The Top 5 Trends Shaping Consumer Products and Services in 2024

Economists say that 2024 will be a year of decelerated economic growth. For consumer products and services companies, this means that customers will likely be more guarded with their wallets and more tight-fisted with their cash.

But there is also some optimism. Predictions suggest that the global economy might steer clear of a recession. Estimates include 2.6% growth from Goldman Sachs and 2.8% from Morgan Stanley on a global scale.

When economic conditions make consumers wary, consumer products and services companies are faced with the challenge of providing enough bang for the consumer’s buck to convince them to spend it. In the year ahead, organizations can do just that by capitalizing on the five trends we’ve identified in this article.

1. Sustainability and Eco-Friendly Products

In 2022, the demand for sustainability-marketed products grew and accounted for 17.3% of total purchases .?

In 2024, this trend is expected to continue as more and more consumers demand products and services that are good for the environment, supportive of local communities, and produced by companies that treat their employees and the people in their supply chains fairly.?

Consumer products and services companies would do well to align their offerings with this trend—whether by creating green products or by making their existing products more sustainable.?

But innovators beware; the prevailing economic uncertainty means that 53% of consumers believe that more sustainable products are too expensive. This can logically influence their purchasing decisions.?

The challenge for businesses in 2023 is to create and market green products that remain affordable for their customer base.

2. Data-Driven Personalization

We live in a personalized world, and the push for personalization is impacting all industries. This trend will hit the consumer products and services sector even harder in 2024.?

The truth of this statement is clear in the amount companies are spending on personalization software. Revenue from customer experience personalization and optimization software is projected to exceed 9.5 billion U.S. dollars in 2024.

You can see this trend toward personalization in every aspect of the industry – from the products themselves to consumer experiences and communication methods like marketing emails. In 2023, 60% of retail, e-commerce, and consumer goods and services companies personalized marketing emails based on past purchases, compared to 38% in 2019. This number is sure to climb in 2024.?

Not only are companies using data-driven personalization to enhance all aspects of the consumer experience, but customers actually prefer it. Seventy percent of consumers are comfortable with retailers using their personal information to improve their shopping experiences. This shows a broad consumer approval of personalized experiences.?

In 2024, consumer products and services companies will need to discover new ways to create personalized experiences for their customers to stay competitive.

3. Augmented Reality Shopping

If the idea of data-driven personalization reaching every corner of the consumer products and services industry sounds like something out of a sci-fi movie, let me introduce you to augmented reality (AR) shopping. It won’t be long before your consumers are asking for it, especially if you’re in the retail sector.?

It’s estimated that in 2024 the global augmented reality in retail market will reach 8 billion US dollars , growing at a CAGR of 46.4%. This market surge is entirely due to genuine consumer interest. In fact, 79% of consumers have expressed an interest in using AR to visualize products in their space before buying.?

The good news is that the demand for AR shopping will be huge in 2024, but many of your competitors haven’t adopted AR shopping quickly enough. If you can start making strides toward it, you’ll be getting a leg up on them.?

Despite its potential, as of 2019, only 1% of retailers were using AR or VR (virtual reality) in their customers’ buying experience—and this number hasn’t skyrocketed since, even though consumer expectations have risen, with 71% of consumers saying they’d shop more often if AR shopping options were available.

In 2024, consumer products and service businesses may benefit from investing in AR and VR technologies to further enhance the customer experience.

4. Omnichannel Experiences

Another trend that we’ll see gaining even more traction in 2024 is omnichannel experiences. Nearly 80% of customers already prefer omnichannel marketing strategies for the communication experience they provide. As more members of Generation Z become consumers, it’s expected that this percentage will only go up.?

This preference isn’t just about customer satisfaction—it’s also about business success. Companies with strong omnichannel retail strategies retain an average of 89% of their customers , a sharp contrast to the mere 33% retention rate for those with weaker approaches.?

In 2024, consumer products and services companies will need to overhaul their omnichannel strategies and explore ways to enhance them, all while delivering the interconnected experience their customers are coming to expect.

5. Artificial Intelligence and Machine Learning

If you ask some people what their biggest AI-related fear is, they’ll tell you it’s the singularity—a Terminator, SkyNet-type situation where intelligent computers take over the world. But I’d like to posit that there’s a scenario that’s far scarier: getting left behind in AI implementation and integration .?

Businesses that lag will struggle to remain competitive. By 2030, 45% of total economic gains are expected to come from AI-driven product enhancements. If your consumer products or services company isn’t investing in AI in 2024, the projections for 2030 won’t be relevant.?

The ways you can implement AI in 2024 are numerous, from chatbots and in-store automation to robots and autonomous vehicles in warehouses, factories, and stores. Take a company like Lowe’s, for example. Lowe’s has LoweBot —an autonomous in-store service robot that can help shoppers in multiple languages and keep track of inventory. Estée Lauder has taken a similar approach. It has created an AI voice-enabled make up assistant that helps the visually impaired to apply their products.?

In 2024, consumer products and services companies can use AI to enhance their customer experience and communications, to innovate and improve their products and services, and to take inventory and manage their supply chain (and to predict disruptions). Companies that don’t take this opportunity seriously will regret it.

What Consumer Products and Services Companies Should Do to Be Successful in 2024

So, those are the top five trends we expect to impact the consumer products and services industry on a global scale in 2024… But I’ve got a sixth trend up my sleeve that I’ve saved for last. Whether you’re an Asian, North American, African, or European business—there’s one thing all consumer products and services organizations will need more of in 2024: better leadership.?

There’s one thing all consumer products and services organizations will need more of in 2024: better leadership.

To capitalize on the five trends mentioned in this article, you’ll need proactive, innovative, tech-savvy, and brave leaders who aren’t afraid to take a leap and challenge your competitors, whether it’s to become a market leader or to solidify that position even further.?

The good news is, at Stanton Chase, finding and developing top leadership for world-leading companies is exactly what we’ll be doing throughout 2024, just as we have for the past 33 years. If you need help finding or developing leaders who can make 2024 your year, click here to reach out to one of our consultants.?

About the Author

Milos Tucakovic is a Managing Partner at Stanton Chase Belgrade . He is also Stanton Chase’s Consumer Products and Services Global Sector Leader.

Milos has almost two decades of executive search and leadership advisory experience, and prior to this accumulated nearly 30 years of human resources and management experience.

Milos is a member of the Serbian Association of Managers and Knowledge Committee of Serbia. He also lectures on management at the College of Hotel Management in Belgrade.