In early 2022, Panera Bread introduced its Unlimited Sip Club, a subscription service granting customers unlimited self-serve beverages for a monthly fee. It was among the first major fast-food chains to test a subscription-based model, shifting from traditional loyalty programs to a strategy aimed at securing recurring revenue and increasing customer visits.

Subscription models are becoming a mainstay as quick-service restaurants (QSRs) experiment with new ways to increase customer loyalty and spending. A 2025 report by the Food Institute found that 76% of restaurant owners plan to integrate gamification into their loyalty programs, signalling a move away from static rewards toward interactive engagement. The goal: turning casual customers into repeat visitors who interact with brand platforms daily.

The challenge now is whether consumers see enough long-term value in fast-food subscriptions to maintain their commitment – and whether brands can sustain profitability without diluting the appeal. As competition grows, success will hinge on balancing affordability, exclusivity, and genuine savings that justify a recurring fee.

The Consumer Shift Driving This Trend

Fast food has traditionally thrived on consistency – standardised meals, rapid service, and predictable experiences. But consumer expectations are shifting. Today’s diners seek more than just convenience; they crave value, exclusivity, and interactive experiences. This shift is fuelling the rise of subscription-based dining and gamified loyalty programs, turning occasional transactions into habitual brand engagements.

Subscription models have reshaped industries from entertainment to retail, and now they’re making their mark on fast food. A 2024 PYMNTS report found that 45% of US consumers subscribe to at least one food or beverage service, a sharp rise from 36% in 2020. Meal kits and coffee subscriptions paved the way, demonstrating the viability of prepaid dining experiences. Now, QSRs are leveraging similar strategies to lock in repeat visits and drive incremental revenue.

Beyond subscriptions, fast-food chains are integrating gamification to deepen customer engagement. Interactive loyalty programs appeal to psychological triggers – competition, achievement, and status – encouraging repeat visits. Rather than simply buying a meal, customers now earn points, unlock exclusive perks, and advance through membership tiers. A 2023 McKinsey report found that well-designed gamified programs can increase customer spending by up to 40%, making them a lucrative tool for QSRs looking to sustain long-term loyalty.

Younger generations, in particular, are embracing these changes. A recent survey found that millennials and Gen Z are 35% more likely than older demographics to engage with gamified rewards. The demand for digital-first loyalty experiences is fueling innovation worldwide. In Japan, McDonald’s revamped its MyMcDonald’s Rewards with AI-driven personalisation, offering points multipliers during off-peak hours to encourage visits. Similarly, in the U.K., Pret A Manger has expanded its subscription model to include personalised incentives based on purchase history. The strategy is clear: engagement must go beyond discounts – it must create a habitual relationship between brand and customer.

There’s also a shift away from traditional discounts in favour of experience-driven perks. A 2024 Kantar study found that 60% of consumers now prioritise rewards that offer exclusivity over basic price cuts. Brands are adapting: Taco Bell’s Fire Tier Rewards unlock early access to menu innovations, while Domino’s Surprise Frees program randomly gifts free food to loyal customers, fostering excitement rather than predictable point redemptions. The shift signals that loyalty is no longer just about savings – it’s about status, engagement, and emotional connection.

The takeaway? Consumers no longer just want rewards – they want engagement. Subscription models and gamified loyalty programs are transforming routine purchases into ongoing brand relationships. As more fast-food brands invest in interactive engagement, the traditional playbook for customer retention is being rewritten. The next challenge? Ensuring these programs provide lasting value rather than becoming another short-lived marketing experiment.

How Fast Food Chains Are Adopting Gamification & Subscriptions

Fast-food chains are no longer simply rewarding repeat customers – they’re restructuring their entire loyalty approach. Subscription services and gamified rewards are turning once-sporadic transactions into habitual spending, offering brands a more reliable revenue stream. While traditional point-based programs still exist, more restaurants are shifting to systems that keep customers engaged daily, whether through app-based perks, tiered memberships, or monthly meal passes.

Pret A Manger, for example, has aggressively expanded its subscription model, first in the UK and now globally. Its “Club Pret” program, offering unlimited barista-made drinks for a fixed monthly fee, drove a 22% increase in global sales in 2023. The company reports that subscribers visit five times more frequently than non-members, significantly increasing food purchases alongside beverages. Similarly, McDonald’s Japan has rolled out digital-exclusive deals through its loyalty app, leveraging gamification to incentivise repeat visits.

While these models generate steady income, they also require constant fine-tuning. Subscription fatigue is real, and consumers are quick to cancel if they don’t see continuous value. Brands must balance pricing, perks, and exclusivity to keep customers engaged without feeling locked into a program that doesn’t evolve. Those that succeed – by offering tangible savings, personalised deals, and interactive rewards – are rewriting the rules of fast-food loyalty.

Luckin Coffee’s Play-to-Win Strategy

Image credit: Luckin Coffee

In China, Luckin Coffee has turned customer retention into a game. Unlike traditional point-based rewards, its app features dynamic challenges that encourage repeat visits. Customers who hit spending milestones unlock tiered discounts and free drinks, creating a loyalty ecosystem that goes beyond transactional incentives. The higher the engagement, the more exclusive the rewards – an approach that has cemented Luckin’s digital dominance in China’s competitive coffee market.

Luckin’s approach has yielded significant results. Its 2023 earnings report revealed that over 75% of transactions now originate through its app, demonstrating the effectiveness of its loyalty system. Customers engage with the platform an average of 21 times per month, far surpassing industry benchmarks. By integrating gamification into its core business model, Luckin has transformed occasional buyers into habitual customers, proving that digital-first strategies can redefine fast-food loyalty.

Burger King’s Subscription Bet in Europe

In Germany, Burger King is testing a different kind of subscription – one that locks in discounts rather than specific products. The chain’s King Deals program, launched in 2023, allows app users to pay a small monthly fee in exchange for access to exclusive offers, including half-price meals and premium add-ons. The goal is to increase repeat visits while giving customers a reason to keep the app on their phones.

Early reports suggest that the strategy is working. Burger King Germany has seen a 22% increase in repeat visits from subscribers compared to non-members, and the company is now considering expanding the program to other European markets.

Shifting From Discounts to Engagement

Subscription-based dining and gamified loyalty programs aren’t just about offering discounts – they’re about changing how consumers interact with fast-food brands. Whether it’s Panera making beverage purchases a habit, Luckin Coffee turning transactions into a game, or Burger King incentivising app engagement, QSRs are redefining customer relationships.

Why QSRs Are Betting on Gamified Loyalty

Fast-food chains are increasingly adopting subscription models and gamified loyalty programs to enhance customer engagement and secure predictable revenue streams. These strategies not only foster repeat business but also provide a competitive edge in a crowded marketplace.

Predictable Revenue Through Subscriptions

For QSRs, subscriptions provide a buffer against industry volatility, replacing sporadic purchases with predictable, recurring income. Pret A Manger’s “Club Pret” subscription, which grants members up to five barista-made drinks per day for a fixed monthly fee, has transformed the company’s revenue model. The initiative played a key role in pushing Pret’s global sales past £1 billion in 2023, marking the first time in its history the company reached this milestone.

Other brands are experimenting with subscription-like promotions to drive habitual spending. In October 2023, Domino’s introduced its “Emergency Pizza” initiative, allowing loyalty members to redeem a free pizza after making a qualifying purchase. The result was a surge in sales and two million new loyalty sign-ups, reinforcing the effectiveness of structured, value-driven offers in retaining customers.

Enhanced Engagement Through Gamification

Gamified loyalty programs tap into behavioural psychology, using incentives, challenges, and exclusive content to drive repeat visits. McDonald’s Australia’s “MyMacca’s Rewards” program rewards customers with points per dollar spent, which can be redeemed for menu items – a model that has significantly increased app engagement. Beyond simple reward systems, leading QSRs are now incorporating dynamic challenges and real-time achievements, creating a sense of urgency and exclusivity that encourages repeat interactions.

Gamification is proving to be more than a gimmick – it translates directly into higher spending. A Mastercard report found that brands leveraging interactive loyalty mechanics saw a 60% spike in app engagement and a sixfold increase in purchase frequency within the first year of implementation. These figures highlight the growing role of digital ecosystems in fostering long-term brand loyalty.

Social Status Rewards and Exclusive Access

Beyond financial rewards, status-based loyalty structures add another layer of appeal. Customers are often willing to engage more deeply when programs offer exclusive perks tied to higher-tier status. Pizza Express has capitalised on this psychology with a loyalty program structured around bronze, silver, and gold tiers, where members unlock escalating benefits over time. The approach has attracted 2.7 million sign-ups in two years, demonstrating that tiered rewards can drive long-term engagement more effectively than one-time discounts.

Image credit: Pizza Express

Cross-brand collaborations are also enhancing the value proposition of loyalty subscriptions. Walmart+ has partnered with Burger King to provide members with discounts on digital orders and periodic free items, including a quarterly free Whopper. These partnerships add tangible benefits to subscription models, reinforcing brand value while leveraging existing customer bases.

The Numbers Behind Loyalty Innovation

The impact of these strategies is clear. Pret A Manger’s subscription service contributed to a significant jump in global system sales, reaching £1.1 billion while underlying profits rose 12% to £166 million in 2023. Similarly, Domino’s leveraged gamified loyalty to reverse declining sales, expanding its rewards program by an additional two million members in just a few months.

Image credit: Pret A Manger

As the fast-food landscape becomes increasingly competitive, QSRs that invest in loyalty innovation will have a distinct edge. Whether through gamification, subscription models, or status-based incentives, the brands that can turn customer interactions into habit-forming experiences will define the future of fast-food engagement.

The Risks and Challenges of Subscription-Based Fast Food

As more QSRs experiment with these models, potential pitfalls are becoming apparent. From subscription fatigue and economic pressure to logistical hurdles and consumer backlash, brands face mounting challenges in retaining long-term loyalty and sustaining profitability.

Subscription Fatigue

As subscriptions extend beyond streaming and retail into fast food, many consumers are reaching their limit. Households already manage monthly fees for entertainment, groceries, fitness apps, and meal kits – and they’re cutting back. A recent study found that 42% of US consumers feel overwhelmed by the number of subscriptions they manage, with many actively cancelling non-essential services.

This trend isn’t confined to Western markets. In South Korea, a Nielsen study reported a 28% drop in new subscription sign-ups across industries, including food and beverage. Consumers are becoming more selective, gravitating toward services that offer flexibility, exclusive benefits, and genuine savings. For QSRs, this means that simply offering a discount isn’t enough – brands must differentiate their programs through value-driven perks and long-term incentives or risk being abandoned.

Economic Pressures

Fast-food subscriptions thrive in strong economic conditions, but inflation and consumer spending cutbacks are testing their durability. While some customers justify paying upfront for daily meals or drinks, others are questioning the necessity. A recent PwC consumer sentiment report found that 60% of global consumers are actively reducing discretionary spending, with dining out and food subscriptions among the first to be reevaluated.

In Europe, where inflation has driven up food prices, subscription-based meal plans are under strain. A Kantar study showed that 35% of UK consumers have cut back on restaurant subscriptions and food delivery services, shifting toward home-cooked meals instead. Unless fast-food brands can demonstrate tangible cost savings or exclusive access to high-value perks, subscriptions risk becoming expendable luxuries during economic downturns.

The Operational Strain of Managing Demand

Beyond consumer concerns, fast-food chains must grapple with the logistical complexities of recurring transactions. Unlike one-time promotions, subscriptions guarantee a steady flow of orders, requiring precise forecasting for inventory, staffing, and fulfilment.

Japan’s Mos Burger learned this the hard way when it piloted a burger subscription model. Demand exceeded projections, leading to ingredient shortages and strained operations. The company had to restrict redemptions to non-peak hours to prevent service disruptions. This underscores a fundamental risk: if not carefully managed, subscriptions can overload supply chains, increase waste, and frustrate both staff and customers.

Technology is another critical hurdle. Seamless integration of subscriptions into apps and point-of-sale systems is essential, yet many brands underestimate the investment required. In India, a major fast-food chain faced backlash when its digital loyalty program crashed under heavy demand, blocking paid subscribers from redeeming offers. The PR fallout was immediate, reinforcing the importance of scalable, reliable tech infrastructure before launching subscription models at full scale.

Consumer Backlash

When customers feel they’re not getting enough value, they cancel – fast. A 2023 PYMNTS report found that 49% of subscription users drop a service within six months if they don’t perceive consistent benefits.

QSRs are particularly vulnerable to churn. Unlike streaming platforms, where exclusive content keeps subscribers engaged, fast-food loyalty hinges on repeat consumption. If consumers hit unexpected limits – whether through redemption restrictions, menu exclusions, or underwhelming savings – they abandon the program entirely.

In France, a leading coffee chain faced widespread backlash when customers discovered that its “unlimited drink subscription” excluded premium beverages – a restriction buried in fine print. Social media complaints erupted overnight, leading to a 32% drop in renewals within three months. The company was forced to revamp its offer to rebuild trust, but the damage had already dented its reputation.

For fast-food brands, subscription success hinges on transparency, trust, and long-term value. Consumers are willing to commit to recurring spending – but only if the benefits outweigh the cost. In an increasingly subscription-saturated market, brands that overpromise and underdeliver won’t just lose subscribers – they’ll lose credibility.

The Future of Fast-Food Loyalty Programs

Fast-food loyalty programs are at a crossroads. As competition intensifies, brands are moving beyond traditional discounts and punch cards, leveraging advanced technologies and hyper-personalised incentives to deepen customer engagement. However, the future of these programs will depend on whether they provide real, lasting value – or simply add to the growing fatigue of subscription-based services.

Emerging Innovations: AI, Gamification, and Blockchain

Artificial intelligence (AI) is reshaping how QSRs understand and engage with customers. By analyzing purchasing patterns and behavioural data, AI-driven loyalty programs can offer customised promotions, dynamic pricing, and predictive ordering. For instance, some brands are experimenting with real-time menu suggestions based on individual preferences, driving higher spending and deeper brand affinity.

Gamification is also evolving. Loyalty programs are incorporating augmented reality (AR) and blockchain technology to create more immersive and secure experiences. AR-driven campaigns allow customers to unlock exclusive deals through interactive digital experiences, while blockchain ensures transparent and fraud-proof reward transactions. These innovations move beyond transactional loyalty, aiming to foster a stronger emotional connection between brands and consumers.

Consumer Skepticism and Ethical Hurdles

Despite technological advancements, loyalty programs face growing consumer scepticism. The increasing reliance on data collection and AI-driven personalisation raises privacy concerns, prompting regulators to scrutinise how brands gather, store, and use consumer information. If customers feel they are being manipulated into spending more rather than receiving genuine benefits, backlash could follow.

Subscription-based models, once seen as a predictable revenue stream, are also losing some appeal. A 2024 industry survey found that consumers now manage an average of 5 to 7 active subscriptions, with many actively reducing non-essential commitments. The question for QSRs is whether fast-food subscriptions provide enough tangible value to justify a recurring financial commitment – or whether they will become another short-lived marketing trend.

Striking the Right Balance

The future of fast-food loyalty programs hinges on execution. Brands that focus purely on data-driven engagement without offering meaningful value risk losing customer trust. To succeed, QSRs must ensure that loyalty initiatives feel rewarding rather than obligatory, with clear, flexible benefits that align with consumer expectations.

Transparency in data usage, personalised but non-intrusive incentives, and rewards that genuinely enhance the dining experience will define the next generation of loyalty programs. As the industry evolves, brands that prioritise trust, flexibility, and customer-first innovation will lead – while those that overpromise and underdeliver risk being left behind.

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Food prices in Japan have surged since 2022, shifting consumer habits in ways that brands cannot afford to ignore. A nationwide study by our sister company, CMG Inc., reveals the extent of this shift, showing how inflation influences where, what, and how often people buy groceries.

Japanese consumers have long prioritised quality and brand loyalty, often paying a premium for fresh, locally sourced ingredients. However, inflation is shifting these behaviours. Our study shows that more shoppers seek discounts, adjust grocery lists, and change stores to cope with rising costs.

Our study of Japanese consumers aged 20 to 69 found that 90% feel the strain of rising food costs, with 70% experiencing it intensely. Prices for essential staples like rice, leafy greens, and eggs have surged, pushing shoppers toward lower-cost alternatives, bulk buying, and store-switching strategies.

Households are adjusting by choosing cheaper alternatives, relying on discounts, and carefully planning purchases to minimise costs. The findings reveal how inflation shapes the Japanese food market today and how brands must adapt to meet shifting consumer priorities.

Japanese consumers feel the weight of rising food prices

how-Japanese-consumers-feel-about-food-inflation

Inflation is hitting middle-aged consumers the hardest. Women and those aged 40 to 60 report the most strain as they juggle rising grocery bills alongside housing, childcare, and utility costs.

Rice tops the list, with three-quarters of respondents saying its cost has risen. Leafy vegetables, eggs, and fruits are among the most frequently cited items experiencing price hikes. The rising costs of these essentials are pushing consumers to reconsider their grocery lists, with many shifting to more affordable alternatives or cutting back on certain items altogether.

Consumer sentiment suggests inflation is not just a financial strain but an ongoing source of anxiety. Many households are adjusting broader spending patterns, cutting back on dining out and non-essential purchases as they prioritise their grocery budgets. This heightened sense of caution underscores the urgency for brands to meet evolving needs with adaptable solutions.

Implications for Brands

As inflation shapes consumer habits, brands operating in the food industry must rethink their strategies. Price sensitivity is now a dominant force in purchasing decisions, making affordability and value essential selling points. Companies that rely on staple food products may need to introduce smaller pack sizes, bulk discounts, or subscription-based models to maintain customer loyalty.

This shift presents an opportunity for brands that offer alternatives to high-cost staples. The surge in demand for lower-cost items like bean sprouts and tofu suggests that consumers are willing to make substitutions. Positioning these products as smart, affordable choices through targeted marketing and in-store promotions could help brands capture market share.

Retailers and food manufacturers must also recognise that Japanese consumers actively seek ways to save. Loyalty programs, digital coupons, and promotional bundles could play a more significant role in purchasing decisions as shoppers become more selective about where they spend their money. Companies that can balance pricing strategies with perceived value will be best positioned to navigate the evolving food market in Japan.

How Consumers Are Changing Their Shopping Habits

changing-grocery-shopping-habits-in-Japan

As prices climb, Japanese consumers are becoming more strategic. Nearly 30% are actively hunting for clearance deals, while an equal share is switching supermarkets in search of lower prices. Discount chains and bulk retailers see increased foot traffic as shoppers shift from premium stores to budget-friendly alternatives.

Beyond price-driven decisions, shoppers are becoming more disciplined in their purchasing habits. Many are researching deals in advance, planning their shopping lists, and buying only what is necessary. This shift suggests that impulse buying is declining, making it harder for brands to capture spontaneous purchases. Instead, consumers approach grocery shopping with a calculated mindset, weighing every purchase against cost and necessity.

Digital engagement is also playing an increasing role in consumer decisions. More shoppers use online price comparison tools, retailer apps, and e-commerce platforms to track discounts and find the best deals. Brands that integrate their promotions seamlessly into these digital channels will have a greater chance of influencing purchase decisions early on.

However, in-store promotions and point-based rewards in Japan remain highly influential, offering brands an alternative way to engage cost-conscious consumers. Brands that integrate their promotions seamlessly into digital and physical retail channels will have a greater chance of influencing purchase decisions before consumers even enter a store.

Implications for Brands

With price-conscious behaviour shaping the market, brands must adapt their pricing and promotional strategies. Offering flexible discounts and personalised promotions could help retain customers who might otherwise trade down to lower-cost alternatives. Brands traditionally relying on premium positioning may need to consider budget-friendly variations or value packs to stay competitive.

A prime example of a brand adapting to shifting consumer behaviour is Nissin Foods, the maker of Cup Noodles. The company has introduced new flavours and healthier options for health-conscious consumers while maintaining affordability. Its focus on sustainability through eco-friendly packaging and responsible sourcing has also helped sustain consumer loyalty despite economic challenges.

Retailers also need to rethink in-store and digital promotions. Placing high-demand items in visible areas, bundling products at competitive prices, and integrating discount offers into mobile shopping apps can help maintain customer engagement. As shoppers become more deliberate, brands must ensure they are part of the decision-making process before consumers reach the checkout counter.

What are people buying less and more often?

top-10-foods-with-price-increases-in-Japan

Rice, snacks, and cabbage are the top three foods that people buy less of due to price increases.

Rising prices are forcing consumers to rethink where they shop and what they buy. The survey reveals a clear pattern – high-cost staples are being purchased less frequently, while affordable alternatives are gaining traction. Since 2021, Japan has experienced a significant surge in rice prices. In 2023, the average selling price for a 60-kilogram bag of rice was approximately ¥15,310 (about $139 USD). By January 2025, this price escalated to ¥25,927, a 69% increase from the previous year. This equates to roughly $171 USD.

At the same time, lower-cost and versatile food items are seeing an uptick in sales. Bean sprouts and tofu, known for their affordability and adaptability in Japanese cuisine, are among the top foods people buy more often. Bread, another relatively inexpensive staple, has also gained popularity. The trend suggests consumers prioritise foods that offer more servings, opting for ingredients that stretch further and provide better value.

Implications for Brands

Understanding these shifts is critical for food manufacturers and retailers. Brands in high-cost categories need to rethink how they position their products. Offering smaller portion sizes, value packs, or price promotions could help retain consumers considering cutting back. For brands selling products that are growing in demand, this is a moment to strengthen their market position. Highlighting the versatility, nutritional benefits, and affordability of products like tofu and bean sprouts can reinforce their appeal in price-sensitive times.

Retailers should also adapt by ensuring budget-friendly items are well-stocked and prominently displayed. Promotional strategies should focus on cost-effective meal solutions, helping consumers maximise their grocery budgets. As inflation influences purchasing decisions, brands that align their offerings with consumer priorities will be best positioned to maintain loyalty and sales.

How Japan’s food inflation compares to the West

Rice isn’t just a staple in Japan—it’s a cultural cornerstone and an economic indicator. Unlike many Western nations where grains are heavily imported, Japan produces most of its rice domestically, meaning price fluctuations reflect deeper economic shifts. This inflation trend mirrors similar surges in other staple foods worldwide, such as wheat in the U.S. and soybeans in China.

Food prices are rising worldwide, but the impact varies from country to country. While Japan is seeing sharp increases in staples like rice, vegetables, and eggs, the US and the UK markets are grappling with their inflation-driven shifts in consumer behaviour. In Western markets, dairy products, meat, and processed foods have been among the most affected categories, driving consumers toward discount grocery chains, bulk buying, and private-label alternatives.

In the US, shoppers increasingly turn to wholesale retailers and discount supermarkets to cut costs. Many are switching from brand-name products to store-brand alternatives, with major retailers reporting a surge in private-label sales. Coupon usage once thought to be in decline, has made a strong comeback, mainly through digital platforms and loyalty apps. In the UK, where food inflation and the cost of living have been a persistent challenge, many households are scaling back on meat purchases and opting for frozen or tinned foods as a cost-saving measure.

Despite regional differences, the global trend is clear – consumers are becoming more intentional about how and where they spend their grocery budgets. The shift toward discount-driven shopping, meal planning, and strategic purchasing decisions redefines how food brands and retailers operate across markets.

While Japan sees a shift toward staples like tofu and bean sprouts, the US and UK consumer shifts lean toward private labels and bulk buying, highlighting different approaches to cost savings.

Implications for Brands

Brands must recognise that price sensitivity is no longer confined to specific regions. Inflation-driven purchasing habits are reshaping consumer expectations on a global scale. Affordability and value have become key decision-making factors, making it essential for brands to rethink their pricing and promotional strategies.

Companies that traditionally cater to premium or discretionary food categories may need to introduce flexible pricing structures, offering economy-sized packaging or subscription models to retain budget-conscious shoppers. Meanwhile, brands positioned in lower-cost categories have a unique opportunity to strengthen their appeal, emphasising the affordability and versatility of their products.

Japan’s beef bowl industry thrives despite multiple price hikes due to rising costs. Zensho Holdings, the parent company of Sukiya, a Japanese restaurant chain that serves gyudon (beef bowls), curry, and other dishes, has reported strong profit growth and increased customer numbers, highlighting how strategic pricing and strong brand equity can sustain demand even in inflationary times. This resilience reflects Japan’s unique consumer behaviour, where quality and convenience often precede purely cost-cutting measures.

Retailers, particularly those in markets where discount shopping is on the rise, should focus on making savings more accessible. Digital loyalty programs, targeted promotions, and clear communication around price advantages will be critical in maintaining consumer trust and engagement in a price-sensitive environment.

How brands can adapt to a cost-conscious market

Food inflation is not just reshaping consumer habits but redefining how brands must approach pricing, marketing, and product development. As shoppers prioritise affordability and shift toward lower-cost alternatives, companies must take a proactive approach to remain relevant in a rapidly changing market.

One of the most immediate strategies for brands is pricing flexibility. Offering a range of product sizes at different price points can help cater to varying consumer budgets. Smaller packaging options can attract shoppers looking to control their spending, while bulk discounts can appeal to those who prefer to stock up when prices are favourable. Subscription models that provide cost savings over time may also help retain customer loyalty, particularly for staple goods.

Product positioning is equally important. Brands that once relied on premium pricing must now justify their value through differentiation. Messaging focusing on nutritional benefits, sustainability, or versatility can encourage consumers to keep buying products even if prices increase. For brands in high-growth categories like tofu and bean sprouts, reinforcing affordability and multiple-use meal applications can strengthen market share.

Retailers have a crucial role to play in guiding purchasing decisions. Strategic in-store placements, meal-planning promotions, and digital tools that showcase the best value options can help shoppers navigate rising prices. Supermarkets that integrate personalised discounts, loyalty rewards, and digital coupons into their customer experience will be better positioned to retain price-sensitive consumers.

The brands that succeed in an inflationary market will listen to consumers, adapt to shifting priorities, and offer tangible value beyond price alone. As economic conditions continue to shape spending behaviour, remaining flexible and responsive will define long-term brand resilience.

Turning Challenges Into Opportunities

Rising food prices are forcing consumers to rethink their purchasing decisions, but they are also creating new opportunities for brands willing to adapt. The shift toward cost-conscious shopping is not a temporary adjustment; it reflects a more profound change in consumer behavior likely to persist even if inflation stabilises. Brands that recognise these shifts and respond strategically will retain their customer base and strengthen their market position in the long run.

Innovation will be key for companies in high-cost categories. Reformulating products to be cost-effective without compromising quality, offering flexible portion sizes, and introducing alternative ingredients can help brands navigate price sensitivity. For companies in growing categories, reinforcing the value of their products through effective messaging and promotions will be essential to sustaining momentum.

Digital engagement is also becoming more critical. Consumers increasingly rely on price-comparison tools, e-commerce discounts, and loyalty programs to make informed purchasing decisions. Brands that invest in personalised marketing, mobile-based promotions, and transparent pricing strategies will be better positioned to build long-term trust with their audience.

Food inflation is reshaping the competitive landscape but must not be a setback. Companies that approach this challenge with flexibility, creativity, and consumer-first thinking can turn market uncertainty into a moment of strategic growth.

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For years, brands have poured billions into social media, banking on its power to capture consumer attention. But many users are logging off, exhausted by algorithm-driven content, relentless ads, and digital fatigue. The rise of the social media detox movement presents an inconvenient truth for marketers: the platforms once considered indispensable may now push consumers away.

This shift isn’t anecdotal. Market research indicates a clear trend – users, especially Gen Z and millennials, are actively reducing screen time, muting notifications, and deactivating accounts in pursuit of mental clarity and reclaimed time. What was once an occasional break from digital noise is evolving into a broader consumer reset on social media engagement.

For brands, this poses a fundamental question: If audiences are stepping away from social platforms, how do businesses maintain visibility, connection, and influence?

The answer lies not in resisting the trend but in understanding the new rules of engagement.

Why are Consumers Logging Off?

Social media has dominated brand-consumer interactions for over a decade, but a growing segment of users is actively stepping back. The social media detox movement is no longer a fringe trend – it’s a behavioural shift with real marketing implications. Consumers, especially younger demographics, make intentional choices to reduce screen time, limit influencer engagement, and seek more authentic interactions.

The Numbers Behind the Shift

The ‘why’ behind the great digital detox.

Digital detoxing isn’t just about reducing screen time; it’s rejecting the attention economy. Research indicates consumers are logging off due to:

Mental wellness concerns: Young users cite anxiety, comparison culture, and doomscrolling as reasons to disengage.
Algorithm fatigue: The push toward AI-driven content curation has left users feeling manipulated rather than engaged.
Scepticism of influencer culture: With trust in influencers eroding, consumers are shifting toward community-based recommendations over celebrity endorsements.
Privacy concerns: Users are more aware of data collection practices and choose to interact in closed, private digital spaces.

While some consumers return to social media after temporary detox periods, others are making long-term behavioural changes, limiting their reliance on platforms indefinitely. Brands must prepare for a future where digital engagement is increasingly fragmented, requiring a more adaptable marketing strategy.

What the Social Media Detox Trend Means for Brand Marketing Strategies

Consumers aren’t just scrolling less – they’re re-evaluating their digital habits. Brands must rethink their engagement models if social media detoxing becomes a long-term shift rather than a temporary trend.

How do brands remain relevant when audiences deliberately tune out?

For years, brands have built marketing strategies around the assumption that social media is the primary touchpoint for consumer engagement. But with growing numbers of users stepping away, relying solely on platforms like Instagram, TikTok, and Facebook is becoming a risky proposition. The shift toward social media detoxing isn’t just about personal well-being—it’s altering how consumers interact with brands, discover products, and build trust.

The most immediate challenge is declining engagement. If consumers are reducing screen time, brands face shrinking opportunities to reach them through traditional social ads and influencer partnerships. This is particularly concerning for brands targeting Gen Z and Millennials, leading the movement toward digital detoxing. Ad fatigue is also accelerating the problem as consumers grow increasingly resistant to sponsored content and algorithm-driven recommendations.

Another major concern is the vulnerability of relying on rented platforms. With social media engagement declining, brands that have built their digital presence entirely on these platforms are now at the mercy of shifting algorithms and user behaviours. The lack of control over audience reach makes brands susceptible to sudden drops in visibility, forcing them to rethink their approach to audience building.

This shift is also reshaping digital advertising ROI. Brands that once saw high conversion rates from social media campaigns may now struggle as users actively disengage.

Customer acquisition costs (CAC) are rising as social media platforms become less effective at driving conversions. With ad engagement rates declining, brands are shifting investments toward alternative channels such as Google Ads, podcast sponsorships, and streaming service placements. Understanding where audiences are migrating is essential for maximising marketing ROI. Marketers must evaluate whether continued investment in these channels delivers sustainable returns or if it’s time to diversify into owned media and alternative digital touchpoints.

Social media detoxing is not a sign that digital marketing is failing but indicates that consumer preferences are evolving. Brands that recognise this shift early can adapt their strategies to maintain engagement without being overly dependent on social media platforms.

How Brands Can Stay Relevant in an Era of Digital Detox

As consumers disengage from social media, brands must rethink their marketing approach. The solution isn’t to fight the trend – it’s to adapt by diversifying digital touchpoints, strengthening direct customer relationships, and creating value beyond algorithm-driven platforms.

First-party data is becoming a brand’s most valuable asset.

Zero-party data strategies: collecting voluntarily shared consumer insights through interactive content, preference centres, and surveys.

AI-driven CRM systems: leveraging predictive analytics to anticipate customer behaviours and engagement patterns.

Direct-to-consumer models: building deeper relationships via email marketing, loyalty programs, and exclusive brand communities.

With social media engagement fluctuating, brands can no longer rely on third-party platforms to maintain customer relationships. Investing in email marketing, loyalty programs, and brand-owned communities ensures a more direct and sustainable connection with consumers. Email, in particular, is experiencing a resurgence, with open rates outperforming social media engagement rates. Brands focusing on personalised, high-value content in inboxes can build deeper relationships without competing against ever-changing social algorithms.

Brands must also embrace alternative digital spaces.

Community-driven platforms such as Discord, Substack, and brand-owned apps offer a way to engage audiences without relying on social feeds. These platforms foster deeper loyalty by creating spaces where consumers opt in for value-driven interactions rather than being bombarded by passive content. SMS marketing is another underutilised tool, boasting high open rates while offering a direct, personal channel for communication. However, brands must strategically use it, ensuring messages provide real value rather than feeling intrusive.

Offline engagement is also gaining importance once again.

The return of experiential marketing, pop-up activations, and real-world brand interactions allows brands to reach audiences in meaningful ways beyond digital screens. With consumers craving authenticity, brands that create real-world experiences, whether through in-person events or retail activations, can strengthen connections in ways social media alone cannot achieve.

Influencer marketing is evolving as well.

The traditional influencer model, which relied on celebrity endorsements and massive follower counts, is losing effectiveness as trust in influencers declines. Consumers are now looking for recommendations from micro-communities and real-life social circles. Brands that pivot toward peer-driven advocacy – leveraging customer testimonials, employee ambassadors, and brand superfans – will have a stronger foundation for long-term engagement.

The era of passive social media consumption is fading, and brands that rely solely on scrolling behaviour will struggle. The shift toward meaningful, value-driven engagement requires a new playbook, one that prioritises direct relationships, diversified digital ecosystems, and real-world touchpoints. The next section explores how market research can help brands navigate this transition and predict future consumer behaviours.

The Role of Market Research in Navigating the Detox Trend

Guesswork is not an option for brands adjusting to the social media detox movement. Understanding evolving consumer behaviour requires a data-driven approach, and market research plays a critical role in helping brands anticipate shifts, measure engagement beyond social media, and refine their strategies accordingly.

Predictive analytics is key to staying ahead of consumer behaviour trends. Instead of relying on retrospective engagement metrics from social platforms, brands should leverage AI-driven modelling to forecast how audiences will likely interact with digital content. Behavioural data analysis can identify early signals of declining engagement, helping brands pivot before they see a drop in visibility or conversion rates.

Consumer sentiment tracking is another essential tool. While traditional social listening tools focus on platform-based conversations, the social media detox movement means brands must expand their reach to alternative data sources. This includes direct surveys, focus groups, in-app engagement metrics, and customer service interactions. Understanding why consumers are disengaging from social platforms and what alternatives they prefer allows brands to adapt without losing their audience.

Longitudinal studies provide deeper insights into whether digital detoxing is a passing trend or a lasting behavioural shift. Brands should not only measure current engagement levels but track behavioural changes over time. Are consumers leaving platforms temporarily before re-engaging, or are they permanently reducing their social media presence? Are younger audiences more likely to embrace alternative digital experiences? These insights help brands build long-term strategies instead of reacting to short-term fluctuations.

Beyond digital, ethnographic research can uncover how consumer behaviours are evolving offline. Observational studies and in-depth interviews can provide a clearer picture of how consumers interact with brands in physical spaces, whether through in-store experiences, brand-hosted events, or offline word-of-mouth. This shift is crucial as brands look to re-engage audiences in ways that don’t rely on algorithm-driven visibility.

Relying solely on past engagement patterns is no longer sufficient. Market research offers brands a proactive approach to understanding shifting consumer behaviours, enabling them to adapt with precision rather than assumption.

Examples of Brands Successfully Adapting to the Social Media Detox Trend

Some brands are already ahead of the curve, recognising that relying solely on social media is no longer a sustainable marketing strategy. By diversifying their approach, prioritising first-party data, and investing in alternative engagement channels, these companies are maintaining strong consumer relationships despite the rise of digital detoxing.

One example is Lush, the UK-based cosmetics brand that made headlines by stepping away from social media altogether. Frustrated with algorithm-driven limitations and the growing toxicity of digital spaces, Lush removed itself from major platforms like Facebook, Instagram, and TikTok. Instead, the brand doubled down on email marketing, in-store experiences, and community-driven engagement. The result? A more direct, controlled communication strategy that allowed them to maintain brand loyalty while reinforcing their ethical values.

Image Credit: Lush

Another company adapting to the decline of social engagement is Patagonia. The outdoor apparel giant has long embraced an anti-advertising stance, prioritising storytelling over traditional digital campaigns. While many brands compete for social media attention with aggressive paid promotions, Patagonia invests in long-form content, sustainability reports, and documentary-style storytelling. The company builds a stronger emotional connection with its audience without relying on social media algorithms by publishing in-depth research and hosting real-world environmental initiatives.

Luxury brands are also rethinking their digital presence. Bottega Veneta, for example, strategically decided to delete its social media accounts in favour of an exclusive digital magazine and VIP community model. By creating a more controlled, high-value content ecosystem, the brand shifted attention away from mass-market social media feeds and toward more personalised, premium engagement.

Image Credit: The Impression

Even FMCG brands are adjusting. Oatly, known for its plant-based milk alternatives, has embraced offline marketing activations and guerrilla-style advertising to maintain visibility without overly relying on digital engagement. From eye-catching billboards to in-person brand experiences, Oatly’s approach shows awareness can be built in ways that don’t require consumers to be constantly online.

These brands demonstrate a fundamental shift – brands that successfully navigate the social media detox movement build direct, value-driven consumer relationships. The key takeaway? Brands must stop treating social media as the default marketing channel and start viewing it as just one of a broader, more resilient engagement strategy.

The Next Phase of Digital Detoxing

The rise of social media detoxing isn’t a fleeting trend; it’s a symptom of a larger shift in how consumers engage with digital platforms. While some users may eventually return, their behaviour will not be the same. The next phase of digital engagement will be defined by intentionality, privacy, and deeper value exchanges, forcing brands to rethink their long-term marketing strategies.

Social media platforms themselves are already adapting to this detox trend. Features like Instagram’s Quiet Mode and TikTok’s time management reminders signal that even tech giants recognise the risks of overexposure. Platforms will likely continue evolving, offering more user control over content consumption. However, these changes won’t necessarily benefit brands – if anything, they may further limit ad exposure and organic reach as users prioritise personal well-being over passive engagement.

Social media detoxing is not a rejection of digital engagement – it’s a demand for better digital experiences. Consumers are no longer willing to engage with brands passively; they expect intentionality, privacy, and authentic connections. For brands, the question is no longer whether they can survive without social media as their primary channel. The real question is whether they can afford to depend on it at all.

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Sample size calculator.

Need to find the right sample size for your study? Our Sample Size Calculator delivers quick, accurate results.

What is a Sample Size Calculator?

A Sample Size Calculator helps you determine the number of people you need to survey for reliable results. By entering key details like population size, confidence level, and margin of error, you can calculate the ideal sample size for accurate research findings. For example, If you’re surveying 10,000 customers and want 95% confidence with a 5% margin of error, the calculator will tell you how many responses you need to ensure trustworthy insights.

Calculate your sample size

Population Size

Please enter a number greater than or equal to 0.

Confidence Level

Margin of Error (%)

Please enter a number from 0 to 100.

Sample Size

What Does the Result Mean?

The sample size calculation tells you how many people you must survey to get reliable results. If the calculator suggests 400 respondents, that means surveying at least 400 people will give you statistically reliable results within your chosen margin of error. A larger sample size increases accuracy, while a smaller one may produce less precise results. Use this number to plan your survey with confidence!

Tips:
Want more precision? Lower the margin of error, but this will increase the required sample size.
Not sure how many people to survey? Try different confidence levels and margin of error settings to see how they affect sample size.

Now that you have your sample size, what’s next?
Need to check how precise your results are? Use our Margin of Error Calculator to measure the accuracy of your survey.

How to Use the Sample Size Calculator

Step 1: Enter your Population Size – This is not the total population of a country or city. It’s the specific group you want to study (e.g. school students between the ages of 10 to 16 in the U.S.). If you’re surveying customers of a particular store, the population size is the total number of customers who shop there, not the entire city.
Step 2: Choose your Confidence Level – Select how sure you want to be about your results (90%, 95%, or 99%). A higher confidence means greater certainty but requires more responses to reduce errors. For example, a 95% confidence level is the standard for most surveys, but if you choose 99%, you’ll need a larger sample size for higher accuracy.
Step 3: Select your Margin of Error – The range within which the true result may vary. Choose how much your results might vary from the true answer.
✔ Smaller margin (±3%) → More accurate results but requires more responses.
✔ Larger margin (±5% or more) → Less precise but needs fewer responses.
For example, If 60% of people like a product and your margin of error is ±3%, the real number could be between 57% and 63%. A ±5% margin means it could be between 55% and 65%.
Step 4: View Your Sample Size – The tool will tell you how many responses you need for reliable data.
Step 5: Plan your survey: Use this number to ensure your research is accurate and meaningful before launching your survey.

Why Does Sample Size Matter?

Getting the right sample size is key to accurate and reliable results. Here’s why it’s important:

✔ Accuracy – Reduces errors and makes your survey results more reliable.
✔ Efficiency – Saves time and resources by collecting just the right amount of data.
✔ Trustworthy Insights – Ensures your findings reflect the whole population, not just random chance.

Want to ensure your qualitative research captures the right insights?

Explore how different approaches impact your study and discover best practices for gathering meaningful data in our expert guide on sampling methods.

Who Can Use This Calculator?

✔ Market Research and Businesses – Find the right number of customers to survey for product feedback and market trends.
✔ Academic & Social Research – Ensure studies accurately represent populations for research and policy analysis.
✔ Healthcare & Clinical Trials – Determine how many patients are needed for valid medical research.
✔ Employee & Workplace Surveys – Gather reliable employee insights for engagement and policy decisions.
✔ Government & Public Policy – Calculate voter research and census study respondents.
✔ Media & Advertising – Measure audience opinions and ad effectiveness with accurate sample sizes.

Now that you have your sample size get expert insights to maximize your survey’s design.
We provide in-depth insights to drive better decisions as a leading market research agency.

Contact us today to discuss your research needs!

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Sample size calculator.

Need to find the right sample size for your study? Our Sample Size Calculator delivers quick, accurate results.

What is a Margin of Error Calculator?

A Margin of Error Calculator helps you understand how much your survey results might change if you surveyed more people. It shows the possible difference between the results you got and what the true answer might be for the whole population.
Example: If 60% of people say they like a product with a ±5% margin of error, the actual percentage could be anywhere between 55% and 65%. A smaller margin of error means more precise results, but it usually requires a larger sample size.
This tool helps businesses, researchers, and marketers measure the reliability of their data before making important decisions.

Calculate your margin of error

Sample Size

Please enter a number greater than or equal to 0.

Population Size

Please enter a number greater than or equal to 0.

Confidence Level

Margin of error (%)

What Does the Result Mean?

The margin of error tells you how much your survey results might change if you surveyed more people.

✔ Smaller margin of error (e.g., ±3%) → More accuracy, but requires more responses.
✔ Larger margin of error (e.g., ±5% or more) → Less precision but needs fewer responses.

Need to determine how many responses you need? Use our Sample Size Calculator to find out.

How to Use the Margin of Error Calculator

Step 1: Enter your Sample Size—The number of people who completed your survey. More responses = better accuracy. For example, if 250 people answered your survey, enter 250 as your sample size.
Step 2: Enter your Population Size – This is not the population of a place. It is the total number of people in the group you want to study. If unsure, use an estimate. For example, if you’re surveying employees at a company with 5,000 staff members, your population size is 5,000.
Step 3: Pick your Confidence Level – How sure do you want to be about your results? Common choices are 90%, 95%, or 99%. A higher confidence level means more accuracy but requires more responses. For example, a 95% confidence level means that if you repeated the survey 100 times, you’d get similar results 95 times.
Step 4: View your Margin of Error—The tool will show your Margin of Error, the possible range by which your results may vary. For example, if 60% of people in your survey like a product and your margin of error is ±4%, the actual percentage could be anywhere between 56% and 64% in the full population.

Why Is It Important to Calculate the Margin of Error?

✔ Ensures Accuracy – Helps you understand how close your survey results are to the true population data.
✔ Builds Confidence – A lower margin of error means you can trust your findings when making important decisions.
✔ Guides Sample Size – Shows whether you need more responses to improve precision.
✔ Detects Meaningful Differences – Helps determine whether small survey result changes are real or just random variations.
✔ Essential for Business and Research – Used in market research, healthcare studies, polling, and decision-making to ensure reliable insights.

Want to create better surveys? Learn how to ask the right questions and get reliable answers in our market research survey guide.

Who Can Use This Calculator?

✔ Market Research and Businesses – Check customer surveys’ reliability before making decisions.
✔ Academic and Social Research – Ensure studies accurately represent populations for research and policy analysis.
✔ Healthcare and Clinical Trials – Determine how many patients are needed for valid medical research.
✔ Employee and Workplace Surveys – Gather reliable employee insights for engagement and policy decisions.
✔ Government and Public Policy – Calculate how many people are needed for voter research and census studies.
✔ Media and Advertising – Measure public opinion and ad effectiveness with accurate sample sizes.

Now that you know your margin of error, get expert insights to maximize your research!

Need help designing your survey or analyzing results? As a leading market research agency, we provide in-depth insights to drive better decisions.
Contact us today to discuss your research needs!

The fastest-growing consumer in the toy industry is not a kid. A new generation of adults is rewriting the rules of play, driving billions in annual sales and reshaping how toy brands approach product development and marketing. These buyers, known as kidults, are fueling growth as they seek nostalgia, collectables, and high-end toys once marketed exclusively to children. Their spending habits have become a defining force in the industry, outpacing traditional toy buyers and reshaping market strategies.

According to NPD Group data, these consumers now account for one-fourth of all toy sales annually, generating around $9 billion in revenue. Their presence in the market is not new, but spending has accelerated since the pandemic, leading to year-over-year gains despite challenging economic conditions. At a time when overall toy sales volume has dipped, higher prices and strong demand from kidults have offset losses and kept the industry growing.

Brands that once targeted parents shopping for kids are now catering directly to an audience willing to spend more for limited-edition action figures, premium Lego sets, and collectables tied to their beloved franchises. The shift is not a passing trend; it is a transformation in consumer behaviour that companies can no longer ignore.

Who are Kidults and Why are they Buying Toys and Games?

Play is no longer just for children. Adulthood has been redefined by a generation that sees nostalgia as a lifestyle rather than a fleeting indulgence. Millennials and Gen Z, raised in an era of immersive entertainment and franchise-driven storytelling, embrace toys as symbols of identity and self-expression.

Kidults are particularly drawn to cartoons, superheroes, and collectables that remind them of their childhood. They buy merchandise such as action figures, Lego sets, and dolls that might typically be meant for kids. In response, toy makers have created entire product lines tailored for these buyers, recognising that demand for nostalgic and high-quality collectables continues to surge.

Social media has amplified this shift, turning fandoms into global communities where collectables are status symbols. Limited-edition releases, high-end figures, and retro-inspired toys are not just purchases – they are cultural markers. What was once considered a niche hobby has become mainstream, with brands tapping into a lucrative market that values authenticity, nostalgia, and exclusivity.

Beyond nostalgia, psychological factors like stress relief, escapism, and personal identity also drive this trend. Many adult toy buyers see these purchases as a way to disconnect from daily pressures, embrace childhood joy, and express individuality.

For many kidults, these purchases provide a sense of relaxation and familiarity, helping them cope with daily stress and responsibilities. The ritual of collecting, displaying, and engaging with nostalgic brands creates a sense of stability in an unpredictable world.

Case Study: Funko’s Collector Market Success

Image Credit: The Gamer

Funko, best known for its Pop! Vinyl figures have built an empire catering to adult toy collectors. The brand strategically partnered with major franchises like Marvel, Star Wars, and Harry Potter, offering limited-edition releases and convention-exclusive drops that create demand through scarcity.

Focusing on pop culture nostalgia and tapping into fan-driven communities, Funko has positioned itself as a powerhouse in the collector market. The brand’s direct-to-consumer strategy and exclusive collaborations with major retailers have made it a staple for kidults looking to expand their curated collections.

Toy Companies Are Rewriting Their Playbook for Kidults

The world’s biggest brands are no longer designed solely for children. Lego, Mattel, and Hasbro have pivoted to meet the demands of adults in the toy market, launching premium product lines tied to pop culture, gaming, and blockbuster franchises. High-end collectables, intricate building sets, and nostalgia-driven reboots now dominate shelves, targeting consumers willing to pay a premium for quality and exclusivity.

Lego’s detailed Star Wars and architecture sets, Mattel’s collector-edition Barbie dolls, and Hasbro’s Black Series action figures are just a few examples of how the industry has evolved. Limited-edition drops and direct-to-consumer sales have become critical strategies, leveraging scarcity and brand loyalty to drive demand.

At a time when traditional toy sales have slowed, kidults have emerged as the industry’s biggest growth driver. While board games, puzzles, and playsets saw a pandemic-fueled boom, the first nine months of 2022 recorded a 3% drop in sales volume. Higher prices helped offset this decline, boosting overall sales revenue by 3%. Kidults, who tend to spend more per purchase, have maintained industry momentum.

For toy companies, catering to adults is no longer an experiment; it is a core business strategy.

Kidults Around the World

Case Study: Lego’s Strategic Pivot to Capturing the Kidult Market

Image Credit: Lego

Lego, known for its interlocking brick sets, has skillfully targeted the growing kidult demographic. Recognising the growing demand among adults for complex and nostalgic play experiences, Lego expanded its product line to include intricate sets that appeal to mature consumers.

In 2024, Lego reported a 6% increase in sales, largely attributed to the popularity of its Botanics flower sets specifically designed for older consumers. These sets offer a blend of creativity and relaxation, resonating with adults seeking mindful activities. Lego’s collaborations with popular franchises have bolstered its appeal to the kidult market. Lego taps into the nostalgia and fandoms that drive adult toy purchasing decisions by producing detailed models tied to beloved series.

Lego’s success with the kidult segment shows the value of catering to adult consumers’ desires for nostalgic and hands-on experiences.

What Toys are Kidults Buying?

Kidults are not just a niche segment – they are the backbone of the toy industry’s growth. While they make up only a quarter of total toy buyers, they account for 60% of dollar growth, according to NPD’s Checkout data. Their willingness to pay for premium products has created a revenue stream that far outpaces spending by parents buying for children.

Unlike cost-conscious parents who seek budget-friendly options, kidults gravitate toward collectibles, high-quality models, and limited-edition releases with higher price points. Their spending is not dictated by seasonality in the same way as traditional toy buyers. While holiday shopping remains a peak sales period, this audience purchases year-round, making them a more predictable and stable consumer base.

This shift has allowed toy companies to move beyond the cyclical boom-and-bust nature of holiday-driven sales. Even as inventory challenges and inflation pressure retailers, demand from kidults has remained strong. As a result, brands are increasingly designing marketing campaigns and product launches with this audience in mind, ensuring their place as a long-term driver of industry revenue.

Marketing Strategies For Toy Brands Targeting Kidults

Toy brands no longer rely on traditional retail displays or children’s TV ads to drive sales. Instead, they target kids where they are most engaged – on social media, in collector communities, and through direct-to-consumer platforms. Digital-first campaigns, influencer collaborations, and nostalgia-driven storytelling have become essential tools for capturing this audience.

Limited-edition drops and exclusive collaborations create a sense of urgency and exclusivity that resonates with collectors. Brands like Lego and Mattel have successfully leveraged pre-orders and premium-tier product launches to tap into this demand. Hasbro’s Black Series and Mattel’s Hot Wheels Red Line Club offer high-end collectables directly to fans, bypassing mass-market retail channels and reinforcing brand loyalty.

Community engagement is also key. Toy companies invest in fan-driven events, interactive content, and product tie-ins with entertainment franchises to keep their audiences invested. This approach has expanded beyond the toy aisle – adult-focused toy marketing now includes lifestyle branding, apparel collaborations, and interactive experiences designed to deepen brand attachment.

The brands that understand how to market to kidults are not just selling toys – they are selling identity, nostalgia, and belonging.

Case Study: Pop Mart’s Success with Labubu Collectibles

Image Credit: Los Angeles Times

Pop Mart, a Chinese toy company, has achieved remarkable success by targeting the adult market with its Labubu collectable figures. Created by Hong Kong artist Kasing Lung, Labubu features distinctive rabbit-like ears and spiky teeth, appealing primarily to adults seeking nostalgic and comforting collectables. Priced between $15 and $85, these figurines often sell out within minutes of restocking, leading fans to rely on group chats for updates and endure long lines. Celebrity endorsements, particularly from Lisa of Blackpink, have further boosted Labubu’s popularity. Collectors view these toys not just as playthings but as art pieces that add personality to their homes. Despite the prevalence of knockoffs, demand for Labubu continues to grow, with Pop Mart expanding its presence in the U.S. and reporting strong sales figures. This trend reflects a broader rise in kidult-targeted emotional comfort toys.

The Future of the Toy Industry Belongs to Adults

Kidults are not just spending – they are shaping the industry’s future. The brands that continue to evolve, embracing technology, sustainability, and personalisation, will lead the next evolution of the toy market. Augmented reality experiences, app-connected toys, and AI-powered collectables are emerging as the next “it” toys, blending nostalgia with modern tech. Eco-conscious buyers also influence brands to redesign packaging, adopt sustainable materials, and explore digital collectables.

The next step for brands is clear: those who embrace innovation while preserving nostalgia will remain at the forefront of this booming market.

For your research needs, trust insights that drive real impact. Whether you’re exploring consumer trends, market opportunities, or brand strategies, our expertise ensures you stay ahead. Get in touch to unlock data-driven success for your brand.

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A decade ago, purpose-driven marketing set brands apart by championing social and environmental causes. Today, it’s an expectation, not a differentiator. As scrutiny from consumers, watchdogs, and regulators intensifies, the stakes have never been higher. Public trust in corporate promises has plummeted, with over 60% of consumers sceptical of sustainability and social impact claims. Meanwhile, global regulations are tightening, imposing hefty penalties for vague or unverified ESG statements. The pressure is mounting, and the cracks are beginning to show.

For brands, the challenge is clear: evolve or risk being called out, cancelled, or left behind.

How Evolving Expectations Are Redefining Purpose-Driven Marketing

Consumer Scepticism at an All-Time High

Consumers are increasingly critical of brands’ ESG claims. High-profile incidents have intensified this scepticism.

A 2023 survey revealed that 57% of Canadian consumers are sceptical of most corporate green claims.

Regulatory Crackdowns Are Raising the Stakes for Brands

Regulatory bodies are tightening their oversight of corporate ESG claims in response to growing consumer distrust. The European Union’s Corporate Sustainability Reporting Directive (CSRD), enacted in 2023, requires companies with over 250 employees to disclose comprehensive ESG metrics backed by concrete evidence.

Failure to comply carries significant repercussions. In 2024, the UK’s Advertising Standards Authority banned several advertisements for misleading environmental claims, signalling a zero-tolerance approach to greenwashing. Similarly, the Australian Competition and Consumer Commission has initiated investigations into companies exaggerating sustainability claims, with potential fines reaching millions of dollars.

Technology as a Transparency Tool

To meet heightened scrutiny, brands are turning to technology for greater transparency. Blockchain is being utilised to trace product origins and verify sustainability claims. Platforms like Provenance enable companies to offer consumers verifiable supply chain information, fostering trust.

Artificial Intelligence (AI) is also playing a pivotal role. By analyzing vast data sets in real-time, AI can help brands monitor compliance with ESG standards, identify potential risks, and ensure sustainability initiatives are not merely performative but result in measurable outcomes.

Why Some Purpose-Driven Efforts Fail

Superficial Storytelling Backfires

In early 2025, Procter & Gamble faced a lawsuit over misleading environmental claims for its Charmin toilet paper. The lawsuit alleged greenwashing, arguing that the company’s sustainability promises lacked meaningful environmental benefits.

The case highlights the dangers of superficial ESG storytelling. Unsupported environmental claims not only mislead consumers but also expose brands to legal and reputational risks.

Misalignment Between ESG Claims and Practices

In August 2024, LVMH’s Dior came under scrutiny for failing to meet supply chain disclosure requirements under the UK’s Modern Slavery Act. The brand’s website had outdated anti-slavery statements, casting doubt on the authenticity of its ESG commitments.

Discrepancies between ESG commitments and actual practices erode trust and invite regulatory scrutiny. Brands must ensure their operational realities align with public commitments to maintain credibility.

Case Study: H&M – A Cautionary Tale in Purpose-Driven Marketing

Image Credit: Just Style

Background

H&M launched its “Conscious Collection” to position itself as a leader in sustainable fashion. It pledged to achieve 100% sustainable or recycled materials by 2030 and introduced sustainability scores for its products, aiming to empower consumers to make informed choices.

The Issue

In 2022, H&M faced a class-action lawsuit in New York, accusing the brand of greenwashing. Investigations revealed that some sustainability scores were misleading and that the company’s fast-fashion business model contradicted its environmental claims. Critics argued that while H&M promoted sustainability, its overproduction and waste practices remained unaddressed.

The Outcome

The lawsuit dealt a significant blow to H&M’s reputation, highlighting the dangers of overpromising and failing to align purpose with core business operations. The incident symbolised how greenwashing could backfire, amplifying consumer scepticism and regulatory scrutiny.

Lessons Learned

Avoid Superficial Messaging: Sustainability efforts must be deeply integrated into business operations.
Ensure Transparency: Verifiable and accurate data builds trust and credibility.
Address Systemic Issues: Tackle industry-wide challenges, such as overproduction, to align messaging with meaningful action.

Overpromising and Underperforming

In 2024, luxury fashion brands, including Gucci and Bottega Veneta, came under fire for scaling back their ambitious sustainability targets. Many revised their goals to align with the Paris Agreement’s 2050 net-zero target, highlighting the challenges of meeting earlier, more ambitious deadlines.

Overpromising ESG commitments without clear, actionable plans erodes public distrust and harms brand reputation. Companies must set realistic goals and communicate their progress to avoid perceptions of insincerity.

Building Credibility Through Authenticity

Align Actions with Words: Ensure that marketing messages accurately reflect the company’s actual practices. Misrepresentations can lead to legal repercussions and loss of consumer trust.
Maintain Transparency: Regularly update stakeholders on ESG initiatives and progress. Transparency fosters trust and demonstrates a genuine commitment to stated goals.
Set Achievable Goals: Establish realistic ESG targets with clear roadmaps for achievement. Overambitious promises without concrete plans can backfire, leading to incredulity.

Purpose-Driven Marketing Strategies Shaping the Future

Measuring Impact Over Messaging

Consumers and stakeholders demand tangible evidence of a company’s environmental and social commitments. Unilever exemplifies this by integrating comprehensive sustainability disclosures into its Annual Report. Included in the report are detailed insights into its progress on sustainability metrics, reinforcing the brand’s commitment to transparency and accountability.

Similarly, Danone has embraced the B Corp certification, reflecting its dedication to meeting rigorous social and environmental performance standards, accountability, and transparency.

The Rise of Regenerative Business Models

Leading brands are shifting from traditional sustainability to regenerative practices that restore and enhance ecosystems. Patagonia, for instance, leads the way in regenerative organic agriculture, enhancing soil health, animal welfare, and social equity.

Driving Change Through Collaboration

Tackling complex global challenges demands collective action. The Ellen MacArthur Foundation’s New Plastics Economy initiative exemplifies how collaboration can drive systemic change. This initiative unites businesses, governments, and organisations worldwide behind a common vision of a circular economy for plastics, aiming to eliminate waste and pollution through innovative design and reuse strategies.

Image Credit: Ellen MacArthur Foundation – Circular economy butterfly diagram

By leveraging shared knowledge and resources, the New Plastics Economy initiative effectively combats plastic pollution through cross-sector partnerships. These efforts prove that systemic change is possible when stakeholders unite around a common goal.

Engaging Communities for Meaningful Impact

Companies are recognising the power of working alongside local communities to develop solutions to social and environmental challenges. Engaging stakeholders at the grassroots level allows brands to create initiatives with lasting impact.

Harnessing Technology to Build Trust and Transparency

Technology is transforming corporate transparency. Blockchain, for instance, helps trace product origins and verify sustainability claims, offering consumers clear insights into supply chains. This integration fosters trust and drives accountability in purpose-driven marketing.

The Future of Purpose-Driven Marketing

Authenticity as the Cornerstone

The evolution of purpose-driven marketing underscores a simple but critical truth: authenticity is non-negotiable. Consumers today expect more than buzzwords and polished campaigns; they want tangible proof of meaningful impact.

From Optics to Impact

Brands that will succeed in this new era focus on measurable outcomes rather than superficial messaging. Companies like Patagonia, Unilever, and Danone set the standard by embedding purpose into their operations, using technology for transparency, and co-creating with communities to drive meaningful change. Their efforts demonstrate that purpose-driven marketing isn’t just about addressing consumer demands – it’s about redefining what it means to do business responsibly.

For brands navigating this new landscape, the way forward is clear:

Embed Purpose into Core Operations: Purpose must extend beyond marketing and permeate every aspect of the business, from supply chain management to product development.
Invest in Transparency and Accountability: Leveraging technologies like blockchain and AI can help validate ESG claims and foster consumer trust.
Focus on Long-Term Value Creation: Sustainability should shift from a compliance-driven effort to a strategy for competitive advantage and systemic change.

Brands today face a pivotal choice: adapt to meet rising expectations or risk obsolescence. In a landscape where authenticity, transparency, and impact are paramount, the most successful brands will embed purpose into their core operations, treating it as a long-term business strategy rather than a passing trend.

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The second-hand goods market in Japan has seen extraordinary growth over the past decade, more than doubling in value since 2010. This surge reflects a shift in consumer behaviour toward more sustainable and economic choices, driven by the rising popularity of second-hand goods platforms and a cultural focus on quality and reuse.

Our sister company, Cross Marketing Inc., recently conducted a study exploring the purchase behaviours, benefits, and concerns of Japanese consumers regarding second-hand goods. This research highlights key trends shaping the second-hand market and provides valuable insights for brands looking to tap into this growing sector.

Understanding Japan’s Second-Hand Ecosystem

The second-hand market in Japan has evolved into a dynamic and thriving sector driven by affordability, sustainability, and a cultural appreciation for quality. According to our latest study, books and manga are the top choices for second-hand purchases, with almost half of respondents identifying these as their top choices. Games, CDs, and DVDs follow closely at 38%, and cars, bikes, and bicycles at 27%.

Top-Categories-for Second-Hand-or-Reused-Goods-Purchases

Japan’s focus on meticulous product preservation and high-quality standards plays a crucial role in the popularity of reused goods. Unlike in some Western markets, where thrift shopping often involves bargain hunting, Japanese consumers seek items that retain their original value, emphasising condition and authenticity.

Generational differences further highlight the diverse appeal of second-hand goods. Younger consumers in their 20s favour clothing and accessories, reflecting a growing trend toward sustainable fashion. Meanwhile, respondents in their 30s preferred entertainment products like games and DVDs, often driven by nostalgia or affordability.

Second-Hand-Goods-Purchase-Trends-by-Age-Group-in-Japan

These preferences underline a broader cultural shift toward sustainable consumption, with second-hand shopping becoming a practical and socially conscious choice. As Japan’s second-hand market grows, brands have a unique opportunity to align with these values while addressing consumer concerns about product authenticity and condition.

Benefits-of-Buying-Second-Hand-or-Reused-Goods-Japan

Comparing Japan’s Second-Hand Market to the US and UK

While Japan’s second-hand market is rooted in quality and sustainability, its Western counterparts offer a contrasting yet complementary picture, particularly in the US and UK. In the US, thrift shopping has long been associated with affordability and individuality, with platforms like Goodwill and Poshmark. Meanwhile, the UK has seen a rise in sustainability-focused resale platforms such as Depop and Vinted, driven by a younger audience concerned about environmental impact.

Key Differences in Consumer Behavior

In Japan, second-hand goods are often valued for their pristine condition and longevity, reflecting a cultural emphasis on care and maintenance. By contrast, in the US, the “thrill of the hunt” for unique or vintage finds plays a larger role in consumer motivation.
Western markets, particularly in the UK, see a stronger emphasis on sustainability as a driver for second-hand purchases, aligning with broader environmental movements.

Retail Strategies Across Markets

In the US and UK, the second-hand ecosystem thrives on a mix of traditional thrift stores and digital marketplaces. The convenience of online platforms has expanded their reach significantly, mirroring Japan’s growing reliance on e-commerce for second-hand goods.
Japanese brands can integrate Western best practices, such as authenticity certifications and user-friendly online interfaces, to address domestic consumer concerns about quality and transparency.

Lessons for Global Brands

Understanding cultural nuances is key for brands operating across these regions. Western markets offer insights into leveraging sustainability and community-driven marketing, while Japan provides lessons in quality assurance and brand trust. Together, these approaches highlight the global potential of the second-hand market, which continues to grow as consumers increasingly prioritize affordability and environmental impact.

Japanese-consumer-concerns-about-second-hand-goods-market

Opportunities and Challenges for Brands in the Second-Hand Market

The second-hand market in Japan presents a unique opportunity for brands to tap into shifting consumer behaviours and the growing demand for sustainable solutions. However, with these opportunities come challenges that require strategic navigation.

Opportunities for Brands

Incorporating Resale Initiatives:
Brands can embrace resale programs to strengthen their sustainability credentials. Companies like Patagonia and Uniqlo have successfully introduced programs for reselling used items, building trust and fostering customer loyalty.
Meeting Demand for Affordability and Quality:
By offering second-hand options at competitive prices, brands can attract cost-conscious consumers while maintaining quality assurance, a key expectation in Japan.
Leveraging Digital Platforms:
As e-commerce dominates second-hand transactions, brands can partner with online platforms or build resale marketplaces, offering enhanced transparency, authenticity guarantees, and user-friendly experiences.

Japanese-attitudes-toward-second-hand-goods

Challenges for Brands

Addressing Consumer Concerns:
Trust remains a significant hurdle, with concerns about product condition, authenticity, and hygiene topping the list. To alleviate these fears, brands must invest in clear product descriptions, certifications, and return policies.
Balancing Resale and New Product Sales:
Expanding resale operations without cannibalising new product sales requires careful pricing strategies and consumer education about the benefits of new and used offerings.
Navigating Cultural Nuances:
Focusing on pristine condition and authenticity in Japan is critical, whereas Western consumers may be more accepting of minor imperfections. Tailoring marketing strategies to these expectations is essential for success.

Case Study: Mercari – Transforming Japan’s Second-Hand Marketplace

Image Credit: Forward2Me

Background

Established in 2013, Mercari has rapidly become Japan’s leading community-powered marketplace. It enables individuals to buy and sell various items directly from their smartphones. The platform boasts over 23 million monthly active users (MAUs) in Japan.

Approach

Mercari’s success can be attributed to several strategic initiatives:

User-Friendly Platform
Mercari’s intuitive interface simplifies buying and selling, making it accessible to a broad demographic. Users can list items by simply uploading photos and adding descriptions, while buyers can easily search and filter listings to find desired products.
Trust and Safety Measures
Mercari has implemented an escrow-based payment system to foster trust among users. This system ensures funds are securely held until the buyer confirms receipt of the item in satisfactory condition. This approach minimises the risk of fraud and enhances user confidence in transactions.
Promotion of the Circular Economy
Mercari’s mission emphasises creating value in a global marketplace where anyone can buy and sell, promoting the reuse of goods and contributing to environmental sustainability. Mercari supports the reduction of waste and efficiently uses resources.

Results

Mercari’s innovative approach has solidified its position as Japan’s largest C2C marketplace. The platform’s extensive user base and diverse listings have made it a go-to destination for consumers seeking common and unique items. Mercari’s efforts have also contributed to normalising second-hand shopping in Japan, aligning with global trends toward sustainable consumption.

Takeaway for Brands

Mercari’s model demonstrates the potential of combining user-centric design with robust safety features to build a thriving online marketplace. Brands looking to enter or expand within the second-hand market can draw valuable insights from Mercari’s strategies, particularly in fostering trust, promoting sustainability, and leveraging technology to enhance user experience.

Patagonia’s Worn Wear program is another example of how brands can integrate sustainability and second-hand initiatives into their core operations, enhancing their environmental impact and consumer loyalty.

Strategic Insights: Leveraging the Second-Hand Trend for Brand Success

As the second-hand market expands in Japan, brands have a significant opportunity to align with shifting consumer values while addressing key challenges. Below are actionable strategies for brands to capitalise on this growing trend.

1. Build Trust Through Transparency

Consumer trust is paramount in the second-hand ecosystem, especially in Japan, where authenticity and quality are critical. Brands can:

Implement product certifications to verify authenticity.
Provide detailed product descriptions and high-resolution images for online listings.
Offer buyer protection programs, including inspection guarantees and hassle-free return policies.

2. Embrace Digital Innovation

E-commerce drives the second-hand revolution, and brands must prioritise digital platforms to stay competitive. Strategies include:

Creating dedicated second-hand sections on official websites.
Partnering with popular resale platforms like Mercari or Rakuma to reach existing audiences.
Leveraging AI and data analytics to personalise recommendations and identify resale demand trends.

3. Integrate Sustainability Into Marketing

Highlighting the environmental benefits of second-hand shopping can resonate with eco-conscious consumers. Brands should:

Promote circular economy initiatives, such as buy-back or trade-in programs.
Use storytelling to emphasise the sustainability impact of choosing reused goods over new items.
Collaborate with sustainability influencers to amplify their message.

4. Balance Resale with New Product Strategies

Second-hand sales should complement, not cannibalise, new product sales. Brands can achieve this by:

Pricing second-hand goods strategically to differentiate them from new products.
Using resale platforms to attract new customers who may transition to buying new items.
Introducing exclusive collections or limited-edition items for resale to maintain product desirability.

5. Draw Inspiration from Global Markets

Western markets like the US and UK offer valuable lessons on branding and consumer engagement in the second-hand space:

Adopt the community-driven marketing tactics popular on platforms like Depop.
Explore partnerships with thrift-focused organisations to enhance brand visibility and credibility.

The Second-Hand Market as a Long-Term Strategy for Brands

The rise of Japan’s second-hand market signals more than just a shift in consumer preferences – it reflects a broader evolution in how value, sustainability, and quality are perceived. From books and clothing to cars and collectables, Japanese consumers are embracing reused goods for their affordability, unique appeal, and contribution to a circular economy.

This presents a compelling opportunity for brands to innovate and connect with consumers on deeper levels. Companies can build trust by addressing key concerns like product authenticity, quality, and transparency while carving a niche in this growing sector. Initiatives like resale platforms, trade-in programs, and partnerships with second-hand marketplaces are no longer optional – they are critical strategies for staying relevant.

The success of platforms like Mercari demonstrates the immense potential of this market, while global examples from Western markets show the scalability of second-hand strategies. As the reuse economy grows, brands that adapt quickly and strategically will thrive and lead toward a more sustainable and consumer-centric future.

The second-hand market is here to stay. For brands ready to align with this transformative trend, the time to act is now.

Contact us today for in-depth insights and strategic recommendations tailored to your brand’s needs. Let’s explore how your business can tap into Japan’s second-hand market and drive sustainable growth.

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A pair of limited-edition sneakers sells out in seconds. A countdown timer warns shoppers to buy now—or miss out. An influencer teases an exclusive event, restricted to a select few. Despite a surplus of consumer choices, brands are making products deliberately harder to buy.

Scarcity, urgency, and FOMO—the fear of missing out—have become core strategies in modern marketing, shaping how consumers shop and perceive value. What once seemed like organic demand is now carefully engineered. From luxury brands restricting supply to streaming services pulling content after 24 hours, the result is the same: consumers feel pressured to act before it’s too late.

How did brands turn psychology into a marketing machine? And when does persuasion cross into manipulation? As companies refine these tactics, the ethics of influence are becoming harder to ignore.

Why Consumers React to Scarcity, Urgency, and FOMO

Consumers like to believe they make rational decisions, weighing options and choosing what best fits their needs. The reality? Decisions are often driven by instinct. Scarcity, urgency, and fear exploit cognitive biases, triggering impulse rather than logic.

Scarcity: The Fear of Limited Supply
Nothing fuels demand like the illusion of rarity. When something is harder to get, it feels more valuable. Behavioural economist Richard Thaler’s research supports this: scarcity drives desire. Luxury brands have perfected the game. Hermès doesn’t limit Birkin bag production due to material shortages—it’s a strategy to keep the bags exclusive. Tech companies use the same approach. PlayStation 5’s perpetual “out of stock” status during launch wasn’t just supply chain issues—it kept consumers hooked, waiting for their moment to buy.

Urgency: The Pressure of Time
Hesitation feels like a loss when the clock is ticking. The Zeigarnik Effect, a psychological tendency to remember unfinished tasks, drives consumers to complete a purchase before the window closes. E-commerce platforms have perfected this trigger. Amazon’s “Lightning Deals” refresh hourly, urging shoppers to act fast. Travel sites flash “Only 2 rooms left!” warnings to heighten anxiety. The result? Split-second decisions with little time for second thoughts.

FOMO: The Power of Social Influence
Social media has turned FOMO into a marketing force. Seeing friends attend exclusive events or snag limited drops triggers an urgency no ad campaign can match. Snapchat and Instagram Stories disappear after 24 hours, making users compulsively check-in. Brands engineer this further with invitation-only product launches – think Clubhouse’s early-access model or Supreme’s drop culture. The goal isn’t just to sell; it’s to make consumers feel they’re part of something others can’t have.

Brands That Have Mastered Psychological Triggers

Some brands don’t just use scarcity, urgency, and FOMO; they’ve built their entire business models around them. They’ve turned these psychological levers into powerful revenue drivers by engineering desire and controlling access.

Hermès: The Art of Scarcity
No waiting lists. No online checkout. No guarantee of purchase even if you can afford it. The Hermès Birkin bag isn’t just a handbag; it’s a masterclass in controlled scarcity. By severely limiting production and requiring buyers to develop relationships with sales associates, Hermès ensures demand always outstrips supply. The result? A resale market where Birkins appreciate like investments, sometimes selling for double their retail price. In an industry where most items eventually go on sale, Hermès has made being unable to buy its product the ultimate status symbol.

Amazon: Urgency at Scale
E-commerce thrives on speed, and Amazon has utilised urgency better than anyone. Limited-time “Lightning Deals,” countdown timers, and messages like “Only 3 left in stock!” nudge consumers toward checkout. Prime Day, the company’s annual shopping event, is a prime example of when millions of deals disappear within hours, pushing shoppers to act fast. Amazon sells the anxiety of missing out on a bargain.

Supreme: FOMO in Its Purest Form
Supreme’s business model is built on hype. The streetwear brand’s infamous “drops” happen weekly, with products selling out in minutes, sometimes seconds. By keeping supply deliberately low and collaborating with high-profile brands, Supreme fuels a cycle of exclusivity and demand. Fans don’t just buy Supreme; they line up for hours to compete for the chance. With a resale market where items often fetch triple their original price, the brand has turned FOMO into a profitable ecosystem of scarcity-driven desire.

Social Commerce Meets FOMO with TikTok Shop:
TikTok has taken FOMO-driven shopping to a new level. By integrating e-commerce directly into its platform, the app encourages impulse purchases through time-sensitive deals and influencer-driven recommendations. “Only available for the next 24 hours” captions, live shopping events, and viral trends create a sense of now-or-never urgency. The difference? Consumers aren’t just buying from brands – they’re buying because their favourite creators make them feel like they’ll miss out if they don’t.

These brands are selling access, exclusivity, and the psychological rush of securing something before it’s gone. However, as consumers become more aware of these tactics, brands must ask themselves: how long before urgency turns into exhaustion?

Where Do Brands Draw the Line?

Scarcity, urgency, and FOMO are undeniably effective, but when does persuasion cross into manipulation? As brands push these psychological triggers harder, consumers are starting to push back.

Artificial Scarcity – Manufacturing Hype or Deception?
Not all scarcity is real. Some brands intentionally create stock shortages to generate buzz, only to quietly restock later. Luxury brands have long used this tactic, but now, even fast-fashion and tech companies are adopting it. Many product releases “sell out” in minutes, only reappearing later on resale platforms at inflated prices. The illusion of exclusivity works, but at what cost? Consumers are growing wary of brands that manufacture demand rather than earn it.

Urgency Fatigue – When Consumers Stop Caring
Constant countdown timers, flashing “limited stock” warnings, and one-day-only deals can lose their impact when overused. Studies show that consumers who repeatedly encounter false urgency eventually stop responding. Travel booking sites have faced regulatory scrutiny for exaggerating scarcity and listing “only one room left” when more are available. When urgency becomes routine rather than real, brands risk credibility.

FOMO Burnout – The Mental Toll on Consumers
Social media-driven FOMO isn’t just a marketing tool; it’s an emotional trigger. The pressure to stay ahead, secure the latest drop, or participate in an exclusive event can lead to anxiety and compulsive spending. A survey by Credit Karma found that nearly 40% of millennials have gone into debt because of FOMO-fueled purchases. Brands that lean too heavily on this strategy risk alienating consumers who feel manipulated rather than empowered.

Regulation and Consumer Backlash
Regulators are beginning to crack down. The UK’s Competition and Markets Authority (CMA) has fined companies for misleading urgency tactics. In the U.S., the Federal Trade Commission (FTC) has warned brands against deceptive scarcity claims. Consumers, too, are becoming more vocal, calling out brands for fake limited editions and “forever sales.”

Scarcity, urgency, and FOMO can drive engagement, but brands that misuse these tactics risk long-term damage. Once lost, trust is difficult to regain. The challenge now is clear: how can brands create real value?

How Brands Can Apply Psychological Triggers Effectively

Scarcity, urgency, and FOMO aren’t inherently unethical when used correctly, they can enhance customer experience, create meaningful engagement, and drive sales without alienating consumers. The key is authenticity. Brands that use these psychological triggers responsibly build stronger relationships with their audience, while those that rely on deception risk losing credibility.

Authentic Scarcity – When Limited Means Limited
Consumers can spot artificial scarcity. If a product is marketed as exclusive but keeps reappearing, trust erodes. Instead, brands should create real constraints, whether through limited production runs, seasonal availability, or exclusive collaborations. Hermès maintains exclusivity by restricting supply, while high-end automotive brands use limited releases to sustain long-term desirability.

Strategic Urgency – Pressure Without Manipulation
Urgency works best when it feels natural, not forced. Time-sensitive promotions should be genuine, like early-bird event pricing, flash sales with clear expiration dates, or rewards for loyal customers who act quickly. Travel companies, after facing scrutiny for misleading urgency tactics, are shifting toward more transparent messaging, highlighting real-time booking trends rather than fabricating scarcity.

FOMO-Driven Engagement – Creating Experiences, Not Just Sales
FOMO doesn’t have to be about fear; it can be about excitement and belonging. Brands that foster community-driven experiences see long-term success. Exclusive memberships, VIP access, and interactive product launches tap into the power of FOMO while providing real value. For instance, TikTok’s live shopping feature blends urgency with entertainment, encouraging consumers to engage rather than feel pressured.

The Long Game – Balancing Demand with Trust
Short-term sales tactics can generate immediate results, but brands that rely too heavily on them risk fatigue. The most successful companies use scarcity, urgency, and FOMO sparingly, ensuring that when they do, it feels special. Transparency is key. If consumers understand why a product is limited, why a sale is ending, or why an offer is exclusive, they’re more likely to trust the brand and return for future purchases.

Scarcity, urgency, and FOMO are some of the most powerful marketing tools, but their real strength lies in their use. Brands that use them responsibly will not only drive conversions but also build lasting loyalty in a market where trust is harder to earn than ever.

The Future of Scarcity, Urgency, and FOMO in Marketing

As consumers grow savvier, brands must rethink how they use psychological triggers. The old playbook – endless countdown timers, fake exclusivity, and misleading urgency – no longer works. Trust is becoming the new currency, and brands that misuse these tactics risk long-term damage.

AI-Driven Personalisation – The Next Evolution of Urgency
Instead of blasting the same urgency messages to everyone, brands now leverage AI to make scarcity and FOMO feel personal. E-commerce platforms analyze browsing habits and purchase history to create dynamic, hyper-targeted urgency. Rather than generic “Only 3 left in stock!” alerts, AI can now tell a shopper, “This item has been viewed 200 times in the past hour by customers in your city.” This shift makes urgency more relevant and harder to ignore.

Web3 and Digital Scarcity – The New Luxury?
Blockchain is reshaping the concept of exclusivity. NFTs, tokenised memberships, and limited digital assets are turning scarcity into a verified, traceable feature rather than a marketing gimmick. In fashion and entertainment, brands are experimenting with “phygital” drops, where limited-edition physical products are tied to digital ownership, making them impossible to replicate or mass-produce. The result? Scarcity that is verifiable, not just implied.

The Consumer Backlash: Brands Walking a Fine Line
Consumers are pushing back against overused urgency tactics. The rise of anti-FOMO movements, such as the slow fashion trend, conscious consumerism, and “buy less, buy better” messaging, signals a shift away from impulse-driven spending. Brands that continue to rely on aggressive scarcity marketing without delivering real value could find themselves losing consumer trust.

The Shift Toward Ethical Marketing
Regulations will only get stricter, and consumer expectations will only rise. The future belongs to brands that create demand without deception – companies that balance excitement with authenticity. Whether through genuine exclusivity, AI-powered personalisation, or blockchain-backed scarcity, the next wave of marketing won’t be about forcing consumers to act. It will be about making them want to.

Urgency still matters with fleeting attention spans. But in the future, the most successful brands will not just create FOMO – they’ll create something worth waiting for.

The Fine Line Between Influence and Manipulation

Scarcity, urgency, and FOMO have shaped modern marketing, but they are no longer foolproof tactics. Consumers today are more informed, more sceptical, and less willing to be pressured into making purchases. The brands that continue to rely on outdated urgency tricks risk alienating their audience, while those that evolve will be the ones that thrive.

The future of marketing isn’t about manufacturing demand; it’s about meeting it in smarter ways. Real scarcity, backed by transparent supply constraints. Urgency that reflects genuine time-sensitive value, not fabricated pressure. FOMO that fuels community and belonging rather than consumer anxiety.

The brands that win in this landscape will be the ones that recognise a simple truth: consumers don’t just want to buy; they want to believe. And belief is built on trust, not tricks.

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When Miguel and Mikayla Reyes launched Quesadilla Gorilla in Visalia, California, they weren’t just selling quesadillas – they were tapping into a growing demand for customisation. By letting customers build their meals with fresh ingredients and signature salsas, they transformed a small local shop into a rapidly expanding chain.

Fast food chains are no longer defined by speed alone – choice now drives the industry. Consumers are rejecting fixed menus in favour of meals that fit their diets, tastes, and lifestyles. A 2024 report by Tillster found that one in three quick-service diners skipped a restaurant because it lacked customisation, a jump from 21% the previous year.

Personalisation isn’t just a trend – it’s an expectation. More than half of diners (58%) say they’re more likely to recommend a fast food chain if they had a positive custom-ordering experience. For Quick Serve Restaurants or QSRs, that’s not just about loyalty – it’s about survival.

QSRs are racing to keep up, using technology to turn customisation from a challenge into a competitive advantage. Self-service kiosks, now fixtures in many chains, fuel this shift. Demand is rising fast – 57% of diners want more of them, up from 36% last year. Beyond convenience, kiosks give customers greater control over their meals, making customisation seamless.

But technology alone isn’t enough. A seamless experience matters just as much as the ability to customise. Nearly nine in ten diners (89%) say inconsistency across locations frustrates them, and more than half (57%) will take their business elsewhere because of it. Fast food chains that embrace personalisation but fail to execute it uniformly risk losing the very customers they’re trying to attract.

Image credit: Quesadilla Gorilla

Quesadilla Gorilla is proof that customisation isn’t just a gimmick – it’s a growth strategy. By giving customers complete control over their meals, the California-based chain has built a cult-like following and expanded rapidly. When diners feel ownership over what they’re eating, they don’t just return – they become brand ambassadors.

The Consumer-Driven Shift

Fast food was built on uniformity – the same burger, the same fries, the same experience. But consumers now expect meals that reflect their diets, values, and preferences – and they’re willing to pay for that control.

A recent report found that 72% of fast food customers prefer restaurants with personalised ordering, and a third have ditched a restaurant that lacked it. The message is clear: if QSRs don’t offer customisation, someone else will.

Dietary Needs Are Driving Change

Health-conscious consumers and specialised diets are reshaping fast food. More people are adopting plant-based, keto, and allergen-free options, forcing QSRs to adapt. In the UK, a study found that 34% of Brits follow a flexitarian, vegetarian, or vegan diet. McDonald’s responded with its McPlant burger – a fully vegan option that proved so popular it became a permanent menu item.

Gluten-free and allergen-conscious dining is no longer niche – it’s mainstream. In the US, 32 million people have food allergies, and one in ten adults avoids gluten. QSRs that once overlooked these needs are now making them a priority. Chipotle lets customers filter its entire digital menu by allergens and diet preferences, making ordering safer and easier.

Regional Preferences Are Reshaping Menus

Personalisation isn’t a one-size-fits-all trend – it looks different in every market. In Japan, MOS Burger lets customers swap ingredients for vegan, keto, or high-protein options. In India, where 40% of the population is vegetarian, McDonald’s runs separate vegetarian kitchens in select locations to meet demand.

Image credit: Salad Stop!

Customisation in Southeast Asia is shaped by local food culture. In Singapore, SaladStop! thrives on made-to-order salads and grain bowls, catering to a region where 65% of consumers prioritise fresh, healthy ingredients (Statista, 2024). In South Korea, Lotteria’s “Mix Your Own Burger” system lets customers pick everything from the bun to the sauce, tapping into a younger generation that values choice.

Fast Food No Longer Means Fast Decisions

Fast food has evolved from a mass-production model to a made-for-you experience. Consumers expect meals to match their dietary needs and personal values and are willing to pay for that control. Whether it’s plant-based options, high-protein choices, or allergen-free meals, customisation is no longer a perk; it’s the baseline. The brands that keep up are driving higher order values and stronger customer loyalty. Those that fall behind risk becoming irrelevant.

How AI and Technology Are Making It Possible

Technology is reshaping fast food, making personalisation scalable. AI and machine learning are making customisation scalable, helping restaurants tailor meals while streamlining operations. For fast food chains, this isn’t just about convenience – it’s about survival in an era where consumer expectations are shifting faster than ever.

AI-Powered Ordering Systems

Image credit: Wendy’s

Automation is now streamlining drive-thru service. Wendy’s has partnered with Google Cloud to roll out FreshAI, a voice assistant designed to speed up service and reduce errors. Already in 100 locations, the system is set to expand to 600 outlets by 2025. While some diners appreciate the efficiency, others miss the human touch – highlighting the tension between automation and experience in fast food’s tech-driven future.

Digital Kiosks and Personalisation

Self-service kiosks are not just about convenience – they’re becoming personalised digital waiters. AI-driven kiosks now remember past orders, suggest meal pairings, and tailor recommendations based on dietary needs. By reducing friction and speeding up service, these machines are transforming customer interactions – and helping fast food chains increase sales along the way.

Machine Learning for Menu Customisation

The smartest menus now learn from you. Machine learning lets QSRs track past orders, adapt to dietary preferences, and even tweak menus based on ingredient availability. Running low on an item? The system suggests an alternative in real-time. Beyond customer convenience, these AI-driven menus help restaurants reduce waste, streamline inventory, and boost margins.

Operational Efficiency Through AI

AI isn’t just in the front of house—it’s redefining kitchen operations behind the scenes. Predictive analytics help QSRs anticipate demand, adjust staffing, and keep inventory tight. The same technology can even flag equipment issues before they cause breakdowns, cutting costly downtime. The result? Faster service, lower costs, and a more efficient back-end operation.

This shift isn’t just changing how customers order – it’s restructuring the entire industry, from kitchen design to staffing strategies.

Business Impact and Industry Disruption

The push for hyper-personalisation is reshaping how fast food chains operate, forcing them to balance customisation with efficiency. Kitchens once designed for assembly-line efficiency are now adapting to a made-to-order model – one that delivers choice but also adds complexity. While brands that get it right see higher sales and stronger customer loyalty, those that can’t balance personalisation with efficiency risk slowing down service and driving up costs.

Rethinking fast food Kitchens

Fast food kitchens are undergoing a major overhaul to meet the demands of customised ordering. McDonald’s is experimenting with automation at a Texas location, where robots handle grilling and order assembly. Meanwhile, AI-powered kitchen display systems (KDS) are helping restaurants reduce human error and improve efficiency.

Chipotle’s “Chipotlanes” are redefining the drive-thru experience. By separating app-based orders from in-store transactions, these digital lanes reduce congestion and speed up fulfilment. CEO Brian Niccol reports that digital sales reached 37% of total revenue in 2023 – a figure likely to climb as more customers opt for customised meals.

The Business Upside

Customisation isn’t just a consumer preference – it’s also good for business. A study by McKinsey & Company found that brands offering personalised experiences drive 40% more revenue than competitors that stick to traditional menus. In fast food, higher-order values, repeat purchases, and improved brand loyalty are the biggest wins.

Data collection is another major advantage. Every custom order provides insight into consumer preferences, allowing QSRs to fine-tune menu options, predict demand, and minimise food waste. A report by the National Restaurant Association found that smart inventory management driven by AI could reduce waste by up to 15%, saving businesses millions annually.

The Hidden Costs of Personalisation

Despite the upside, the shift toward extreme customisation brings new risks. More complex orders require more ingredients, increased prep time, and a higher likelihood of operational slowdowns. In 2023, Shake Shack’s CFO, Katie Fogertey, noted that over-customisation led to longer wait times, straining kitchens and frustrating customers.

There’s also the cost of technology. AI-powered ordering systems, digital kiosks, and smart kitchen tech require significant upfront investment – something smaller franchises may struggle to afford. According to a 2024 industry analysis by Deloitte, the cost of implementing AI-driven food prep technology can range from $500,000 to over $2 million per location, depending on the scale of automation.

For QSRs, the challenge is clear: how to balance efficiency with personalisation without sacrificing speed or profitability. Some are leaning on AI, others on pre-set customisation limits, but one thing is certain – fast food is no longer just about being fast.

Fast Food’s New Balancing Act: Customisation Versus Efficiency

Fast food chains are under pressure to rethink their entire model as customisation moves from novelty to necessity. The old system of standardised meals is being replaced by flexible menus that cater to individual preferences, but adapting at scale is no easy feat. While personalised ordering can boost sales and improve inventory management, the operational complexities are mounting – forcing even the biggest QSRs to reassess how they function.

Kitchens Built for Speed Are Getting a Makeover

The shift toward customisation is forcing QSRs to rethink not just their menus, but their kitchens. Designed for efficiency and volume, traditional back-of-house operations are now struggling to accommodate a growing demand for personalised meals. Chains that once thrived on uniformity are now experimenting with new layouts, technology, and automation to keep up.

Quick-service chains are automating to stay competitive. McDonald’s is testing a robotics-driven location in Texas, where AI-powered kiosks and automated fry stations are reducing labour costs and speeding up prep times. At the same time, Chipotle is using automation in its kitchens, piloting robotic tortilla chip makers to streamline production without disrupting customisation. As QSRs scale automation, the challenge isn’t just efficiency – it’s integrating technology without sacrificing the personalised experience customers expect.

More Choices, Bigger Profits

Customisation isn’t just about consumer preference – it’s driving higher spending at fast food chains. Research from Deloitte highlights that brands excelling in personalisation see stronger customer engagement and long-term loyalty. Meanwhile, studies on digital ordering trends show that consumers spend more when they can modify their meals, opting for premium ingredients or add-ons. For QSRs, this means a direct link between menu flexibility and increased revenue, making personalisation more than just a marketing tool – it’s a business strategy.

Data is another major driver. Every custom order provides valuable insight into consumer preferences, allowing QSRs to refine menus, optimise ingredient sourcing, and reduce food waste. AI-driven inventory tracking is helping QSRs minimise waste and maximise margins. The National Restaurant Association estimates these systems could save restaurants millions annually by optimising ingredient use.

The Cost of Getting Personal

Offering limitless choices isn’t always good for business. Shake Shack CFO Katie Fogertey warned that an influx of custom orders slowed service and strained kitchen operations, frustrating both customers and staff. More ingredients mean more prep time, higher operational costs, and a greater risk of bottlenecks – issues that can erode the efficiency QSRs rely on.

The shift toward automation comes with a steep price tag. AI-powered kiosks, digital ordering systems, and robotic kitchen assistants require significant upfront investment. A 2024 Deloitte report estimates the cost of implementing AI-driven food prep technology ranges from $500,000 to over $2 million per location – an expense that could widen the gap between industry giants and smaller franchises.

QSRs are now walking a tightrope between customisation and efficiency. Some are doubling down on AI to streamline operations, while others are setting boundaries on how much personalisation they allow. The brands that strike the right balance will define the next era of fast food – one where convenience and choice must work in sync.

The Future of Hyper-Personalised Fast Food

The next wave of fast food will be shaped by technology and consumer demand for hyper-personalization. What was once a novelty is fast becoming the norm, with AI-driven pricing, predictive meal planning, and real-time nutrition tracking set to redefine how QSRs serve their customers.

Dynamic Pricing

Dynamic pricing, long used in airlines and hotels, is now entering fast food. AI-powered pricing models adjust costs in real-time based on demand, location, and even weather. A surge in lunchtime traffic? Expect a slight uptick in menu prices. A slow afternoon? Discounts might appear to draw in customers. The goal isn’t just profit – it’s about balancing kitchen efficiency and customer flow to avoid bottlenecks.

AI-Generated Meal Plans

AI-driven meal planning is changing how customers interact with fast food menus. Using past orders, dietary preferences, and budget constraints, algorithms can now recommend tailored meals in real time. Billionaire Marc Lore, through his company Wonder, is betting on AI-powered meal curation that personalises menus to match individual needs. The result? A shift from one-size-fits-all offerings to menus that adapt to customers – not the other way around.

Personalised Nutrition Tracking

Nutrition-conscious consumers are demanding more than just quick meals – they want food that fits their health goals. fast food chains are tapping into this trend by linking menus to wearable tech and health apps, offering real-time meal recommendations based on calorie needs, macros, or fitness plans. By turning fast food into a data-driven dining experience, QSRs are positioning themselves as allies in personal wellness rather than just a convenient option.

Regulatory and Ethical Considerations

AI-powered personalisation isn’t without controversy. With fast food chains collecting customer data to refine menus and pricing, concerns over privacy and data security are growing. The 2024 exposure of the WildChat dataset, which leaked sensitive AI interactions, highlighted the risks of poor data handling. If QSRs want consumers to embrace AI-driven dining, they must prove their systems are transparent, secure, and not exploiting personal data for profit.

AI-driven menus raise another concern – are they truly serving consumers, or just steering them toward higher-margin meals? Critics warn that AI could prioritise profits over nutrition, subtly pushing customers toward pricier, less healthy choices. Regulators are beginning to scrutinise how food brands deploy AI, with calls for transparency around algorithmic decision-making and whether recommendations serve the diner or the bottom line.

Empowering Consumers in the Age of Personalisation

Fast food is no longer a one-size-fits-all industry. Consumers expect choices that reflect their health goals, ethical beliefs, and personal tastes – shifting from passive diners to active decision-makers. But with more power comes more risk. The industry must find a way to balance innovation with transparency, ensuring that personalisation enhances, rather than exploits, the dining experience.

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