Consumer goods innovation

Summary: Packaging that can dissolve in water or be eaten will reduce waste and enhance sustainability.

Current Situation: Edible and water-soluble packaging is in early development, mainly used in niche markets for items like single-serve packets and food wraps. These materials, made from ingredients such as seaweed and rice starch, offer a zero-waste alternative to traditional plastics. Current use is limited, but interest is growing among eco-conscious brands and startups aiming to reduce environmental impact.

Expected Development: Within 6-8 years, this packaging is expected to expand into broader convenience goods categories, addressing sustainability concerns while offering innovative consumer experiences. Wider adoption will depend on improvements in durability and taste compatibility with packaged goods.

Challenges: Scaling production, maintaining food safety, and ensuring consumer acceptance are significant hurdles. Additionally, developing cost-effective solutions for mass production remains a challenge.

Time to Impact: 6-8 years

Potential Impact: High

STEEP Segment: Environmental

This year’s trend development

Summary: Consumers increasingly demand faster, easier access to products through innovations like automation and fast delivery.

Current Situation: The "on-demand" culture has driven rapid growth in services like express delivery and 24/7 automated retail stores. Consumers expect seamless shopping experiences, with quick access to products across both physical and digital channels. This trend is particularly evident in urban areas where convenience is a high priority.

Expected Development: Over the next 2-4 years, advancements in robotics, AI, and integrated omnichannel retail will redefine convenience. Fully automated stores and ultra-fast delivery systems will become standard in metropolitan regions, further enhancing accessibility.

Challenges: Infrastructure needs, labor market changes, and high costs of adopting advanced technologies could slow widespread implementation.

Time to Impact: 2-4 years

Potential Impact: Very High

STEEP Segment: Social

This year’s trend development

Summary: Rising living costs push consumers to prioritize affordability in convenience goods.

Current Situation: With inflation driving up prices, consumers are turning to private-label brands and budget-friendly products to manage their spending. Convenience goods that offer value without compromising quality are gaining popularity, particularly in essential categories like snacks, toiletries, and household items. 

Expected Development: In the next 2-4 years, competition among brands to provide cost-effective solutions will increase. Subscription models and bulk-purchase discounts are likely to expand as companies seek to attract budget-conscious consumers while maintaining profitability.

Challenges: Balancing affordability with quality and sustainability, as well as navigating supply chain pressures and fluctuating raw material costs.

Time to Impact: 2-4 years

Potential Impact: High

STEEP Segment: Economic

This year’s trend development

Summary: Seamless payment systems using biometric authentication are revolutionizing retail transactions.

Current Situation: Biometric payment systems, leveraging fingerprints, facial recognition, or retinal scans, are gaining traction in shopping environments. Currently, these systems are being piloted in retail stores and online platforms to simplify transactions and enhance security. The adoption is mostly concentrated in tech-forward brands and high-end retailers, with limited penetration in smaller markets due to infrastructure challenges.

Expected Development: In 2-4 years, biometric payment systems will see widespread adoption across global retail chains and online marketplaces. Integration with loyalty programs and personalized shopping experiences will become standard, creating frictionless, secure, and user-friendly payment options. These systems will also reduce fraud significantly.

Challenges: Privacy concerns, data protection regulations, and potential cybersecurity risks are major barriers. Additionally, ensuring accessibility across all demographics and geographies could delay universal adoption.

Time to Impact: 2-4 years

Potential Impact: Very High

STEEP Segment: Technological

This year’s trend development

Summary: Circular business models are becoming economically viable, driving the adoption of shopping goods.

Current Situation: Circular economy practices, including refurbishment, resale, and upcycling, are gaining momentum in shopping goods such as fashion, electronics, and furniture. Startups and major brands are piloting programs for second-life products, but profitability remains a challenge. Early adoption is driven by eco-conscious consumers and supportive government incentives.

Expected Development: Within 2-4 years, advancements in recycling technologies and logistics will make circular models more profitable. AI-driven value recovery and smart resale platforms will optimize supply chains and pricing strategies, boosting consumer participation. Circular systems will expand into broader product categories and become a mainstream business model.

Challenges: Ensuring profitability, scaling up logistics for reverse supply chains, and convincing consumers of product quality and reliability in reused goods are key hurdles.

Time to Impact: 2-4 years

Potential Impact: High

STEEP Segment: Economic

This year’s trend development

Summary: A shift toward renting or sharing shopping goods over outright ownership is growing.

Current Situation: Younger consumers, especially Gen Z and Millennials, are opting for subscription-based and rental models for goods like furniture, fashion, and electronics. Companies such as Rent the Runway and Grover are leading this change, offering flexible, cost-effective alternatives to traditional ownership. Early adopters are concentrated in urban areas.

Expected Development: Over the next 4-6 years, this model will expand to include a broader range of shopping goods, supported by digital platforms and AI-based inventory management. Brands will invest in logistics and customer education to make rentals seamless. Collaborative consumption will reshape brand loyalty and supply chains, focusing on usage rather than ownership.

Challenges: Building robust logistics systems, managing inventory turnover, and addressing hygiene and quality concerns are critical for scaling rental and subscription models. Consumer mindsets in some regions may also resist the shift.

Time to Impact: 4-6 years

Potential Impact: High

STEEP Segment: Social

This year’s trend development

Summary: Luxury brands are creating closed-loop systems to reuse, recycle, and upcycle materials, redefining sustainability in the industry.

Current Situation: Many luxury brands are exploring ways to reclaim and reuse materials, such as recycled gold for jewelry or regenerated leather for handbags. Some brands have launched buyback programs or collaborated with innovative startups to develop closed-loop production processes. These initiatives are still in their infancy, with scalability being a key challenge.

Expected Development: Over the next 4-6 years, fully circular ecosystems will emerge as a standard in luxury, with brands integrating material recovery systems into their value chains. Circular practices will expand into resale markets, with brands overseeing recycling and reconditioning to maintain exclusivity and product quality.

Challenges: High costs of implementing closed-loop systems, sourcing high-quality recycled materials, and maintaining the premium feel of luxury products could slow adoption.

Time to Impact: 4-6 years

Potential Impact: Very High

STEEP Segment: Ecological

This year’s trend development

Summary: Virtual fashion collections allow luxury brands to engage with younger consumers and reduce waste.

Current Situation: Some luxury brands have launched virtual-only fashion items for avatars in games or metaverses, targeting tech-savvy, younger audiences. These digital collections are gaining attention for their creativity and minimal environmental impact. However, consumer adoption remains niche and confined to early adopters.

Expected Development: In the next 4-6 years, digital couture will become mainstream, with brands designing entirely virtual collections for use in AR/VR environments. These items may integrate NFTs to ensure ownership and exclusivity, creating a new revenue stream.

Challenges: Convincing traditional luxury consumers to embrace fully digital products and ensuring long-term demand for non-physical goods are key barriers.

Time to Impact: 4-6 years

Potential Impact: High

STEEP Segment: Technological

This year's trend development

Summary: Marine resources are being used to create high-end sustainable luxury products.

Current Situation: Materials like reclaimed fishing nets and ocean plastics are being repurposed for luxury fashion, accessories, and furniture. Some brands are experimenting with renewable marine resources like algae and seaweed-based fabrics. While adoption is growing, production volumes are currently limited.

Expected Trend Development: In the next 4-6 years, innovations in marine material science will enable scalable production of ocean-sourced goods. These materials will become a staple for eco-conscious luxury consumers, offering unique aesthetics and environmental benefits.

Challenges: Ensuring sustainable harvesting practices and ethical supply chains while scaling production will be major obstacles. Overharvesting could lead to ecological imbalances if not managed properly.

Time to Impact: 4-6 years

Potential Impact: High

STEEP Segment: Ecological

This year's trend development

Summary: Automated platforms will eliminate administrative burdens for freelancers and SMEs in service industries.

Current Situation: Zero-overhead platforms are in the early stages, offering basic tools for booking, billing, and client management for freelancers like salon artists or personal trainers. These platforms help streamline operations but require manual input and limited integration across tasks.

Expected Development: Within 4-6 years, AI-driven platforms will fully automate scheduling, invoicing, customer communication, and even marketing. This will enable service providers to focus entirely on their core offerings, reducing costs and time spent on non-revenue-generating activities. Blockchain may also enhance transparency and trust in financial transactions.

Challenges: Onboarding small operators, integrating various functions seamlessly, and ensuring data security in increasingly automated systems.

Time to Impact: 4-6 years

Potential Impact: Medium High

STEEP Segment: Economic

This year’s trend development

Summary: Consumers increasingly associate wellness services with success and self-investment.

Current Situation: Premium wellness services like exclusive gym memberships, mindfulness retreats, and luxury spa treatments are being marketed as aspirational experiences. These services are becoming a way for individuals to signal their commitment to self-care and achievement, especially among affluent consumers.

Expected Development: Over the next 4-6 years, wellness services will integrate personalized offerings such as DNA-based health plans or AI-driven mental wellness coaching. As wellness becomes a status symbol, service providers will expand into ultra-premium offerings and immersive wellness experiences designed to impress and inspire.

Challenges: Rising costs may limit accessibility, creating a divide between those who can afford premium wellness services and those who cannot. Over-commercialization could also dilute authenticity.

Time to Impact: 4-6 years

Potential Impact: Very High

STEEP Segment: Social

This year's trend development

Summary: Short-term, niche-focused subscriptions will appeal to consumers seeking flexibility and reduced commitment.

Current Situation: Micro-memberships are currently offered in limited forms, such as event-based subscriptions (e.g., festival passes) or short-term gym access. These models cater to consumers who value specific experiences or seasonal access without the burden of long-term contracts. Adoption remains low, as most businesses continue to focus on traditional subscription models.

Expected Development: Within 2-4 years, micro-memberships will expand across industries like beauty, wellness, and travel. For example, consumers could subscribe to a month of spa treatments, temporary travel bundles, or seasonal fitness plans. AI will help tailor micro-memberships to individual preferences.

Challenges: Managing operational costs, retaining customers in short-term models, and providing consistent service quality.

Time to Impact: 2-4 years

Potential Impact: High

STEEP Segment: Social

This year's trend development