Three Major Consumer Trends for the Years 2024–2027
The tastes of consumers are ever-evolving. In today’s fast-paced world, companies must keep up with the changing desires and preferences of their customers in order to stay relevant and competitive. Whether it’s adapting to new technologies, responding to shifting buying patterns, or understanding the evolving values of consumers, staying ahead of the curve is essential for success in the marketplace. With that in mind, let’s take a closer look at three major consumer trends that are expected to shape the years 2024 to 2027.
1. Customers Want a Hand in Data Management
In recent years, there has been a significant increase in consumer awareness and concern about data privacy. People are becoming more vigilant about how their personal information is collected, stored, and used by companies. According to a study by KPMG, 56 percent of consumers express a desire for greater autonomy over their data. This growing emphasis on privacy is influencing consumer behavior, with over 87 percent of North Americans stating that they would avoid doing business with companies that they have concerns about their data practices. Additionally, more than half of customers prefer businesses that do not ask for personal information unrelated to their products.
Privacy has become a top priority for many consumers, with a large majority believing that security, convenience, and fraud prevention are not adequately balanced. In a survey by Paysafe, 82 percent of respondents felt that there was room for improvement in how companies handle data security. Furthermore, nearly half of American consumers indicated they would be willing to accept stricter security measures in exchange for reduced fraud.
In response to growing concerns about data privacy, governments around the world have implemented stricter regulations to protect consumer data. The European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) are examples of regulations that give consumers more control over their personal information. Major corporations are also taking steps to enhance data privacy, with companies like Apple introducing features that allow users to access applications without sharing personal information with third parties.
As consumers continue to prioritize data privacy, companies will face increasing pressure to protect customer data and comply with regulations. Maintaining trust and transparency in data practices will be essential for businesses to earn and retain the loyalty of their customers.
2. AR Makes Shopping Easier for Customers
The shift towards digital-first purchasing has accelerated the demand for innovative shopping experiences. Augmented reality (AR) technology has emerged as a powerful tool for enhancing the online shopping experience by allowing consumers to virtually “try before they buy.” According to experts, 35 percent of consumers are more likely to shop online if they can digitally try on products before making a purchase.
One of the biggest hurdles of online shopping is the inability to physically touch or try products before buying them. More than half of consumers find this aspect of online shopping frustrating, leading retailers to explore AR solutions as a way to bridge this gap. Big-box stores like Ulta and L’Oréal have seen significant success with virtual try-on tools, which have increased website engagement and conversion rates.
Additionally, partnerships between retailers and popular platforms like Snapchat have expanded the reach of AR experiences. Kohl’s, for example, now offers a Virtual Closet experience through Snapchat, aiming to appeal to a younger audience that engages with the platform regularly. As retailers continue to invest in AR technology, consumers can expect more interactive and engaging shopping experiences that mimic the in-store experience online.
Research has shown that interactive AR content improves conversion rates, with a 94 percent higher conversion rate compared to those without AR. With the integration of AR and three-dimensional models on e-commerce platforms, retailers have the opportunity to provide a more immersive and personalized shopping experience for customers.
3. Voice Commerce Takes Off as the Purchase Initiation Point
Convenience has become a key priority for consumers, with many shoppers placing a higher value on convenience now than they did five years ago. Voice commerce, which enables consumers to make purchases using voice-activated digital assistants like Google Assistant and Amazon Echo, has gained popularity as a convenient way to shop online.
The voice commerce industry was valued at $40 billion in 2022, with tech giants like Google and Amazon spearheading innovations to streamline the purchasing process. Studies have shown that frequent users of voice-activated speakers are more likely to make a purchase within the next 30 days, indicating a growing trend towards voice-assisted shopping.
The use of digital assistants for shopping is expected to continue to increase in the coming years, with a significant percentage of Americans predicted to use voice-activated devices regularly. Smart speaker owners have already embraced voice shopping, with nearly half of them making purchases using their devices in 2020.
Voice commerce not only provides convenience for consumers but also offers retailers an opportunity to generate leads and drive sales. By partnering with major tech companies to enable voice shopping, businesses like Walmart are leveraging the power of digital assistants to reach a wider audience and streamline the shopping experience for their customers.
As the popularity of voice-activated devices continues to grow, retailers will need to adapt to meet the changing expectations of consumers. Providing seamless voice shopping experiences and personalized recommendations will be key to attracting and retaining customers who value convenience and efficiency in their online shopping.
In conclusion, the years 2024 to 2027 will be characterized by evolving consumer trends that prioritize data privacy, enhanced shopping experiences through AR technology, and the rise of voice commerce as a convenient and efficient way to shop online. Companies that adapt to these trends and prioritize the needs and preferences of their customers will be well-positioned for success in the competitive marketplace. By staying ahead of the curve and embracing innovation, businesses can build trust, loyalty, and engagement with consumers in the rapidly changing landscape of retail and e-commerce.
