As we approach 2025 and 2026, the UK consumer landscape is undergoing significant shifts. Insights from leading consultancies like Capgemini, Deloitte, and KPMG highlight evolving consumer behaviours, sector dynamics, and the leadership skills required to navigate these changes.
Consumer trends shaping the market
1. Emphasis on sustainability
Sustainability remains a crucial factor for consumers when making purchasing decisions. A significant portion of consumers are willing to switch brands or retailers due to concerns about environmental care, underscoring the importance of sustainability in consumer choices.
2. Integration of generative AI in shopping
Generative AI is transforming shopping experiences, with a substantial percentage of consumers preferring product recommendations from Gen AI tools over traditional search engines. This shift highlights the growing demand for hyper-personalised and seamless digital experiences.
3. Demand for quick and transparent services
Consumers increasingly expect rapid delivery services and greater transparency in product sourcing and pricing. This trend necessitates that businesses enhance their supply chain visibility and responsiveness to meet consumer expectations.
1. Digital & Technology consulting
The UK consulting sector anticipates robust growth, with digital and technology consulting projected to expand significantly by 2026. This surge is driven by the increasing adoption of AI and digital transformation initiatives across industries.
2. Energy & Infrastructure
Consulting services related to energy and infrastructure are expected to grow as the UK accelerates its focus on sustainable energy solutions and infrastructure modernisation.
3. Financial Services/Fintech
Despite broader economic challenges, the financial services sector continues to show resilience, with output growth recorded in recent months.
Sectors facing challenges
1. Retail and Wholesale of Consumer Goods
This sector faces pressures from rising living costs and increased focus on labour and social issues. Talent shortages are anticipated, with a significant percentage of employers expecting talent availability to become more difficult by 2030.
2. Traditional Media Platforms
A significant shift is occurring as a substantial percentage of consumers plan to limit their interactions with major social media platforms by 2025, driven by concerns over misinformation and platform quality.
Leadership skills in demand
To navigate these evolving trends, organisations will require leaders who possess:
Strategic agility: the ability to pivot and adapt strategies in response to rapid market changes.
Digital fluency: proficiency in leveraging AI, data analytics, and digital tools to drive business transformation.
Sustainability leadership: a commitment to integrating sustainable practices into core business operations.
Cultural intelligence: the capability to manage diverse teams and understand global market dynamics.
Customer-Centric mindset: focusing on delivering exceptional customer experiences through personalised and transparent services.