Predicting the Biggest Trends Across Industries in 2025: Part One

As the pace of innovation speeds up and global concerns over the climate crisis hit a critical inflection point, consumers are demanding more than one-size-fits-all solutions. They want hyper-personalized experiences, seamless digital interactions, and products that align with their values. At Innovationedge, we’re monitoring shifts in consumer preferences, how companies respond, and which emerging technologies have the potential to change the game entirely. In this article, we begin exploring what we believe will be the most impactful trends of 2025 so you can anticipate, adapt, and innovate. Let’s dive in.

The Experience Economy

From immersive travel to interactive retail, the experience economy is changing the way people interact with brands, and it’s not slowing down any time soon. This experience economy – a term first popularized by Harvard Business Review – places a greater emphasis on personalized engagement, immersive experiences, and sustainability-driven tourism.

A McKinsey & Company study on discretionary spending found that consumer spending on experiences has significantly increased, particularly among Millennials and Gen Z. The top splurging category among younger generations remains dining out at restaurants, while Baby Boomers claim they plan to indulge in food and travel purchases this year.

Live events, interactive retail, and destination-based travel experiences also continue to see rapid growth, and retail brands are taking notes. Companies like Gucci and Nike are shifting towards experience-based retail models by offering interactive virtual pop-up stores, exclusive product drops, and AR-powered shopping. For example, Gucci’s virtual garden on Roblox provides users with a space to experience themed rooms and purchase digital Gucci items. This gives customers opportunities to engage with these brands in new and novel ways.

Other noteworthy examples include:

• Sustainable tourism: Airbnb and Marriott are designing experiences around sustainable tourism that offer guests hyper-localized adventures. For example, the “Good Travel with Marriott Bonvoy” program offers guests opportunities to engage in environmental conservation activities, like beach clean-ups and sustainable farming practices, providing an immersive experience that benefits local communities.
• Immersive art exhibits: The popularity of immersive art exhibits emphasizes consumer demand for multisensory, interactive entertainment. For example, “Van Gogh: The Immersive Experience” has attracted over eight million attendees worldwide, reflecting a broader shift toward experiential consumption.

• AR shopping and virtual fitting rooms: Brands like Zara and Warby Parker are using AR-Powered try-on features so consumers can interact with products before making a purchase. For example, Warby Parker’s mobile app features a Virtual Try-On tool that uses AR and facial mapping technology to show customers how different glasses will look on their faces in real time.
• Gamification in retail: Companies like Starbucks and Sephora have integrated interactive loyalty programs, rewarding customers for participating in brand storytelling and challenges. For example, Starbucks’ Rewards program encourages customers to earn “stars” for each purchase and play games to unlock bonuses, which can be redeemed for free drinks, food items, or merchandise.

Fueled by digital innovation, social media’s role in amplifying memorable moments, and a rising demand for meaningful connections, this trend urges businesses to find new ways to provide unique experiences that keep customers coming back for more.

Related: Immersive Innovation: How AR and VR are Revolutionizing the Consumer Goods Sector (Part One)

Social Commerce

Social media has evolved from a place to connect with other people to a retail powerhouse. Seamless in-app purchases, live stream shopping, and influencer-driven promotions make it easy for consumers to by-pass traditional e-commerce sites and make purchases directly through platforms like Instagram, Pinterest, and TikTok. Social commerce accounted for 6.6% of total e-commerce sales in the United States in 2024, and according to Shopify, that number is expected to climb, with $8.5 trillion in sales projected by 2030.

So, what’s fueling this trend? Platforms like Instagram have transformed passive scrolling into active shopping by integrating one-click checkout options, shoppable posts, and AI-powered product recommendations. Live-stream shopping is also gaining traction, giving brands an opportunity to showcase products in real-time while engaging with their audiences. Think of it as interactive QVC.

Let’s take a closer look at how well-known retail brands are capitalizing on the growing trend of entertainment driven retail:

• Instagram’s shoppable posts: Sephora integrates product tags into their posts and stories so users can explore product details without leaving the Instagram app.
• Virtual storefronts on Facebook shops: Fashion retailer H&M created a comprehensive virtual storefront using Facebook shops to curate collections and promote direct purchases within the platform.

Image via RetailMe

• TikTok challenges: While the fate of TikTok in the United States remains unclear, brands like Crocs have used this platform to create viral challenges that encourage users to create content featuring their products, like the popular #ThousandDollarCrocs campaign that several brands have recreated since its launch in 2019.
• Live shopping events: Beauty brand P Louise leveraged TikTok’s live shopping features to engage directly with consumers during a 12-hour livestream event, bringing in over $2 million in sales.

With the global live commerce market expected to see a 32% increase by 2030, the best question retail giants can ask right now is who they should hire to promote their products online. Gone are the days of celebrity endorsements driving significant ROI. Instead, we continue to see a shift toward micro-influencers. These social media personalities typically have between 10,000 and 100,000 followers in niche communities. Because their content is highly authentic and dialed into their audience’s needs, micro-influencers drive higher conversion rates than traditional celebrity sponsorships.

Related: Revolutionizing Retail: How AI Powers Consumer Goods Companies

Digital Detoxing

In an era of non-stop notifications and the endless scroll, consumers are pushing back against constantly being tethered to their devices by actively seeking ways to disconnect. The digital detox movement is gaining traction as people recognize the need to step away from screens and reclaim their time, focus, and mental health, with one in five consumers participating. Expect to see businesses respond with innovative solutions in the coming years, from screen-free experiences to mindfulness-driven product offerings.

Forward-thinking companies are already integrating digital detox spaces into their offices to combat burnout and boost productivity. These areas allow employees to take mindful breaks free of screens and notifications, which has been shown to foster creativity and reduce stress. Meanwhile, retailers are introducing multi-sensory in-store experiences that prioritize human interaction over digital engagement. For example, some high-end boutiques are encouraging shoppers to browse without their smartphones so they can enjoy the ambient scents, curated music, and personalized service designed to create an immersive experience.

As consumers look to minimize digital distractions, the demand for analog wellness products is also increasing. The resurgence of journals, paper planners, and guided meditation tools signals a broader shift toward mindful living and intentional time management, with brands like Moleskine and Leuchtturm1917 reporting increased sales.

Here’s how retailers and businesses are responding to the digital detox movement:

• Tech-free challenges: Gabb Wireless, a technology company that specializes in kid-safe devices, initiated a digital detox phone fast to encourage participants to unplug for one week. They also hosted an internal digital detox week for employees, after which 93% of participants said they felt more present and 87% reported improved productivity.
• Social media purge: In a bold move, Lush Cosmetics announced its departure from several social media platforms in 2021 to prioritize the mental well-being of its staff and customers. The decision was well-received, with many applauding the brand’s dedication to authenticity and mindfulness, and Lush continues to boycott these platforms.

Screenshot via Facebook

• Unplugged vacations: Several companies, including Unplugged, offer digital detox vacation rentals where guests lock away their phones to engage in screen-free living. Families have reported meaningful connections and reduced stress after spending time in these tech-free environments.

As more people choose to disconnect, expect to see a rise in the popularity of “slow tech” products that encourage deliberate, low-tech living.

Related: 2024 Trends Recap: A Year of Transformation

A Consumer-Driven Future

The trends shaping 2025 all point to one undeniable truth: consumers are in the driver’s seat. Whether it’s the demand for immersive experiences, seamless social commerce, or mindful disconnection, businesses that adapt to evolving consumer expectations are poised to thrive. The future of innovation isn’t just about technology, after all. It’s about delivering value in ways that resonate. As these shifts continue to unfold, companies must stay agile and find new ways to engage customers. At Innovationedge, we’ll be watching these trends closely. Stay tuned for the next installment in our three-part series on the biggest trend predictions of 2025.