Top 5 Trends to Watch in Australia in 2025
Australia’s consumer landscape is rapidly evolving, with emerging trends reflecting a shift in values and expectations. From price to personalised experiences, Australian shoppers are placing more importance on convenience, value, and environmental impact. As we look ahead to 2025, these trends are set to reshape the way brands connect with consumers and adapt to meet new demands.
Personalised Experiences:
Leading brands have worked hard to bring more personalisation to the consumer journey, which as now led to more consumers expecting meaningful and tailored interactions at every touchpoint. Digital technology has made it easier than ever for a potential buyer to compare brands, channels, and products. AI is taking personalisation to the next level, offering product and service recommendations based on individual preferences and previous search history. [1] This helps brands to learn more from each customer interaction and enables them to deliver more personalised experiences in future.
Sustainable Consumption:
Australian consumers are placing more focus on the environmental impact of their purchases. This change in consumer behaviour is challenging brands to offer eco-friendly products and become more transparent about their sustainability practices. A recent survey revealed that 68% of Australians are willing to pay a premium for products with a reduced carbon footprint. [2] It is vital to understand how different consumer segments prioritise sustainability and their willingness to pay for ethically sourced products in order to target the right consumers.
AI on the rise:
AI is quickly becoming part of everyday life, with more than half of Australians feeling comfortable using it for tasks like product recommendations, drafting emails and tracking orders. Major brands are implementing AI chatbots to provide enhanced customer service interactions. [3] However, for more consumers, especially older ones to embrace AI, it’s crucial to focus on education, transparency and user-friendly interfaces. Educating consumers on the benefits and safeguards will help build long-term trust and ensure successful adoption.
Price Pressure:
It has taken years for inflation to slow down and as a result Australian consumers are on a mission to find the best deals. According to Deloitte’s 13th annual Retail Holiday Report, 95% of Aussie shoppers prioritise getting the best bargains during the holiday period, with 32% willing to abandon their purchase if no discount is offered. [4] To stay competitive, retailers are lowering prices, but they’re also shifting focus to value-driven products, enhancing in-store experiences, and embracing innovation to attract and keep customers.
Trust and Transparency:
In today’s shopping landscape, trust has become a make-or-break factor for brands looking to win over consumers. In fact, 84% of Australian consumers say it’s either important or critical in dictating their purchasing decisions. Product quality is the top factor for 52% of shoppers when it comes to building trust, while 19% value fair pricing just as much. [5] Consumers expect brands to deliver high-quality products and transparent pricing, making trust a key driver of loyalty and long-term relationships.
[1] Exceptional Customer Service is the New Industry Standard, PwC, October 2024
[2] Voice of the Consumer Survey 2024, PwC, July 2024
[3] Five Imperatives to strengthen consumer confidence in Australia, PwC, August 2024
https://www.pwc.com.au/retail-consumer-markets/voice-of-the-consumer-survey.html
[4] Holiday shoppers to tighten purchases strings as cost-of-living challenges bite, Deloitte, September 2024
[5] Holiday shoppers to tighten purchases strings as cost-of-living challenges bite, Deloitte, September 2024
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