Tariffs, Technology, and Transformation: The Top 5 Consumer Industry Trends in 2025

As we look back on 2025, the consumer sector faced intensifying challenges, from global trade volatility to price-conscious consumers. Savvy companies recognized the need to innovate – using technology in new ways and rethinking the leadership needed to navigate these challenges. With the year winding down, the JM Search Consumer team reflected on the five most impactful trends of 2025 and their implications for the coming year. 

1. AI is on top – again. 

AI is profoundly transforming operations in consumer businesses, from diversifying and streamlining supply chains to improving inventory control through better demand forecasting.  

“Good leaders are leaning into AI and overlaying this [innovative approach] with more traditional data and analytics to improve efficiencies in processes and systems to gain a competitive advantage,” said Liza Stokes, JM Search Partner. 

According to research conducted by IBM, CPG and retail companies are bullish about AI’s ability to boost brand relevance and trust. 58% of executives said they believe AI solutions will help improve customer satisfaction and retention, and are embedding AI across their organization. 

In 2026, expect AI to remain a major player in the consumer space, rapidly turning customer data into actionable insights that help businesses tailor everything, from product to supply chain, marketing, and more, to evolving customer preferences. 

2. Tariffs. 

Tariffs presented what may have been the biggest challenge for consumer companies in 2025, forcing businesses to choose between passing the expense onto inflation-weary customers or absorbing the cost.  

“Tariffs continue to create uncertainty and macroeconomic disruption,” said Heidi Rustin, JM Search Partner. “Many retailers and wholesalers are diversifying their sourcing strategies, but it takes time. This has been especially hard on smaller businesses that don’t have the same resources or history of diversification as the larger corporations.”  

In the new year, the effects of tariffs are likely to continue rippling through the economy as consumers respond to higher prices and businesses continue recalibrate supply chains. 

3. Off-price is on target. 

As financial anxiety escalated this year, polls showed widespread dissatisfaction with the state of the economy.  With budget consciousness top of mind, many consumers traded premium name brands for private-label alternatives.  

“With inflation, lagging job growth, and layoffs, the winners are likely to continue to be the off-price channels,” said Rustin.    

The global off-price retail market was valued at $381 billion in 2025 and is expected to grow to $414 billion in 2026, reaching $883 billion by 2035—a projected CAGR of 8.7%. 

Looking ahead, this raises both risks and opportunities for consumer businesses. If managed well, these channels enable brands to reach consumers in a more price-conscious market, but brand dilution remains a threat if companies treat these off-price sellers as a dumping ground for excess inventory. 

4. Range is the new leadership flex.  

With consumer companies facing myriad challenges, the need for leaders with diverse skills accelerated in 2025. Executives who could effectively lead cross-functional teams and directly manage multiple functions were in high demand. Leaders needed to think both tactically and strategically, manage people as well as processes, and plan ahead while adapting quickly to change.   

Nowhere is this pivot from specialist to multidisciplinary leader more pronounced than for finance leadership.  

“The CFO role has expanded, with companies seeking strategic partners who not only manage finance and accounting but can also drive technology adoption, navigate macro risks, and add value across the organization,” said John Foristall, JM Search Partner.  

In 2026, demand for leaders with range will only intensify as businesses continue to face strong economic headwinds. 

5. CPG goes DTC. 

Driven by competition from direct-to-consumer brands, in 2025, traditional CPG companies began expanding to their own DTC channels, revamping their business models and their relationship with the customer. CPG companies are not bypassing their retail partners altogether, but adopting a hybrid approach, with tactics including subscription models and online marketplaces. 

While high costs for shipping, returns, and customer acquisition strain profit margins, savvy companies are treating DTC as not just a sales channel but a strategy for collecting customer data. Taking advantage of this opportunity requires the agility to function outside a model that worked for decades. 

“Companies are rethinking their leadership needs,” said Rebecca Miller, JM Search Partner. “They want executives who can manage channel complexity, adapt portfolios, and connect with consumers directly – not just through retailers.” 

In the new year, this tactic will continue to gain foothold as price conscious consumers increasingly turn to online channels for their ability compare prices across platforms. 

2025 highlighted that the consumer landscape is shifting at an unprecedented pace. In 2026, amid ongoing tariffs and economic hurdles, consumer businesses that embrace agility will be the winners. Whether capitalizing on off-price demand or expanding direct-to-consumer strategies, companies that use AI to mine customer data for insights – and translate them into actions that better meet customer needs – will be best positioned to create value.