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US Consumer Trends & Retail Challenges in 2025
08 Aug, 20255 Minutes
The US consumer market is shaped by evolving trends and a balance between economic pressures and cultural values, making innovation, adaptability, and consumer insight crucial.
According to Market Research Future, the US retail market is projected to grow from $5.52 trillion in 2025 to $6.89 trillion by 2034, increasing at a CAGR of 2.5%. The mix of physical and digital online shopping is now a fundamental expectation, pushing retailers and brands to invest heavily in integrated customer experiences.
In this article, we explore the key trends shaping the US consumer market, the challenges and opportunities for non-food retailers, and the specialist talent businesses need to stay competitive and achieve long-term growth.
If you’re looking to secure senior talent and position your business for long-term growth, connect with CSG Talent’s consumer recruitment experts.
US Consumer Trends in 2025
Managing Inflation & Affordability Pressures
Inflation is continuing to influence how US consumers spend, especially on non-food products such as toys, homeware, and small electronics. With ongoing price pressures, shoppers are becoming more value-focused, with 75% of consumers saying they have switched to lower-priced options.
For retailers, the main challenge is controlling rising costs from supply chain issues and higher labour expenses while also meeting the expectations of price-sensitive customers. Passing increased costs onto consumers risks losing market share, while absorbing them puts significant strain on profit margins. Retailers are increasingly turning to private-label ranges or more affordable product lines to appeal to cost-conscious buyers.
From a talent perspective, there is a growing need for financial strategists and procurement specialists who can manage costs effectively, alongside marketing leaders who can communicate value and product benefits in a way that builds trust and protects margins.
The Role of AI & Digital Transformation in Retail
Digital transformation, driven by artificial intelligence, is accelerating rapidly across the retail sector. In 2025, 37% of global consumers reported using AI tools to shop, which is a significant increase on the 17.4% in 2024. What began as a way of improving operations has now become a core part of the customer experience, with features such as personalised product recommendations, AI-powered search, and chatbots that can handle more complex questions.
Surprisingly, adoption is growing fastest among older generations, with ‘Baby Boomers’ increasing their AI shopping usage by 60% annually and Gen X by 58%, compared to 57% for Gen Z and 49% for Millennials. When AI tools offer clear benefits, such as making it easy to find products and access support quickly, they appeal to shoppers of all ages.
For retailers, this shift is creating demand for AI specialists, data scientists, and UX/UI designers who can develop intuitive, user-friendly technology. Digital marketing experts who can use predictive analytics and AI-powered targeting responsibly will also be key to delivering personalised experiences that build customer loyalty. Recruiting and retaining this talent will be key for retailers looking to stay ahead in an increasingly tech-driven market.
Sustainability and Conscious Consumption
Sustainability used to be a niche selling point, but it’s now an expectation for most US consumers. In 2024, 80% said they were concerned about the environmental impact of their purchases, up from 68% the year before. The willingness to act on these concerns is also increasing, with 71% choosing sustainable products over non-sustainable alternatives when priced under $10, and the average shopper prepared to pay 12% more for an eco-friendly option.
This shift represents both a challenge and a significant growth opportunity. It’s no longer enough to promote a single “green” product line, as consumers want proof that sustainability is embedded throughout the entire business, from sourcing and manufacturing to packaging and recycling. Brands that can demonstrate this commitment with certifications such as FSC or verified energy efficiency ratings are more likely to stand out in a crowded market.
Retailers are also under pressure to communicate sustainability in a way that resonates with different consumer priorities. For some shoppers, it’s about environmental impact, whereas for others it’s about ethical labour practices or reducing waste. This requires authenticity and transparency at every stage, supported by credible data and verification.
To remain competitive, businesses are seeking senior leaders who can connect their sustainability strategy directly to the values and priorities of their target audience.
Lifestyle Shifts Driving Consumer Spending
The pandemic reshaped how and where people spend their time, and many of those changes have become the norm. Hybrid work models, a stronger focus on personal wellbeing, and the desire for more comfortable living spaces continue to influence buying behaviour in the US retail market. Because of this, demand for homewares, kitchenware, electronics, and home improvement products remains strong.
Shoppers are increasingly drawn to products that combine practicality with lifestyle benefits. This includes small electronics such as smart lighting that improves home ambience and video call quality, and kitchen appliances that save time and support a healthy lifestyle. The expectation for speed and convenience is also higher than ever, with next-day delivery and flexible delivery slots now seen as standard.
For retailers, the challenge is anticipating and responding to these evolving lifestyle trends to avoid falling behind. Companies need to monitor consumer behaviour and be agile to pivot marketing and supply chain strategies quickly.
This means recruiting consumer insights analysts who can spot emerging patterns in large datasets, e-commerce managers who can deliver a positive online shopping experience, and logistics specialists who can meet growing demands for speed without compromising on reliability or cost efficiency.
Generational Differences
The US consumer market is extremely dynamic, and shopping habits vary significantly across different age groups:
Gen Z is on track to have $12 trillion in purchasing power by 2030, already outspending any generation at the same age. They are 29% more likely to buy from brands with an active social media presence and 41% more likely to discover products through short-form video content. For this group, authenticity, transparency, and social impact are deciding factors when choosing where to spend.
Millennials are also big spenders, but they prioritise experiences and sustainability, responding well to campaigns that combine social responsibility with interactive, engaging experiences such as virtual try-ons or immersive pop-up events.
Gen X and Baby Boomers are showing some of the fastest growth in AI-powered shopping. Baby Boomers have spent the least traditionally, but seamless digital experiences are unlocking new opportunities with this demographic.
A one-size-fits-all strategy no longer works. The most successful brands are those that categorise their audience effectively and adapt marketing messages and channel strategies to match the preferences of different generations.
From a hiring perspective, this means securing a Head of Marketing with expertise in audience targeting, social media specialists skilled in cross-platform content creation, and diversity and inclusion leaders who ensure brand teams represent a wide range of consumers.
Building Trust & Loyalty in a Price-Sensitive Market
In a market with endless choice, gaining the trust of customers has become crucial. Although Millennials remain the most brand-loyal generation, with 73% sticking with their favourite brands, overall loyalty in retail has fallen, dropping from 77% in 2022 to 69% in 2024. Price sensitivity plays a major role, with 60% of consumers switching brands in 2024 because of rising costs.
This reduction in loyalty makes transparency and authenticity essential. Studies show that 94% of consumers are more likely to stay loyal to brands that are open about their products and processes. For retailers, this could mean clearly labelling the origin of materials, gaining recognised ethical certifications for categories such as juvenile products, and communicating openly about product lifecycles and environmental impact.
Brands often find success with initiatives that create emotional connections, such as exclusive early access to sustainable product launches or community events that align with their values. Because of this, businesses are seeking customer experience managers who can ensure consistent, value-driven interactions and brand managers who can ensure authenticity at every touchpoint.
Consumer Recruitment Experts at CSG Talent
In the dynamic US consumer market, hiring the right leaders and specialists is just as important as staying on top of market trends. As consumer behaviour changes, businesses need talent that can adapt quickly and deliver measurable results.
CSG Talent’s consumer recruitment experts have deep experience in the FMCG sector, with extensive insight into the roles that are both most in demand and most challenging to secure.
By working with CSG Talent, you gain access to both active and passive candidates with the skills and cultural fit to make an immediate impact. We help shorten time-to-hire, strengthen employer branding, and ensure leadership teams are equipped to thrive in the competitive US consumer market.
Contact CSG Talent’s retail recruitment specialists to future-proof your business.
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