‘Tis the season to start thinking about consumer trends for the year ahead. At Mythic, our team has been hard at work gathering research across many of our client categories so we can be ahead of the game. We wanted to share some of the stats and trends that we’re monitoring for 2025. We can’t wait to dig in and see how this data can be applied to our clients’ plans.
EV demand persists: Despite manufacturer, dealer, and sometimes consumer skepticism, the EV market remains strong. According to Kelley Blue Book, electric vehicles accounted for nearly 9% of total sales in Q3, rising 7.8% from last year. Fueling this growth is an influx of cheaper EVs and increasing EV incentives, which are double what they were last year, but keep an eye on how the recent U.S. election could alter EV’s future trajectory.
High car prices and fading affordability: Over the last five years, vehicle prices jumped nearly 30%, with average transaction prices (ATPs) nearing $50,000. With fewer budget-friendly models and heavy investments in tech, American automakers and dealers must adapt their sales strategies in order to keep pace with the evolving market and attract customers without hurting profits.
Aging cars: Vehicles on U.S. roads are now a record 12.6 years old on average, up two months from 2023. Plus, nearly half of the vehicles on dealer lots are now considered "aged," making them depreciate in value and harder to move. With new and used vehicle prices high, consumers are opting to extend the lifespan of their current vehicles through servicing and repairs. Consequently, the industry is facing an unprecedented balancing act between vehicle sales and maintenance.
Balancing DIY and professional auto maintenance: Although 71% of vehicle owners have undertaken DIY car maintenance in the past three years, 88% have also relied on professional services, according to Mintel’s Automotive Maintenance 2024 report. While it seems professional servicing is still essential for vehicle ownership, it’s clear that consumers attempt to save money with their own handiwork, meaning aftermarket service providers will need to continue to find new ways to get cars into their shops.
The evolving car buying experience: Most consumers (68%) find vehicle buying stressful and over half (57%) express dread for the dealership experience, according to Mintel’s Car Purchasing Process report. As a result, 75% of consumers plan to spend less than six months on their research, and 58% indicate they would like to conduct a portion of their vehicle purchase online. Going forward, dealerships have to continue to combat the industry’s negative perception while meeting customers where they are on their car buying journeys.
Consumers are financially overextended: According to the New York Fed, total non-housing debt and credit card debit are at all-time highs, reaching $4.9 trillion and $1.14 trillion respectively. Plus, credit card delinquency rates reached 10.9%, the highest since Q2 2010. Thus, debt management could be a focal point for consumers and brands alike.
Appetite for new financial services is growing: So far in 2024, consumers are responding to more financial services ads, doing more research on financial products and services, and are planning to open more new financial accounts compared to last year, according to Mintel’s Marketing Financial Services 2024 report. As consumers seek information, brands should be ready to educate them in hopes of gaining business.
But, consumer loyalty is hard to come by: Related to the increasing appetite for new financial services, financial institutions (FIs) are struggling to capture consumer loyalty. Mintel’s Marketing Financial Services 2024 report showed that 60% of consumers are likely to open mail from financial providers that they lack a relationship with and 60% of banked consumers would switch banks if given a good enough incentive. Moreso, nearly half of consumers opened an account with a new FI while maintaining an old one in 2023. With persistent competition, FIs must demonstrate the benefits of their integrated financial solutions in order to retain customer business.
Financial flexibility is a top desired feature: While quantifiable benefits like earning and savings rates traditionally drove account changes, the growing emphasis on financial flexibility indicates a desire for different features. Forty-four percent of consumers desire financial flexibility from new accounts, up from 35% in 2023, according to the Mintel Financial Services 2024 report. Millennials lead this shift, with financial flexibility rising from their seventh-most prioritized feature to their most prioritized.
The economy and political climate shape financial concerns: Inflation and interest rates remained some of consumers’ top economic concerns. Additionally, the most recent election cycle drove financial concerns related to legislation, tax policies and market performance. With the Federal Reserve continuing to lower interest rates and the election behind us, will these factors still shape consumers’ financial mindsets, or will new concerns arise in 2025?
Aging population fuels demand for primary and long-term care: With an estimated 80 million Americans expected to be age 65 and older by 2050, according to the U.S. Census Bureau, demand for primary and long-term care services is on the rise. As older adults, who are more susceptible to chronic conditions live longer, the healthcare industry must evolve to meet this demand and create more innovative solutions for aging in place, according to Definitive Healthcare.
Heightened focus on women’s health: Women are 35% more likely to say they’ve skipped or delayed care in the last year, according to a Deloitte survey. Because the nation’s healthcare system was largely developed using research on men, the research and consulting firm notes that women’s health has “historically been underprioritized.” However, as CNBC reports, there is now a surge of investments in what is referred to as “FemTech,” which includes digital products and services aimed at improving women’s health. This trend indicates that traditional healthcare systems will face increasing competition from digital startups in the women's health sector.
Growth of direct-to-consumer healthcare services: Although direct-to-consumer (DTC) pharmaceutical sales are not new, the recent increase in virtual care and the convenience it offers have led both brands and consumers to embrace these services. This year, Healthcare Brew reported that two major pharmaceutical companies launched new DTC offerings. Eli Lilly introduced LillyDirect, a service that delivers medications straight to patients' doorsteps, while Pfizer launched PfizerForAll, which provides a similar medication delivery service along with telehealth consultations and at-home tests. On top of that, with rising healthcare costs, more and more consumers are gravitating toward subscription-based care that bypasses insurance altogether. In an interview with Yahoo!Finance, one doctor in this space compared Direct Primary Care to a Netflix subscription because the flat-rate monthly or annual subscription means patients can access care as often as they want to. While both of these developments may be beneficial for consumers financially, they could also lead to increased frustration by creating more silos within the healthcare system.
Retail pharmacy shifts: The COVID-19 pandemic positioned retail pharmacies as key providers of healthcare services, such as vaccinations, and led major chains to collaborate with companies to establish primary and urgent care locations. However, the outlook for these ventures is looking less promising as of late. According to Healthcare Brew, prominent drugstores like Rite Aid, Walgreens, and CVS have reported significant losses over the past year, reflecting changing consumer preferences. In response, Walgreens and Walmart have hinted at a potential shift in focus towards specialty pharmacy in an effort to gain a competitive edge in the industry.
Increasing personalization through AI: In recent years, consumers have increasingly turned to technology for health management, tracking various aspects of their well-being, including diet, exercise, and mental health. Healthcare systems are now starting to leverage AI and data-driven insights to deliver personalized "nudges" to patients, aimed at promoting behavior change, according to Mintel. This approach, known as precision nudging, utilizes data from wearables and health records to analyze individual behaviors. It then sends reminders that encourage actions such as exercising, taking medications, or scheduling cancer screenings.
Set-Jetting: With streaming platforms fueling this trend, and new installments of wanderlust-worthy shows like Emily in Paris and White Lotus on the horizon, and talk of a fifth season of Outer Banks, this trend is only heating up! Expedia Group's Unpack '25 survey underscores that this trend has legs, noting that "two-thirds of travelers say movies, streaming services and TV shows have influenced their travel choices."
Detour Destinations: While travelers may have their sights set on their “main course” destination, many are starting to tack on the vacation equivalent of an “appetizer.” Detour destinations are less popular or lesser-known locations that are increasingly being promoted as alternatives or add-ons to trips, according to Mintel. In many ways, this trend is seen as an opportunity to decrease the negative impacts of overtourism — like overcrowding and environmental degradation — in popular destinations.
Destination Dupes: For travelers looking to zig while everyone else zags and avoid the crowds, destination dupes are the perfect cost-effective alternative to well-known hotspots. As Mintel notes, this trend is heating up as travelers look to “balance their desire for unique experiences with budget constraints and the negative impacts of overtourism.”
Natural Phenomena-driven Travel: If the travel frenzy driven by 2024’s solar eclipse was any indication, natural phenomenon-seekers are willing to make the trip to see everything from the Northern Lights to geysers and hot springs in real life, according to Expedia Group's Unpack '25 survey. And Vrbo predicts that some of 2025’s biggest draws will include North Carolina’s Venus flytraps, Utah’s International Dark SkyPark and Tennessee's synchronous firefly season, among others.
Social Media as a Booking Platform: More than half of consumers say they follow travel influencers on social media because they feel they have a personal connection to them, according to Mintel’s Travel Influencer Marketing report. Since social media significantly influences travel bookings, utilizing influencers in 2025 will be an effective strategy for destinations to gain visibility. Additionally, an influencer's perspective on exploring a destination can often provide travelers with enough information to book directly and conveniently through a post.
Sustainability Conscious Travel: There is an increasing emphasis on sustainable travel, especially among Gen Z and Millennials, according to Mintel. Airlines are starting to provide incentives for choosing flights that use sustainable aviation fuel. We anticipate that destinations will begin to include educational messages about best practices for sustainable travel and how tourists can responsibly support local ecosystems.
As we look forward to 2025, our team is eager to see how these trends will evolve. In the meantime, we will continue to monitor these categories, as we are always seeking ways to help our clients gain a competitive advantage in their respective categories. If you’re interested in starting a conversation about how these trends and others may impact your marketing plans in the coming year, contact us at newbiz@mythic.us.
