2024 has been a year of mixed fortunes in the world of grocery. As the industry has continued to grapple with ongoing economic factors – such as inflation, changing shopping habits and a cost-of-living crisis, the big players in the world of grocery have continued to adapt to changing circumstances and meet consumers’ preferences.
As the close of the year fast approaches, many are questioning what 2025 holds and which trends are emerging to shake up the category. With brands and retailers vying to secure consumer spending, excitement, curiosity and innovation are at the top of the agenda – whilst value continues to underpin everything happening in the sector.
Here, we look at what we predict will be some of the Food & Drink trends to watch out for in 2025, as creative campaigns and trend-led activations are sure to be a key tactic for brands looking to engage shoppers.
Optimised nutrition
2024 was the year of gut health, with consumers becoming far more engaged in the holistic benefits of probiotics and fermented food and drink.
This trend shows no signs of slowing down, with 2025 likely to see a boom in consumer interest in functional food – and in particular, a personalised approach to nutrition. With the rising popularity of smart tech and wearable devices which help track our nutritional intake, consumers are become increasingly conscious of the likes of protein, collagen, probiotics, antioxidants and vitamin intake – and the unique blend that works for them. Furthermore, functional ingredients are likely to become more prevalent in everyday food and drink products, providing consumers with another reason to buy.
What it means for brands:
It’s over to brands to hero the functional benefits of their formulations to win new shoppers. Whether this is repackaging existing SKUs (Stock Keeping Unit), adapting messaging for current product ranges, or developing NPD to cater to a nutrition-conscious shopper – demonstrating the nutritional benefits of food and drink products will be vital in 2025.
Food does fashion (and beauty)
As the communications landscape becomes increasingly expansive, food and drink brands have increased the scope of their creative campaigns – with a string of household brands choosing to join forces with fashion and beauty brands.
From the Hellmann’s x Chopova Lowena collaboration which saw the creation of a handbag to hold mayonnaise which debuted at London Fashion Week to Kate Spade X Heinz and the collection inspired by ketchup, this tactic has proven to be immensely successful. In a landscape where social shareability is king, the power of two brands being behind the same campaign means a big audience and a big impact.
In 2025 we expect to see this trend develop further, as food and drink brands work with creative partners to generate cut-through. This could see a further blurring of lines between the fashion and food retail environments (taking inspiration from the likes of Greggs Champagne Bar at Fenwick) with experiential and AR becoming a bigger part of the mix. We also expect to see sustainability coming to the fore – with ethically led food brands seeking out likeminded fashion and beauty brands to bring their mission to life.
What this means for brands:
A willingness to think outside of the category will unlock opportunities to delight consumers, create talkable campaigns and strengthen your brand’s impact by joining forces with another much-loved name.
The ‘lipstick effect’ means luxury treats are on the rise
For a long time, the pandemic and the creeping cost of living have cast a shadow but now we’re starting to see people’s interest in luxury experiences, and foods, grow.
People’s buying habits are mirroring their desire to indulge in quality goods, to experience luxury food and drink that is more affordable than eating out. A result of the ‘lipstick effect’ – which reflects consumer behaviour to approach economical dips by switching from larger, more expensive purchases to more affordable luxuries, i.e. lipstick instead of a full outfit – is that permissible treats are on the rise.
This is demonstrated by the hugely popular Blank Street matcha and even the increasing popularity of Gail’s – a more upmarket coffee shop to other highstreets brands such as Costa, Café Nero and Starbucks.
What this means for brands:
Rather than the standard ‘payday treat’ comms that so many rely on, think about how to communicate the feeling that indulging in your food or drink gives consumers. The taste, smell and texture of your product will all feed into this – so the challenge is to make this known, whether through engaging influencer content, a sensory event or OOH experience.
Sustainability isn’t taking a seat
In recent years, consumers have become increasingly aware of how their lifestyle impacts the planet – causing them to lean towards brands that help them make a positive change. This focus on sustainability is showing no signs of slowing down.
Reducing food waste and carbon emissions will continue to be a priority for consumers, with people leaning towards food and drink brands that show key initiatives in these areas. Feeding into this, is seasonal farming practices and demonstrating sustainable certifications – both of which consumers deem to be additional benefits and reasons to purchase over other brands.
A brand that does this well is Too Good to Go. The app, which re-sells surplus food for a discount to reduce food waste, is on a mission to save the environment by helping its customers enjoy good food at great value for money. It’s B-Corp certified and clearly shows its ESG impact online, which includes creating a yearly Impact Report.
What this means for brands:
To be on the radar of consumers, brands must consider how their comms strategy can help to drive awareness of their ESG goals and efforts. You may want to consider charitable partnerships that feed into your mission and drive value or implement a thought leadership and profiling strategy that establishes your brand as a leader in the space – just be careful to ensure comms are transparent and avoid greenwashing.
If you would like to discuss how we could help you capitalise on any of the trends featured above, get in touch with our Food and Drink specialists today.