Retail & Consumer Trends 2026

2025: A landscape of challenge and transformation

The year 2025 presented substantial challenges to retailers and consumer brands. Macroeconomic volatility, escalating geopolitical tensions, and profound shifts in consumer behaviour fundamentally reshaped market dynamics and spending patterns.

Europe grappled with persistent political fragmentation and economic headwinds, creating an exceptionally challenging trading environment. Persistent inflation – particularly in essential goods and food – severely eroded consumer purchasing power and confidence, directly impacting sales volumes and margin pressures.

Yet, amidst these challenges, 2025 highlighted the resilience and innovative capacity of our industry. Leading retailers and consumer goods brands successfully executed growth strategies, demonstrating that strategic clarity and operational excellence can thrive even in adversity.

Crucially, the transformative power of technology, particularly Artificial Intelligence (AI), accelerated dramatically. AI moved beyond efficiency gains to become a core driver of competitive advantage and market disruption:

Operational excellence: AI-driven efficiencies and enhanced effectiveness became non-negotiable across business operations, with agentic AI emerging a key focus for next-generation capabilities.
Customer journey reinvention: AI-led disruption fundamentally reshaped the customer journey. AI-driven search redefined product discovery and established a new, enduring paradigm for consumer engagement.

2026: Seizing growth opportunities

Towards the end of 2025, we surveyed over 600 retail and consumer product executives across the globe on their outlook for the industry, and the positivity was impressive. Over 70% of respondents within both the retail and consumer communities were optimistic about their organisation’s performance in the year ahead. This confidence is likely due to a belief that strategic investments in efficiency, productivity and technology could yield tangible benefits.

But the year won’t be without its challenges. Perhaps most significantly, we expect that 2026 will reveal the full impact of 2025's global trade policy shifts. Governments are adapting to a new geopolitical reality, adjusting fiscal and structural policies with direct implications for consumer spending and business operations. However, while the forecast for overall European growth remains subdued, a potential easing of monetary policy and reduced inflation later in the year could provide crucial tailwinds for consumer spending.

Our trends for 2026

The consumer industry continues to be defined by rapid technological advancements, evolving expectations, and a complex risk landscape. By embracing our four trends in the year ahead, retailers and brands can position themselves for success, driving growth, enhancing profitability, and ensuring that their business is fit for the future.

A critical theme across our four trends is 'human-led intelligence'. Even with advanced AI, we believe that the characteristics that define high-performing consumer businesses must, and will, remain human. In volatile markets, an adaptable workforce provides the most durable competitive advantage. While technology is a critical enabler, human elements such as creativity and trust remain at the core of successful consumer engagement.

The 1990s reloaded

A look at the new customer experience and how next-generation engagement, experience and marketing are being redefined as humans live and work together with AI… echoing the era of power brands and ecommerce innovation seen in the late 1990s. 

Key takeaways:

The AI-led disruption of the customer experience will accelerate in 2026. Embrace the innovation and determine the no-regret moves to help your products and brands retain visibility.
Unleash the power of brands and human creativity to differentiate in a world in which AI and advanced technology are considered table-stakes for consumer businesses.

Less is more

Whether streamlining product portfolios or adapting to evolving consumer needs, the focus is on 'right-sizing' for profitable growth. This requires an optimal portfolio of brands, products and services, and responsiveness to shifts in consumer behaviour reflected in trends like health and wellness and the relentless pursuit of value.

Key takeaways:

Harness the power of simplicity – create a focused, strategic portfolio of brands, stores and SKUs to reinvest and drive growth in your business.
Make bold bets in high growth products and services across areas of growing consumer demand such as health and wellness.

Lean machine

A simplified business model with a reimagined workforce (of both humans and computers), brought together with organising genius and leadership, can unlock the productivity imperative and enable sustainable efficiency gains.

Key takeaway:

Recognise the transformative potential of AI to drive productivity and efficiency in your business by enabling humans to make better, faster decisions.

Courage under fire

The need to build resilient foundations in order to navigate uncertainty, safeguard the present and set up for the future – across the value chain and the workforce.

Key takeaway:

Build resilience into the heart of your business – be prepared to face into volatility in the year ahead and support your people during a period of unprecedented change.

To learn more about Deloitte's Retail & Consumer Trends 2026 and discuss how these trends may impact your business, please contact our team of retail and consumer industry experts