2023 Consumer Trends Report

It's no secret that consumer trends are changing rapidly in the 21st century. And if you're a business owner or agency looking to stay ahead of the curve, it's important to know what the next big trends will be. In this article, we'll discuss some of the most prominent consumer trends for 2023 so you can stay one step ahead of your competitors.

The Rise of Experiential Retail

One trend that looks set to dominate in 2023 is the rise of experiential retail. This isn't a new concept but it is gaining traction as more and more consumers crave experiences over products. Businesses are responding by offering unique experiences such as virtual reality tours, interactive displays and even live events within their stores. This allows customers to engage with brands on a deeper level and encourages loyalty through positive experiences.

A recent study by the National Retail Association found that 8 out of 10 consumers have purchased a product or service after visiting an experiential retail store. The same study also revealed that 78% of shoppers prefer to purchase products from stores offering an immersive experience. The numbers don't lie, and if businesses want to stay competitive in 2023 they need to embrace experiential retail.

Shifting Shopping Habits

The way people shop has been changing over recent years and this trend is only set to continue into 2023. Consumers are increasingly turning away from traditional brick-and-mortar stores in favor of online shopping platforms such as Amazon or eBay. This shift has also seen an increase in subscription-based shopping models, where customers pay a monthly fee for access to exclusive discounts or products tailored to their needs.

A survey conducted by The Digital Consumer Survey 2020 found that 63% of shoppers prefer to shop online, while only 37% still prefer physical stores. This is certainly a shift from earlier years and one that businesses need to account for when planning their strategies for 2023. The same survey also revealed that subscribers spend significantly more than non-subscribers, so it could be worth considering subscription models as part of your strategy.

Rise of Social Media Shopping

Social media has had an enormous impact on consumer behavior, with many shoppers now turning directly to social media platforms such as Instagram or Pinterest for inspiration before making purchases. With features like shoppable posts and influencer marketing, businesses can tap into this trend by creating engaging content that drives sales directly from social media networks.

Instagram recently released a report showing that their users spend on average more than 10 minutes per day actively shopping on the platform. The same report also revealed that 80% of Instagram users follow at least one business, with 62% claiming to have purchased something after being influenced by a post or story. Clearly, social media shopping is here to stay and businesses that want to be competitive in 2023 need to be utilizing this trend.

The Increasing Popularity of AI and Robotics

The rise of artificial intelligence (AI) and robotics is another trend that looks set to dominate in 2023. The use of AI for customer service is becoming increasingly common, with many businesses harnessing the power of AI to provide faster and more accurate customer service.

This trend isn't limited to just customer service either, as AI can also be used for product recommendations, inventory management and even marketing. The use of robotics is also increasing, with robots being used to help pick and pack orders in warehouses, as well as delivering goods directly to customers' homes.

Amazon for example, has been using AI and robotics to power their warehouses and delivery services for years now, and it looks set to become increasingly popular in 2023.

The potential applications of AI and robotics are vast and businesses should definitely consider incorporating them into their strategies for 2023 if they want to stay ahead of the competition.

The Growth of Sustainable Consumption

Sustainability is becoming increasingly important to consumers, with many shoppers now taking their environmental impact into account when making purchasing decisions. The latest surveys from The Digital Consumer Survey 2020 revealed that sustainability is the top priority for Millennials and Gen Z shoppers in 2023, with 44% of respondents claiming that they are more likely to purchase a product or service if it is more sustainable.

Businesses that want to be competitive in 2023 must strive to incorporate sustainability into their practices. This means looking for new and innovative ways to reduce waste, use sustainable materials and adopt green energy solutions. The rewards for doing so can be great, with many shoppers now actively seeking out sustainable products and services when making purchase decisions.

The Emergence of Voice Shopping

Voice shopping is quickly becoming a popular method of purchasing, with The Digital Consumer Survey 2020 showing that over 40% of shoppers now use voice shopping to make purchases. The main reason for this trend is the rise in popularity of smart speakers such as Amazon Echo and Google Home, which are making it easier than ever for customers to shop using just their voice.

Businesses should take advantage of this trend by ensuring their products and services are available on voice-enabled platforms such as Amazon Alexa or Google Home. The potential rewards are great, with The Digital Consumer Survey 2020 revealing that 34% of shoppers now prefer to use voice shopping when making purchasing decisions.

The Expansion of Cashless Payment Systems

Cashless payment systems such as Apple Pay and Google Pay are becoming increasingly popular, with The Digital Consumer Survey 2020 showing that 62% of shoppers now prefer to use a cashless payment system when making purchases. The reasons for this trend include convenience, speed of transactions and increased security, making it easy for customers to pay for their items quickly and securely.

Businesses should start offering cashless payment systems in order to stay ahead of the competition in 2023. Doing so will make it easier for customers to purchase products and services, as well as making your business appear more modern and up-to-date with the latest trends.

The Growing Popularity for Secondhand Purchases

Secondhand purchases are becoming increasingly popular, with The Digital Consumer Survey 2020 showing that 37% of shoppers now prefer to purchase secondhand items when possible. The main reason for this is the increasing focus on sustainability and environmental impact, as buying secondhand items drastically reduces waste.

Businesses should take note of this trend and start offering secondhand or reconditioned products and services. Doing so will show customers that you care about sustainability, as well as giving them an affordable alternative to buying new items. The potential rewards for doing so are great, with The Digital Consumer Survey 2020 revealing that over a third of shoppers now consider secondhand purchases when making purchase decisions.

Conclusion

As we move further into the 21st century, consumer trends are changing faster than ever before. If you want to stay ahead of the curve and ensure your business remains competitive in 2023, it's important to be aware of these emerging consumer trends so you can capitalize on them early on. From experiential retail formats to shifting shopping habits and the rise of social media shopping, these are just a few of the top consumer trends predicted for 2023—so make sure you keep them in mind!