Understanding Changing Behaviours in the Consumer Sector

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Consumer behaviour across Europe is changing — not gradually, but fundamentally. Shopping habits are shifting, values are evolving, and the pace at which these changes are taking place is catching many off guard.

To better understand how companies are adapting, Nigel Wright Group carried out an in-depth survey during February and March 2025. The study reached over 30,000 senior decision-makers from a diverse mix of consumer goods companies — ranging from ambitious start-ups and growing SMEs to large multinational players.

The businesses represented span a wide cross-section of industries: Food & Beverages, Fashion & Lifestyle, Ecommerce, Beauty & Cosmetics, Home & Personal Care, Toys, Consumer Electronics, DIY, and Tobacco, among others. Taken together, the data offers a broad and practical view of how behavioural shifts are influencing everything from strategy and innovation to hiring, operations, and organisational design.

Organisations are changing. Companies are having to balance what they’ve always done with what they must now become. Digital fluency, ethical alignment, and a sharper focus on value are no longer fringe concerns — they’re fast becoming central to how consumers engage. Some firms are clearly ahead. Others are experimenting, adjusting course as they go. But across the board, there’s a recognition that transformation isn’t something to plan for later. It’s already happening — and the best-prepared businesses are treating it as business as usual.

1. Which Consumer Behaviours Have Had the Most Significant Demands on Business Strategy?

The biggest behavioural shifts now shaping strategy fall into four main areas: economic caution, rising sustainability expectations, increasing digital fluency, and ongoing supply chain strain. Today’s consumers aren’t just looking for lower prices — they’re making decisions based on values, speed, and trust. They want convenience, yes, but they also want clarity, integrity, and responsiveness from the brands they buy into.

It’s no surprise, then, that managing supply chain disruption topped the list of strategic priorities, cited by 78% of respondents. This speaks not only to lingering aftershocks from the pandemic but also to a broader climate of global uncertainty. For many businesses, this challenge extends well beyond logistics —it’s about reputation too. As scrutiny around sourcing grows, issues like transparency (highlighted by 50%) and the need to diversify supplier relationships (46%) are moving up the boardroom agenda.

Close behind is cost-consciousness, a concern for 75% of those surveyed. This shift is influencing nearly every facet of the value chain — from product innovation and pricing to promotions and packaging. Companies are now being asked to square a tough circle: how do you stay accessible without eroding brand value or cutting corners on quality and ethics?

Sustainability also continues its ascent. With 71% of leaders flagging it as a key strategic concern, it’s clear that environmental and social impact are no longer side projects. From design and materials to marketing messages, the push for more sustainable choices is increasingly shaping how products are made and sold.

Meanwhile, digital behaviour is rewriting the rules of engagement. Consumers now expect faster delivery (61%), seamless ecommerce (62%), and influence-driven journeys via social platforms (59%). It’s not just about having an online presence — it’s about creating an integrated, agile, and digitally literate customer experience.

Interestingly, personalisation — once seen as the holy grail of marketing — appears to have slipped in urgency. Only 43% and 41% pointed to AI-led marketing and tailored experiences as major factors. This might suggest a skills gap inside businesses, or perhaps it reflects the simple truth that, right now, there are more immediate fires to fight.

One thing’s certain: expectations are higher, timelines are shorter, and the trade-offs are sharper. To stay relevant, consumer-facing brands will need to reset their strategies for a world where value, principles, and convenience all matter and none can be an afterthought.

2. How Effectively Are Businesses Addressing These Demands?

Despite how fast things are shifting, plenty of consumer brands aren’t just keeping up — they’re making real headway. Change is hitting hard, yes, but businesses aren’t frozen. Far from it. Many are adapting, testing new ideas, and in some areas, even pulling ahead of expectations.

Take online shopping. Most leaders we spoke to — around 86% — said they’ve responded well to the ecommerce surge. That’s not just about upgrading websites. It’s about rethinking the whole delivery engine: from fulfilment centres to digital touchpoints to how the online and in-store experience connect.

The same goes for cost innovation and sustainability. Around 84% in both areas feel confident in how they’re tackling them — often through clever product tweaks, streamlined ranges, and embedding ESG thinking right into the core of the business, not just tagging it on as PR.

What’s striking is that some traditionally stubborn areas are finally gaining traction. In-store engagement is back in focus (79%). Supplier partnerships are being reworked (78%). Even long-opaque supply chains are becoming more transparent (71%). This suggests we’re not just seeing surface-level change — businesses are digging deeper, trying to rebuild in ways that actually stick.

But not everything’s moving at the same speed.

Personalisation, for example, still hasn’t reached full stride. Just over 40% said they’re using AI or tailored experiences effectively — which feels low, given how much the industry’s talked about it. It could be down to tech hurdles. Or perhaps teams are stretched thin and focused on more immediate fires.

Customer service is another weak spot. Just 56% feel their processes are effective. That hints at resourcing gaps or outdated systems that haven’t quite caught up with modern consumer expectations.

Zooming out, there’s a clear pattern: companies are strongest where the stakes are immediate — logistics, cost, compliance. But when it comes to deeper, more strategic reinvention? That’s still in motion. For many, transformation is happening in two gears: one fast and tactical, the other slower, more systemic. Both are important — but closing the gap is where the real competitive advantage lies.

Comparative Insights:

Consumer Behaviour	Demand	Effective Response	Gap/Alignment
Managing supply chain disruptions/security	78%	75%	Well-aligned
Pressures from consumers becoming more cost-conscious	75%	84%	Strong overperformance
Meeting ethical and sustainability demands	71%	84%	Very strong alignment
Increased demand for online shopping	62%	86%	Significantly overperforming
Demand for faster delivery times	61%	75%	Strong alignment
Greater reliance on social media for purchasing decisions	59%	71%	Fairly well addressed
Enhancing customer support systems	55%	56%	Minimal progress
Maintaining in-store customer engagement	53%	79%	Well-managed
Increasing supply chain transparency	50%	71%	Ahead of curve
Collaborating with new suppliers	46%	78%	Strong capability
Leveraging data analytics and AI for personalised marketing	43%	55%	Moderate gap
Adapting personalised shopping experiences	41%	42%	Low importance, low capability

3. What Future Consumer Trends Will Have the Greatest Impact on Operations?

Looking ahead, consumer trends are expected to converge around six dominant themes — each with operational implications that will test organisational readiness, agility, and innovation.

1. Sustainability is no longer a competitive differentiator; it’s a baseline expectation. Consumers want proof — of carbon reduction, ethical sourcing, recyclable packaging, and transparent supply chains. This shift will require real-time data, circular design thinking, and multi-stakeholder coordination. One respondent summarised: “Expectations are moving from ‘clean products’ to ‘clean companies.”
2. Health and wellness is expanding beyond food and fitness to encompass emotional and mental well-being. Humanisation of pets, functional ingredients, and wellness rituals like aromatherapy are growing in popularity. Brands that can cater to these evolving definitions of health will earn long-term loyalty.
3. AI and technology are moving from back-end efficiency tools to front-end experience enablers. Whether through personalisation, predictive analytics, or trend sensing, businesses must embed AI into customer strategy — or risk irrelevance. “We are using AI-driven geographic data to forecast sales and refine targeting,” one brand shared.
4. Cost and price sensitivity will intensify amid inflation and economic headwinds. Transparent pricing, budget-friendly formats, and dual-tiered product offerings will become core to commercial survival. As one respondent framed it: “More premium for a lower price — that’s the paradox we have to solve.”
5. Digitalisation is pushing brands to close the gap between browsing and buying. Social commerce, livestreaming, and frictionless checkouts are becoming standard. Consumer attention is shifting from physical stores to immersive digital spaces — and businesses must follow suit. “Online communication and disruptive value chains are reshaping consumer journeys,” one manufacturer observed.
6. Consumer education and transparency are emerging as drivers of loyalty. People don’t just want quality products; they want to know how they’re made, where they come from, and why they matter. Educational storytelling is the new branding. “Consumers are getting more informed and more demanding. You have to be two steps ahead,” one contributor explained.

Additional signals — such as a shift toward second-hand fashion, growing interest in alcohol-free beverages, and demand for tobacco alternatives — suggest that personal health, sustainability, and experience will remain inextricably linked.

4. What Challenges Have Businesses Faced, and How Were They Overcome?

Every strategic pivot comes with its share of friction — and the survey data pulls back the curtain on some of the underlying challenges companies are wrestling with.

Pricing and margin pressure came up again and again. With rising input costs, stubborn inflation, and a flood of lower-priced competitors (often from China and South East Asia), margins are being squeezed thin. One executive didn’t mince words: “Highly competitive markets, with high pressure on sales prices, are reducing possible margins to a fraction. We're trying to overcome this through higher productivity and efficiency.”

To stay competitive, many firms have turned to a familiar toolkit: selective price cuts, smaller pack sizes, aggressive promotions, and SKU rationalisation. But it’s a delicate balance — cut too deep, and you risk eroding the brand. A premium supplier put it simply: “We have to convince consumers to prefer high quality at higher prices. It can be successful only with innovative products and highlighting the sustainability effect.”

And that’s where things get complicated. Consumers say they care about sustainability, but that doesn’t always translate at the checkout. The tension between green intentions and price sensitivity came through clearly. One respondent admitted: “Our ecological efforts are huge, but they need to be more visible on our products and marketing — it’s a real challenge for our teams.”

Some businesses are working to reposition sustainability as part of the value proposition, not just a cost line. That means clearer labelling, trusted certifications, and marketing that focuses on durability, repairability, and longer-term value — not just ethical appeal.

Beyond pricing, internal cultural drag emerged as a recurring theme. Many pointed to sluggish decision-making and hesitation around innovation. One particularly candid quote stood out: “Our biggest challenge remains internal: upper management of FMCG companies remains over 50. Business opportunities are often missed due to generational bias and lack of speed in strategy adjustments.”

The call for renewal was loud and clear: “More focus should be put on hiring and fostering the right talent — life-long learning and reverse mentoring are essential.” That sentiment reflects a growing appetite for flatter structures, fresh thinking, and leadership that’s open to challenge.

On the operations side, digital transformation, logistics and organisational agility are still proving tough to crack. Several companies reported building their own digital brands to cut reliance on online marketplaces — a major shift in strategy. One leader explained: “The speed to launch innovations was a challenge. We overcame this by acquiring companies with new tech capabilities.”

Others have taken a more layered approach:

• Stepping up digital ad spend and tapping influencer networks.
• Reformulating products and developing new brands from scratch.
• Deepening customer care, especially with Gen Z.
• Cutting stock levels and order sizes for greater flexibility.
• Redesigning internal structures to speed up go-to-market timelines.

And then there’s the education gap. Today’s consumers want to know exactly what they’re buying — and they ask questions. Lots of them. As one executive put it: “The biggest challenge will be to explain all the product features to the consumer. They want to know everything, and we have to be prepared.”

If there’s one theme that runs through all of this, it’s adaptability. Whether through pricing innovation, talent renewal, operational redesign or brand communication, the most future-ready businesses are those that push decisions closer to the frontline, create space for experimentation, and move fast — without losing sight of what their consumers actually care about.

Strategic Area	Actions Taken
Pricing Adjustments	Discounting select SKUs, special offers, rationalising SKUs
Digital Marketing Investment	Paid social, influencer collaborations, account-based online promotions
Innovation and Product Dev	New brands, reformulations, innovations in slow-adopting markets
Operational Efficiency	Smaller stock holdings, optimised order cycles, productivity improvement
Consumer Engagement	Gen Z-focused outreach, trust-building, enhanced customer service and care teams

5. How Important Is Sustainability, and How Are Demands Being Addressed?

Sustainability is becoming the backbone of how many consumer-facing companies operate. For a growing number of organisations, it now shapes product development, supply chain decisions, and the way they speak to customers, partners, and regulators.

Some respondents didn’t hesitate to describe it as their “core model.” One manufacturer explained: “We are committed to offering authentic Made in France products and using sustainable energy sources — it’s no longer optional.”

Others are taking an all-in approach, embedding sustainability at every level of their operation. As one leader noted: “We’ve reduced plastic, reformed packaging, achieved 100% recyclability and even sourced certified sustainable wood. We’re tracking progress via ESG reporting — not for the reports, but as a mindset shift.”

What does this look like in practice?

• Product innovation — from reformulated ingredients and redesigned packaging to expanded sustainable ranges.
• Operational efficiency — optimising logistics and moving to smaller, smarter batch sizes to cut emissions and waste.
• Marketing and education — turning to digital platforms, influencer campaigns, and frontline teams to tell the story credibly.
• Regulatory strategy — investing in ESG experts and legal support to stay ahead of shifting legislation and protect brand equity.

Still, it’s not without friction. Price sensitivity remains a stubborn barrier — especially in markets where consumers want greener products but aren’t ready to pay more for them. Internally, many firms are still building the infrastructure to deliver on their ambitions: upgrading equipment, retraining teams, and nudging legacy suppliers toward new standards.

Some respondents were frank about the reality. “Sustainability isn’t sufficiently embraced globally,” one said. Another admitted it often “only becomes a priority when EBIT pressure allows.” Others pointed to the commercial ceiling: “Consumers aren’t always willing to pay more,” which makes it harder to justify certain investments in lower-margin categories.

Even so, the direction of travel is clear. Transparency, traceability, and demonstrable environmental performance are fast becoming baseline expectations. The companies that treat sustainability as a lever for creativity — not a compliance burden — are already building stronger consumer loyalty.

As one participant put it: “Sustainability isn’t a differentiator anymore — it’s table stakes.”

6. What New Consumer Segments Have Emerged, and How Are They Being Targeted?

Today’s consumers are increasingly fragmented. Market segments are getting more complex: people are shaping their identities around values, interests, and lifestyles — and expecting the brands they buy from to do the same.

Instead of aiming for mass appeal, more businesses are zoning in on smaller, sharper consumer segments. Some are building new brands altogether. Others are reworking their product ranges, tone of voice, and messaging just to stay in sync with emerging tribes that aren’t defined by stats — but by mindset.

Take the quality-first crowd, for instance. These buyers aren’t swayed by discounts. They want craftsmanship, performance, and something that feels considered. One brand told us they’ve dropped fast fashion altogether in favour of slower, more meaningful production. For them, success means delivering something unique — not necessarily cheap.

Then there’s the eco-driven shopper. Mostly younger, often city-based, and usually tuned into digital platforms, this group wants accountability. They want to know where products come from, how they’re made, and whether the brand behind them is really walking the talk. One respondent said it best: “There’s growing willingness to buy returned products, especially among younger and urban buyers. They demand proof — like carbon transparency and ethical claims.” This isn’t about trends. It’s about trust.

We’re also seeing a shift in the wellness space — and it’s more emotional than ever. It’s not just about fitness or clean eating. It’s about how products make people feel. That might mean mood-enhancing snacks, calming scents, or even gadgets designed to help people unplug. One respondent mentioned how they’re catering to the “prep-and-go” lifestyle — offering food and wellness tools that support mental clarity and emotional balance as much as physical health.

And of course, we can’t ignore Gen Z and younger Millennials. They’re not just digital-first — they’re digital-native. Their buying journey often starts with a TikTok, a peer review, or something a creator posted an hour ago. Loyalty? It’s flexible. One brand shared that they’ve built entire teams just to handle short-form content: “We created new internal TikTok roles — this generation expects interactive content, and their buying decisions start with video.”

Meanwhile, other interesting groups are growing quietly but quickly:

• Flexitarians — cutting back on meat but not giving it up completely — are pushing demand for hybrid food options.
• Bargain hunters are still strong, but they’re smarter now. They want value, sure, but not at the cost of ethics or quality.
• And then there’s the Kidult — young adults with disposable income and a soft spot for nostalgia. Think toys, gaming merch, and collectables. Drop-based launches and partnerships with retro or anime brands are speaking their language.

One of the more unexpected trends we picked up? The rise of what some are calling “mood science.” It’s about feeling more than function. These consumers are looking for products that help them unwind, focus, sleep better, or just feel more balanced. Adaptogens, scent rituals, ambient lighting — they’re all part of this growing space that blends wellness and emotional support.

How are brands reaching these groups? There’s no single formula, but the common thread is relevance. The winning strategies we’re seeing include:

• Spinning up smaller sub-brands or product lines that feel culturally specific and values-led
• Using creators and platform-native content to reach audiences where they actually spend time
• Offering flexible formats — custom builds, subscription models, even packaging that adapts
• Crafting messages that speak to emotion as much as product benefits — especially in digital channels

Targeting today isn’t just about who someone is — it’s about what they care about, what makes them feel seen, and where they hang out online. The brands making waves right now? They’re not just selling. They’re showing up, joining the conversation, and becoming part of the culture that surrounds their audience.

Area	Key Tactics
Product Development	Launching new brands, reformulating offerings, sourcing sustainable materials
Marketing & Advertising	TikTok campaigns, influencer partnerships, digital-first storytelling
Promotions	Targeted price drops, limited-time offers, bundling for price-sensitive groups
Sustainability Focus	Educational content, carbon transparency, “green” packaging and messaging

7. How Have These Changes Influenced Recruitment Strategy?

The evolution of consumer behaviour is forcing a strategic rethink in recruitment. No longer just an HR function, talent acquisition has become a frontline business strategy — and the capabilities required today differ sharply from those that powered success a decade ago.

First and foremost, the digitisation of consumer interaction has pushed demand for marketing professionals with native fluency in digital ecosystems. Businesses are hiring specialists who understand not just how to run paid campaigns, but how to engage audiences organically through creators, communities, and cultural content. TikTok strategists, performance marketers, and visual content producers are now standard hires — particularly in sectors targeting younger audiences. One respondent noted: “We now have a much larger e-commerce trading team, social marketing team, and product development unit — it’s a completely different recruitment profile.”

Equally, the rise of sustainability as a strategic imperative has created a demand for professionals who can deliver both operational outcomes and brand credibility. Organisations are recruiting ESG leaders, lifecycle analysts, and sustainability communicators capable of navigating regulation, shaping messaging, and driving measurable change. These hires are often cross-functional, working across product, supply chain, marketing, and investor relations.

As product development cycles become more consumer-led and innovation-driven, companies are seeking R&D talent with deep knowledge of emerging trends like plant-based nutrition, wearable wellness, and AI-powered personalisation. Importantly, these roles are expected to collaborate cross-departmentally — translating insight into action at speed.

The acceleration of ecommerce has created acute demand for commercial leaders who understand D2C models, digital merchandising, UX optimisation, and channel integration. These professionals are critical not only for technical execution but also for delivering seamless, high-converting experiences in a fragmented digital landscape.

On the operations side, the pressure to do more with less — while maintaining ethical standards — has increased demand for efficiency-minded supply chain managers, lean manufacturing experts, and professionals with sustainability or compliance experience.

Finally, the importance of customer care and values-led sales has brought a new focus to soft skills. Companies are hiring representatives who can build trust, personalise communication, and connect authentically with purpose-driven buyers — particularly Gen Z, who expect ethical alignment and emotional intelligence in every brand interaction. Businesses noted a push to become “younger, more dynamic, and more highly educated,” recognising that future-ready talent must be agile, ethical, and digitally fluent.

What emerges is a holistic view of recruitment — one where consumer insight drives capability design, and where organisations are increasingly hiring not just for skills, but for mindsets aligned with transformation, empathy, and innovation.

Talent Focus Area	Key Drivers	Business Goals
Digital Marketing	Online shopping growth, Gen Z influence, TikTok sales	Boost social/digital capability and campaign performance
Sustainability Expertise	Consumer demand for ethics, ESG regulation	Build sustainable practices into core business and communications
Innovation/Product Dev	Lifestyle trends, product diversification	Create relevant, future-proof offerings
Ecommerce/Online Sales	D2C growth, digital-first buying behaviour	Strengthen ecommerce presence and performance
Operational Efficiency	Cost pressure, sustainability demands	Improve productivity while meeting ethical expectations
Customer Care & Sales	Gen Z trust, value-driven consumers	Foster loyalty and sustainability messaging at the front

Conclusion: A Consumer Sector Rewired for the Future

This report lands at a real turning point for Europe’s consumer-facing industries. What we’re seeing isn’t just a shift in what people buy — it’s a deeper change in how they relate to brands, products, and the decisions behind them.

Across every corner of the market, companies are starting to move from playing catch-up to reshaping the rules entirely. Old assumptions are being questioned. New strategies are emerging — with consumers not just in the spotlight, but actively shaping the story. One respondent put it simply: “We are constantly changing — we live changing consumer behaviour.”

The rise of consumers who are informed, vocal, and values-driven isn’t just another trend to ride out. It marks a generational shift — one that’s likely to define what success looks like for years to come.

To stay ahead, the most resilient brands are doing a few key things — not perfectly, but with intention:

• Taking real risks on sustainability instead of settling for the bare minimum.
• Building up teams and tools that can keep pace with culture and digital life.
• Designing experiences that connect emotionally, not just functionally.
• Staying tuned in to how people actually behave — and being quick to respond.

From supply chains to social impact, health to hiring, this sector is undergoing serious change. But change doesn’t mean chaos — it means room to grow, reimagine, and rebuild.

Because here’s the thing: the future of consumer business isn’t something you forecast and wait for. It’s something you help shape. And the brands that will shape it best are the ones who treat every behavioural shift not as a disruption — but as a direction.