Acceptance will be the new consumer mindset in 2025

By AdNews | 3 December 2024
 

Sam Cousins.

Australians will embrace acceptance in 2025 as the post-pandemic financial, employment and lifestyle becomes the 'new normal', according to The Media Store’s annual trends report 5 for 2025 - Consumer Trends for 2025. 

The report outlines the top trends set to affect consumers next year and how advertisers can meet customers in the moment and in their mindset.

2025 is set to be underpinned by Australians taking control of their life, as they embrace their new acceptance and say goodbye to excess consumption, environmental negligence and fake news, and embrace a slower, more minimalist way of living.

According to the report, the key issues for consumers in 2025:

  1. Acceptance

Acceptance will be key for Australians in 2025, with advertisers needing to reshape their products, services and associated targeting strategies, to meet customers in their new normal.

Following the pandemic and the cost-of-living crisis, consumers have created new ways of living and adapted to different circumstances, including new financial realities. This mindset is set to influence everything from spending habits to lifestyle choices in 2025, with data showing 43% of Australians said they have given up dining out or takeaway, 39% have delayed holidays, and 29% have forgone hair and beauty appointments.

In line with this, many Australians have accepted they will never own a home. Six in 10 said they can’t save a deposit, while nearly half (49%) said they are constantly outpaced by the market. According to the report, this shift is likely to change the shape of households – expect a rise of multigenerational homes and single households.

Brands need to appeal to the new-look Australian consumer, rethinking their target audiences and using first-party data to understand new attitudes and behaviours – and communicate with those customers directly. Advertisers should also consider exploiting untapped markets and needs, leaning into shifting household structures and financial circumstances. 

  1. Rejection

Say goodbye to excessive consumption, curated information, and technology reliance in 2025, as Australians enter a new era of rejection. 

According to the report, 2025 is set to be a “slow buy year” as Australians realise the excess of their consumption and look to make changes. Customers are also expecting brands to do their part for the environment, with shoppers set to reject businesses in 2025 that do not directly address their supply chains and green ethos. Climate change also remains top-of-mind for consumers, as people look to invest in protection from climate-related outages and hacking events, such as solar and battery.

There will be an accompanying rise in readership of newspapers and magazines where consumers choose their news, rather than it being pushed in front of them, and content from real journalists. The fully digital Gen Z and Gen Alphas are acutely aware of how their data is used and we may see a cultural backlash on algorithms and data privacy.

The Media Store chief strategy officer Sam Cousins said active communication will be key for brands in 2025.

“The circular economy and zero waste desires are still very prevalent, and brands should find ways to lean into the ‘slow buy year’ by overtly communicating their supply chain to combat over consumption and waste," Cousins said.

"This overcommunication should extend to how customer data and AI tools are being used. Many Australians are starting to reject controlled thinking and curated information – brands will need to find ways to build customer trust in an increasingly digital world."

   3. Simplicity

Expect a return to the simple life in 2025, as consumers embrace a “less is more” mentality.

Next year will be a period of Australians actively saying no, as they look for a more simplified lifestyle, switching going out for staying in and meaningful connections, spending less to pay off debts and avoid new ones and making active choices to downsize their technology and shopping habits.

Brands will need to adjust their thinking to align with the rise of “de-influencers” and a more simplistic approach to purchasing, being driven online by the TikTok generation. This will affect everything from streamlining tech and content subscriptions, paying off debts, the rise of dupes and well-made ethical products, the increased attraction of cottage hobbies like gardening and craft, and mindful tech use, with ‘screen shaming’ gaining traction.

Cousins said it’s no longer cool to over consume.

"Millennials and Gen Z now want longevity in their products, along with well-made, ethical and quality goods," Cousins said.

"Expect minimalism and more deliberate choices to make a comeback, in everything from socialising to frugal living, along with mindful technology, as people look to simplify their communications.”

Brands can embrace the trend by creating advertising that encourages more mindful consumption, the report says. Choose campaigns that promote deliberate purchases, while also offering education and information around budgeting and simple family living.

  1. Experience

Connection over landfill in 2025 – consumers want meaningful, immersive and shared experiences, rather than material items – and they’re expecting the same for brands.

Customers are looking for in-store experiences that enhance the shopping journey, with businesses expected to combine real life and technology to reach consumers in a new way. The evolution of VR and AR-led experiences, that complement the physical, are set to grow, along with activities that foster social participation and wellbeing. Tertiary education is now not seen as a rite of passage for young people, who are still wondering about jobs yet to be created. Experiences outside the classroom are as valued just as much as in.

For advertisers, in-platform experiences, where those such as Amazon have combined fandom, commerce and content to persuade consumers to stay within its ecosystem, are still set to be in high demand in 2025, particularly those that “sew up” the user experience.

“Social commerce is still the fastest growing commerce channel in APAC,” Cousins said.

“In-platform experiences, where ecosystems are sewn up, are set to grow. Allowing customers to stay in-platform to order food, shop, create and even learn, is a way for brands to ensure users remain fully immersed in the experience – and their products.”

  1. Creation

Australians are set to take creation to new heights in 2025, curating their content and connection with generative AI, while also driving curation in their own lives.

According to the report, 2025 is set to be a year of ‘forced creativity’ for Australians, as they create new revenue streams and roles, in response to the cost-of-living crisis and technology evolution. They’re also set to be more creative in their day-to-day lives – from food and drink ideas, to turning something old into something new, creativity will be prevalent.

Digital content creation is also set to continue to grow in 2025. With the evolution of Gen AI and the accessibility of apps such as TikTok, content creation is easier than ever. Expect to see the rise of digital content creators as brand ambassadors, as brands look to leverage the trend.

“Brands will need to deep dive into their audience insights, looking at what their audience creates both online and offline, to help them find the right opportunity,” Cousins said.

“Working with content creators enables brands to jump on trends and be agile to what is going on in culture.”

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