2024 reflections: currents in consumer behahvior
Earlier this year, the team at Invok published our second annual Currents in Consumer Behavior report – a look at the social and cultural currents that we believed would influence the way consumers shop and engage with brands in 2024 and beyond. From AI to mindful drinking, the report covered a lot of topics, and before we look ahead to the new year, we once again wanted to revisit the trends that were discussed and see which “currents” came to fruition.
To jump ahead to a specific section, click the links below:
If you want a quick refresher, you can read the full 2024 Currents in Consumer Behavior report here.
CPG
Artificial Intelligence
“As the world becomes more comfortable with the possibilities of AI, it will be important for brands to avoid the shiny toy syndrome and focus on the technology that matters.”
Artificial Intelligence is everywhere. From simple moments of assistance like auto-completing a sentence on your mobile device or giving you recipe suggestions for dinner, to far more advanced uses like helping with medical diagnoses and space exploration mission planning, AI has undoubtedly become a part of our lives on an everyday basis.
Image Source: Campaigns of the World
In the CPG industry, AI is being utilized for tasks such as product development and supply chain optimization, as well as marketing initiatives and customer experience. In fact, a 2024 global survey conducted by McKinsey found that 71% of CPG leaders say they have adopted AI in at least one business function of their organizations – up from just 42% in 2023. Whether it be Kraft Heinz’s playful marketing campaign leveraging AI-generated images or Coca-Cola's use of ChatGPT and DALL-E for their interactive Create Real Magic online platform, we are seeing that creativity and inventiveness is not being replaced by machines as some feared. Quite the opposite, actually.
From a design perspective, the increased capabilities of AI tools like Midjourney have been beneficial in helping spark the creative process (not the final output). Unique and interesting visuals are being created daily through these platforms, helping craft mock-ups and initial concepts that allow designers to execute their vision and showcase their thinking more efficiently. Transparency is key when it comes to using AI, and we are seeing that ownership and usage rights have become an important topic of conversation. However, the evolution of these tools over recent years is promising and is just a hint at what the future holds.
Purpose-Driven Brands
“It is no longer enough to make pledges or talk about making change – consumers want to see tangible results and feel as though they are part of the process.”
Last fall, Unilever’s CEO, Hein Schumacher, stated that the company would no longer seek to “force-fit” all of its brands with a social purpose. The news came after there was backlash from investors over perceived virtue-signaling and concerns that the company was putting activism ahead of profits. Their reduction of plastic and food waste targets has since been lessened, as have promises to increase the number of disabled employees and investments in diverse businesses. Not surprisingly, criticism of the comments was swift from activists as well as brand experts.
Image Source: IMI International
There is no denying that business fundamentals and profitability are essential, and Schumacher did concede that “when done well, and with credibility, [brand purpose] can be highly effective,” but his overall philosophy still feels rather short-sighted. As our friends at IMI International highlight in their Uncovering Purpose report, purpose can have a significant impact if a brand’s fundamentals are strong, the purpose is known, and people relate to it. And their research backs up this idea that purpose can drive intent – in Canada, for example, they found that “purpose drives purchasing for close to half of the Canadian population.”
Having a purpose should not be viewed as a hindrance to profitability – it should be viewed as an opportunity to drive meaningful change and improve the world, which ultimately means improving the lives of a brand’s consumers. By seeing their customers as more than just buyers, these types of brands are able to create a connection and sense of togetherness that is becoming increasingly hard to do.
Delivering Value for Customers
“Value means something different to everyone. It could be price. It could also be quality, added benefits, experiences etc. The important thing to understand is what is valuable to your target audience.”
With continuing conversations around inflation rates and overall cost of living, the idea of value is certainly top of mind for consumers and brands. All you have to do is look at the conversations around Tropicana’s new packaging to see that consumers are looking for more, not less, and will support the brands that help them make the most of their grocery budget.
Price will continue to be a common factor in making a purchase decision. In Canada, for example, food prices in 2025 are estimated to increase by 3% to 5% compared to 2024, meaning that consumers will be looking for savings without sacrificing quality. As such, private-label brands are becoming a go-to for many consumers. During the first half of 2024, private-label growth actually outperformed national brands, with Numerator reporting that “59% of consumers think private-label brands offer an above-average value for their performance.”
“Value brands” are no longer synonymous with looking cheap or uninspired, and we are seeing numerous private label brands refresh their packaging design to better showcase their points of difference and appeal to consumers. Our own private label research has shown that brands that optimize their package design and follow Invok’s 7 Tenets of Iconic Packaging Design are proven to see increases in consumer attention, perception and intention. From owning a color to employing a unique visual architecture or promising an experience, it’s time for private-label brands to bring a little emotion to their packaging. Those that do will set themselves apart.
Health & Beauty
Men’s Skincare & Grooming
“Hairstyling and beard care; cleansers, moisturizers and anti-aging products; makeup and cosmetics. Men are upping their grooming routines and brands are taking notice.”
A growing awareness and focus among men on the benefits of skincare is helping drive significant increases in the men’s skincare market. In the US, there was a 68% increase in facial skincare usage among men between 2022 to 2024 and Statista projects that the global male grooming market will be worth up to $115 billion by 2028 (up from $80 billion in 2022).
Image Source: Albert Review
With more consumer interest and competition on the shelves, brands need to lean into their key points of difference and showcase their benefits and features simply and concisely. Color, iconography and clear communication will aid in understanding and brand trust, with minimalist and apothecary-inspired designs still the most popular way to go about this. Perhaps it is time to embrace some boldness and vibrancy.
Personalized Beauty
“The desire for personalization has gone beyond tailored offers and product recommendations – the one-size-fits-all approach to skincare and makeup is becoming a thing of the past.”
We have referenced AI within the CPG industry, but it is worth noting that health and beauty brands have been some of the earliest and most advanced adopters of Artificial Intelligence. Whether it is analyzing skincare needs or personalizing recommendations, brands like Function of Beauty, L’Oréal and YSL Beauty are just few examples of those helping consumers be more informed and improve the overall shopping experience.
Image Source: Function of Beauty
By embracing AI and digital transformation, health and beauty brands are meeting consumers on their terms – 71% of U.S. beauty shoppers have stated that they will use a specialty retailer’s website when researching new products and 56% of consumers have said they are more likely to become a repeat customer after a personalized experience.
Whether product research is happening online, in-store, or through word of mouth, ensuring that all brand touchpoints feel cohesive and well thought out will continue to go a long way in the customer journey. Every impression counts, from packaging and brand activations to websites and social media.
Influencers & Brand Advocacy
“Viral hair, skincare, makeup and nail trends can be hard to keep up with. But when a relevant one comes along, brands should be ready to jump on board.”
Mega, macro, micro, nano… what type of influencer is right for your brand? Authenticity still reigns supreme when it comes to partnering with a brand advocate who is trusted by a target consumer. When done right, the potential payoff is hard to ignore. According to a 2024 report by Sprout Social, 49% of consumers make purchases at least once a month because of influencer posts, while 86% make an influencer-inspired purchase at least once a year.
Image Source: e.l.f. Cosmetics
Incorporating design to help bridge the gap between virality and purchase intent is where brands can get creative. Connected packaging, shelf talkers and unique unboxing experiences will help ensure your brand shows up strongly online and in-store, but brands like e.l.f. Cosmetics have taken it a step further with a curated “Trending on TikTok” section of their website. By understanding their consumer’s purchase drivers and helping them stay on top of the latest trends, they are making sure they are always part of the conversation.
Alcohol & Spirits
Sustainable Spirits
“Whether it is globally recognized brands or local start-ups, sustainability will continue to be a huge area of focus (and selling feature) for alcohol and spirits brands.”
Within the alcohol & spirits category, sustainability may not be as top of mind for consumers in comparison to other categories, but there are signs that that might be changing. Organic wine, for example, currently accounts for just 3% of global wine sales, but this number is expected to increase by 10% annually through 2030. Adding to that, Explorer Research’s Sustainability: The 2024 Shopper Insights Report pointed out that 30% of consumers have stated that alcohol made with natural ingredients is important to them and 18% say they believe that environmentally sustainable sourcing is important.
Image Source: Queer Forty
The numbers aren’t exactly groundbreaking (yet), but there is a loyal segment of this consumer base that is willing to spend more on products that are perceived as sustainable. Last year, Distillery 98’s Half Shell Vodka tapped into this emerging market by becoming the first U.S. spirit to sell their products in the Frugal Bottle – the world’s first paper wine and spirits bottle. Made from 94% recycled paperboard, the bottle is said to be 5x lighter than glass and also have 6x lower carbon footprint, all while offering the opportunity for 360-degree branding and unique packaging design that stands out on shelf.
Not every brand may be ready for the Frugal Bottle, but through packaging, ingredients, manufacturing, and distribution, there is no shortage of ways in which alcohol & spirits companies can improve their sustainability efforts and engage conscious consumers. Helping drive home that messaging through sustainability cues on pack, clear callouts, and engaging romance copy can help tell a story that will make the consumer feel good about their purchase decision. After all, sustainability pairs well with everything.
Partnering for Success
“Pre-mixed cocktails and spirits-based RTDs have been one of the fastest-growing spirits categories in recent years. Brands are looking to differentiate and drive trial.”
The trend of beverage brands from different categories partnering to give consumers a best-of-both-worlds product continued in 2024, with Absolut Vodka and Ocean Spray recently making headlines for their Vodka Cranberry RTD line. Brand partnerships have gone beyond RTD’s though, as we also saw a lot of great instances of alcohol & spirits companies finding new ways to create experiences and excitement around their products.
Image Source: Absolut
Speaking of Absolut, as the official spirits partner of the movie Wicked, The Absolut Group offered up special drinks and “magical experiences” for consumers at cinemas, bars and liquor stores, as well as a cocktail recipe kit for fans to make their own Wicked-themed drinks at home. On the more premium side, Makers Mark partnered with Messermeister knives to produce a limited-edition knife from repurposed Maker’s Mark Bourbon barrel wood, while Cloudy Bay winery teamed up with LAFCO New York to create a luxurious candle inspired by the fragrances of the land and vineyards in New Zealand.
Going above and beyond to generate awareness and promote trial is never a bad idea, and partnering with a relevant brand that can help further consumer affinity is how alcohol & spirits companies can ensure their new offerings are not just perceived as marketing gimmicks but actual collaborations that will bring joy to their consumer.
Quality over Quantity
“Mindful drinking is about moderation, not complete abstinence. Whether it is a nice bottle of wine at home or a premium cocktail at a bar or restaurant, consumers are choosing superior taste and experience over excess.”
Between June 2023 and June 2024, NielsenIQ found that total sales within the non-alcoholic market increased by an impressive 24% in Canada alone. Driving home that point further, the Liquor Control Board of Ontario (LCBO) revealed that one of the top trends they saw in 2024 was a continued rise in the sales of non-alcoholic beverages – up 73% from 2023 and a whopping 189% since 2022.
Image Source: Washington Post