Title The 2025 Outlook for Emerging Brands ✅

3 © 2024 Nielsen Consumer LLC. All rights reserved. Key Takeaways • Economic Adjustments Impacting Consumer Sentiment • Sustainability as a Consumer Priority • Health and Wellness on the Rise • Digital Transformation Reshaping Commerce • Adapting to Regulatory Challenges • Building Brand Loyalty • Innovation as a Driver of Growth The 2025 Outlook for Emerging Brands With 2024 nearly behind us, what awaits emerging and growth brands in 2025? © 2024 Nielsen Consumer LLC. All rights reserved. Executive Summary The 2025 outlook for emerging brands is shaped by an evolving market landscape characterized by shifting consumer behaviors, economic adjustments, and technological advancements. After a challenging 2024, brands must navigate a complex environment where inflationary pressures, sustainability demands, and the digital transformation of commerce continue to redefine consumer expectations. For emerging brands, these challenges also bring opportunities to differentiate, innovate, and capture market share by aligning with evolving preferences and leveraging data-driven insights. Key trends driving the market in 2025 include growing demand for health- conscious, sustainable products and the rapid acceleration of e-commerce and digital platforms. However, the path to success also requires overcoming challenges like supply chain disruptions, stringent regulations, and balancing affordability with profitability. Brands that act strategically, foster loyalty, and adapt to demographic and behavioral shifts will be best positioned to thrive.
4 © 2024 Nielsen Consumer LLC. All rights reserved. +2.6% © 2024 Nielsen Consumer LLC. All rights reserved. Market Trends Shaping 2025 The 2025 Outlook for Emerging Brands Shifting consumer preferences and needs 2024 was a challenging year for many brands. As we look to 2025, emerging brands face an evolving market landscape shaped by economic shifts, growing consumer consciousness, and advancements in technology. Navigating this environment requires understanding the underlying trends driving consumer behavior and brand expectations. In this section, we’ll examine the critical market trends shaping 2025, from the economic factors influencing purchasing decisions to the heightened demand for sustainability and health-focused products. We’ll also explore the rapid acceleration of e-commerce and digital transformation, which are reshaping how consumers interact with brands. For emerging brands, these trends represent both challenges and unique opportunities to innovate and differentiate in a competitive space. Overall cost of living continues to rise Source: U.S. Bureau of Labor Statistics – Consumer Price Index; NielsenIQ, Total US xAOC, monthly periods ending October 26, 2024