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Three consumer trends to track in 2025

Fonterra’s GM of Global Consumer & Customer Insights, Tim Opie, unpacks three trends for 2025

11 Feb 2025

7 min

#Blog #All Categories #Global

As 2024 came to a close, it felt like the year flew by with remarkable speed. The rapid change in market dynamics and consumer behaviour left behind a trail of micro trends in its wake, setting a fast pace for growth in 2025. Today’s consumer is more informed, connected, and conscientious than ever before, expecting value for money, healthy choices, and personalised experiences. Here are three overarching trends to keep on your radar in the year ahead.

In pursuit of value

Value seeking is no longer about getting the lowest prices5, it’s become a complex interplay of various factors led by the desire for quality experiences. In a recent survey, 67% of global consumers stated that they would be willing to pay more for products with higher quality, and 63% of global consumers would be willing to pay a premium for convenience.1

Chart for Perspective February 2025 article

Taking time to find the best deal is a task worth undertaking for 77% of global consumers.1 Purchase decisions are now strategic and calculated, with 57% of consumers 'extensively' researching the products and services they consume.2 In their search for good value, more than 85% of global consumers would be influenced by how food and drink products impacted their health and wellbeing, and how familiar and trustworthy they find these products.3 When it comes to dairy products, only 20% of global consumers considered price to be the primary definition of 'good value for money’, while 42% believed that dairy products offering multi-functional benefits or containing high-quality ingredients represented better value for money.3

Chart for Perspective February 2025 article

When evaluating value for money, consumers are also looking for a balance between their budget and their experiential craving, with 83% of global consumers influenced by food and drink products that are enjoyable or unique, and more than 81% of global consumers influenced by personalisation.3

There is further tension between value for money and values that matter. Consumers are now more frequently considering ethical, environmental, and social factors when making purchasing decisions.4 Over 30% of digital consumers are inclined to buy from brands that support social and political issues aligned with their values, while 25% would actively boycott brands whose social and political beliefs do not match their own.5

Given this shift, brands can target a broad audience by focusing on product effectiveness and clearly highlighting both the tangible and ethical merits of the product and brand. By doing so, they can appeal to consumers who prioritise not just cost, but also the broader impact of their purchases.

Green light for natural

The greater awareness of health and wellness that emerged with the Covid-19 pandemic led to increased demand for products that support emotional and physical wellbeing, and five years on, this demand remains strong.6 But rising prices have impacted more than half of global consumers in their quest for healthy living, with 63% of consumers reducing the amount of healthy food and drink they purchase due to cost.7 This ultimately drives consumers to seek out foods they perceive to be of higher nutritional value.

Food and drink perceived to be ‘natural’ have long been seen as a staple in that category.8 Almost three-quarters of global consumers believe natural foods deliver sufficient nutrients to maintain a balanced diet, and 62% believe that opting for natural foods is the best way to ensure a healthy diet.9 This aligns well with the 54% of global consumers who check product labels to reduce their intake of 'bad' ingredients, and the 67% who avoid artificial ingredients at least some of the time.10

Unsurprisingly, consumers have varying ideas of what is meant by ‘natural’. In a global survey on what ‘natural’ means to them when it comes to food and drink, consumers resonated most with products that are free from additives or artificial ingredients, are minimally processed, and have a short ingredients list.11

Chart for Perspective February 2025 article

The demand for dairy products with natural attributes is evident. When asked for the main reason for choosing dairy milk over non-dairy alternatives, 29% of consumers in the United States considered dairy more ‘natural’, followed closely by 27% who considered it more nutritious.12 This preference for ‘natural’ products is also reflected in other markets; for instance, 63% of consumers in the United Kingdom believe that milk being as natural as possible is more important than its nutritional content.13

As such, brands that can harness consumers’ apparent desire for simplicity, deliver nutrition and maintain affordability will be the ones racing ahead this year.

In the fast lane of tech and AI

As consumers become more accustomed to using artificial intelligence and advanced technologies in their daily lives, these sophisticated creations will transition from optional accessories to essential tools. Today’s AI can generate, evaluate, and critique, so it comes as no surprise that more than 86% of global consumers believe AI will make daily chores easier, and 35% of global consumers would go as far as using AI to help make major life decisions.14

As AI begins to advance into invention, persuasion and transaction, the growing expectation among consumers for personalisation will undoubtedly be the next big step in food and drink, with 26% of global consumers willing to share their health data for personalised eating recommendations.15 Among the 64% of global consumers who felt AI could contribute positively to their health by customising their diets, 49% believe that AI would make it easier to monitor their nutritional intake, and 47% believe it would provide real-time tracking of what nutrients are needed.16

Consumers are also drawing connections between AI and the potential to improve our food. 23% of global consumers believe AI will help create more nutritious food and drink, and 20% think AI can generate better-tasting food and drink products.9 We see this playing out at the moment, with some dairy product companies using AI to enhance product development and innovation, improve efficiency and overcome language barriers, enabling them to introduce new products in international markets, and adapt to evolving trends and preferences.17

With 54% of global consumers being influenced by digitally advanced products when purchasing food and drink3, and 15% of consumer goods businesses already utilising AI in product innovation18, brands can take the lead by highlighting the effective use using AI to develop new flavours and formulations that align with evolving consumer demands.

NZMP Consumer Powders and Beverages pink drink

The road ahead

From the rise of artificial intelligence in everyday food preparation and consumption, to the ever-growing emphasis on health and wellness, brands must rapidly adapt to these dynamic trends to stay relevant and competitive. The good news is that dairy continues to provide the versatility to meet all these trends by delivering products that are perceived to be natural, minimally processed and nutritionally rich.

There is a wide range of potential health and wellness claims that could be leveraged from the nutrient density of dairy. Only 11.8% of dairy products featured wellbeing claims in 2024, significantly fewer than baby food and breakfast cereals, which highlights an untapped opportunity for dairy brands to leverage.19

Chart for Perspective February 2025 article

There is potential for dairy products to resonate even more with today's discerning consumers by combining its tangible benefits with the power of AI to highlight new innovations and processes. AI can assist many aspects of dairy product creation: from on-farm monitoring by analysing data for detecting early diseases through subtle temperature changes in cattle20, to refining product formulation to improve public health and meet metabolic health needs specific to each market21. Brands can stay ahead of the curve by taking advantage of technological advancements to not only meet the latest trends, but exceed consumer expectations.

Author

Tim Opie

GM Global Consumer & Customer Insights, Innovation & Brand

Tim joined Fonterra in early 2010 and has held a variety of roles in the Insights, Capability and Marketing space.

As the General Manager of Global Consumer & Customer Insights, Tim has a hand in the full end-to-end development process for Fonterra’s key brands, from insights generation and front end ideation, through to customer acceptance and commercialisation.

Tim has over 20 years of FMCG experience spanning agency, consultancy and client-side roles, and has been the driving force behind many successful brands and partnerships.

The views expressed above are the opinion of the author, not those of Fonterra, and Fonterra is not responsible for any decisions taken in reliance on the same.

  • 1. Mintel, Global Consumer - The Holistic Consumer, September 2024
  • 2. Euromonitor, Top Global Consumer Trends 2025, November 2024
  • 3. GlobalData, Global Consumer Survey 2024 Q3, October 2024
  • 4. Kutaula, S. et al., Ethical Consumerism in Emerging Markets: Opportunities and Challenges, Journal of Business Ethics, Vol. 191, p. 651 – 472 (2024)
  • 5. Euromonitor, Retail Reinvention: A Framework for Future Growth, June 2024
  • 6. FMCG Gurus, Top Trend 8: For Today, Better Tomorrow, July 2024
  • 7. FMCG Gurus, Top Trend 1: Maximize My Value, April 2024
  • 8. Chambers, E. et al., What is “Natural”? Consumer Responses to Selected Ingredients, Foods, Vol. 7(4), p.65 (2018)
  • 9. Innova Market Insights, Top Health and Nutrition Trends 2025, September 2024
  • 10. FMCG Gurus, Top Trend 5: Natural Harmony, June 2024
  • 11. FMCG Gurus, Clean Label & Naturalness Q2 2023, April 2023
  • 12. Mintel, Milk and Non-Dairy Milk – US, August 2024
  • 13. Mintel, Dairy and Dairy Alternative Drinks, Milk and Cream – UK, July 2024
  • 14. Mintel, Global Consumer – The Holistic Consumer, September 2023
  • 15. Mintel, Global Consumer – Food & Drink, September 2024
  • 16. FMCG Gurus, Top Trend 7: Tech Meets Taste, July 2024
  • 17. GlobalData, Artificial Intelligence (AI) is the new buzzword for innovation and process optimization in Asia’s dairy market, January 2024
  • 18. Stanford University, Artificial Intelligence Index Report 2024, May 2024
  • 19. Mintel GNPD
  • 20. Dairy Reporter, From machine learning to generative AI: What is out there for dairy farmers?, January 2024
  • 21. Fortune, The food industry is using AI to create healthier, tastier snacks and meals, October 2023

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