2024: Our Predictions for the Consumer Sector
As the consumer sector braces for the ever-changing tides of 2024, a tapestry of possibilities unfolds. Simon Walton, Partner and Head of the Consumer Practice at Berwick Partners, details his predictions for the sector in 2024, from the impact of emerging technologies to the shifting preferences of a dynamic market.
At the time of writing, in the final week before Christmas 2023, here are the predictions for Consumer in 2024:
The cost-of-living crisis will continue into 2024, but inflation is easing and wages are slowly rising, leading to an improved and slightly more optimistic outlook in the New Year. Post Christmas many if not all of the Grocery
Retailers will report in January 2024, a positive festive trading period. I predict the following challenges, trends and opportunities for the coming year:
- Generative AI, augmented reality, and data-driven personalisation are not mere buzzwords but catalysts for enhancing customer engagement and driving sales growth. E -Commerce platforms that embrace AI-driven personalised recommendations witnessed a 15% increase in average order value, showcasing the tangible impact of technology integration. This trend will only continue.
- Reduced Inflation and hopefully Interest rates, will help both consumers and manufacturers alike.
- The eating out market is set to restore itself back to full strength in 2024 as consumer optimism grows and the market continues to adapt itself in an ever-changing landscape. With nearly half of UK consumers claiming to eat out of home once a week or more !!
- Growth!! According to McKinsey & Company’s research, the forecast corresponds to a 2-4% year-over-year growth for the Consumer industry in 2024.
- Sustainability is here to stay and will only increase in significance and important to all stakeholders.
- Supply Chain challenges will continue…..The industry is no stranger to supply chain disruptions, especially in the wake of global events. As eCommerce platforms strive for efficiency, supply chain resilience increasingly becomes paramount.
- The War for Talent is definitely not over and employers will need to continue to work hard to attract and retain high calibre individuals and future industry leaders.
In summary, 2024 should be a positive year and despite some of negativity from certain elements of the media, not all will be bad!! In fact, 2024 could actually be quite positive and I am moving forward with cautious optimism.
If you wish to further discuss any of the topics covered in this article or have a conversation about increasing the leadership capability within your business then please contact Simon Walton.