Today, every brand has a dashboard problem.

Real-time data tracks everything. Purchase paths are mapped down to the millisecond. Heatmaps show where consumers hover and hesitate. The real-time analytics market is booming, valued at $25 billion in 2023 and projected to reach $193.71 billion by 2032.

But in the race to be data-led, something is breaking.

Creativity gets boxed in by past behaviour. Brand identity erodes under the weight of what’s trending. Short-term metrics win out over long-term vision.

Now, some of the world’s most ambitious brands are pushing back.

From fashion houses to fintech startups, companies are flipping the script — treating data not as a decision-maker but as a decision-support tool. This is data-informed leadership, where numbers sharpen instincts but never replace them.

Because the brands shaping the future aren’t the ones following the dashboard. They’re the ones willing to look up from it.

This is a real power move. This isn’t about ignoring data. It’s about knowing its place.

When Data Leads, Brands Lose Their Edge

Nowhere is the fallout of being data-led more visible than in marketing departments locked in endless loops of optimisation.

Look at the wave of direct-to-consumer brands that flooded social feeds over the past decade. Fueled by performance marketing metrics – clickthrough rates, conversion percentages, cost-per-acquisition – these companies became masters of the micro-adjustment. Headlines were A/B tested to exhaustion. Product pages shifted based on heatmaps. Ads were churned out by the dozen, tweaked and re-tweaked until only the most clickable version survived.

Yet, many of these brands began to blur into one another – stripped of personality, chasing the same lookalike audiences with the same algorithm-friendly formulas.

Optimising for KPIs without a clear brand compass is how brands lose their edge. The numbers might show what’s working now, but they rarely tell you whether anyone will care about your brand a year from now.

This is the risk brands face when they let data lead: it pulls them toward what’s proven, not what’s possible. It creates echo chambers of past behaviour. And in a market where consumers crave identity, meaning, and human connection, it’s not enough to follow what the dashboard says.

Because the brands that are remembered – the ones people talk about, love, and come back to – don’t just follow patterns. They break them.

Data Can’t Read the Room

Data can tell you what people clicked. It can tell you how long they hovered over a product image. But it can’t tell you what made them laugh at the dinner table. It can’t decode why a slogan fell flat. And it certainly can’t predict the next cultural wave before it hits.

This is where market research proves its value – not as a report card on past behaviour, but as a lens into the emerging culture, unmet needs, and emotional drivers that dashboards can’t track. Qualitative studies, ethnographic research, and in-depth interviews offer what raw analytics can’t: context, nuance, and human stories that decode the why behind the what.

Brands chasing data-led decisions often learn this the hard way. Take Pepsi’s 2017 advertisement featuring Kendall Jenner. The campaign aimed to resonate with younger audiences by aligning with themes of unity and protest – elements that data likely indicated were essential to this demographic. However, the execution was widely criticised for appearing to trivialise serious social justice movements, leading to public backlash and the eventual withdrawal of the ad.

This is where market research proves its value, not as a report card on past behaviour, but as a lens into the emerging culture, unmet needs, and emotional drivers that dashboards can’t track. Qualitative studies, ethnographic research, and in-depth interviews offer what raw analytics can’t: context, nuance, and human stories that decode the why behind the what.

Where performance data might highlight rising engagement on social content using trending slang, a well-run focus group or semiotic analysis could reveal whether that language resonates, or risks alienating the audience by trying too hard. Research would have focused on tone, cultural sensitivity, and perceived authenticity long before backlash hit the feed. It doesn’t just show whether people noticed. It uncovers how they felt and why it matters.

Smart brands are starting to push back — treating data not as gospel but as one of many inputs in a much messier, more human process of understanding what matters to people.

This misstep underscores a critical limitation of data-led strategies: while analytics can highlight trends, they often lack the contextual understanding necessary to navigate complex cultural landscapes. Relying solely on data without human insight can result in messages that miss the mark, alienating the very audiences they intend to engage.

Smart brands are starting to push back – treating data not as gospel but as one of many inputs in a much messier, more human process of understanding what matters to people.

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Data-Informed Brands Are Playing the Long Game

Across industries, a quiet shift is happening. The most resilient brands aren’t the ones chasing every data blip — they’re the ones brave enough to zoom out.

Consider Ben & Jerry’s, the iconic ice cream brand known for its bold flavors and unapologetic activism. In 2020, the company launched “Justice ReMix’d,” a limited-edition flavor supporting criminal justice reform. The campaign generated widespread buzz, and sales surged. Customers flooded social media and retail partners with requests to make the flavor permanent.

A data-led strategy might have given in. The metrics were strong, and the demand was obvious. But Ben & Jerry’s made a different call.

They chose to keep it a one-off, not because the numbers weren’t there, but because the long-term brand strategy was. The flavor wasn’t just a bestseller; it was a statement. Part of that impact came from its temporary nature—using ice cream as a cultural spotlight, not just a product.

This is what data-informed decision-making looks like: using numbers to gauge impact, but staying grounded in brand purpose. Sales figures and social metrics mattered, but didn’t override the strategic intent. Ben & Jerry’s understood the difference between what was popular now and what was authentic long term.

It’s the same muscle that other data-informed companies are flexing. They use data to pressure-test their instincts, to spark ideas, to avoid blind spots, but never to replace judgment. They know the difference between reacting and leading.

And in an era where consumers see right through opportunism, playing the long game isn’t just smart. It’s survival.

Case Study: Hugo Boss – Using Data to Guide Creativity, Not Replace It

Background

Hugo Boss, one of the world’s leading fashion brands, faced the same challenge confronting many legacy companies: how to embrace digital transformation without losing its creative edge. Under CEO Daniel Grieder, appointed in 2021, the company set an ambitious goal: to double sales to €4 billion by 2025.

Central to this ambition was a bold shift in strategy: becoming more data-driven while staying brand-led.

What the Hugo Boss Did

As part of its €150 million “Claim 5” strategy, Hugo Boss invested €15 million in a new Digital Campus in Gondomar, Portugal. This hub was designed to harness advanced data analytics across product design, marketing, and sales – creating faster feedback loops and operational efficiency.

But crucially, the company drew a line. Data was used to inform creative teams, not to dictate their decisions.

Designers still led product development based on brand vision and long-term strategy. Data helped validate ideas, identify emerging trends, and sharpen customer insights – but final decisions stayed rooted in brand instinct and creative direction.

Outcome

Hugo Boss’s approach has positioned it as a front-runner among heritage fashion brands navigating digital transformation. By resisting the trap of becoming purely data-led, the brand has maintained its distinct identity while accelerating growth.

Since implementing the strategy, Hugo Boss reported record sales in 2023 and is tracking ahead of its 2025 targets. Industry analysts have cited the company’s ability to blend creativity with smart data use as a key differentiator in a hyper-competitive market.

As CEO Daniel Grieder put it:
“Data can show us what’s happening – but creativity shows us what’s next.”

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Product Teams Want Direction, Not Dictation

Inside product teams, the mood is shifting. For all the power of dashboards and predictive models, there’s growing fatigue with treating data like a final answer key.

Data shows you where the traffic is, not where the road should go. If teams only respond to what’s already happening, they’re not innovating; they’re following.

This is why product teams at some of the world’s most agile companies are moving away from absolutist, data-led roadmaps. Instead, they’re asking for directional data – insights that point to opportunity areas without shutting down creative thinking.

Increasingly, product development teams are leaning on market research not just to validate ideas but to shape them early – using consumer co-creation, concept testing, and journey mapping to pressure-test decisions before they go live. Research isn’t the finish line. It’s the starting point for informed creativity.

Consider Fisdom, a leading Indian fintech company. Through extensive UX research, Fisdom discovered that placing the Know Your Customer (KYC) form at the beginning of the signup process was a significant barrier for new users. By moving the KYC step to the end of the signup flow, they reduced friction and saw a notable increase in user completions. This change was guided not just by analytics but by a deeper understanding of user behaviour and preferences. 

This kind of data-informed decision-making is harder. It requires teams to accept ambiguity, weigh trade-offs, and trust their understanding of the customer beyond the numbers.

But it’s also where differentiation lives.

In the end, the smartest brands aren’t anti-data. They’re pro-human. They combine what the dashboard says with what market research uncovers – using evidence to sharpen their instincts, not replace them.

Data will always tell you what people did yesterday. Brand instinct decides what they’ll care about tomorrow.

Smart brands know the difference. The rest are just watching the dashboard.

At Kadence International, we help brands turn data into direction. As a global market research agency, we uncover the human insights behind the numbers, helping brands move with confidence, not (just) caution.

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British shoppers are entering a new era of grocery buying – less impulsive, more deliberate, and increasingly shaped by price. Grocery inflation rose to 3.5 percent in March, capping off two years of compounded cost pressure. Supermarket sales have softened, not because people are walking away, but because they’re buying fewer items and skipping anything that doesn’t feel essential.

Essentials are winning, volume is shrinking, and price has become the lead story. This shift isn’t just thrift – it’s agency. After months of rising bills and economic fatigue, shoppers are regaining a sense of control by editing their baskets. That often means skipping branded goods and sticking to private labels.

Discounters are reaping the gains. Aldi’s market share is up to 11 percent, and Lidl is outpacing rivals in sales growth. But this isn’t just about who’s winning – it’s about how. Shoppers aren’t compromising; they’re recalibrating. Value now means quality at the right price, not a badge name. What’s happening isn’t tactical – it’s behavioural.

What distinguishes this period from past inflation spikes is the speed and confidence of the switch. Brand loyalty, long considered a mainstay of British retail, is now a conditional contract. If a supermarket can’t justify its price point – through quality, loyalty perks, or convenience – shoppers will walk.

Retailers are moving fast to keep up: shrinking private-label ranges to what works, tuning promotions, and reframing value as a daily promise. On paper, it looks like a margin problem. In reality, it’s a permanent shift in how households define value – and there’s little reason to think it’ll snap back.

This isn’t a belt-tightening moment. It’s a consumer reorientation. People aren’t just buying less; they’re buying differently. And in doing so, they’re quietly forcing a reset in how the UK grocery industry defines, delivers, and earns loyalty.

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Inflation at the Checkout: What’s Really Driving the Shift? 

Walk through any UK supermarket right now, and the change isn’t just in the receipt – it’s in the way people are shopping. Labels are read more slowly. Own-brand products are picked up, put back, then chosen again. Familiar items suddenly feel like indulgences.

What’s happening at the checkout isn’t just about price increases. It’s a psychological shift. Shoppers aren’t just spending less – they’re thinking differently. The same budget now feels tighter, not only because of higher prices but because of how those prices are being perceived.

Anchoring is one reason. Consumers aren’t comparing this week’s price to last week’s – they’re comparing it to what they used to pay before “everything got expensive.” That reference point, even if outdated, sticks. When a block of cheese crosses the £3 mark, it doesn’t matter if it’s only a 5p rise – it’s crossed an invisible line. And that line reshapes everything around it.

Mental accounting adds another layer. People are rebalancing invisible budgets in their heads. Spend £2 more on milk, and that £2 has to come from somewhere else. They’re not just making trade-offs – they’re making calculations. Essentials stay, extras go, and even mid-tier items are under scrutiny if there’s a cheaper equivalent close by.

Then there’s price perception. It’s not what something costs – it’s what it feels like it should cost. That’s why a 10% rise might barely dent volume in one category but trigger a collapse in another. It’s not rational, but it’s real – and it’s guiding what goes in the basket.

For retailers and brands, this moment demands more than sharper pricing. It requires fluency in how shoppers frame value. That might mean pricing just below emotional thresholds or structuring offers that signal stability – even when costs are climbing. In this climate, perception can be as powerful as reality.

What does inflation feel like in real terms? The chart below shows just how much everyday items have risen since 2020.

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Brand Erosion in the Era of the Basket Reboot

Brand loyalty isn’t dead – but it’s under review. Across the UK, what once felt automatic is now under scrutiny. Shoppers are looking at familiar labels, hesitating, and reaching for something cheaper – often store-brand, often good enough.

It’s not just trading down. It’s trading out. The basket reset happening now is exposing which brands still hold meaning and which were riding on habit. In categories like cereal, canned goods, and pasta sauces, private label has moved from backup plan to first choice. When shoppers feel squeezed, brand preference isn’t about awareness – it’s about justification.

The most vulnerable brands are the ones that rely on shelf presence and recognition without clearly articulating why they cost more. A fancy label or nostalgic logo doesn’t hold up when the price delta is visible, and the value isn’t. Own-label is no longer the compromise – it’s the baseline.

Supermarkets know this. That’s why they’ve built out three-tiered private label strategies: essential ranges for price-sensitive shoppers, core lines that match national brands on quality, and premium sub-brands designed to compete with legacy products on both taste and packaging. In many cases, they’re winning on all three fronts.

Branded suppliers are feeling the squeeze. Promotions are being pulled. Negotiations are tighter. Some products are being delisted entirely as retailers prioritise margin and private-label growth. Even in higher-margin categories like snacks and beverages, shoppers are experimenting more – and defaulting less.

This moment demands more than marketing. It demands a proposition that holds up under pressure. Brands that offer clear functional benefits – whether that’s health, sustainability, or convenience – still earn a place. But those that relied on emotional inertia are being quietly swapped out, one basket at a time.

The question for consumer goods companies isn’t just how to defend share. It’s how to rebuild relevance. Because if shoppers are open to changing their habits, they’re also open to forgetting the brands that no longer reflect how they want to spend.

Also, read our study on the UK’s Cost of Living Crisis here.

The New Class of Smart Shoppers

Frugality has rebranded itself – and fast. What used to be framed as a necessity or even a source of quiet shame has become a signal of control, intention, and in many cases, pride. The UK’s cost-of-living pressures have given rise to a new kind of grocery shopper: not just cost-conscious, but value-literate.

This isn’t driven solely by economics. It’s cultural. Discount shopping has moved out of the shadows and into the spotlight. TikTok is full of haul videos not from high-end retailers, but from Aldi and Lidl – highlighting bulk buys, dupes, and smart swaps. The tone isn’t apologetic. It’s instructional. Look what I saved. Look how much farther I stretched my budget. There’s a certain confidence in the captions: “You’d be mad to pay more.”

Digital tools have amplified the shift. Couponing, once a paper-based pursuit of extreme savers, has gone mobile and mainstream. Apps like Too Good To Go and supermarket loyalty platforms now offer real-time deals that reward flexibility, not just spending. Younger shoppers – especially millennials with families and Gen Z renters – are building grocery strategies around digital offers and flash pricing. Price matching isn’t a race to the bottom; it’s a form of skill.

What’s changed is the identity that surrounds all this. Saving money used to imply you didn’t have it. Now, it implies you’re informed. Especially among middle-income shoppers, there’s been a quiet erosion of stigma. Being a “deal hunter” no longer contradicts being design-conscious or health-focused. You can buy the store-brand canned tomatoes and still splurge on artisanal olive oil. You can track every penny and still care about the story behind your coffee.

This hybrid mindset – blending thrift and selectivity – is what many legacy brands are still struggling to read. Their customers didn’t disappear. They just rewrote the rules of what makes a product worth paying for.

It’s no longer enough to assume aspiration equals premium. In this landscape, brands have to justify every line of the receipt. They need to speak the language of value – but not just through lower prices. It’s about usefulness, quality, longevity, and emotional return on spend.

Smart shoppers aren’t waiting for brands to get it. They’re building baskets that reflect who they are now – pragmatic, digitally fluent, and empowered by information, not overwhelmed by it. The question isn’t whether this shift will last. It’s whether brands can keep up with customers who’ve stopped equating value with volume – and started defining it for themselves.

Retailers Rewrite the Rules

Retailers have stopped waiting for shoppers to come back to old habits. Instead, they’re adapting to new ones – fast. The traditional promotional cycle, once built around limited-time offers and seasonal spikes, has been replaced by something more fundamental: proving long-term value in real-time.

That shift is showing up everywhere. Tesco’s Clubcard Prices and Sainsbury’s Nectar Prices have moved from reward mechanics to central pricing strategies. What began as a loyalty tactic is now a core part of how these retailers compete with discounters. And it’s not just about price. It’s about visibility. Price tags on shelves now tell a story of what the customer is saving, not just spending.

Even premium grocers are adjusting. Waitrose, long associated with quality-first positioning, has expanded its Essentials range and emphasised value messaging in advertising. Its recent campaigns have spotlighted affordability without abandoning tone, suggesting that smart shopping doesn’t have to mean compromise.

But nowhere is the shift more aggressive than in private label. Across the sector, own-brand lines have become the innovation lab. Aldi and Lidl continue to lead, not just with price, but with product development that mirrors – and sometimes beats – national brands. The battleground isn’t just about matching flavor or format anymore. It’s about convenience, sustainability, and shopper emotion. A well-packaged ready meal that costs less and feels like a small win at the end of a long day? That’s more powerful than a deep discount.

Retailers are also experimenting with format. Smaller footprint stores are popping up in urban areas, designed around the grab-and-go shopper who wants efficiency, not abundance. Meal deals, shoppable recipes, “value hacks” – all of it engineered to speak the new shopper’s language: stretch, save, simplify.

Marketing has evolved in step. Circulars and point-of-sale have been replaced by in-app push notifications, hyper-local personalisation, and digital shelves that highlight time-sensitive offers. Messaging is less about indulgence and more about empowerment. You’re not just saving money; you’re being smart. You’re beating the system.

The result is a retail environment where success no longer comes from a breadth of range or deepest pockets. It comes from relevance – knowing who your customer is today, what trade-offs they’re willing to make, and how to meet them with the right balance of function, emotion, and frictionless value.

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Case Study: How Aldi Became the Benchmark for Value With Purpose

Aldi’s rise in the UK has long been tied to price, but its current momentum speaks to something deeper: cultural relevance. While many retailers are reacting to consumer caution, Aldi has anticipated it – shaping not just how people shop but also how they think about spending.

Its private label dominance is no longer just about cost-cutting. Aldi has invested heavily in product development and packaging design that challenges branded equivalents, often earning accolades in blind taste tests. Shoppers aren’t settling – they’re discovering. Categories like wine, ready meals, and snacks now generate loyalty not as substitutes, but as preferred choices.

Where Aldi’s strategy truly stands out is in how it aligns with emerging shopper identity. The brand doesn’t apologise for low prices. It builds pride around them. Recent campaigns have leaned into humor and confidence, casting Aldi customers as smart, in-the-know shoppers rather than bargain hunters. The brand’s “Like Brands. Only Cheaper.” messaging isn’t defensive – it’s disruptive.

In-store, Aldi’s stripped-back format reinforces that every inch of shelf space must earn its keep. The tight range, fast checkout model, and curated promotions reflect a retailer that understands time, budget, and simplicity as core values – not just marketing points.

Aldi isn’t winning by chasing premium. It’s winning by reshaping what premium means in the mind of today’s value-driven consumer.

What Comes Next for Grocery, Brand Building, and British Retail

This isn’t just a cycle – it’s a structural shift. The current realignment in UK grocery is forcing a deeper redefinition of how brands are built, how value is communicated, and what kind of loyalty can actually be sustained in a low-growth, high-scrutiny environment.

The old model – premium equals quality, discount equals compromise – has fractured. What’s rising in its place is a hybrid mindset: shoppers who blend store brands and branded goods, who track savings as a personal KPI, and who want clarity in place of clutter. For brands and retailers, the challenge is no longer just about margin. It’s about meaning.

Products will still matter – but the story around them matters more. Why this? Why now? Why at this price? The brands that survive won’t just be better stocked or better known – they’ll be better understood. That means strategy rooted in real consumer behaviour, not assumptions. It means investing in insight before investing in shelf space.

We’ve entered an era where margins are thinner, decisions faster, and the consumer’s tolerance for noise almost nonexistent. The winners will be those who can decode the mindset behind the spend – what drives trust, what cues value, what kills interest – and adapt before the data shows up in declining sales.

For British retail, this could be a renaissance moment. But it will favor the precise, not the broad. Those who treat their audience as a living, evolving signal – not a static segment – those who invest in listening as much as launching.

Because the real growth ahead won’t come from pushing more into baskets. It will come from knowing what truly earns a place there.

A Market Redefined by Value Will Reshape the Industry

What’s happening in UK grocery right now isn’t a blip. It’s a reset. A recalibration of trust, relevance, and what constitutes a purchase worth making.

For brands, the margin for error has collapsed. Shoppers are not just selective – they’re strategic. They aren’t waiting to be impressed. They’re asking harder questions: Is this worth it? Is this credible? Does it deliver more than just a label?

Retailers that respond with nuance – not just price cuts – are the ones shaping the future. The discounter isn’t the disruptor anymore; it’s the new center of gravity. Traditional grocers that once competed on scale or loyalty must now compete on understanding. That means fewer assumptions, more clarity, and a sharper grasp on how value is perceived – not just priced.

Consumer behaviour isn’t snapping back. Once a shopper has built a new mental model of spending – one grounded in empowerment, not deprivation – it tends to stick. The post-abundance era doesn’t signal a withdrawal from consumption. It signals a new consciousness around it.

Over the next five years, British retail will be defined not by who shouts the loudest but by who listens best. That requires precision, pattern recognition, and real, ongoing intelligence on the evolving expectations of the people pushing the trolleys.

Smart brands won’t just ride this out. They’ll use it to rebuild better – on foundations that reflect today’s shopper, not yesterday’s playbook.

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When wallets tighten, lipstick sales often loosen.

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

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

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

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

Younger Consumers Lead the Way

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

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

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

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

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

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How Beauty Retailers Are Responding

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

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

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

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

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

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

Luxury Brands Winning with Small Indulgences

Tom Ford Beauty – Turning Wellness into a Fragrance Success

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Image Credit: Escentual
Background

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

Strategy

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

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

Outcome

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

(Sources: Vogue Business, Luxury Tribune)

YSL Beauty – Leveraging Digital Influence for Small Luxury Growth

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Image Credit: Fashion Gone Rogue

Background

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

Strategy

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

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

Outcome

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

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

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

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

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

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

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

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A bold move into familiar territory – will it pay off?

Chipotle’s announcement to open its first restaurant in the country, which inspired its menu, raises eyebrows and expectations. Partnering with Latin American restaurant operator Alsea, the US-based chain is entering a market where culinary authenticity isn’t a differentiator; it’s the starting point. For Chipotle, this market entry isn’t just about expansion. It’s a litmus test: Can a brand that interprets Mexican cuisine resonate with consumers who live and breathe it?

The answer will depend not just on flavor but also on strategy and whether modern tools like hyper-local research and cultural intelligence can bridge the gap between inspiration and expectation.

Lessons From the First Movers

Chipotle isn’t the first American brand to try its luck in Mexico. In 1992, Taco Bell debuted in the country with ambitions just as bold. It launched with localised menu tweaks and a confident footprint, but the venture didn’t last. The brand ultimately withdrew, not because of a lack of visibility or investment, but because the offering didn’t quite land with local palates.

That chapter is often cited in business schools, but rarely for what it truly was: an early experiment in exporting food culture into a market that didn’t ask for it. The reaction underscored a gap between adaptation and resonance that modern market research now works to close.

Starbucks’ early entry into Australia offers a parallel lesson. Despite its global brand power, the company struggled to gain traction in a country with a deeply rooted, independent coffee culture. The issue wasn’t coffee quality; it was a misread of consumer behavior, expectations, and local identity. Like Taco Bell in Mexico, Starbucks in Australia became a case study in how even the most successful brands can stumble without cultural alignment.

It’s not a failure; it’s a framework, a snapshot of how global ambition once outran local alignment.

The Evolution of Market Entry Strategy

When Taco Bell opened in Mexico City in the early ’90s, global expansion followed a different playbook. Brands leaned on instinct, broad profiling, and the belief that what worked in the US would translate with minimal adjustment.

But exporting a concept doesn’t guarantee acceptance. Back then, cultural nuance often took a back seat to operational scale. Research was high-level. Brands made decisions based on economic opportunity, not emotional alignment.

That’s changed. Today, market entry starts with precision—predictive analytics to map taste profiles, behavioral segmentation to decode subcultures, and AI-powered simulations to test concepts before rollout. Tools like geo-targeted taste testing, cultural immersion labs, and brand mapping techniques that track real-time perception shifts are helping brands decode how products will land before they ever hit shelves.

In Chipotle’s case, these tools offer a sharper perspective on what Mexican consumers want and will not tolerate.

What Chipotle Brings to the Table

Chipotle isn’t entering Mexico as a fast-food chain. It is arriving as a brand that’s always walked a fine line: Mexican-inspired, never quite Mexican. Its menu leans into simplicity—burritos, bowls, and tacos built around a few core ingredients. This model resonated with US consumers seeking customisable, ingredient-forward meals. But in Mexico, where flavor, preparation, and regional identity are sacred, that same simplicity may land very differently.

Chipotle is partnering with Alsea to bridge that gap, a strategic move offering far more than logistics. Alsea operates Starbucks, Domino’s, and Burger King in Mexico. Its distribution networks, real estate expertise, and consumer insight pipelines offer Chipotle a turnkey path to localisation.

This isn’t Chipotle’s first time using a partnership-first approach. In 2023, the brand entered the Middle East through an agreement with Alshaya Group, opening restaurants in Kuwait and the UAE. There, too, Chipotle leaned on a local partner to navigate cultural preferences and consumer habits. The result? A thoughtful, localised rollout that aligned Chipotle’s “real food, responsibly sourced” ethos with regional values.

But even with the right partner, Chipotle must tread carefully. Mexican consumers know their cuisine – and they know when they’re being sold a version of it. For Chipotle, the win won’t come from mimicry. It’s not competing with Mexico’s beloved taquerias; it’s introducing a distinctly Americanised take on Mexican food. The challenge? Making that distinction matter.

It’s still unclear whether Chipotle will localise its menu for the Mexican market or keep its US offerings intact, which is an early test of how much flexibility the brand is willing to show. Will the Mexican consumer see Chipotle as a fresh alternative, or a foreign remix of something they already do better?

Chipotle’s international journey hasn’t been without its challenges. The brand has maintained a limited footprint in the UK, with around 20 locations, primarily in London, serving a niche but loyal customer base. While not a breakout success, its measured expansion offers lessons in pacing, positioning, and the importance of location strategy. That experience appears to have informed a more deliberate and partnership-driven approach in newer markets like the Middle East and now, Mexico.

Chipotle will also enter a market with an established and competitive fast-casual ecosystem. Local players like El Fogoncito and international chains like Carl’s Jr. and Subway already cater to urban consumers with varied prices and menu formats. However, the real competition may come from independent taquerias and fondas, neighborhood staples that offer affordable, regional fare with generational credibility. Chipotle must offer not just quality, but a reason to belong in Mexico’s culinary hierarchy.

fast-food-sustainability-trends

Cultural Intelligence as a Competitive Edge

Culture isn’t a box to check—it’s the playing field.

The brands that succeed today don’t just bring a product; they bring a point of view. They understand how they’re seen, how authenticity is defined, and which signals matter. Cultural intelligence is the edge that separates a foreign brand from a familiar one.

For Chipotle, entering Mexico means navigating a minefield of expectations, where a single design choice or flavor decision could spark either loyalty or backlash. What looks neutral on paper can carry deep meaning on the plate.

Urban consumers in Mexico are increasingly drawn to brands that balance tradition with health-consciousness, speed, and sustainability – expectations that Chipotle must meet beyond just flavor.

This is where research evolves from insight to assurance. Ethnographic studies, in-market panels, and social listening help brands anticipate friction points before they go live. Cultural intelligence doesn’t guarantee success, but it’s often the only way to earn a second look in heritage markets.

Chipotle executives remain optimistic. The company points to the country’s familiarity with Chipotle’s ingredients and affinity for fresh food as key reasons for expansion. But that framing may miss the heart of the matter. Mexican consumers don’t reject American chains outright – Starbucks and Domino’s enjoy massive success. What they’re wary of is reinterpretation. When it comes to their culinary heritage, familiarity isn’t enough. It is identity. And that’s sacred ground.

All eyes will be on how Mexican consumers respond, because in markets where food is identity, perception can make or break the plan. Early commentary across Mexican business and food media has ranged from curiosity to skepticism, with some questioning whether Chipotle’s version of “authentic” will resonate or fall flat. That tension may be the most accurate test of the brand’s cultural fluency.

The New Rules of Global Brand Expansion

Chipotle’s Mexico debut isn’t just another store opening; it’s a bellwether moment. In markets steeped in cultural pride, success no longer hinges on menu tweaks or marketing spend. It hinges on mindset. Brands must listen, learn, and adapt before launch and long after the doors open.

Around the world, consumers are demanding transparency, local relevance, and cultural respect. They expect brands to reflect their values, not just satisfy their appetites.

The one-size-fits-all era is over. Whether entering heritage markets like Mexico, culturally complex ones like India, or hyper-digitised ones like South Korea, the strategy must start with ground-level intelligence. Brands need to know who their customers are, what they value, and when they feel seen.

In food-driven markets, that also means understanding how flavors, textures, and even aromas trigger emotional and cultural responses. Sensory research – testing taste profiles, mouthfeel, and multisensory experiences with local audiences – is emerging as a critical tool for brands looking to translate offerings across borders. It’s not just about what’s on the menu, but how it feels, smells, and satisfies in context.

The companies that thrive treat research not as a formality but as their competitive edge. Chipotle’s move into Mexico may be a test, but it could also be the new blueprint for global brand growth.

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In cafés from Stockholm to Singapore, something curious is happening to the humble latte. The milk has changed – but the meaning of what’s being poured has changed even more. Oat milk, once a fringe choice in vegan corners of Brooklyn and East London, now commands entire refrigerator shelves in mainstream supermarkets. In London alone, sales of oat milk have more than doubled in recent years, outpacing almond and soy. But its rise has sparked a question with global implications: is this just a Western infatuation – or the beginning of a broader, localised reinvention?

As plant-based milks grow in popularity, they are revealing more than just a shift in taste. They have become markers of identity, class, health politics, and cultural resistance. For younger generations in Western cities, oat milk is as much a badge of sustainability as it is a coffee additive. But in Asia, where soy and coconut milk have been kitchen staples for generations, Western brands often appear as tone-deaf outsiders. In India, almond milk is aspirational, signifying affluence and global awareness. In Japan, flavoured soy milk is sold in vending machines next to corn soup and iced matcha. Each tells a story – not just of diet, but of what progress tastes like in different corners of the world.

The Western Story: When Climate Guilt Meets Café Culture

In the West, plant-based milk has surged from niche to mainstream at breakneck speed. In the UK, oat milk has overtaken almond as the best-selling non-dairy option, with the market valued at over £146 million in 2023 and projected to reach more than £430 million by 2030—a growth trajectory that reflects not just a change in taste, but in values. In the United States, the plant-based milk market has experienced significant growth, with revenue increasing from $2.71 billion in 2024, more than doubling since 2019. This surge reflects a broader trend, as supermarkets now allocate entire aisles to milk alternatives, accommodating the rising consumer demand.​

For Gen Z and Millennials, this shift is as much about values as it is about flavour. The rise of “climatarian” diets—eating based on environmental footprint—has positioned oat milk as the virtuous option. It requires far less water than almond milk (48 litres per litre vs. 1,600) and carries a lower carbon footprint than cow’s milk. Among baristas, oat milk’s texture and foam-ability have cemented its status as the café go-to.

But these motivations are not universal. Among Gen X and Boomers, plant-based milk adoption often stems from health concerns—lactose intolerance, cholesterol, weight management—rather than climate ethics. Many still view oat and almond milk as a wellness product, not a moral choice. And the taste? It’s tolerated more than it is loved.

Despite its early momentum, the plant-based milk category in the U.S. is starting to show signs of fatigue. In 2024, sales declined by 5.2%, driven more by inflation-driven price sensitivity than by waning interest. What we’re seeing at Kadence International is that consumers are making sharper trade-offs at the shelf. While oat milk is still seen as on-trend, its pricing—often double that of dairy—has started to generate real resistance.

Image credit: Minor Figures

Minor Figures, a UK-based oat milk brand, has carved out a niche among creative professionals. Its hand-drawn packaging, minimalist design, and carbon-neutral commitment resonate with urban Gen Z. The brand installed oat milk refill stations in eco-minded cafés in East London, turning sustainability into something tangible. Co-founder Stuart Forsyth emphasises their approach: “We want to grow sustainably, we want to grow ethically and just see where this sort of journey takes us.”

Still, even Minor Figures must contend with growing scepticism about “performative sustainability.” A growing share of younger consumers now want traceability—where was it grown? What happens to the packaging? As oat milk begins to look like the new default, the question becomes: what comes after default?

Research-brief

Southeast Asia: Taste First, Sustainability Later

If oat milk is the sustainability symbol of the West, in much of Southeast Asia, it’s still a curiosity—often priced high, unfamiliar in flavor, and positioned more as a lifestyle accessory than a kitchen staple. Here, taste and tradition are still the gatekeepers, and consumer priorities follow a different rhythm.

Soy and coconut milks remain the dominant non-dairy choices across the region. Long before Western plant-based trends took hold, these ingredients were already foundational in Southeast Asian cuisine. From Indonesia’s tempeh to Thailand’s tom kha, from soy puddings in Vietnam to rich coconut-based curries in Malaysia, non-dairy milk isn’t an “alternative”—it’s the original.

Yet, the surge of interest in plant-based eating is not being ignored. The market for dairy alternatives in Southeast Asia hit USD 3 billion in 2024 and is forecast to reach USD 4.1 billion by 2030. But the motivations driving that growth are not always what Western marketers expect.

For urban Gen Z consumers, the shift is being fueled by café culture and aesthetic appeal. In Singapore, Bangkok, and Ho Chi Minh City, oat milk is showing up in third-wave coffee shops, where latte art meets lifestyle branding. The creamy mouthfeel and mild taste of oat milk plays well with espresso, and baristas often frame it as the more “sophisticated” or “global” option. But the price—often two or three times higher than soy or coconut milk—makes it more of a treat than a household switch.

Health and digestion are also central to plant-based appeal. For Millennials balancing fast-paced urban lives with rising wellness awareness, soy milk retains a stronghold due to its protein content and familiarity. It’s not uncommon to see fortified soy drinks marketed for beauty benefits, gut health, or as part of fitness routines.

Among Gen X and Boomers, however, there’s little appetite for novelty. Traditional dairy is still prized, especially in countries like Vietnam, where sweetened condensed milk remains the heart of the national coffee. Coconut milk is not just nostalgic—it’s seen as natural, trusted, and tied to home cooking.

For Western brands attempting to gain traction here, the learning curve is steep. Oatly’s entrance into the region began with Malaysia and Singapore, distributed via speciality grocers and upscale cafés. The company announced in 2022 that Southeast Asia would form a “growth corridor” as part of its Asia expansion. But by 2024, it had shuttered its Singapore production facility to consolidate manufacturing back to Europe—a sign that demand in the region had not yet scaled fast enough to justify local production.

Oatly continues to maintain shelf presence in Singapore, but its growth in the region faces challenges. In December 2024, the company announced the closure of its production facility in Singapore as part of an asset-light supply chain strategy aimed at improving cost structures and reducing capital expenditures. This move reflects broader operational adjustments in response to evolving market dynamics in Asia.

The plant-based milk market in Singapore is becoming increasingly competitive, with local brands like Oatside gaining traction. In June 2023, Flash Coffee announced it would serve Oatside as the default in all milk-based beverages across its 24 outlets in Singapore. This highlights the growing consumer interest in plant-based options and the competitive landscape Oatly faces.​

It’s evident that for plant-based products to succeed in Singapore, they must appeal to consumers in both taste and affordability. The sustainability pitch alone often isn’t sufficient; products need to meet consumer expectations in flavour and be competitively priced to gain widespread acceptance.

Local innovation may hold the key. In Thailand, companies are experimenting with rice milk made from surplus grains. In Indonesia, startups are blending coconut and cashew milk to cater to local palates while improving texture. Unlike oat, which has to be imported and processed, these ingredients are homegrown—offering not just flavor familiarity but economic resonance.

The tension in Southeast Asia isn’t whether consumers will adopt plant-based milk—it’s which ones, and why. Taste leads. Price follows. Sustainability, for now, lags behind. But for a younger class raised on Instagram, global branding, and iced matcha oat lattes, the next shift may arrive faster than expected.

Japan: Tradition Meets Innovation

In Japan, plant-based milk isn’t a trend—it’s tradition. Long before Western oat and almond milks arrived on convenience store shelves, soy was already woven into daily life. From tofu to miso to soy-based desserts, the legume’s liquid form has been consumed for centuries—not as a replacement, but as a cultural staple.

This historical baseline gives Japan a unique position in the global plant-based milk story. While much of the West is shifting away from cow’s milk, in Japan, dairy was never dominant to begin with. Lactose intolerance affects approximately 45% of the population to some degree, and the country’s culinary heritage has long favoured plant-based ingredients.

Yet even here, the landscape is shifting—quietly, and with the precision Japan is known for. In 2024, the soy milk segment still made up the overwhelming majority of plant-based milk sales, but oat and almond are inching upward. Projections estimate Japan’s oat milk market will expand from approximately $51.7 million in 2024 to over $163 million by 2033, reflecting a compound annual growth rate of 12.6%.

But growth in Japan doesn’t mirror that of its Western counterparts. Oat milk here is not a lifestyle statement. It’s more likely to be encountered in a café serving Nordic-style pastries than in a supermarket fridge. In Tokyo’s upscale coffee districts—Daikanyama, Aoyama, and parts of Shibuya—young professionals are experimenting with oat lattes, but the movement is still niche.

Soy milk is still the default. People are curious about oat milk, but it’s expensive and unfamiliar. Soy is part of the Japanese identity.

Image credit: Marusan

The soy milk aisle in Japan looks nothing like its Western equivalents. There are over 30 flavours of soy milk in most convenience stores—banana, sweet potato, black sesame, and even matcha. Sold in small, colourful cartons, these drinks are as much a snack as a supplement. They appeal across generations and demographics, from school children to business executives.

Almond milk, introduced in earnest in the early 2010s, is viewed as a beauty product as much as a drink—touted for its vitamin E content and its role in “clean eating” routines. It’s marketed in lifestyle magazines and television ads featuring pop stars and Olympic athletes.

So where does that leave oat? Still finding its place. Japanese consumers value texture and subtlety in flavor—qualities that oat milk sometimes struggles to deliver in traditional dishes or teas. But its creamy body is finding fans in the coffee world, and as more cafés experiment with it, familiarity may breed demand.

What’s clear is that plant-based milk in Japan isn’t driven by environmental activism or dietary rebellion. It’s driven by harmony—with the body, with the palate, with the past. While the West frames oat milk as progress, in Japan, progress tastes familiar—it just might be flavoured with yuzu or kinako.

India: Plant-Based Milk as Urban Status and Spiritual Alignment

In India, dairy isn’t just nutrition—it’s ritual. From temple offerings of milk to the everyday comfort of chai with malai, dairy products are woven into the country’s emotional and religious fabric. The white splash in a steel tumbler holds centuries of symbolic weight. So any conversation about plant-based milk here starts not with a health trend, but with the question: what could possibly replace something sacred?

The answer, for now, is: not much—but something is beginning to stir.

India’s plant-based milk market is still young, valued at around USD 50 million in 2024, but it is projected to grow at nearly 15% CAGR over the next six years. That growth, however, is uneven and tells a story less about dietary shifts and more about social signalling.

For Gen Z in India’s metros, plant-based milk is about cruelty-free living, fitness influencers, and Instagrammed morning routines. It’s not uncommon to see “dairy-free” smoothies and almond milk lattes showcased in the digital lives of young professionals in Bengaluru, Delhi, or Mumbai. These consumers often cite animal welfare, clean eating, and compatibility with lactose intolerance—affecting an estimated 60% of the population—as reasons for switching. But the shift is as much aesthetic as it is ethical. Almond milk isn’t just good for you; it looks good in a glass.

Millennials, especially those navigating careers abroad or within cosmopolitan India, are caught between reverence for traditional staples like paneer and ghee, and a rising curiosity about global wellness norms. Many are not rejecting dairy outright, but are experimenting with substitutes during certain meals, fasts, or fitness cycles. The language of Ayurveda also looms large—“easy on digestion,” “balance for pitta”—guiding product marketing and consumer trust.

For Gen X and Boomers, though, the idea of dairy-free milk is still foreign. Cow’s milk is considered pure in Hindu tradition. To deviate from it can feel like cultural heresy, particularly in religious households. Even within vegan circles, spiritual negotiations are common—almond milk in the smoothie, but cow’s milk in the temple.

And yet, there is movement at the margins.

Image credit: Good Mylk Co.

One company pioneering this shift is Goodmylk, a Bengaluru-based startup founded by Abhay Rangan in his teens. The company produces cashew and oat-based milk, peanut curd, and vegan butter. What sets it apart is its insistence on affordability and accessibility. “If we make it premium, we limit who gets to choose it,” Rangan said in an interview. Goodmylk raised $400,000 in seed funding and has focused on scaling without pricing itself out of the Indian middle class.

The brand also localises its innovation. Mung bean and millet-based milks are in development—grains familiar to Indian households, now reimagined for lattes and cereal bowls. This strategy isn’t just functional—it’s cultural. “People trust what they’ve grown up with,” Rangan notes. “If we can use those same ingredients in new ways, we don’t have to change people. We just meet them where they are.”

What India reveals, perhaps more than any other market, is that the future of plant-based milk may not be about substitution—but about addition. The almond milk doesn’t replace the dairy in the chai. It sits next to it in the fridge, as an option, a symbol, a signal of modernity. Milk, in this context, is not just nourishment. It’s narrative.

Cross-Cultural Observations: What Tastes Like Progress?

From Bangkok cafés to Berlin grocery aisles, plant-based milk carries different meanings depending on where you are—and who you ask. To understand the global arc of milk alternatives, it’s not enough to look at adoption rates. You have to ask what each product represents in a cultural context. Because in the world of milk, progress has many flavours.

In the UK, oat milk has become shorthand for ethical living. It’s the fuel of the “climatarian”—those who select food based on its carbon footprint. It helps that oats grow abundantly in Europe and require far less water than almonds. But this is also about optics. Oat milk in a flat white signals something specific: sustainability without sacrifice. It says, “I’m paying attention.”

In Japan, soy milk is the opposite of a trend—it’s a staple. You’ll find banana soy milk in vending machines, black sesame soy in school lunch trays, and unflavored soy behind the counter of every ramen bar. Oat milk, by contrast, is a foreigner: imported, expensive, and still largely a café novelty. Where Western markets romanticise innovation, Japan reveres the familiar.

In India, almond milk is climbing—but it’s doing so as a marker of status. Its presence in a smoothie bowl or a vegan café menu connotes wellness, modernity, and a kind of cosmopolitan sophistication. It’s aspirational, not essential. Meanwhile, mung bean and millet milks are emerging quietly from startups like Goodmylk, using ingredients that feel both futuristic and deeply local.

In Southeast Asia, coconut milk is tradition in liquid form. It’s thick, aromatic, and the base of comfort food across generations. Oat milk, by comparison, is still figuring out how to earn trust—or at least a spot in the fridge. Soy milk, sold sweet and chilled at street stalls and in grocery chains, continues to dominate the category for its price, protein, and familiarity.

And then there’s the matter of price. Across nearly every market, oat milk carries a premium—often double or triple the price of cow’s milk, and far more than local alternatives. In the UK, it retails for £1.90 per litre compared to £1.20 for dairy. In Southeast Asia, import costs push oat milk into the realm of aspirational indulgence.

This price disparity cuts to the heart of a growing identity tension: who gets to eat for the planet? In many regions, sustainability remains a luxury. And with that, a subtle backlash is brewing against the Westernisation of food. Consumers in Asia, Latin America, and Africa are increasingly questioning why “plant-based” must mean foreign, expensive, and out of touch with local ecosystems.As these questions simmer, the most forward-thinking brands aren’t scaling Western models—they’re turning inward. Instead of exporting oat milk to Jakarta or Mumbai, they’re asking: what’s already growing here? And how do we make that the new norm?

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Global demand for chocolate is rising, even as consumer concern over sugar, processed foods and wellness reaches new heights. Across the UK, the US, and key Asian markets, confectionery companies are reporting growth not just in premium segments, but also in functional and “better-for-you” formulations once considered niche.

The shift reflects a broader recalibration of what indulgence means in the modern marketplace. Shoppers are eating less in volume but paying more for chocolate that aligns with evolving personal values-whether that means fewer ingredients, higher cocoa content, or the addition of protein and adaptogens.

Multinational players and local upstarts alike are moving quickly to capture this redefined sweet spot. In the US, dark and portion-controlled chocolates are gaining share despite higher prices. In the UK, new regulations on high-sugar foods have prompted a wave of reformulation and repositioning. And in Asia, where per capita consumption remains relatively low, demand is accelerating as chocolate becomes both an aspirational treat and a vessel for functional benefits.

For an industry once synonymous with excess, chocolate is proving remarkably adaptive. What was once a discretionary snack is now being repackaged as self-care-and that subtle shift in perception is proving to be a powerful driver of growth.

A Global Market Defying Expectations

Chocolate’s commercial momentum is not just anecdotal – it’s backed by hard numbers that defy nutritional orthodoxy. While public health messaging around sugar reduction has grown louder, global retail sales of chocolate continue to expand, particularly in markets where health consciousness and affluence are rising in tandem.

Recent industry estimates place global chocolate confectionery sales at around US$130 billion, with steady value growth driven by pricing power, premiumisation, and consumer appetite for smaller, higher-quality products. In contrast to other processed snack categories, chocolate has retained pricing resilience and cultural relevance – often viewed not as a vice, but as an acceptable reward.

In mature markets like the United States and the United Kingdom, manufacturers are offsetting flat or declining volumes with premium offerings, clean-label positioning, and targeted innovation. In the US, even as unit sales dipped last year, dollar sales rose. UK consumers, faced with inflation and regulatory pressure on high-fat, sugar and salt (HFSS) products, are adjusting by buying smaller formats or turning to private-label options – but they haven’t walked away from the category.

In Asia, the story is different. Markets like China and Singapore are seeing growing interest in chocolate, particularly among urban, middle-class consumers. Premium brands, often imported, are benefiting from rising disposable income and a gifting culture that values quality and presentation. Even in Japan, where the market has been contracting, companies are finding ways to win back consumers through functional formulations and high cocoa content offerings.

Whether as comfort, status symbol, or perceived health supplement, chocolate’s role is being redefined. And with that reframing comes an expansion in both who is buying – and why.

Changing Consumer Drivers

The growth in chocolate sales isn’t coming from nostalgia alone. It reflects a more nuanced shift in consumer mindset – one that doesn’t reject indulgence, but instead reclassifies it. Chocolate is increasingly seen as compatible with modern lifestyles, not in spite of its decadence but because of how consumers are redefining what balance looks like.

Across markets, there is growing tolerance – even encouragement – for what industry analysts term “permissible indulgence.” Rather than eliminating treats, consumers are looking for control: smaller portions, higher cocoa content, and labels that read more like pantry ingredients than chemistry sets. In the UK, more than a third of chocolate consumers say they are consciously limiting sugar – but not abstaining entirely. In the US, 91% say they’re willing to pay more for chocolate that feels like a personal reward.

What has changed is the framing. Where chocolate once sat squarely in the category of “guilty pleasures,” it’s now more likely to be marketed as self-care. Brands have responded with messaging that leans on mood, mindfulness, and mental health – themes that resonate particularly well with millennial and Gen Z consumers. In Asia, products with added collagen or calming botanicals are performing strongly, positioned as part of a broader wellness routine.

Functionality is part of the equation. But just as important is the emotional rationale. In a volatile global climate, consumers are granting themselves small indulgences, so long as they carry a justification – be it clean ingredients, health benefits, or sustainability claims. Chocolate, perhaps more than any other treat, has adapted to meet that need without losing its core appeal.

MarketPrimary PositioningTrending SegmentsNotable Retail Behavior
USIndulgence-firstDark, functional, protein-addedPortion control, DTC growth
UKSustainability/ModerationPlant-based, lower sugar, private labelHFSS-regulated placement, ethical labels
JapanFunctional-firstStress-relief, GABA, polyphenolsMini packs, convenience store dominance
ChinaPremium & AspirationalImported brands, gift setsGifting culture, boutique speciality retail
SingaporeLuxury meets wellnessVegan, single-origin, no added sugarGifting culture, boutique specialty retail

Innovation in Product Development

Much of chocolate’s resilience can be traced to how aggressively manufacturers have innovated in recent years. The category has undergone a quiet but significant transformation, with R&D efforts focused on meeting modern expectations around health, quality, and purpose.

Product reformulation is now a baseline strategy. Across the UK and parts of Europe, pressure from HFSS regulations and consumer advocacy groups has accelerated the development of lower-sugar alternatives. Major brands, including Mondelēz and Nestlé, have introduced chocolate lines with 30% less sugar, while also cutting artificial additives and using alternative sweeteners like stevia and monk fruit. In the US, Hershey has expanded its zero-sugar range and invested in cleaner labels across its mainstream portfolio.

The fastest-growing segment, however, isn’t necessarily lower in sugar – it’s higher in cocoa. Dark chocolate continues to outperform traditional milk variants, buoyed by its association with antioxidants, reduced sugar, and a more “sophisticated” profile. Lindt & Sprüngli, Ferrero, and other global players have reported strong growth in dark chocolate sales across both Western and Asian markets, supported by expanding ranges with cocoa content of 70% and above.

In Asia, innovation has taken a more functional route. Japanese confectioners, long known for their product precision, have introduced chocolate fortified with stress-reducing botanicals, dietary fibre, and even blood pressure–supporting polyphenols. In China, new launches incorporate traditional ingredients like ginseng or goji berries, often positioned as “balance-enhancing” or “body-friendly.”

At the premium end, smaller brands are leading with single-origin sourcing, artisanal techniques, and clean-label credentials. Their appeal lies not just in purity of ingredients but in transparency – with packaging that highlights cocoa origin, ethical certification, and handcrafted quality. These innovations are helping redefine chocolate as not just permissible, but aspirational – a snack that delivers on taste, health alignment, and brand values simultaneously.

Some of the most telling examples of how chocolate makers are evolving come from established players experimenting beyond their traditional formulas.

In the UK, Mondelēz launched the Cadbury Plant Bar, a vegan version of its flagship Dairy Milk, using almond paste in place of dairy. The move marked the brand’s first foray into plant-based chocolate in nearly two centuries of operation, reflecting not just a shift in ingredients, but a broader strategy to reach flexitarian consumers. While still a small part of total sales, the Plant Bar represents a growing segment within confectionery where plant-based credentials are seen as a proxy for health, ethics, and modernity.

In the United States, Hu Kitchen has carved out a loyal following by doing less. Its clean-label chocolate bars – free from dairy, refined sugar, palm oil, lecithins, and emulsifiers – have thrived in premium health retailers and online marketplaces. The brand’s minimalist packaging and “Get Back to Human” tagline struck a chord with consumers seeking indulgence without compromise. Hu’s rapid success led to its acquisition by Mondelēz in 2021, underscoring how legacy players are using startup acquisitions to absorb innovation.

In Japan, functionality is a competitive advantage. Meiji’s “The Chocolate” line and Lotte’s “GABA-infused” chocolates target adult consumers seeking both pleasure and health benefits. GABA (gamma-aminobutyric acid), a naturally occurring neurotransmitter linked to stress reduction, is featured prominently in Lotte’s marketing, tapping into Japan’s growing demand for mood-supportive snacks. These products are often sold in convenience stores – not as candy, but as part of the functional food aisle.

Taken together, these cases illustrate how manufacturers are navigating a more complex chocolate landscape – where taste is non-negotiable, but health cues, ingredient ethics, and wellness positioning are becoming essential to growth.

Packaging and Positioning as Strategy

As much as product formulation has shifted, so too has the way chocolate is presented – and that evolution is proving just as important in driving consumer uptake. Packaging and messaging have become strategic tools in redefining how chocolate fits into a health-conscious lifestyle. In many cases, what’s on the outside of the bar is doing just as much work as what’s inside it.

One of the most noticeable changes across global markets is the move away from traditional share-size formats toward portion-controlled, individually wrapped offerings. Whether driven by calorie-conscious consumers or regulatory nudges, this shift aligns with broader health narratives. Smaller sizes are marketed not as a cutback, but as a mindful choice. In the UK, major supermarkets have reorganised confectionery aisles to prioritise “treatwise” options, while in Japan and Singapore, individually wrapped squares dominate shelves, reinforcing the idea of moderation and intentionality.

At the premium end of the market, design language has also evolved. Brands are increasingly leaning on matte finishes, minimalist typography, and earthy colour palettes to signal quality and modernity. Sustainable packaging has become a competitive differentiator: compostable wrappers, recyclable boxes, and carbon-neutral claims are now common among premium and artisanal brands. According to NielsenIQ, 72% of global consumers say they’re willing to pay more for products that offer sustainable packaging, and confectionery is no exception. In the UK, where eco-consciousness is deeply embedded in consumer decision-making, this has helped smaller brands gain traction.

Equally important is the messaging printed on the front of pack. Chocolate makers are experimenting with a vocabulary that reshapes indulgence into alignment with health, ethics, or personal care. Terms like “source of antioxidants,” “plant-based,” “no added sugar,” and “ethically sourced cacao” are increasingly used to build trust and justify premium pricing. In Asia, functional benefits take centre stage, with Japanese and South Korean brands promoting relaxation, cognitive support, and gut health directly on packaging. In the US, mood-related cues – “energy,” “calm,” or “focus” – are finding their way onto wrappers once reserved for novelty slogans.

What’s striking is how positioning diverges across markets, reflecting local consumer priorities. In the United States, chocolate is still framed primarily around indulgence, but with an upgraded narrative: it’s an “earned” treat, often marketed with language around self-reward and quality ingredients. In Japan, functionality leads, with packaging that emphasises health outcomes and precision. In the UK, sustainability and transparency are front and centre, with brands competing on cocoa sourcing, packaging recyclability, and sugar reduction metrics.

For multinationals, adapting packaging and messaging to these local nuances has become essential. What resonates in a Los Angeles health food store may not land in a Tokyo pharmacy or a London high street supermarket. But across all regions, the direction is clear: chocolate is no longer sold simply as a sweet. It is being positioned as a curated experience – one that reflects the consumer’s lifestyle, values, and desired level of indulgence.

Regulatory and Retail Landscape

As health concerns reshape consumer expectations, regulatory bodies and retailers are playing a growing role in influencing how, where, and what kind of chocolate is sold. Far from slowing the category, these shifts are prompting structural changes in how brands operate – from formulation to shelf placement.

In the United Kingdom, one of the most ambitious regulatory efforts has been the government’s restriction on the promotion of high-fat, sugar, and salt (HFSS) products. Since October 2022, chocolate and other confectionery brands have faced limitations on prominent in-store placements such as aisle ends and checkouts, along with bans on advertising HFSS products during primetime TV and online slots aimed at children. While critics initially forecast a sharp decline in impulse sales, early results from Kantar suggest a more nuanced picture: some volume loss has occurred, but consumers are increasingly switching to HFSS-compliant versions or smaller-format treats that are still allowed in high-traffic zones. Brands that anticipated these changes – either by reformulating or launching reduced-sugar SKUs – have retained shelf visibility and sales stability.

Retail strategy is also evolving in response to both regulation and pandemic-era behavioural shifts. The rise of direct-to-consumer (DTC) models and online artisanal chocolate brands has created a new layer of competition. In the United States, premium players like Dandelion Chocolate and Raaka have built thriving businesses selling craft bars online, complete with subscription models and seasonal releases. In Asia, particularly Singapore and South Korea, social commerce and messaging platforms are enabling local chocolatiers to bypass traditional retail entirely.

At the same time, speciality health retailers such as Whole Foods, Planet Organic, and iHerb have expanded their chocolate assortments, focusing on functional, low-sugar, and vegan options. Their merchandising strategies give these products front-facing visibility – a stark contrast to conventional supermarkets, where legacy brands still dominate shelf space.

Traditional grocers are responding. IGD data shows that major supermarket chains in Europe and Asia are reallocating shelf space toward “better-for-you” indulgences, particularly as demand grows for low-sugar and plant-based chocolate. Some are trialling “wellness treat” zones, while others are integrating chocolate into broader health-and-lifestyle aisles – a sign that chocolate’s category boundaries are shifting.

Taken together, these developments point to a category in flux – not shrinking, but reshaping. Chocolate remains a high-frequency purchase, but how it’s discovered, promoted, and purchased is changing rapidly, driven by policy, platform, and purpose.

Market Outlook and Investment Trends

Chocolate’s continued growth in a health-conscious world is not an anomaly. It is a lesson in the malleability of consumer perception – and a case study in how legacy categories can evolve when indulgence is repackaged as alignment with personal values.

From an investment standpoint, this has not gone unnoticed. The past five years have seen a wave of M&A activity as global FMCG players seek to future-proof their portfolios. Mondelēz’s acquisitions of Hu Kitchen and Lily’s, Mars’ purchase of KIND and Trü Frü, and Nestlé’s investments in functional and plant-based startups reflect a strategic shift: legacy companies are buying their way into health-aligned chocolate because they understand that future growth lies at the intersection of taste, wellness, and ethics.

At the same time, private label competition is intensifying, particularly in markets like the UK and Asia. As inflation pressures persist, consumers are increasingly opting for supermarket-owned brands that deliver on price without abandoning claims like “ethical sourcing” or “no artificial ingredients.” Retailers are capitalising on this, not only by expanding their own lines but also by positioning them as premium, narrowing the gap between store brand and artisanal in both packaging and provenance. In the UK, Tesco’s and Sainsbury’s premium private label chocolates now include single-origin and vegan lines. In Asia, Don Quijote has become a bellwether for how convenience and quality can coexist, with curated chocolate assortments from both domestic and imported brands.

The bigger question is whether the category can continue to bridge the tension between health and indulgence. All signs point to yes – but not without nuance. The hybridisation of chocolate is likely to continue: functional ingredients will gain ground, especially those linked to mental wellness, gut health, and energy support. Meanwhile, classic indulgence will persist, albeit in cleaner formats and more restrained sizes. Consumers are not abandoning pleasure; they are recalibrating it.

The success of chocolate in this new era lies in its emotional elasticity. It can be a gift, a ritual, a moment of calm, or a functional snack – sometimes all at once. Unlike many processed food categories that struggle to justify their place in a health-first world, chocolate has managed to make itself feel essential. That is not just clever marketing; it’s a deep understanding of how modern consumers make trade-offs. They don’t want to eliminate joy – they want to justify it.

For investors, that makes chocolate a rare thing in today’s food landscape: a category with legacy scale, emotional equity, and evolving relevance. For brands, the challenge now is not to follow fads, but to build trust, deliver on new expectations, and never forget that taste is still the gatekeeper. The future of chocolate will belong to those who understand that indulgence and intention are no longer opposites – they are partners in modern consumerism.

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I live in Tornado Alley, which means a roof isn’t just a roof – it’s armour. So when I found out mine needed replacing, I didn’t hesitate. I reviewed quotes, selected a company, signed the contract. All the hard stuff, I thought, was behind me.

Then came the question: what colour?

It felt like it should’ve been easy. But standing in my driveway, staring up at the expanse of shingles-to-be, I froze. It’s a massive, permanent decision – visible from every angle, exposed to the sky, the neighbours, and every passing storm chaser. Would black make the house too hot? Would brown make it look dated? Would grey clash with the brick?

Naturally, I turned to ChatGPT. I uploaded a photo of my home, asked for help, and was met with an avalanche of color-coded logic – slate complements red brick, brown warms the palette, weathered wood is a “classic choice.” The suggestions were smart, thoughtful… and somehow made things worse. I now had more choices, just better argued.

So I went to the manufacturer’s website and used their simulation tool, dropping different shingle colours onto a photo of my house. It helped, in theory. But once I narrowed it down to three, they all started to blur. On screen, they looked practically the same. That’s when my roofing company stepped in. They brought physical samples, laid them out in the sunlight, and – most importantly – showed me actual homes nearby with each of the colours installed. Only then, after all the tech, the swatches, and the analysis, could I make a choice I felt confident in.

This wasn’t indecision. It was decision friction. And it’s the kind of friction that brands, in their pursuit of offering more, often overlook.

The Psychology of Too Much Choice

We tend to think more choice equals more freedom. But in reality, more choice often creates more anxiety. Psychologist Barry Schwartz coined this dynamic the Paradox of Choice – the idea that while some choice is good, too much can lead to decision paralysis, increased regret, and less satisfaction overall.

This is especially true when the decision feels high-stakes. Choosing a roof colour isn’t just cosmetic – it’s a long-term investment, highly visible, and not easily reversed. When the pressure is on, our brain doesn’t appreciate abundance. It defaults to avoidance.

In one of the most cited studies in consumer psychology, Sheena Iyengar and Mark Lepper set up a jam sampling table in a grocery store. Shoppers were either offered six flavours or twenty-four. The larger display drew more interest – but those offered just six choices were ten times more likely to make a purchase. The takeaway? More options may attract attention, but fewer options drive action.

What’s happening under the surface is cognitive overload. Our working memory – responsible for weighing pros and cons – gets saturated quickly. With each new variable, our mental model has to recalculate. At a certain point, the decision becomes so mentally taxing that it feels easier to defer it, abandon it, or outsource it entirely. That’s not a lack of willpower. That’s the brain protecting itself from burnout.

When brands ignore this psychological friction, they unknowingly increase the likelihood of customer hesitation, second-guessing, or worse – inaction. Because when everything looks like a good option, nothing feels like the right one.

Why Some Decisions Deserve More Support

Marketers often treat decisions like they exist on a flat playing field. But in reality, choice sits on a hierarchy, and the higher up you go, the more psychological support people need.

Low-stakes decisions, such as choosing a gum flavour or a side dish, rarely cause friction. They’re inexpensive, reversible, and carry minimal consequences. High-stakes choices, on the other hand, are more complex, costly, and deeply personal. Whether it’s selecting a mortgage provider, a wedding dress, or a new roof, the risk of regret weighs heavier.

That’s when the brain switches gears. We move from intuition to analysis, and if overloaded, to avoidance. Behavioural economists refer to this as the decision fatigue curve. As the number of variables and the stakes increase, so does cognitive load. That’s why people delay home renovations or abandon full carts at checkout. It isn’t laziness – it’s self-preservation.

This is where tiered choice architecture can help. Instead of dumping every possibility on the table, brands can scaffold decisions. For example, a meal kit service might start by asking about dietary needs, then cooking skill, then taste preferences – delivering a filtered set of meals instead of all 200 at once. The consumer still feels in control, but the decision feels digestible.

Think of it like an elevator. Not every customer is heading to the top floor. Some want a shortcut to level two, others want to explore every stop. But without floors, stairs, or signage, everyone just stands around in the lobby – unsure of where to go next.

Smart brands design choice structures based on where decisions fall in the hierarchy and how much friction they carry. It’s not a nice-to-have – it’s essential.

Why Smart Tools Sometimes Backfire

Even when tools are meant to help, they can still make it worse. AI-generated recommendations, product filters, simulations – these were designed to ease decision-making. But when they simply layer on new variables without eliminating others, they amplify the problem.

In my case, ChatGPT gave me additional, well-reasoned colour suggestions. The roofing brand’s simulator let me “see” each option on my house. But with every added perspective, I became more uncertain – not less. What I needed wasn’t more input. I needed a system that filtered, narrowed, and helped me move forward confidently.

That’s the trap brands fall into. They assume the answer to choice anxiety is better information. But the real solution is constraint.

People don’t want endless options. They want a sense that they’re on the right path. And while visual tools are helpful, they rarely match the nuance of real-world conditions – light changes, neighborhood aesthetics, material textures. That’s why physical samples and in-person examples were what ultimately helped me decide. Not because they offered more data, but because they reduced ambiguity.

Even the smartest tools can fail if they don’t acknowledge the emotional weight of uncertainty. Help should feel like progress, not pressure.

The Business Case for Simplifying Choice

Procter & Gamble once sold 26 different versions of Head & Shoulders shampoo. From dandruff control to citrus burst, there was something for every scalp scenario. But instead of boosting sales, the abundance of options led to customer hesitation – and stagnant shelves. When P&G reduced the number of variants from 26 to 15, something surprising happened: sales went up.

Why? Because fewer choices didn’t mean less relevance. It meant less confusion.

This pattern repeats across industries. GAP, for example, simplified its denim wall – once packed with indistinguishable fits – and saw shoppers choose faster and with more certainty. In tech, Apple’s limited product lines stand in stark contrast to Android’s sprawling menus. Apple doesn’t overwhelm with options. It offers what’s needed – and nothing more.

Even in the world of digital entertainment, Netflix has tested ways to surface fewer titles on screen to reduce decision paralysis and increase view time. Endless scroll may seem like engagement, but often it’s just a user trapped in the loop of not knowing what to pick.

These companies realised that offering fewer, better-differentiated choices creates momentum. It respects the consumer’s time, reduces cognitive strain, and makes the path to “yes” feel like a confident step – not a leap of faith.

In a world that equates abundance with value, restraint has become a competitive advantage.

What Brands Should Learn

When consumers are overwhelmed, they don’t want more options – they want clarity. The role of the brand is no longer just to offer a catalogue of possibilities, but to actively guide people through a decision journey that feels considered, contextual, and reassuring.

Start with curated collections. Rather than overwhelming customers with endless variants, group products into purposeful sets: “best for small spaces,” “most popular among professionals,” “ideal for warm climates.” Curation is not restriction – it’s a form of empathy.

Next, invest in personalised guidance. This could be as simple as a quiz that identifies key needs and filters options, or as advanced as AI-driven suggestions based on behavioural patterns. But the goal is the same: to remove irrelevant options, not add to the noise.

Then there’s context. Il Makiage, for example, doesn’t just match foundation shades – they show how those shades look on real people, under real conditions. They reinforce your selection with testimonials and visual proof, not just swatches on a screen.

Brands should also think about post-purchase validation. The moment after a decision is made is just as critical as the moment before. Thoughtful follow-up emails, affirming language, tips for first-time use – these reassure the customer they made a smart call.

Ultimately, this is about choice architecture. The brands that win don’t just give people more to choose from. They design the experience around how people actually make choices – emotionally, socially, and cognitively.

The Role of Research in Reducing Friction

Understanding decision friction isn’t guesswork – it’s measurable. According to a Baymard Institute study, nearly 70% of online shopping carts are abandoned – and one of the top reasons is a complicated decision process. This is where market research proves invaluable.

At its core, decision friction stems from uncertainty. But the source of that uncertainty – whether it’s lack of clarity, hesitation, or unspoken objections – differs by category, audience, and context. Research identifies these hidden blocks.

Qualitative studies reveal how consumers feel in the moment of indecision. Quantitative methods like conjoint analysis or maxdiff help identify which features drive real value. Segmentation shows how different customer types make decisions – some need freedom, others need a path.

Research also plays a critical role in post-choice validation – what gives people confidence after they say yes. The right message, email, or proof point can turn relief into brand trust.

If friction is the obstacle, research is the flashlight.

UX Doesn’t Stand for Unlimited Experience

In digital environments, more space doesn’t automatically mean more freedom. It often means more friction. In user experience (UX) design, subtraction – not expansion – is often the most powerful conversion tool.

Booking.com once overloaded its interface with filters, price badges, and urgency cues. But A/B testing revealed that simplifying the layout led to higher engagement. Shopify restructured its onboarding to guide users through sequential tasks rather than overwhelming dashboards. Completion rates rose.

Even streaming platforms like Disney+ and Netflix have learned to surface fewer but more relevant titles. Endless choice wasn’t delight – it was paralysis.

This is called cognitive offloading – helping users conserve mental energy by removing unnecessary decisions.

UX design, at its best, doesn’t just look good. It helps people move forward.

Final Thought

Decision-making is rarely logical alone. It’s emotional, contextual, and deeply personal – particularly when the stakes are high. Smart brands don’t just sell products. They design experiences that acknowledge the mental load customers carry.

The best marketing today isn’t louder. It’s sharper. It removes friction not by simplifying what you offer, but by anticipating how people choose. If you’re not thinking about how your customer feels at the point of decision, you’re not really in the business of persuasion.

You’re in the business of hoping.

And hope is not a strategy.

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

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

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

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

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

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

The Perfect Storm Behind the Shift

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

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

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

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

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

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

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

The Rise of Subscription-Based Vet Care

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

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

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

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

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

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

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

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

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

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

Regional Perspectives in Transformation

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

United States: Infrastructure Meets Expectation

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

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

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

United Kingdom: Bridging Gaps with Affordability

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

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

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

Southeast Asia: Mobile-First and Rapidly Scaling

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

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

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

pet-telehealth-growth

Brand Spotlight: Pawp

Image credit: Pawp

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

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

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

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

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

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

Traditional Clinics at a Crossroads

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

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

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

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

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

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

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

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

What Subscription Care Reveals About Consumer Psychology

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

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

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

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

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

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

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

From Reactive to Relationship-Based Care

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

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

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

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

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

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

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Consumer sentiment shifts rapidly, shaped not only by your company’s directives and strategies but also by external forces, such as viral trends, cultural movements, and economic forces. The brands that endure and adapt to these changes in real-time. Brand tracking is more than a periodic check-in – it’s essential for survival. By continuously monitoring brand health, companies can identify strengths, spot weaknesses, understand competitive positioning and adjust strategy accordingly.

But perception isn’t static. A brand with strong awareness today can lose relevance tomorrow if it fails to track how consumers feel, engage, and respond over time. To remain competitive, brands must continuously track their position in the market and be agile enough to adapt.

What is Brand Tracking, and Why Does it Matter?

Brand tracking measures a brand’s performance over time, helping companies identify shifts in the market, consumer trends, competitive trends, strengths, weaknesses, and opportunities to refine brand strategy.

Brand perception is fluid and influenced by consumer experiences, media narratives, and competitive shifts. Brand tracking helps companies answer critical questions:

  • Is our brand positioning resonating with the right audience?
  • How does our reputation compare to competitors?
  • What messaging, campaigns, or brand attributes build consumer loyalty?
  • Are external factors – economic shifts, social trends, or market disruptions – impacting our brand perception?

Key Elements of Brand Tracking

Brand tracking goes beyond surface-level metrics to assess a brand’s health and market position. Key components include:

  • Brand Awareness: Measuring Recognition and Recall
    • Unaided vs. Aided Awareness 
    • Top-of-Mind Awareness: The first brand a consumer thinks of in a category often signals market leadership and competitive strength.
  • Brand Perception & Sentiment Analysis
    • Consumer Attitudes and Associations: Understanding how consumers feel about a brand—and the attributes they link to it—is key to shaping brand identity. These should include both functional benefits and emotional benefits.  As well as brand personality. 
  • Purchase Intent, Satisfaction & Customer Loyalty Metrics
    • Likelihood of Purchase: Gauging how likely consumers are to choose a brand helps predict future sales.
    • Satisfaction: Understanding brand satisfaction versus competitors.
    • Net Promoter Score (NPS): Measuring customers’ willingness to recommend a brand indicates satisfaction and loyalty.
  • Competitive Benchmarking
    • Market Position Analysis: Comparing brand performance against competitors to identify strengths, weaknesses, and market opportunities.
    • Share of Voice: Measuring a brand’s visibility in the market through media coverage and advertising reach.
  • Media & Advertising Effectiveness
    • Campaign Impact Assessment: Assessing how marketing efforts affect awareness, perception, and sales.
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Turning Data into Strategy

Brand tracking only matters if insights lead to action. Using data strategically, companies can refine marketing, reposition products, and strengthen customer loyalty.

Identifying Strengths and Weaknesses Before They Become Market Issues

Tracking brand health helps brands pinpoint areas where they excel and where they are losing ground. Rather than relying on assumptions, brands that act on measurable shifts in consumer sentiment can adjust messaging and engagement tactics before losing relevance.

Optimising Marketing Campaigns

Effective marketing isn’t just about visibility; it’s about impact. Brand tracking measures how marketing efforts influence perception, loyalty, and purchase intent. If a campaign falls short, data allows brands to tweak real-time messaging rather than wait until the next cycle.

Benchmarking Against Competitors

Brand tracking is most powerful when measured against competitors. Comparing brand health metrics against competitors enables companies to identify gaps in positioning, capitalise on underserved markets, and anticipate industry shifts before rivals do.

Building Customer Loyalty

Brand tracking isn’t just for attracting new customers; it helps brands understand why existing customers stay or leave. Tracking loyalty metrics allows brands to implement better retention strategies, such as loyalty programs, improved customer service, or product innovation.

Brand Tracking Mistakes and How to Avoid Them

Even the best tracking methods fail if poorly executed. Avoid these common mistakes to ensure insights lead to action.

  • Measuring Awareness Without Sentiment
    A high awareness score means little if there are negative perceptions. Brands must pair awareness tracking with perception analysis to get a complete picture of their market position.
  • Tracking Without Business Goals
    Brand tracking is useless if not tied to clear objectives. Tracking must support strategy, whether expanding markets, improving retention, or refining advertising.
  • Ignoring Qualitative Data
    Numbers alone don’t tell the full story. Open-ended customer feedback and sentiment analysis reveal why brand perception shifts.
  • Failing to Act on Insights
    Insights are useless if brands don’t act. Whether trust is eroding or a competitor is gaining ground, companies must adjust accordingly.
  • Overlooking Market Trends
    Brand perception doesn’t exist in a vacuum. Economic shifts, cultural trends, and competitors shape public opinion. Effective tracking accounts for these factors.

Brand Tracking Is Not an Option—It’s Survival

Brand perception is a moving target. What consumers think today may not hold true tomorrow, and brands that fail to monitor these shifts risk becoming irrelevant. The market does not wait for companies to catch up; brands that do not track, analyse, and act on data are at the mercy of competitors who do.

Tracking isn’t just about data—it’s about influence. It reveals when a brand resonates or repels, when trust strengthens or erodes. The best brands spot risks before they escalate and seize opportunities before they go mainstream.

Market leaders don’t wait for a crisis to understand their position. They track, measure, and adapt before perception shifts beyond their control. A brand that isn’t tracking its relevance isn’t just falling behind – it’s already lost control of the narrative.

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Late one evening in Lagos, 22-year-old Chika is scrolling through TikTok, eyes fixed on a local influencer demoing the latest face serum. She watches the 30-second video twice, screenshots the product, and toggles over to Jumia to compare prices, scanning reviews that look a little too polished to be real. Before checking out, she sends a message to her cousin in Ibadan: “Have you tried this one? Is it legit?” Only after a thumbs-up and a money-back assurance from the seller does she complete the purchase – on mobile, of course.

This isn’t an isolated case. It’s a snapshot of how the next billion consumers will shop, click, and connect.

While Western economies grapple with saturation, inflation, and shifting loyalty, the momentum is migrating – toward Southeast Asia, Africa, and parts of Latin America. These regions are no longer just “emerging markets.” They are where the most dynamic, mobile-first, and digitally sophisticated consumers are coming of age.

The numbers make the case undeniable. According to the United Nations, over 85% of global population growth through 2050 will come from Africa and Asia. The GSMA reports that mobile internet penetration in Sub-Saharan Africa is set to reach 50% by 2025, up from 28% in 2019. Meanwhile, the World Bank highlights how smartphone adoption is leapfrogging traditional infrastructure, giving rise to an entire generation that skipped the PC era entirely.

But these consumers are not easily won. They are bilingual and bicultural, equally fluent in local slang and global memes. They are digitally native but deeply mistrustful, having grown up in online ecosystems rife with scams, misinformation, and empty brand promises. And they are forcing brands – both global and local – to rethink what it means to earn attention, deliver relevance, and build trust in the age of hyper-connectivity.

This is not just a demographic shift. It’s a behavioural revolution. And it’s already underway.

Meet the Next Billion: Demographics, Access, and Expectations

This new wave of consumers is young, connected, and coming online fast. In markets like Nigeria, Indonesia, Vietnam, and the Philippines, the median age hovers around 25. These are societies where more than half the population wasn’t yet born when Facebook launched – and for them, digital engagement isn’t an evolution; it’s a native state.

Urbanisation is accelerating across these regions, but it’s not confined to megacities. Second- and third-tier cities are becoming powerful engines of growth, fueled by digital access and rising educational attainment. In Vietnam, for instance, over 94% of youth are literate, and the number of university graduates has doubled over the past decade. Similarly, Nigeria’s youth enrollment in tertiary education is climbing, despite infrastructure constraints. With education comes language dexterity: millions speak at least two languages – one local, one global – and they switch between them instinctively, depending on the context, platform, or audience.

If their predecessors logged onto the internet, this generation lives inside it – and does so almost exclusively via smartphone. In Indonesia, smartphone penetration has surpassed 75%, with apps like Tokopedia, Gojek, and Shopee becoming gateways to everything from groceries to financial services. In sub-Saharan Africa, handset affordability and prepaid data plans have made mobile the default medium for learning, shopping, and socialising. The desktop? Many have never touched one.

Browser-based experiences are increasingly irrelevant. Instead, this generation navigates a constellation of apps, each with its own cultural role. WhatsApp is for family, Instagram for aspiration, TikTok for entertainment, and Telegram or local forums for unfiltered information. Platform behaviour is deeply segmented and purpose-driven. Brands attempting to force a uniform message across channels are quickly tuned out.

And while their tech habits may look similar from a distance, the nuances run deep. In Nigeria, digital spaces are often leveraged as tools for activism and community solidarity. Mistrust in institutions has made peer recommendations and online reputation more powerful than formal brand campaigns. By contrast, in Indonesia, religious and cultural values shape how products are perceived and promoted – especially in sectors like fashion, beauty, and food. Vietnamese consumers, on the other hand, exhibit a high degree of tech optimism, embracing e-wallets and livestream commerce, but place enormous emphasis on product quality and after-sales service, driven by prior experiences with low-cost imports.

These differences matter. What unites the next billion is their digital fluency, but what distinguishes them is the lens through which they evaluate brands. A price drop may trigger interest in Nigeria, but in Vietnam, durability and performance often take precedence. In Indonesia, localised design or halal certification may be the tipping point. The common thread is that these consumers are not passive recipients of global marketing – they are active participants, savvy navigators, and, increasingly, vocal critics.

To engage them, brands must move past old assumptions about emerging markets being homogenous or easily won with scale. What’s unfolding is a more complex, more nuanced, and more demanding consumer environment – and it’s being shaped not just by demographics, but by deep-seated expectations forged in mobile-first, culturally hybrid, and rapidly evolving societies.

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Mistrust Is the Default Setting

For many of the next billion consumers, scepticism isn’t a reaction – it’s a reflex. Decades of unreliable infrastructure, political instability, and inconsistent enforcement of consumer rights have conditioned buyers to approach brands and platforms with guarded caution. In these markets, trust is not assumed; it’s earned slowly and lost quickly.

The scale of the challenge is significant. According to Edelman’s 2024 Trust Barometer, trust in institutions – including businesses – remains markedly lower in developing regions than in developed ones. In Nigeria, only 42% of respondents said they trust brands “to do what is right,” compared to 62% in the UK. In Indonesia, that figure was closer to 50%, but even there, trust is often linked to familiarity rather than formal reputation – people tend to trust people, not corporations.

This backdrop has fueled the rise of peer-to-peer influence as a dominant decision-making force. In the Philippines, Facebook community groups like “Online Budol Finds” (slang for impulsive purchases) function as real-time marketplaces and review boards, where users share unfiltered opinions about products, pricing, and service. In Kenya, WhatsApp groups play a similar role, serving as both watchdog and validator in a system where traditional consumer protections are weak or absent. Even in Vietnam, where e-commerce infrastructure has rapidly improved, 54% of online shoppers say they rely on recommendations from friends or family over brand messaging, according to Statista.

This preference for informal verification mechanisms stems from bitter experience. Counterfeit goods remain a rampant issue across markets – from fake electronics in Ghana to diluted skincare products in Indonesia. In response, many consumers have developed an internal checklist: check the seller’s social proof, confirm the payment method, look for real customer images, and verify delivery policies. Brands that fail even one of these checks are likely to be discarded in seconds.

At the same time, digital mistrust is compounding the issue. Scams, phishing attacks, and fake reviews have tainted the e-commerce experience. The GSMA estimates that more than 40% of mobile internet users in Africa and Southeast Asia have experienced some form of online fraud or misleading advertising. In Indonesia alone, the National Cyber and Crypto Agency reported over 190 million cyberattacks and suspicious traffic incidents in 2023.

In this climate, even influencer marketing – a strategy once thought to fast-track trust – has grown less effective. In Vietnam, consumers increasingly question whether influencers are being paid to promote products they don’t actually use. The same holds true in Nigeria, where audiences are savvy enough to distinguish between genuine recommendations and sponsored scripts. The result is a gradual shift toward micro-influencers and community advocates, whose endorsements feel more relatable and less rehearsed.

The implications for global brands are profound. Standard top-down marketing no longer carries weight. Instead, trust must be layered in – through reliable service, consistent messaging, transparency in returns and refunds, and responsiveness on the platforms where consumers are active. Brands must also recognise the importance of publicly visible customer interactions. A fast, empathetic reply to a complaint in the comments section may matter more than a million-dollar ad campaign.

Trust, in this context, is not a brand asset; it’s a user experience outcome. And in a market where every interaction becomes a review, the next billion are watching, judging, and sharing – with or without you.

The Battle for the First Page (or First Screen)

For the next billion consumers, the path to purchase doesn’t begin with a browser search – it starts with a scroll. Discovery has shifted from keywords to content, from desktop search bars to full-screen video, and from global search engines to localised social ecosystems. As a result, the first screen – what shows up in a feed, on a homepage, or in a chat group – has become the most valuable real estate in the customer journey.

In Indonesia, 71% of internet users aged 16–24 say they use social media as their primary source for researching brands, according to DataReportal 2024. In Nigeria, that figure is nearly identical. TikTok, Instagram Reels, Facebook Marketplace, and YouTube Shorts aren’t just distractions – they’re digital storefronts where decisions are made in real time, often before a brand’s official website is ever visited. The lines between content, commerce, and community have all but vanished.

And while this trend is visible globally, its intensity in emerging markets is distinct. A key reason: data affordability drives platform choice and usage behaviour. Telecom bundles that include free access to Facebook or WhatsApp often influence which platforms dominate attention. In the Philippines, for example, “Free FB” packages have made Facebook one of the most deeply entrenched platforms in the country’s digital culture – so much so that some users mistakenly believe it is the internet.

The importance of platform-specific strategy can’t be overstated. In Vietnam, product discovery frequently occurs through livestream commerce on TikTok Shop, where real-time interactions foster a sense of authenticity. In Kenya, small businesses routinely post promotions through WhatsApp Status or Telegram channels, bypassing traditional ad formats altogether. In Nigeria, where Twitter (now X) has a strong political and cultural presence, product conversations often unfold in threads filled with memes, humour, and direct audience engagement.

But it’s not just about where brands show up – it’s about how they’re experienced in the moment. Load speed, image optimisation, and mobile UX have a direct impact on trust and retention. According to Google, 53% of mobile users in emerging markets will abandon a page that takes longer than three seconds to load. And that’s not just about tech – it’s about expectations. These consumers are used to fast, seamless, and low-friction digital experiences. Anything less suggests the brand doesn’t understand them.

Just as critically, language and localisation now serve as first impressions. A landing page that defaults to English – or worse, uses awkward machine translations – can signal cultural detachment. By contrast, content tailored in local languages, with region-specific slang and visual references, is seen as a mark of respect and investment. It says: we’re not just here to sell; we’re here to understand.

In a space where attention is both fleeting and fiercely fought over, success no longer goes to the loudest voice or biggest budget. It goes to the most culturally fluent, visually intuitive, and platform-native presence. Winning the first screen isn’t about visibility alone – it’s about resonance.

The Rise of Reverse Aspiration and Quiet Power

Western brands once assumed that success in emerging markets meant becoming aspirational – symbols of modernity and affluence. But for today’s mobile-first generation, the tables are turning. Increasingly, it is not global prestige that earns admiration, but local relevance. In place of overt aspiration, there’s a growing sense of pride in indigenous culture, self-made success, and digital independence. What’s emerging is a quiet power: consumers who no longer seek to imitate the West, but expect brands – foreign and domestic – to meet them on their terms.

Across Southeast Asia and Africa, there’s a perceptible shift from status to substance. In Nigeria, youth are driving a surge in support for homegrown fashion labels like Orange Culture and Ashluxe – brands that blend global aesthetics with distinctly African narratives. A 2023 Euromonitor report found that 64% of Nigerian Gen Z consumers said they prefer to buy local brands that reflect their identity, even when international options are available.

This isn’t limited to apparel. In Indonesia, the halal cosmetics market has seen explosive growth, not merely as a religious preference but as an expression of cultural values. Brands like Wardah and Emina now rival – or outperform – multinational competitors in brand recognition among young women. These brands don’t compete by mimicking Western tropes. They succeed by embedding themselves in the rhythms of local life, from religious observances to beauty standards shaped by regional influencers rather than global celebrities.

The same dynamic is playing out in Vietnam’s tech sector, where local e-wallets like MoMo are outpacing foreign fintech entrants – not because of superior technology but because they better understand the daily behaviours, payment rituals, and security concerns of the Vietnamese consumer. According to a 2023 study by Decision Lab, MoMo enjoys over 60% brand preference among young urbanites, in part due to its partnerships with local merchants and integration into everyday routines like topping up phone credit or paying utility bills.

Meanwhile, global culture is increasingly being shaped by these same markets. Afrobeats, once a niche genre, now tops international charts. Thai skincare routines are influencing global beauty trends. Filipino content creators are gaining global followers on TikTok not because they adapt to global norms, but because they confidently showcase their own. In this way, reverse aspiration is not just a rejection of old hierarchies – it’s an export of influence.

For brands, the lesson is clear: you are not the centre of the story. Consumers no longer measure themselves against your brand identity. Instead, they measure your brand against their values, communities, and cultural fluency. Products must be flexible, not fixed; branding must adapt, not dictate.

The rise of reverse aspiration doesn’t signal hostility toward global brands – it signals maturity. These consumers aren’t trying to join the global mainstream. They are the mainstream – digitally savvy, culturally proud, and shaping the conversation on their own terms. And they expect brands to understand that before making their pitch.

Strategies to Earn Attention and Trust

Capturing the attention of the next billion is not a matter of flashy creative or inflated ad budgets. These consumers are deliberate and discerning, quick to disengage from brands that don’t meet their standards or speak their language – both literally and figuratively. Trust is not a funnel; it’s a framework. And it requires consistent, intentional action across every touchpoint.

1. Hyper-localisation isn’t optional – it’s foundational.
For emerging market consumers, brand credibility is tightly linked to cultural fluency. It goes beyond simple translation to a full embrace of local values, references, and usage contexts. In Vietnam, the delivery app Baemin differentiated itself by infusing its platform with witty Vietnamese slang, inside jokes, and hyper-specific product categories – earning loyalty not through function, but through cultural intimacy. In Kenya, Safaricom’s M-Pesa succeeded not just as a mobile payments tool, but because it was built around the realities of an unbanked population, with offline integration and SMS functionality that anticipated connectivity challenges.

2. Trust is built in the micro-moments.
In high-trust economies, consumers might forgive a misstep. In low-trust markets, every interaction matters. A delayed delivery, a missing refund, or a slow response to a query can permanently damage perception. In Indonesia, beauty brand Sociolla won favour by offering guaranteed authentic products, tracked delivery, and a no-hassle return policy – features that directly addressed consumer anxieties in a market flooded with counterfeits. Transparency, speed, and customer service are not operational choices; they are brand positioning strategies.

3. Community voices trump corporate messaging.
The age of the polished brand ambassador is fading. Peer influence, especially from micro-influencers and everyday content creators, now holds more sway. These are people with modest followings but high engagement, often speaking in native dialects or regional slang. In the Philippines, Shopee’s partnership with grassroots creators in smaller cities – rather than national celebrities – helped drive adoption among new internet users. Brands that co-create with local voices, elevate real customer stories, and share behind-the-scenes content signal a level of openness that consumers find relatable and reassuring.

4. Simplification drives conversion.
The mobile-first mindset means consumers expect streamlined interfaces, fast-loading pages, and frictionless payment processes. The most successful brands eliminate barriers rather than adding features. In India, Meesho – a platform that allows users to resell products through WhatsApp and Facebook – gained explosive traction not by competing on price or product, but by simplifying commerce to match the rhythms of informal entrepreneurship. Especially in markets with lower digital literacy or inconsistent connectivity, simplicity is not just convenient – it’s empowering.

5. Offer real value, not just marketing.
Beyond product benefits, brands that offer utility, knowledge, or community are more likely to earn sustained engagement. During the pandemic, Vietnam’s Vinamilk launched a nutrition education series across Facebook Live, fronted by local pediatricians and nutritionists. The effort was not overtly commercial, but it positioned the brand as a trusted source in a time of uncertainty – building long-term brand equity. Similarly, in Africa, MTN’s “Y’ello Hope” campaign provided remote learning support and free data for health workers, deepening brand connection far beyond mobile service.

6. Show up where it matters – and stay.
Too often, international brands treat emerging markets as seasonal experiments, testing campaigns without long-term investment. But consistency is critical. Consumers notice who’s around during key holidays, national events, and crises – and who disappears when results don’t come quickly. Building trust means being present, listening actively, and responding quickly, even when it’s not convenient. It means moving from transactional to relational.

Attention and trust are hard-won in these markets – but not impossible. Brands that succeed will be those that listen before speaking, localise without diluting, and deliver value at every step. It’s not about cracking a code – it’s about showing up, with respect, relevance, and reliability.

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What the Next Billion Means for Global Strategy

The next billion consumers will not just change where companies grow – they will fundamentally reshape how companies think. For too long, emerging markets have been treated as the final frontier for global brands – places to extend reach and scale after success was achieved elsewhere. That model is not only outdated; it’s strategically short-sighted.

In markets like Vietnam, Kenya, and the Philippines, consumer expectations are being forged under entirely different conditions: mobile-first access, economic volatility, rapid urbanisation, and a deep mistrust of centralised systems. The result is a set of behaviours that are more adaptive, more sceptical, and often more innovative than those seen in mature markets. Consumers here are not merely catching up – they are setting new standards.

Rather than viewing these markets as extensions of Western playbooks, companies should see them as innovation testbeds. Take mobile commerce: features like embedded payments, one-click checkout via messaging apps, or app-free transactions are not novelties – they are necessities driven by constraints around bandwidth, infrastructure, and financial inclusion. Yet these same constraints are producing solutions that may become best practices globally.

Similarly, platform design in these regions often centres on immediacy, low data consumption, and local integration. Global teams should be asking: What can we learn from the success of super apps in Southeast Asia? From the rise of voice notes and vernacular language content in India? From trust mechanics built into informal commerce networks across West Africa? These are not fringe behaviors – they are indicators of where global user expectations are headed.

The ability to operate in these ecosystems requires more than translation. It demands cultural intelligence, operational flexibility, and a long-term mindset. Localisation must move beyond interface tweaks to encompass everything from payment methods and logistics to influencer partnerships and community engagement. A product launch is no longer the finish line; it’s the beginning of a multi-year trust-building process.

This shift calls for investment – not just in marketing – but in on-the-ground research, in building local teams with decision-making power, and in systems that can adapt quickly to feedback loops. The brands that will thrive are those that listen early, prototype fast, and refine continuously. That’s not reactive – it’s resilient.

The next billion are not waiting to be discovered. They are already online, already informed, already choosing. But they are choosing carefully. Their loyalty isn’t earned by reputation – it’s earned by repetition: consistent delivery, relevance, and respect over time.

What we’re seeing isn’t a short-term trend – it’s a structural redefinition of what global success looks like. And in this new equation, the old formulas – centralised control, broad generalisations, and push marketing – no longer hold. The competitive edge will belong to those who approach these markets not as territories to conquer, but as partners in evolution.

Because when consumers are multilingual, mobile-first, and mistrustful by design, brand engagement becomes a privilege – not a right. The challenge is not whether companies can reach them. It’s whether they can rise to meet them.

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