithms will drive unparalleled advancements in problem-solving capabilities.
Why This Will Disrupt:
- Offers exponential speed-ups for data-intensive computations: Quantum computers have the potential to process massive datasets at speeds far beyond the capabilities of today’s supercomputers. This capability could revolutionise sectors such as pharmaceuticals, where simulations of molecular interactions could accelerate drug discovery, or finance, where quantum computing could optimise complex algorithms in real time.
- Forces industries to reimagine processes that rely on advanced analytics: As quantum computing begins to tackle problems once thought unsolvable, industries will need to rethink their existing frameworks. From logistics to supply chain management, quantum algorithms could offer solutions that drastically improve efficiency and reduce costs by enabling more sophisticated predictive models and optimisation techniques.
- Creates a race among tech companies to lead in quantum innovation and commercialisation: With its enormous potential, quantum computing has sparked a global race among tech giants, startups, and academic institutions to develop practical applications. Companies that successfully commercialise quantum technology first will hold a major competitive edge, driving innovations and leading the charge in industries from machine learning to climate modelling.
As quantum computing moves into the mainstream in 2025, businesses must adapt quickly to incorporate this powerful new technology or risk being left behind. The disruption it will bring across industries is profound, as quantum algorithms promise to revolutionise the speed and efficiency of data processing and complex decision-making.
Case Study: Google – Sycamore and the Quantum Leap
Google’s quantum computing project, Sycamore, demonstrated quantum supremacy in 2019 by solving a problem that was previously intractable for classical computers. The project marked a historic breakthrough, showing that quantum computers can perform specific tasks exponentially faster than conventional ones. As Google continues to push the boundaries of quantum technology, its ongoing research aims to transition quantum computing from theoretical breakthroughs to real-world applications that could revolutionise industries like finance, healthcare, and logistics, particularly those reliant on massive data processing and computational power.
Trend 2: AI Ethics and Regulation Take Center Stage
As artificial intelligence (AI) becomes increasingly embedded in technology across industries, concerns regarding its ethical use and societal impact are growing louder. In 2025, AI is no longer just a tool; it’s a critical driver of business operations, decision-making, and even personal lives. With its vast potential, AI is also raising complex questions about fairness, accountability, and transparency. To address these concerns, stricter regulations and ethical frameworks are expected to reshape how AI is developed and deployed, ensuring it aligns with societal values while mitigating risks.
Why This Will Disrupt:
- Adds compliance costs and slows down unregulated AI deployments: As governments and international bodies introduce new laws to ensure AI technologies are safe, fair, and transparent, companies will face increased regulatory compliance costs. The need to adhere to these regulations will slow down the rapid deployment of AI tools, particularly in sectors like finance, healthcare, and autonomous systems, where ethical considerations are paramount.
- Pushes tech companies to prioritise transparency and bias mitigation: In 2025, the focus on AI ethics will force companies to address the biases that AI models can inherit from historical data or skewed training sets. Tech companies will need to invest in developing transparent AI systems that can be audited for fairness and accountability. This emphasis on ethical AI will drive innovation in tools for bias detection, algorithm transparency, and ethical oversight.
- Creates opportunities for innovation in ethical AI tools and auditing solutions: With the growing demand for ethical AI, there will be a surge in the development of tools and services aimed at auditing, monitoring, and enhancing the ethical standards of AI systems. Companies will invest in creating new software, platforms, and methodologies to ensure that AI applications meet established ethical guidelines. This opens the door to new business opportunities focused on responsible AI development.
In 2025, as AI continues to shape industries, its ethical implications will take centre stage. With growing scrutiny from regulators, consumers, and advocacy groups, technology companies will need to innovate and prioritise the ethical development of AI to maintain trust and compliance, positioning themselves for long-term success in a rapidly evolving regulatory landscape.
Case Study: NVIDIA – Revolutionising Edge Computing with Jetson
NVIDIA’s edge computing solutions, including the Jetson platform, enable real-time AI processing directly on edge devices, which is crucial for industries requiring immediate decision-making, such as autonomous vehicles, smart cities, and industrial automation. By bringing AI capabilities closer to where data is generated, NVIDIA helps reduce latency and improve the speed and efficiency of critical systems. With its innovations in edge computing, NVIDIA is accelerating the development of real-time applications in sectors where immediate data processing is essential, providing a competitive edge for businesses in fast-evolving markets.
Trend 3: The Growth of Edge Computing
Edge computing is rapidly emerging as a critical infrastructure in the technology landscape, especially as the Internet of Things (IoT) and 5G connectivity continue to expand. By processing data closer to the source—whether it’s on IoT devices or at local data centres—edge computing reduces latency and enhances real-time decision-making capabilities. As industries and applications become more reliant on fast, data-intensive tasks, edge computing offers a solution that minimises the delays associated with transmitting data to centralised cloud servers. This trend is not just about improving efficiency; it’s enabling new, more sophisticated use cases across multiple sectors.
Why This Will Disrupt:
- Revolutionises sectors like autonomous vehicles, smart cities, and industrial automation: Edge computing is crucial in areas that require instantaneous data processing, such as autonomous driving and smart city infrastructure. In autonomous vehicles, for example, edge computing enables real-time analysis of data from sensors and cameras, ensuring the vehicle can respond to its environment with minimal delay. Similarly, smart cities rely on edge computing to manage traffic systems, utilities, and emergency responses, providing faster, localised control.
- Reduces reliance on centralised cloud services, shifting infrastructure investments: As edge computing becomes more widespread, companies will increasingly invest in decentralised infrastructures rather than relying solely on centralised cloud services. This shift not only reduces the dependency on long-distance data transmission but also enables more localised control, enhancing security and efficiency. Organisations will have to rethink their cloud strategies, balancing centralised cloud computing with edge solutions.
- Opens up new markets for edge devices and localised data solutions: With the growing adoption of edge computing, new markets are emerging for devices and solutions that support localised data processing. This includes edge hardware like micro data centres and software platforms for managing edge networks. The demand for edge solutions is opening opportunities for businesses to offer innovative products and services in sectors ranging from healthcare to retail, where real-time data processing is becoming more critical.
Edge computing is becoming a foundational technology, revolutionising industries by enabling faster data processing, reducing latency, and unlocking new possibilities in real-time decision-making. As this trend grows, it will not only change the way businesses handle data but also create new opportunities for innovation in tech infrastructure and localised services.
Case Study: The European Union’s AI Act – Shaping Ethical AI Regulation
The European Union has taken a global lead in AI regulation, with its AI Act establishing one of the world’s first legal frameworks for AI deployment. This act is designed to ensure that AI is used ethically across all sectors, focusing on high-risk applications such as healthcare, transportation, and public safety. By prioritising transparency, accountability, and fairness, the EU is pushing companies to comply with stringent guidelines, thereby addressing societal concerns related to bias, privacy, and safety in AI systems. The AI Act represents a major step forward in balancing innovation with responsibility in AI development.
Trend 4: The Global Tech Talent Shortage
Despite rapid advancements in technology, the demand for skilled tech professionals continues to outpace supply, creating a significant challenge for companies across industries. As businesses increasingly rely on digital transformation, the need for experts in fields like AI, cybersecurity, data science, and software development has never been greater. However, the competition for these highly specialised roles is intensifying, leading to a global tech talent shortage. To address this gap, companies are focusing on upskilling programs, adopting no-code and low-code platforms, and exploring global talent pools to stay competitive in an evolving market.
Why This Will Disrupt:
- Drives the adoption of automation tools to bridge the talent gap: With fewer tech professionals available, companies are turning to automation tools to handle repetitive tasks and optimise workflows. Technologies like AI and machine learning are increasingly being used to supplement human workforces, enabling companies to maintain productivity while navigating the shortage of skilled talent.
- Increases competition for top talent, raising salaries and benefits: As companies vie for a limited pool of qualified tech professionals, compensation packages are becoming more competitive. High salaries, flexible work arrangements, and attractive benefits are being offered to lure top talent, which is driving up labour costs. For tech companies, this creates both a challenge and an opportunity to attract the best minds in the industry.
- Forces companies to innovate workforce strategies and expand talent pipelines globally: To mitigate the talent shortage, companies are exploring new strategies for sourcing and retaining talent. This includes expanding their search beyond traditional markets and embracing global talent pools. Furthermore, companies are increasingly investing in programs to upskill existing employees, fostering a culture of continuous learning and adaptability within their workforce.
The global tech talent shortage is reshaping how companies recruit, train, and manage their workforce. As businesses face this critical challenge, they must adapt by embracing automation, investing in talent development, and expanding their reach to global talent pools. This shift will have lasting effects on the tech industry and the broader economy as companies continue to innovate to meet the growing demand for skilled professionals.
Case Study: Upwork – Bridging the Global Tech Talent Gap
Upwork, a leading freelancing platform, addresses the global tech talent shortage by connecting businesses with skilled professionals worldwide. Upwork’s AI-driven matching system allows companies to find the right tech talent—whether developers, data scientists, or other specialists—regardless of their geographic location. This flexible, on-demand workforce solution is helping organisations bridge the talent gap and scale quickly in a competitive market. By tapping into a global network of tech professionals, Upwork is helping companies overcome the challenges posed by the shortage of skilled workers, making it an essential platform in today’s tech-driven economy.
Final Thoughts
These four trends—quantum computing, AI ethics, edge computing, and the global tech talent shortage—represent a paradigm shift in the technology industry. As businesses adapt to the increasing pace of change, they will need to be agile and forward-thinking to stay ahead of the curve. Embracing innovation will be key to success, but companies must also address significant challenges, such as ethical AI development and workforce shortages, to build sustainable growth in this rapidly evolving landscape. To stay ahead of the disruptions on the horizon, it’s crucial for businesses to explore these trends and adapt their strategies accordingly. Subscribe to Connecting the Dots, our monthly e-newsletter, for deeper insights and strategies that will help you navigate these changes and prepare for the future of technology. Stay informed, stay inspired, and stay competitive.
Get regular insights
Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The food and beverage industry, a cornerstone of everyday life, is undergoing rapid transformation as it adapts to shifting consumer demands and global challenges. As consumers become more health-conscious, sustainability-driven, and focused on convenience, the industry is being forced to innovate and meet these evolving expectations. In a world where wellness, sustainability, and speed are increasingly valued, the food and beverage sector is embracing new solutions to stay competitive.
In this blog, we will explore four key trends that are set to disrupt the food and beverage industry in 2025: the rise of plant-based and alternative proteins, the growing popularity of functional foods, the push for sustainable packaging and practices, and the integration of technology to deliver hyper-convenience. Each of these trends is not just a response to consumer demand but a reflection of broader societal shifts toward sustainability, health, and efficiency.
Trend 1: Plant-Based and Alternative Proteins Dominate
Plant-based proteins and lab-grown alternatives are no longer niche products—they are quickly becoming mainstream. In 2025, these protein sources are expected to dominate the food and beverage industry as consumers increasingly prioritise sustainability, animal welfare, and health benefits. With growing awareness of the environmental impact of animal agriculture, plant-based and lab-grown proteins offer an appealing alternative for consumers who seek ethical and health-conscious food options.
This shift will disrupt the industry by forcing traditional meat and dairy producers to innovate or risk losing market share to plant-based and lab-grown protein startups. The rise of alternative proteins will create opportunities for these startups to scale their operations and introduce more innovative protein solutions to the market. Additionally, supply chains will need to adapt to accommodate new ingredients, production methods, and distribution models, requiring major changes in how food is produced and delivered.
As these alternative proteins continue to evolve, they will reshape the global food system, influencing everything from agriculture to manufacturing processes and consumer behavior.
Case Study: V2food’s Plant-Based Meat Revolution in Australia
V2food, an Australian company founded in 2019, specialises in plant-based meat alternatives made from Australian-grown ingredients. Their mission is to create a sustainable version of meat to help feed the world’s rapidly growing population.
The company offers a range of products, including burgers, mince, sausages, schnitzels, and ready meals, all designed to provide the same protein as beef. V2food’s products are available at hundreds of outlets across Australia, including major retailers like Woolworths and Coles.
In 2020, V2food launched ready-made meals in Woolworths stores nationwide, furthering its product innovation and making plant-based eating more accessible. The company emphasises affordability to ensure mass-market appeal, aiming to make plant-based options accessible to a wide audience.
V2food’s commitment to sustainability and innovation positions it as a leader in the plant-based meat sector, catering to the growing demand for ethical and health-conscious food choices.
Trend 2: Functional Foods for Wellness
Functional foods, designed to support specific health goals such as improving gut health, boosting immunity, and enhancing mental well-being, are becoming increasingly popular in the food and beverage industry. Consumers are more health-conscious than ever, looking for products that not only nourish but also offer specific benefits, such as stress relief, cognitive function, or digestive health. Ingredients like probiotics, adaptogens, and nootropics are gaining traction in packaged foods and beverages, transforming everyday food choices into tools for holistic health.
This trend is set to disrupt the industry by increasing the demand for scientifically backed health claims in product marketing. As consumers seek more than just nourishment from their food, there is pressure on companies to provide clear, credible evidence that their products deliver on their promises. Furthermore, this growing focus on wellness is encouraging closer collaboration between food producers and the healthcare sector, blending nutrition with science to create better consumer experiences.
For brands, these products appeal to a market segment that values preventative health and well-being, representing a significant growth opportunity for brands that can deliver innovative, health-promoting solutions.
Case Study: OLIPOP’s Innovative Approach to Functional Beverages
OLIPOP, founded in 2018 by Ben Goodwin and David Lester, is an American beverage company specialising in prebiotic sodas designed to support digestive health. These beverages combine traditional herbal remedies with modern science to create functional drinks that promote gut health. Each 12-ounce can contain 9 grams of dietary fibre and 2 to 5 grams of sugar, offering a healthier alternative to traditional sodas.
The brand has experienced significant growth, with sales exceeding $200 million in 2023. OLIPOP is now available in over 25,000 stores across the United States, including major retailers like Target and Costco.
The company offers a variety of flavours, including Vintage Cola, Root Beer, and Peaches & Cream, catering to diverse consumer preferences.
OLIPOP’s success highlights a growing consumer interest in functional beverages that support health and wellness. By combining the familiar taste of soda with beneficial ingredients, OLIPOP has tapped into a market seeking healthier alternatives without sacrificing flavour. The brand’s rapid expansion and popularity underscore the potential for innovation in the beverage industry, particularly in the functional food sector.
Trend 3: Sustainable Packaging and Practices
Eco-conscious consumers are increasingly demanding that brands adopt sustainable packaging and reduce food waste, driving a significant shift across industries. Compostable materials, reusable containers, and carbon-neutral supply chains are becoming essential elements of responsible business practices. As environmental concerns continue to rise, businesses in the food and beverage industry must rethink how they design, package, and distribute their products to align with sustainability goals.
This trend will disrupt the market by adding pressure on brands to invest in sustainable innovations. Companies that fail to meet the growing consumer demand for eco-friendly products risk losing market share to competitors who prioritise sustainability. The rise of eco-conscious purchasing decisions is causing brands to rethink their packaging strategies, encouraging the use of materials that are both environmentally friendly and cost-efficient. However, balancing cost with environmental responsibility presents new challenges.
As sustainability becomes a key differentiator, brands must navigate these complexities while maintaining profitability and responding to consumer demands for both sustainability and value.
Case Study: UpCircle’s Sustainable Skincare Revolution
UpCircle, founded in 2016 in the United Kingdom, is a pioneering skincare brand committed to sustainability and environmental responsibility. The company specialises in repurposing natural by-products from various industries, such as coffee grounds, apricot stones, and date seeds, transforming them into high-quality skincare products. This innovative approach not only reduces waste but also offers consumers effective, eco-friendly beauty solutions.
The brand’s dedication to sustainability extends beyond product formulation. UpCircle utilises 100% recyclable packaging, primarily made from glass and aluminium, minimising plastic use. They have implemented a “Return, Refill, Reuse” scheme, encouraging customers to return empty containers for refilling, thereby reducing packaging waste. Additionally, UpCircle is a certified Plastic Negative brand, meaning they remove more ocean-bound plastic than their packaging uses.
UpCircle’s innovative approach has garnered recognition in the beauty industry. Their products have been featured in various beauty reviews, highlighting their effectiveness and commitment to sustainability. For instance, a recent review praised UpCircle’s Cleansing Face Balm and Face Serum for improving skin texture and appearance, noting the brand’s dedication to using repurposed ingredients and recyclable packaging.
By integrating sustainability into every aspect of their business model—from ingredient sourcing to packaging and customer engagement—UpCircle sets a benchmark for eco-conscious beauty brands. Their holistic approach demonstrates that environmental responsibility and product efficacy can coexist, offering consumers a compelling choice in the skincare market.
Trend 4: Hyper-Convenience with Tech Integration
The growing demand for convenience is reshaping the food industry as technology continues to integrate into food delivery, meal kits, and retail experiences. AI-driven platforms, robotics, and automation revolutionise how consumers access, order, and prepare food. From smart refrigerators and voice-activated ordering to automated kitchens and delivery drones, technology is enabling faster, more personalised food experiences. Consumers now expect their meals to be prepared and delivered quickly, often with tailored options that match their tastes, dietary preferences, and schedules.
This trend will disrupt the industry by increasing competition for traditional food retailers, who must adapt to tech-enabled startups that offer convenience and efficiency. As automated systems and personalised experiences redefine the dining and shopping experience, restaurants and food retailers will need to invest in advanced infrastructure to meet growing expectations for speed, convenience, and customisation.
The shift toward hyper-convenience also creates opportunities for innovation in meal delivery and grocery shopping, setting the stage for future advancements in the food tech space.
Case Study: Kiwi Campus – Revolutionising Food Delivery with Autonomous Robots
Kiwi Campus, a tech startup based in the United States, is transforming the food delivery industry by using autonomous robots to provide efficient, contactless service on university campuses. The company’s Kiwibots are designed to navigate sidewalks and streets, delivering food directly to students, faculty, and staff. This innovative approach not only reduces the need for human delivery drivers but also offers a sustainable, fast, and cost-effective solution for last-mile delivery.
Kiwi Campus’s autonomous robots are equipped with advanced AI and navigation systems that enable them to identify obstacles, find optimal delivery routes, and safely deliver food to customers. The company operates primarily in university settings, where the dense population and high demand for food delivery make it an ideal environment for robots.
Through its integration of AI-driven robots, Kiwi Campus has successfully enhanced the food delivery experience by offering a seamless, efficient, and environmentally friendly alternative to traditional methods. The company has expanded from its initial pilot program at UC Berkeley to other campuses, demonstrating the potential for robotics in revolutionising urban delivery systems.
By leveraging cutting-edge technology, Kiwi Campus exemplifies how automation and AI can disrupt traditional industries, offering a glimpse into the future of food delivery services.
Final Thoughts
The food and beverage industry is being reshaped by evolving consumer values and rapid technological advancements. Trends such as plant-based proteins, functional foods, sustainable packaging, and hyper-convenience are redefining consumer expectations, emphasising health, sustainability, and convenience. These shifts demand that brands remain agile and innovative to capitalise on new opportunities while adapting to market disruptions. The ability to innovate and stay ahead of these changes is crucial for businesses aiming to succeed in an increasingly competitive landscape.
For more insights into the latest trends and strategies shaping the future of the food and beverage industry, subscribe to Connecting the Dots, our monthly e-newsletter. Stay informed, stay inspired, and lead the change in your industry.
Get regular insights
Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The financial services industry, long regarded as conservative and slow to change, is now at the forefront of some of the most significant technological and societal shifts of the 21st century. As the pace of innovation accelerates, financial institutions are being forced to rethink their models and adapt to the evolving landscape. From the rise of decentralised finance to the integration of artificial intelligence in personal finance, the way consumers and businesses interact with money is undergoing a dramatic transformation.
In this blog, we will explore four key trends poised to disrupt the financial services sector in 2025: Decentralised Finance (DeFi) going mainstream, AI-driven personal finance management, the rise of green finance and ESG investing, and the growth of embedded finance. These trends are reshaping the future of finance, and businesses must embrace innovation to remain competitive in an increasingly digital and customer-centric market.
Trend 1: Decentralised Finance (DeFi) Goes Mainstream
Decentralised finance (DeFi) is no longer just a niche sector for cryptocurrency enthusiasts. By 2025, DeFi platforms are expected to move into the mainstream, offering a full suite of financial services that challenge traditional financial institutions. These platforms leverage blockchain technology to provide peer-to-peer lending, decentralised exchanges, and blockchain-based asset management, allowing consumers to manage their finances without the need for intermediaries such as banks.
This shift to DeFi will disrupt the financial services industry by reducing reliance on centralised financial institutions, giving consumers more control over their financial decisions. With blockchain’s inherent transparency and security, DeFi offers greater accessibility to financial services for individuals who may not have access to traditional banking. This democratisation of finance is making it easier for consumers to participate in financial markets and gain access to investment opportunities.
For traditional financial institutions, DeFi represents both a challenge and an opportunity. Banks and financial firms will be forced to innovate or risk being left behind. In some cases, this may mean partnering with DeFi platforms to offer new services or integrating blockchain technologies into their operations.
The rise of DeFi is not just about competing with traditional finance; it’s about creating new ways for consumers to engage with and control their financial futures. As the DeFi ecosystem grows, it will continue to reshape the landscape of global finance.
Case Study: Cake DeFi – Empowering Users with Decentralised Finance Solutions
Cake DeFi, a Singapore-based fintech platform, is at the forefront of integrating decentralised finance (DeFi) with user-friendly solutions. The platform enables users to access a wide range of DeFi services, such as staking, liquidity mining, and lending, allowing them to generate returns from their crypto and digital assets.
Cake DeFi’s commitment to transparency and innovation is evident in its platform design, which offers easy access to DeFi applications while ensuring users understand the risks and rewards involved. The company has focused on building trust by providing a clear, accessible, and secure environment for users to engage with DeFi, helping to bridge the gap between traditional finance and the rapidly evolving world of decentralised finance.
This case study is an excellent example of how DeFi platforms are simplifying complex financial processes for consumers, making decentralised finance more accessible and mainstream. By offering transparent, easy-to-use services, Cake DeFi is contributing to the growing adoption of DeFi and demonstrating the future potential of decentralised financial ecosystems.
Trend 2: AI-Driven Personal Finance Management
Artificial intelligence is reshaping personal finance by offering hyper-personalised advice, automated budgeting, and predictive financial planning, making it easier for consumers to manage their money with precision. AI-powered apps analyze vast amounts of data, including spending habits, income, and financial goals, to offer tailored recommendations that empower individuals to make smarter financial decisions. These apps can help users track expenses, save automatically, and even invest based on their risk tolerance and long-term objectives.
The rise of AI in personal finance management threatens traditional financial advisors by providing cost-effective, scalable alternatives. Consumers no longer need to rely on expensive advisory services when AI can offer real-time, personalised guidance at a fraction of the cost. This shift is pushing financial institutions to adopt AI-driven solutions, integrating machine learning algorithms into their service offerings to stay competitive and meet customer expectations.
As AI continues to evolve, it will not only improve the quality of financial advice but also democratise access to financial planning tools, making them available to a broader range of consumers.
For financial institutions, embracing AI will be crucial to maintaining customer satisfaction and positioning themselves as leaders in an increasingly tech-driven financial landscape.
Case Study: Trim – Revolutionising Personal Finance with AI
Trim, an AI-driven personal finance tool based in the United States, assists users in managing their finances by identifying and eliminating unnecessary expenses. By analyzing spending patterns, Trim detects recurring charges such as subscriptions and negotiates bills on behalf of users, aiming to reduce monthly expenditures. This approach empowers consumers to make informed financial decisions and achieve their financial goals more efficiently.
Trim’s integration of artificial intelligence enables it to function as a virtual financial assistant, offering personalised recommendations and automating tasks like subscription cancellations and bill negotiations. This not only saves users time but also enhances their financial well-being by ensuring they are not overspending on services they no longer use.
By leveraging AI, Trim exemplifies how technology can transform personal finance management, providing users with tools to optimise their spending and savings. Its innovative approach serves as a model for integrating AI into financial services, offering valuable insights into the future of personal finance management.
Trend 3: Green Finance and ESG Investing
Environmental, Social, and Governance (ESG) investing is rapidly reshaping capital allocation in the financial services industry. As consumers and investors increasingly prioritise sustainability and ethical practices, financial institutions are responding by launching green bonds, sustainable exchange-traded funds (ETFs), and ESG-focused investment funds to meet this rising demand. ESG investing goes beyond financial returns, encouraging investments that align with socially responsible practices and contribute to positive environmental and social outcomes.
This shift toward green finance is attracting a new generation of socially conscious investors, who are more inclined to support companies that prioritise sustainability. As demand for ESG investment options grows, financial institutions are increasingly being pressured to offer these products and services, as they align with evolving customer expectations. Companies that want access to capital will need to demonstrate that they are adhering to sustainable and ethical practices, further embedding ESG principles into corporate decision-making.
For financial services firms, this trend represents both a challenge and an opportunity. To remain competitive, they must reallocate resources toward ESG compliance, develop innovative sustainable products, and adapt to a new investment paradigm.
As ESG investing becomes the standard, financial institutions that fail to embrace these changes may find themselves out of step with market demands and regulatory trends.
Case Study: HSBC Green Bonds – Leading the Charge in Sustainable Finance
HSBC has positioned itself as a leader in the green finance space by issuing green bonds to fund sustainable projects, including renewable energy initiatives and eco-friendly infrastructure. The bank has committed to a $10 billion sustainable bond issuance by 2025, underlining the growing importance of green bonds in capital allocation.
These green bonds are part of HSBC’s strategy to address investors’ increasing demand for socially responsible investment options. By funding environmentally impactful projects, HSBC is not only driving sustainability but also demonstrating how financial institutions can generate positive social and environmental returns while maintaining financial profitability.
HSBC’s green bonds are a prime example of how large financial institutions are integrating ESG principles into their financing operations. This case study highlights how green bonds provide a practical and scalable solution for funding sustainable development, making them a crucial tool in the broader movement toward sustainable finance.
Trend 4: The Growth of Embedded Finance
Embedded finance is revolutioniasing the financial services landscape by blurring the lines between traditional financial products and other industries. Companies across sectors, from e-commerce to technology, are increasingly integrating financial services—such as payments, lending, and insurance—directly into their platforms. This seamless integration creates a more convenient and frictionless customer experience, allowing consumers to access financial products without leaving the platforms they already use.
By embedding financial services into their offerings, non-financial companies are not only enhancing their customer experience but also increasing competition within the financial sector. These businesses are no longer limited to selling products in their primary domain; they can now provide financial solutions alongside goods and services. This shift is disrupting the traditional financial ecosystem, compelling established financial institutions to innovate and rethink how they deliver their products and services.
The rapid growth of embedded finance is forcing traditional financial institutions to adapt their distribution strategies. Rather than relying solely on physical branches or traditional banking products, financial services companies must now find new ways to integrate their offerings into the digital platforms where consumers are already engaging.
Embedded finance is not just transforming the way consumers access financial services—it’s reshaping the very nature of the financial services industry itself.
Case Study: eBay’s “Capital for eBay Business Sellers”
eBay partnered with YouLend to launch “Capital for eBay Business Sellers,” offering financing options directly to its business sellers. This integration allows sellers to access capital without leaving the eBay platform, streamlining their operations and enhancing their growth potential.
By embedding financing solutions into its platform, eBay provides its sellers with quick and flexible access to funds, enabling them to invest in inventory, marketing, and other growth initiatives. This approach not only supports the growth of individual businesses but also strengthens eBay’s value proposition as a comprehensive platform for entrepreneurs.
This case study exemplifies how embedded finance can enhance the value proposition of e-commerce platforms by offering seamless financial services that meet the immediate needs of business customers.
Final Thoughts
The trends shaping the future of the financial services industry—Decentralised Finance, AI-driven personal finance management, Green Finance and ESG investing, and Embedded Finance—are not just shifts but a fundamental redefinition of the landscape. These developments are reshaping how financial services are delivered, with technology and consumer demand at the forefront of driving this transformation.
For financial institutions to stay competitive, embracing innovation, agility, and customer-centric strategies will be crucial. Adapting to these changes will enable businesses to remain ahead of the curve and capitalise on new opportunities presented by these disruptions. For more insights into the latest trends and strategies shaping the future of the financial services industry, subscribe to Connecting the Dots, our monthly e-newsletter. Stay informed, stay inspired, and lead the change in your industry.
Get regular insights
Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The automotive industry stands at a pivotal moment in history. Innovation is radically reshaping how vehicles are designed, powered, and utilised, creating a future that’s more sustainable, efficient, and connected. As consumer demands shift toward cleaner, smarter, and more flexible mobility options, automakers face mounting pressure to evolve or risk becoming obsolete. From reducing carbon emissions to addressing global mobility challenges, these trends are not just about adapting to the market—they are driving the industry’s transformation.
In this blog, we explore the four key trends that will disrupt the automotive industry in 2025, examining how electric vehicles, autonomous driving, new mobility models, and sustainable materials are setting the stage for a new era in transportation.
Trend 1: The Acceleration of Electric Vehicles (EVs)
The adoption of electric vehicles (EVs) is experiencing an unprecedented surge, driven by rapid advances in battery technology, an expanding charging infrastructure, and supportive government incentives. As more automakers roll out affordable and appealing EV models, the market is shifting toward sustainable alternatives, making electric vehicles increasingly accessible to a broader consumer base.
This shift is fundamentally disrupting the automotive industry. Traditional internal combustion engine (ICE) vehicles, once dominant, are now losing market share to EVs as consumers and governments alike push for cleaner transportation solutions. The global push to reduce carbon emissions has intensified, with governments worldwide implementing stricter regulations, such as the EU’s upcoming ban on the sale of new ICE vehicles by 2035.
The rise of EVs is not only addressing environmental concerns but also opening new opportunities for innovation in both vehicle design and performance. The flexibility of EV technology allows automakers to rethink traditional designs, leading to lighter, more efficient vehicles with advanced features like longer range, faster charging times, and enhanced performance. These innovations are making EVs more attractive and practical for everyday use, creating a paradigm shift in how we view transportation.
With the shift towards EVs accelerating, the automotive industry must adapt quickly or risk losing ground in a rapidly changing market.
Case Study: Tesla’s Global Expansion and Innovation in EV Technology
Tesla, the leading electric vehicle manufacturer, continues to drive the global shift toward EVs with its innovative technology, expanded production capacity, and global market strategy. In 2024, Tesla achieved a major milestone by increasing its production of the Model 3 and Model Y, making them some of the best-selling electric cars in the world. With a focus on improving battery efficiency, Tesla’s new 4680 battery cells promise to lower production costs and improve energy density, further reducing vehicle prices and increasing range.
Additionally, Tesla’s Supercharger network, now the largest in the world, has made long-distance travel more feasible, addressing one of the key barriers to EV adoption. This infrastructure expansion, alongside government incentives in markets such as the EU and the U.S., has driven the widespread adoption of EVs.
Tesla’s continued innovation in EV technology, its expansion into global markets, and its focus on making electric vehicles more affordable and accessible demonstrate the rapid acceleration of EV adoption, reshaping the automotive industry. This case exemplifies how EV technology and infrastructure are converging to make electric vehicles the mainstream choice for consumers worldwide.
Trend 2: Autonomous Driving Gains Momentum
While fully autonomous vehicles are still a long-term goal, advancements in semi-autonomous driving systems are already making a significant impact on road safety and convenience. Technologies like adaptive cruise control, lane-keeping assist, and automatic emergency braking are becoming standard features in a growing number of vehicles, transforming the driving experience.
These advancements are redefining what it means to drive. With AI-powered systems providing real-time adjustments, drivers can now experience greater convenience, such as hands-free highway driving, while maintaining a higher level of safety. As consumers prioritise safety and convenience over traditional driving pleasure, automakers are focusing on developing more accessible semi-autonomous features to meet this demand.
Additionally, regulators are pushing for systems that can help reduce human error, the leading cause of traffic accidents. Many governments are implementing stricter safety standards, and the push for autonomous features is aligned with goals to reduce traffic fatalities and improve overall road safety.
As technology continues to evolve, the shift toward semi-autonomous driving will likely lay the groundwork for fully autonomous vehicles, making our roads safer and more efficient in the process.
Case Study: Baidu’s Apollo Go RT6 Robotaxi in China
In November 2024, Baidu’s autonomous driving unit, Apollo Go, introduced its sixth-generation robotaxi, the RT6, across multiple Chinese cities. Priced under $30,000 due to a battery-swapping solution, the RT6 is a cost-effective Level 4 autonomous vehicle that threatens US competitors like Waymo. Baidu’s strategy to reduce upfront vehicle costs aims to improve its business model’s unit economics, potentially making each vehicle more profitable. With base fares as low as 4 yuan (approximately 55 cents), Apollo Go has reported substantial growth, providing nearly 1 million rides in Q3 2024 and totalling 8 million rides by October.
This development underscores the rapid advancements in autonomous driving technology and the competitive landscape in the autonomous vehicle industry. Baidu’s focus on affordability and scalability positions it as a formidable player in the global autonomous driving market.
Trend 3: Shift Toward Mobility-as-a-Service (MaaS)
The shift towards Mobility-as-a-Service (MaaS) is fundamentally changing the way people view transportation. As consumers increasingly prioritise access over ownership, traditional car ownership models are being challenged. Ride-sharing, car-sharing, and subscription services are rapidly expanding, especially in urban areas where convenience and cost-effectiveness are top priorities.
This shift is forcing automakers to rethink their revenue models. Instead of relying solely on vehicle sales, automakers are now exploring alternative sources of income through MaaS platforms. Companies like BMW, Mercedes-Benz, and Ford are investing heavily in services that allow consumers to pay for access to vehicles on-demand rather than buying a car outright. This transformation is opening new avenues for automakers to tap into ongoing service revenues, including subscription-based vehicle features and ride-hailing partnerships.
At the same time, MaaS is intensifying competition with tech companies that are offering integrated, digital-first transportation solutions. Companies such as Uber and Lyft have already established themselves as dominant players in ride-sharing, while new entrants like Bolt and Lime are expanding their services to include electric scooter and bike rentals, creating a more holistic approach to urban mobility.
From a sustainability perspective, MaaS is helping reduce the number of vehicles on the road, easing congestion and lowering emissions in densely populated areas. By encouraging shared vehicle use, MaaS can also reduce the environmental impact of transportation, aligning with broader goals to create more sustainable urban environments.
As MaaS continues to grow, the automotive industry will need to adapt quickly to maintain its relevance in a world where access to transportation is increasingly prioritised over ownership.
Case Study: Cubic Corporation’s Umo Mobility Platform
Cubic Corporation, a global leader in transportation technology, launched the Umo Mobility Platform in January 2021 to streamline urban mobility. This platform integrates various transportation services, including public transit, ride-sharing, and bike-sharing, into a single, user-friendly application. By offering a unified payment system and real-time information, Umo enhances the user experience and promotes seamless multimodal transportation. As of 2024, Umo has been adopted in multiple cities worldwide, demonstrating its scalability and effectiveness in promoting Mobility-as-a-Service (MaaS).
Cubic’s Umo platform exemplifies the shift toward MaaS by providing a comprehensive solution that simplifies access to diverse transportation options. This approach not only challenges traditional vehicle ownership models but also addresses sustainability concerns by encouraging the use of shared mobility services. The platform’s success underscores the growing demand for integrated transportation solutions that prioritise convenience and environmental responsibility.
Trend 4: The Emergence of Sustainable Materials
Sustainability in the automotive industry is expanding beyond just powertrains to include the materials used in vehicle production. As consumer demand for eco-friendly products rises, automakers are increasingly turning to recycled plastics, bio-based materials, and lightweight composites to reduce their environmental footprint. This shift is not just about improving the eco-credentials of vehicles—it’s also about enhancing performance, reducing weight, and meeting increasingly stringent environmental regulations.
The use of recycled plastics and bio-based materials is helping automakers meet evolving regulations, such as the European Union’s stricter emission standards. By integrating these materials into vehicle designs, manufacturers can reduce the amount of new plastic produced and minimise waste, contributing to a circular economy. Furthermore, lightweight composites like carbon fibre and aluminium are being used to reduce vehicle weight, improving energy efficiency for both electric vehicles (EVs) and internal combustion engine (ICE) cars. For EVs, lighter vehicles translate into longer battery life and greater range, while for ICE cars, the reduced weight improves fuel efficiency.
This trend also appeals to eco-conscious consumers, who are increasingly prioritising sustainability in their purchasing decisions. Automakers are responding by incorporating sustainable materials into their designs and marketing these features as a way to attract buyers who value environmental responsibility.
As automakers continue to innovate with sustainable materials, this trend is set to transform vehicle production, making cars more energy-efficient, compliant with environmental standards, and appealing to the growing base of eco-conscious consumers.
Case Study: BMW’s Integration of Sustainable Materials in the i5 Model
BMW has been at the forefront of incorporating sustainable materials into its vehicle designs. In the i5 model, the company has utilised 50% recycled plastic in the luggage compartment panelling, demonstrating a commitment to reducing environmental impact.
This initiative aligns with BMW’s broader strategy to enhance sustainability across its product line. By integrating recycled materials, BMW not only contributes to environmental conservation but also appeals to eco-conscious consumers seeking sustainable options without compromising on quality or performance.
The use of recycled plastics in the i5’s interior components exemplifies how automakers are innovating with sustainable materials to meet stringent environmental regulations and consumer expectations. This approach not only reduces the carbon footprint associated with vehicle production but also sets a precedent for the industry, encouraging other manufacturers to adopt similar practices.
BMW’s efforts in integrating sustainable materials into the i5 model highlight the automotive industry’s shift towards more eco-friendly manufacturing processes and products. By prioritising sustainability, BMW is leading the way in creating vehicles that are both environmentally responsible and appealing to a growing market segment that values sustainability.
Final Thoughts
The automotive industry is undergoing profound changes, driven by trends like electric vehicles, autonomous driving, Mobility-as-a-Service, and the use of sustainable materials. These are not just innovations but fundamental shifts that require strategic adaptation across the entire industry. To remain competitive, automakers, tech companies, and stakeholders must be proactive in embracing these transformations, whether through investments in new technologies, rethinking business models, or innovating in sustainability practices.
As the landscape evolves rapidly, staying ahead of these trends will be key to success. The time to adapt is now. For more insights into the latest trends and strategies shaping the future of the automotive industry, subscribe to Connecting the Dots, our monthly e-newsletter. Stay informed, stay inspired, and lead the change in your industry.
Get regular insights
Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.
