Consumer Buying Trends Shaping CPG in 2025

INTRODUCTION

From brand-switching Boomers to social-media-shopping Gen Z, 2025 will be about navigating evolving consumer behaviors that drive – and challenge -- the CPG market. Despite inflation concerns, middle-income consumers continue to indulge in occasional splurges, and older consumers are no exception. Long-held brand loyalty among these groups isn’t what it used to be. Meanwhile, the path to purchase has never been more complex, as consumers mix brand exploration with value-driven decisions, all while scrolling through social feeds for their next buy. In this changing landscape, the race is on for CPG brands to adapt, cut through the noise and establish sure footing.

Jump to any of the sections:

1. The Consumer Landscape: US And Europe
2. 7 Trends that are Redefining Buying Behavior
3. Marketing Strategies For CPG Brands
4. Future Trends
5. Conclusion

THE CONSUMER LANDSCAPE: US AND EUROPE

The US and European consumer landscape in 2024 has seen shifting optimism, cautious spending, and a redefined sense of value across demographics. Despite inflation, middle-income consumers in both regions are continuing to indulge in travel, dining, and discretionary buys—all while trading down for better value in other areas.

7 TRENDS THAT ARE REDEFINING BUYING BEHAVIOR

Learn how Snipp can help boost your customer loyalty strategy and help you engage your consumers. Click here to contact our experts!

MARKETING STRATEGIES FOR CPG BRANDS

CPG brands have always faced challenges in directly engaging consumers along the path to purchase. But in an era where personalization and direct consumer relationships are increasingly important, traditional mass marketing approaches are less effective--strategies that worked in recent years aren’t enough in a world where consumers lean brand-agnostic and often switch to lower-cost alternatives. Success will hinge on being more targeted, innovating boldly, and creating authentic experiences that resonate. Here’s how CPG brands can stay ahead and build deeper connections in this dynamic marketplace.

• Implement First-Party Data Collection Solutions:
  Use receipt processing solutions and other technologies that enable brands to collect valuable consumer data directly. Leading brands have successfully gathered first-party data using these methods, refining their digital marketing efforts with precise consumer insights.
  
  
• Partner with Platforms:
  Collaborate with retail media platforms, delivery platforms and financial media networks to access rich first-party data for refining ads and promotions to drive higher engagement and conversions.

Delivery platforms, like Gopuff’s in-house AI ad platform, have increased relevance scores for targeted marketing efforts by 50%, click-through rates by 25%, and conversions by 24%​.

Snipp’s Financial Media Network (FMN) helps CPG brands reach 67M+ banking customers through card-linked, SKU-level cash-back offers. Partnering with banks like Bank of America and PNC, the network provides deep insights into spending behavior, including basket-level analysis, and boasts 1M+ monthly views with a 5-10% redemption rate–creating a powerful channel for targeted promotions and increased engagement.

• Strengthen DTC channels:
  Branded websites, pop-up shops, and social selling platforms let brands control messaging, gather insights, and build direct relationships with consumers.

• Evolve Product Lines with Wellness Benefits:
  Innovate products to emphasize wellness features.
  
  

 
Kraft Heinz’s Mio successfully repositioned itself as a health-conscious option for wellness-aspiring Gen Z by introducing a new visual identity, wellness-focused packaging, and highlighting functional benefits like energy boosts.

• Integrate Wellness into Loyalty Programs:
  Embed wellness into loyalty programs by rewarding consumers for purchasing health-focused products. CPG brands that don’t have wellness-oriented products in their portfolios can offer wellness-related rewards to boost engagement and encourage repeat purchases. Think beyond products by including experiences like fitness challenges, mindfulness activities, or rewards for achieving wellness goals.

• Embrace Platform Culture:
  With TikTok and Instagram becoming major discovery and shopping channels, consumers expect to shop directly from their feeds-- and brands must adapt their content accordingly. Leverage trending challenges, livestreams, influencer partnerships and shoppable posts that blend naturally with the user experience to boost engagement and conversion rates.
  
  

 
Although beauty brand Benefit only joined TikTok Shop in March 2023, its twice-weekly livestreams have driven nearly 40% of in-app sales in the US since November 2023. In that month, audience growth surged by over 20x as TikTok Shop officially rolled out app-wide, demonstrating the platform’s ability to boost visibility and sales.

• Engage the Creator Economy:
  With nearly half of 18- to 34-year-olds identifying as content creators, brands can tap into this trend to build community and drive engagement. Encourage consumers to co-create content, share feedback, or participate in product development through user-generated content campaigns, influencer collaborations, or interactive platforms. By empowering customers to create content—like reviews, tutorials, or unboxing videos—brands can foster advocacy and build a loyal following.

• Listen and Adapt to Social Feedback:
  Today’s consumers actively shape brand perception through reviews, comments, and influencer opinions. Brands need to listen closely to this feedback and adapt quickly to meet changing needs and expectations. Incorporating real-time feedback loops into product development and marketing ensures that brands stay aligned with consumer desires. Social listening tools help brands identify emerging trends and refine their strategies on the fly.

Brands like Rhode have quickly adapted to consumer feedback, expanding shade offerings based on user suggestions. This responsiveness strengthened their consumer relationships and brand loyalty.

• Leverage Pop Culture Tie-ins:
  Aligning your brand with popular TV shows, movies, cultural trends and celebrities can generate excitement and buzz. These tie-ins tap into existing fan bases and create a sense of relevance and fun for consumers.

Behave, a low sugar candy brand, tapped actress Busy Philipps as a spokesperson and investor, aligning with her fan base and current trends through her podcast and QVC show. Her partnership led to a 300% increase in e-commerce sales and 23x growth in the brand’s Instagram reach.

• Run Instant-Win Contests:
  Instant-win promotions give consumers an immediate reason to engage with your brand. Offering exciting, relevant prizes motivates participation and builds brand loyalty. Tying these promotions to cultural or seasonal moments can amplify their impact.
  
  

Snickers partnered with NFL player DJ Moore to create an NFL-themed instant-win program during the football season. The contest, managed by Snipp, offered prizes like autographed jerseys and Fanatics gift cards, driving excitement and boosting participation during a key cultural moment.

• Create Loyalty Tiers with Personalized and Experiential Rewards:
  Develop loyalty programs that offer different levels of rewards based on customer engagement or spending. These should provide exclusive perks for top-tier members, focusing on non-monetary perks that add perceived value – travel rewards or concert tickets and other exclusive one-of-a-kind experiences. These can drive brand loyalty, especially in premium categories where consumers are more likely to splurge.
• Offer Irresistible Value:
  Create compelling, value-driven offers that provide immediate benefits to cost-conscious loyalty program members. These could include exclusive discounts, free samples, or rebates that not only encourage customer engagement but also help build a valuable CRM database that can be used for further personalization and targeting.
  
  

Purell aimed to drive trials of their new hand soap, increase sales, and digitize their rebate process while gathering actionable purchase data. Snipp developed a rebate program where consumers could submit receipts via text or web upload to receive a virtual Visa gift card. This also supported CRM-building efforts as consumers could opt in for future communications.

• Leverage Third-Party Collaborations:
  Partner with complementary brands, retailers, and rewards platforms to expand reach and deepen customer relationships. Co-branded promotions, exclusive bundles, or event-based partnerships can attract new audiences while adding value for loyal customers.

Platforms like iBotta and Brand Wallet demonstrate the benefits of integrating offerings from multiple brands to provide cash-back or loyalty points. By expanding the universe of reward offerings, these platforms facilitate enhanced data sharing and valuable consumer insights for CPG brands

• Sustainability: Prove It, Don’t Just Say It:
  Consumers are increasingly skeptical of greenwashing, and with fewer consumers willing to pay more for eco-friendly claims, brands need to be more vigilant in their circular economy practices, waste reduction, and transparent sourcing. For premium-priced sustainable products, communicating clear benefits—such as reduced waste or the use of recycled materials—is more likely to appeal to eco-conscious shoppers.

Nespresso’s “The Power of Aluminum” Campaign showcased the brand's recyclable coffee pods during Climate Week 2024. By highlighting its circular economy efforts and emphasizing the role consumers play in sustainability, Nespresso demonstrated its genuine commitment, positioning itself as a leader in purposeful luxury while encouraging customer participation​.

• Rewarding Charity: Tie Purchases to Social Causes
  Brands can create an emotional connection by linking purchases to charitable donations or social causes. This approach not only allows consumers to support meaningful initiatives while shopping but also reinforces the brand's commitment to shared values. In a market where trust is key, proving that a brand actively supports causes can differentiate it from competitors.

Nescafe’s Charity-Driven Instant Win Program gave consumers the chance to win daily prizes while also supporting charity partners. Managed by Snipp, this initiative integrated social responsibility into the brand’s marketing strategy, allowing consumers a chance to instantly win a daily prize of $500, as well as donate $500 to one of 2 supporting Nescafe charities.​

• Be Transparent About Data Practices:
  Consumers are more savvy about how their data is being used, and brands that are transparent about their practices will earn long-term trust.
  • Privacy Policy Simplification: Present privacy policies in clear, understandable language, avoiding legal jargon.
  • Opt-In Consent: Give customers full control over their data sharing preferences, allowing them to decide how much information they want to provide.
  • Highlight Value Exchanges: Highlight the benefits customers receive in exchange for their data, like personalized offers, tailored experiences, or improved services.
• Balance AI and Human Interaction:
  While AI can significantly enhance personalization and efficiency, consumers still value human connection. Brands must strike a balance between AI-driven automation and real human engagement, especially in customer service. Personalization powered by AI should feel empathetic and personal, reinforcing trust--rather than undermining it.

• Let Consumers Shop on Their (Omnichannel) Terms:
  Create flexibility by allowing consumers to move seamlessly between online and offline shopping channels. From responsive customer service available in-store and online, to personalized offers across platforms, brands should ensure that every interaction feels connected and effortless. By analyzing how customers move between online and offline channels, brands can adapt their omnichannel approach to better serve their audience.
• Experiential Marketing: Make Shopping Memorable:
  74% of Gen Z prefer in-store experiences for purchases, making engaging in-store experiences as crucial as online convenience. Experiential marketing, like interactive displays, augmented reality (AR), and exclusive events, can make in-store visits more memorable. Investments in smart mirrors, community spaces, and unique in-store activities can create lasting impressions and increase foot traffic.

• Interactive Technologies and Gamification:
  New technologies like AR, VR, and gamification can elevate the in-store experience, making it more interactive and engaging. By turning shopping into an adventure, brands can drive more in-store visits. For example, Instacart’s Caper Carts use AI and smart tech to enhance in-store shopping with interactive quests, offering customers credits and coupons as rewards. This approach makes the experience fun and encourages repeat visits.

FUTURE TRENDS

The Rise of Spatial Commerce: Blurring the Lines Between Digital and Reality

Whether they’re scrolling through a mobile app, browsing in-store, or exploring virtual worlds, consumers expect seamless, personalized journeys. Those journeys are about to get spatial -- a new paradigm is emerging with the rise of spatial commerce, blending e-commerce, live streaming, social media and augmented reality (AR) into one immersive shopping experience that blends the physical and digital worlds. Platforms like Apple’s Vision Pro are transforming how brands engage with consumers through virtual try-ons, in-game experiences, and interactive storytelling, pushing the boundaries of traditional retail. The future of commerce lies not only in selling products but in curating rich, emotional experiences that connect with consumers on a deeper level.

The message is clear: brands will need to embrace the full power of digital commerce.

Neuromarketing and Deeper Consumer Insights

For CPG brands eager to decode consumer behavior, neuromarketing may be the next big thing. By using cutting-edge neuroscience techniques like eye-tracking and EEGs, brands can uncover how consumers really feel about ads, product packaging, and in-store displays. Imagine knowing exactly what grabs their attention and what leaves them cold. This insight lets brands fine-tune their messaging, optimize product placement, and create campaigns that strike a chord on a deeper level. In a world where emotions drive loyalty, neuromarketing gives brands a unique edge. By understanding how consumers respond to colors, designs, and messaging, CPG companies can make packaging pop on crowded shelves or create digital ads that hit home. As personalized and emotionally engaging marketing becomes more vital, neuromarketing could be the secret weapon for creating impactful brand strategies.

CONCLUSION: A BRAVE NEW (CPG) WORLD

As consumer behavior shifts and surprises, CPG brands need to adjust their strategies to keep up. Shoppers will continue to defy expectations, challenging brands to stay nimble and adaptable. The key to success in 2025 lies in deeply understanding today’s and tomorrow’s consumers—who they are, what they value, and how they shop, whether it’s in-store or online. Brands that embrace new technologies, stay flexible, and build genuine connections across digital and physical spaces will be well-positioned to thrive. From AI-driven microtargeting to embracing wellness trends and mastering social commerce, the opportunities are vast—provided brands listen, innovate, and engage with purpose.

To engage your consumers right, talk to our experts!