AI Takeover: 2024 Belongs to Artificial Intelligence
AI, Sustainability and Inclusion: a look into consumer trends that will shape 2024
2023 saw many new developments in culture and technology. Consumers around the world witnessed a cost-of-living crisis, AI developments and a continuous growth in sustainable behaviours such as thrifting. It has also seen some new social media trends emerge like #barbiecore, #girlmath and #foodmashup.
As we look ahead to 2024, brands and consumers alike will need to adapt to the major shifts in priorities and behaviours. AI will continue its steady march into the mainstream, bringing both promise and concerns. Individuals will seek out communities of like-minded people while celebrating their individuality. Quality will trump low prices and disposability. Diversity and inclusion will remain vital to consumers. Wellness remains a priority for consumers as awareness of ultra-processed foods increases. By understanding and preparing for these key trends, companies can ensure they are meeting emerging consumer demands. 2024 looks to be a year of innovation and conscious consumption.
Artificial intelligence (AI) goes mainstream causing wonder and worry
It’s no surprise that 2024 will see AI as a central force since Generative AI’s (Gen AI) boom in 2023. AI causes wonder as it makes lives easier, saves time and adds convenience. However, the flip side is the worry that it’s going to threaten jobs, economic security and privacy. While it has huge potential to deliver great things, consumer concern is on the rise, and consumers are generally more worried about AI than filled with wonder. However, AI’s growth in 2024 is unknown and as it starts embedding more and more in our everyday lives (whether we realise it or not) there are many more opportunities for wonder.
Additionally, wellness and mindfulness remain a priority to consumers as they did in 2023, with more consumers looking for natural products to sustain themselves. Experts predict that technology will also play a crucial role in the wellness trend moving forward and AI will transform the beauty industry by making it personalised, efficient, and effective. Using technologies like AI, Virtual Reality and Augmented Reality, brands can personalise beauty experiences, track well-being metrics and offer virtual wellness consultations enabling consumers to access beauty products tailored specifically to individual needs. However, ethical AI governance will be crucial for addressing bias, privacy, and responsible data use in the industry.
Individuality and community are both valued
Feeling a sense of connection and belonging in a fragmented world has become difficult. Flexible lifestyles are desynchronising routines, and traditional unifying forces are increasingly fading. The celebration of individuality has been gaining momentum for a while with many purposefully carving out unique identities. However, the past year has also seen the rise of passion-based communities, for example, #barbiecore. As these two needs of individualism and community unfold, in 2024 brands must prepare to address the dual desires of consumers.
In a price sensitive era, value means quality
Increasingly, consumers are actively moving away from disposable products and fast fashion. They are re-evaluating their spending habits and prioritising the longevity and quality of products. Despite economic concerns and the cost-of-living crisis, the demand for premium products remains high. When consumers do spend, they prefer spending on products with lasting value, particularly for big ticket items. There is a decline in consumers favouring low prices as their main purchasing factor. Brands will need to focus on enhancing their premium products to cater to this demand.
Sustainability is desired but there are some barriers to access
Sustainability and ethics matter more than ever to consumers. More and more consumers around the globe are embracing sustainable choices. According to KPMG, 45% of consumers in the UK consider themselves to be sustainable consumers and 68% say that sustainability is more important to them than it was two years ago. However, while sustainability is widely desired, the UK has seen a decline in consumers willing to spend more for sustainable products in the past year. Cost remains one of the biggest barriers to attaining a sustainable lifestyle. Consumers are more likely to buy from brands when sustainability is clearly communicated through branding.
Brands that adopt sustainability as one of their core values and provide premium products with value for money are more likely to attract consumers.
Diversity and inclusion remains vital
In recent years, brands have adopted the need for inclusion by incorporating it into their core values, and 2024 will be no different. A range of industries have been heavily influenced by Gen Z and Millennial customers who are highly conscious consumers. They recognise and appreciate brands reflecting their personal values of diversity and inclusion. This includes providing services like accessible e-commerce that better serve those living with disabilities. However, brands need to be genuine, eco-washing is spotted quickly and will have an adverse effect on brand perception. Consumers are looking for brands that not only promote diversity in advertising but genuinely encapsulate them in their practices.
To be processed or not to be
The debate on health concerns of processed food continues to grow. Consumers want to be ‘healthier’, searching out foods to potentially boost longevity and see a relationship between natural foods and improved mental health. They are looking for a holistic solution to support wellness, be fortified foods or whole foods. 2024 will see a continuous pushback on processed foods. Initiatives for regulating ultra-processed foods have been rolled out in the UK to address consumer demands on transparency and health concerns.
Sources:
What the Future: Intelligence | Ipsos
Global Beauty and Personal Care Trends | Mintel
Reckoning with Reality | Foresight Factory
Must Watch Consumer Trends for 2024 | Statista
2024 Trend Report | Trendhunter
Marketing Trends for 2024 | Blu. Digital
Wellness Trends Report 2024 | Holland and Barrett
KPMG UK Consumer Pulse survey | KPMG
Sustainability is more important to UK consumers | Retail Times
Consumer Trends to follow in 2024 | Just food
6 food industry trends heading into 2024 | Foods connected