Inside the Minds of 2025

“From solo living to value shifts, these are the forces reshaping how people buy, behave, and belong.”

It's crazy how not so long ago we imagined disruption as a moment. It was almost a moment of bliss or euphoria. A short-term shake-up quickly followed by the return of the norm. But here, just over half way through 2025, it’s clear that disruption is no longer a moment. It is the medium. It’s the environment in which all brand, retail, and customer decisions now unfold.

Five years after the onset of COVID-19, we still see many businesses behaving as though they’re waiting for a “new normal” to land. But the truth is both simpler and more confronting, we are already living in it. And the behaviours that first emerged during the crisis, things like solitude, digital acceleration, financial fragmentation, and cultural polarisation have not faded. If anything they’ve hardened. They’ve become deeply embedded in the fabric of our everyday life.

While this is not a reason to panic, it is a call to evolve. If you're building a brand or leading a business in 2025, the biggest take away you have to  understand is that the rules have changed. Again. And more importantly, so have the people.

"In retail, it's not just about what works, it's about what matters. Emotionally, mentally, and practically." — Nick Gray

The Solo Economy Is the New Mass Market

You may have read my article called “Lonely by Design” which talks about how consumers now spend more time alone than at any other point in modern history. According to further recent data, the average American has gained over three hours of additional free time per week since 2019, but nearly 90 percent of that time is allocated or given to solo activities. Think things like browsing online, at-home hobbies, scrolling through social media, and food delivery.

This isn’t simply the left overs of our time in lockdown. It’s the architecture of a new lifestyle. Where people once sought meaning through community, they now build identity through quiet and curated independence. And while this shift may seem subtle, its impact on retail, hospitality, and brand storytelling is profound.

The rise of the “bring-it-to-me” economy where expectations for convenience, immediacy, and personal utility dominate, has absolutely transformed service into something far more than logistics. Speed is no longer a delight or dopamine injection, it’s a demand and expectation. Consumers expect frictionless experiences, generous return policies, and emotionally intelligent UX and not as a luxury, but as the baseline.

“You’re not just competing on product anymore. You’re competing on friction. Every delay, every time there's too many clicks or even a poorly written email now, costs you trust.” — Nick Gray

Digital Channels Win Engagement, Not Trust

Here’s where we see one of the greatest paradoxes of our time, in my opinion. Consumers live online, but they do not trust the internet. According to recent studies, social media is the least trusted source of brand information and yet it remains one of the most influential in shaping purchasing behaviour, especially when it comes to the early stages of discovery.

Trust is now relational, not institutional. What that means is while digital platforms have the reach, it is still friends, family, and community that carry the final word. Even among Gen Z, arguably the most digitally native and savvy generation in history, the gravitational pull of peer validation remains unmatched.

The implication for brands is this, broadcast is not enough. Participation matters way more than presentation and you must design for influence, not just impression. It’s about weaving your message into the fabric of consumer culture through community, conversation, and contribution.

“You’re not building a brand, you’re building a belief system that your customers can carry into their conversations.” — Nick Gray

Gen Z: Financially Vulnerable, Emotionally Invested

Gen Z, those born between 1996 and 2010 are set to become the wealthiest generation in history, but they’re arriving there with a radically different relationship to money. Recent McKinsey reports show that the average 25-year-old Gen Zer in the United States earns about 50 percent more than Boomers did at the same age (adjusted for inflation of course), yet they are also the most likely to splurge without savings.

This is not irrational behaviour, it’s 100 percent emotional behaviour. Gen Z do not define success by marriage, mortgages, or milestones. They define it through financial autonomy, lifestyle flexibility, and emotional fulfillment. The crazy thing is they’re more anxious about the future than previous generations, but paradoxically more willing to spend in the now, especially on experiences and products that reflect identity, convenience, and cultural currency.

In Australia, 35 percent of Gen Z consumers report using buy-now-pay-later platforms. Globally, they are the generation most likely to trade down in one category to justify a splurge in another. Beauty, fashion, and food delivery top the list and not because of need, but because of narrative.

This is a generation not just buying into brands, but buying into stories. And that means your brand must not only be affordable or aspirational, it must be emotionally resonant.

Local Isn’t Just Ethical. It’s Preferable.

In a time of global noise, local is becoming the new luxury. Nearly half of all consumers now say that a product being locally owned or locally made plays a critical role in their decision-making. In North America, this trend is accelerating sharply, with clear implications for multinationals.

Interestingly, it’s not always about price. Only 13 percent of respondents believe local products are cheaper. Instead, the appeal lies in alignment—supporting domestic business, shared values, cultural proximity, and relevance. For global brands, the mandate is clear: localisation is not a marketing gimmick; it’s a business strategy.

In the categories like snacks and beauty, it's homegrown brands that are reclaiming market share in major regions especially in places like China and Japan. The message is unmistakable, big isn’t always better. And familiar is fast becoming a competitive edge.

“Global scale used to be a buffer or shield. Now it’s a megaphone that needs local tuning.” — Nick Gray

The Value Equation Has Splintered

Here’s where things get really complex however. The way consumers assess value is no longer linear. Recent reports show that 79 percent of global consumers are “trading down,” but they’re not always doing so by buying fewer items. They’re engaging in cross-category trade-offs and delaying purchases in one area to afford splurges in another.

More than one in five consumers globally now plan to cut spending in nondiscretionary categories, things like groceries or fuel only to fund discretionary indulgences. What we’re witnessing here is a deeply personal value recalibration. Traditional pricing tiers no longer offer reliable insights into purchase intent. A consumer may opt for budget skincare and luxury sneakers in the same basket, not because of contradiction, but because of emotional clarity.

“The new value equation isn’t about cost. It’s about cost plus meaning. If your product doesn’t carry emotional weight, it’s vulnerable and even if it’s affordable.” — Nick Gray

Four Strategic Musts for Brands and Retailers

So what does all of this mean for any consumer-facing businesses?

1. Get Closer to the Consumer - Don’t assume sentiment equals spend. Build a 360-degree view that includes behavioural data, emotional triggers, and contextual relevance. Invest in tools that let you listen, not just look.

   
   

2. Invest in Smart Revenue Growth - Price sensitivity is rising, but so is the willingness to splurge. Use predictive analytics, AI pricing models, and real-time shopper data to time promotions, tailor offers, and drive genuine value.

   
   

3. Tailor the Portfolio - Constant change means constant optimisation. Revisit your assortment regularly. Explore M&A and divestitures not as risk, but as rhythm. Treat your portfolio as a living organism.

   
   

4. Rewire for Tech Transformation - All of this requires way more than marketing, it demands infrastructure. Brands that rewire their technology and data capabilities today will not only keep up with consumers tomorrow, they’ll lead them.

Ok so here's the wrap up

Disruption is no longer a threat. It’s a feature now of modern life. And while the consumer of 2025 may appear super confusing on the surface, the truth is they’re more transparent than ever but only if you learn to listen with emotional intelligence, not just algorithms.

Success now is about moving not only with the speed of change but also with the depth of meaning. People don't seek perfection when everything is uncertain,They seek presence.

“The brands that will win the next five years are not the loudest or the cheapest. They’re the ones that make people feel something and feel seen.” — Nick Gray

By Nick Gray - IGU GLOBAL