Affordable innovation, AI-enhanced shopping, and sustainable products emerge as key drivers for consumer spending
NielsenIQ (NIQ), the world’s leading consumer intelligence company, has released its State of Tech & Durables (T&D) Report, spotlighting critical trends set to drive growth in the sector. As brands prepare for a year of evolving consumer preferences, the report identifies affordability, convenience, sustainability, and AI-driven engagement as central to meeting consumer expectations.
“Consumers are cautious, yet willing to spend on products that cater to their needs for convenience, sustainability, and health. By prioritizing these attributes, companies can strengthen their market position and drive growth.”
Key Highlights from the Report
- 67% of consumers are likely to try a new product if it is affordable
- 70% are open to purchasing sustainable, energy-efficient products when priced reasonably
- 55% increase in sales for robot vacuums with dual wet-and-dry capabilities in 2024, showing a demand for multifunctional products
- 40% of consumers are willing to use AI-driven recommendations for everyday shopping
- 33% increase in sales of high-storage smartphones, reflecting the demand for high-performance, connected devices
- 36% of all global T&D revenue now comes from online sales, driven primarily by China, Europe, and Latin America
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Top Trends to Watch in 2025
- Affordability and Value-Driven Purchases:
Consumers are more focused on affordability than ever, with 67% indicating they’re willing to try new products if they’re affordable. Furthermore, 70% of consumers would buy sustainable and energy-efficient products at a reasonable price. This trend represents a major opportunity for brands that can deliver budget-friendly, yet durable options. - Convenience and Multifunctionality in Demand:
Time-saving, multifunctional products are driving T&D growth, as seen in a 55% sales increase for robot vacuums with dual wet-and-dry capabilities. T&D brands should look to offer products that combine convenience with performance, catering to consumers who seek practical solutions in their daily routines. - Health & Wellness Technology on the Rise:
Health-oriented tech is becoming mainstream, with sales of wearable devices rising by 3% year-over-year. As consumers integrate health, wellness, and hygiene-focused products into their lives, brands that can embed these features will stay relevant. Smart home products like air purifiers, thermostats, and connected fitness devices are leading this charge. - AI and Smart Connectivity in Consumer Purchases:
The report highlights the growing role of AI in consumer decision-making. With 40% of shoppers open to automated recommendations, there’s significant potential for T&D brands to use AI to deliver personalized product experiences. Connectivity is also key, as evidenced by a 33% increase in smartphones with high storage capacities, showing consumer preference for high-performance, connected devices. - Sustainability Takes Center Stage:
Sustainability is a deciding factor for many consumers, with over half willing to pay a premium for eco-friendly products. Durability, energy efficiency, and sustainable materials are top considerations, indicating that brands prioritizing these aspects will have a clear advantage. - The Importance of Omnichannel Experiences:
Online sales now represent 36% of global T&D revenue, driven by markets like China, Europe, and Latin America. As more consumers use a mix of digital and in-store channels, T&D companies must deliver seamless omnichannel experiences to capture this demand. Interactive features, such as augmented reality (AR), resonate particularly well with Millennials and Gen Z, with over one-third interested in AR-assisted shopping.
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“For T&D brands, 2025 will be about delivering value through meaningful innovation,” said Julian Baldwin, President, Tech & Durables at NIQ. “Consumers are cautious, yet willing to spend on products that cater to their needs for convenience, sustainability, and health. By prioritizing these attributes, companies can strengthen their market position and drive growth.”
Why These Trends Matter for 2025
These consumer preferences reveal key pathways for brands aiming to capture market share in 2025. By focusing on innovation aligned with affordability, sustainability, and convenience, T&D companies can respond to evolving demands and drive growth. AI and smart features will continue to enhance shopping experiences, providing brands with more opportunities to engage with tech-savvy consumers.
