Predictions 2025: A Tale Of Consumer Contradictions
Two sides of the same coin; the yin and the yang; two sides of the equation — 2025 will be a year of consumer contradictions. Consumers will behave in opposing ways.
But the two behaviors aren’t created equal: One will mask the other, predominant one. As a result, brands will be befuddled about what to believe. Consumers will become more disloyal to brands yet join more loyalty programs. Cancel culture will boil over, but consumers will start to tune out. Those that succeed in 2025 will be able to distinguish noise from reality.
As you navigate the influx of consumer contradictions in 2025, keep in mind Forrester’s consumer predictions for the new calendar year:
- Brand loyalty will decline 25%, but usage of loyalty programs will increase. Price sensitivity and high prices cloud consumers’ views as food costs peak, brands resort to uncharacteristic discounts, and retailers such as SHEIN and Temu demonstrate the power of undercutting competitors. Consumers are not only feeling it, but they’re also going to do something about it, because price sensitivity breeds brand-switching behaviors. But while brand loyalty falters, loyalty program usage will rise as customers look to grab value (and personalized value) wherever they can.
- Negative social media sentiment will dominate headlines, but usage will grow. The odds don’t seem to favor this prediction, as new laws are introduced to curb usage, the US surgeon general calls for a warning label on social platforms, and studies link social media to poorer mental health outcomes. Despite these concerns, we predict that consumers will spend more time with social media next year as it evolves beyond social connections. The major platforms are now just as much about entertainment and shopping as they are about keeping up with friends and family. Technology for social commerce has finally improved, integrating Shopify, Amazon, and Apple Pay seamlessly, at a time when creators look for more ways to demonstrate their ROI to brands. As social media moves beyond just being social, these venues will become ideal platforms for brands to build relationships across the entire customer lifecycle. Consumers will find it less convenient to stay offline.
- Cancel culture reaches a tipping point, but 60% of consumers will tune out. Cancel culture — boycotting or shaming companies or people who have acted objectionably — is on the upswing. Forrester data shows that online adults globally take actions such as posting on social media or telling a family member or friend to avoid a company in response to perceived misdeeds. For our 2024 predictions, we foresaw that brands’ inaction (playing it safe) would cause consumer tension. But in 2025, it will be consumers’ turn to be less active as we enter an era of desensitization: They will tune out as media hysteria around cancel culture reaches new heights and social media algorithms amplify hot takes. The writing is on the wall: Our survey data finds that the share of online adults who often think about a company’s social, environmental, or political values when purchasing is down 10 percentage points in Italy, while the belief that companies have a responsibility to participate in debates about current issues fell 4 percentage points in the US.
Read Forrester’s full Predictions 2025: Consumers report to get more detail about each of these predictions and others. Then, set up a Forrester guidance session with me to discuss how to apply these predictions and best practices to stay ahead in the coming year.
If you aren’t yet a Forrester client, you can download our complimentary Predictions guide on B2C marketing and customer experience, which covers more of our top predictions for 2025. Find additional complimentary resources, including webinars, on the Predictions 2025 hub.