2025 Challenger Brand Study: Challenger 2.0

2025 Challenger Brand Study: Challenger 2.0

2025 Challenger Brand Study: Challenger 2.0

It’s no secret the changing dynamics in the CPG space have made it increasingly difficult for brands to break through. A precarious financial environment (elevated interest rates, limited funding, inflation price pressure, etc.) coupled with a crowded and fiercely competitive landscape has forced Challenger Brands to evolve their value equation and their offerings to survive and thrive. While 10 years ago we saw a landscape emerging with disruptive Challenger Brands, we now see more and more closures as consumers, retailers and investors alike continue to raise the bar for what it takes to succeed in this environment. With that comes fewer, larger players offering highly unique and differentiated solutions.

This evolved environment demands more from Challengers to achieve broad appeal and durable success. This year’s report goes beyond the sweeping changes in the Challenger Brand space to explore what will enable the next phase of Challenger Brands to thrive. Challenger 2.0 will explore key strategies that have enabled Challengers to flourish in this new context: reframing health & wellness, leveraging digital connections, evoking human emotion, and inviting accessibility.

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The genesis of Challenger Brands in many consumer spaces was in reimagining and redefining traditional categories through “Better-for-You” (BFY) alternatives (e.g., improved ingredients or physical health benefits). While Challenger Brands are still celebrated for this today, the new wave of brands is redefining what “BFY” truly means by expanding its scope. These brands still hold better ingredients and physical health benefits central to their value propositions yet now integrate calls to indulgence and mental wellness in their offerings, creating a more comprehensive, balanced, and relatable approach to health and wellness.

As consumers become more digitally native, they expect brands to do the same. Challenger Brands are finding innovative ways to connect with consumers online and on social media platforms – both delighting consumers and combatting the realities of limited retail shelf space. While digital outreach has existed for years, it was often more general and one-size-fits-all. Today, Challengers are reshaping the dynamics of the digital brand-consumer relationship by leveraging the interactive nature of social media and employing tailored meaningful engagements; the result is highly personalized and authentic communication. Through this, brands make consumers feel as though brand participation is akin to supporting a friend or contributing to their community.

In today’s fast-moving world, people crave more than just products; they want a more meaningful experience. They’re looking for ties that go beyond transactions, not only with each other but also with the brands they support. Nostalgia plays a powerful role in this, tapping into emotions and shared memories that create a bridge between the past and the present, making experiences feel both personal and universal. Brands that tap into emotionality -whether by evoking a specific mood, or championing a mission rooted in fostering connection between others (pets included!) — amp up the consumer experience while creating powerful, enduring loyalty.

Challenger Brands succeed by daring to be different, standing out with unique offerings that break away from the mainstream. But there’s only so much room to grow when you’re operating within a narrow niche. That’s where 2.0 Challengers are changing the game—by tapping into high penetration categories, they stay relatable & accessible. They embody inclusive accessibility through multiple avenues—from making seemingly intimidating categories easier to understand and engage with, or increasing access (both in availability or affordability).

Challenger 2.0: Our Top 10 brands that embody this next generation of category disruption

Goodles. Mac and Cheese is the ultimate comfort food. However, traditional options often target kids with simple flavors and character-driven packaging, leaving adults out of the equation. Goodles is changing the game with boxed mac and cheese made for adults to enjoy. Packed with impressive ingredients and nutrition, Goodles combines fun and nostalgia with vibrant, 90s-inspired packaging and playful names like Cheddy Mac and Shella Good. The impact speaks for itself: with one box sold every second and recognition as the #7 fastest-growing brand in U.S. grocery, Goodles proves that modernizing nostalgic products and providing a more permissible way into an indulgent classic is a recipe for success. (Source 1, Source 2)

Hot Take. Hot Take is inspiring consumers to “change the way they think about and eat dessert”. What truly sets Hot Take apart is its unapologetic embrace of true indulgences, made better – crafted with premium, clean ingredients like grass-fed butter and fair-trade chocolate. While many brands lean into low-calorie or vegan trends, Hot Take took a bold stand, redefining wellness by championing the emotional joy of savoring a real treat over obsessing about macronutrient counts. Adding to its appeal, the founders – a sister duo – take fans along for their journey as small business owners across social media channels. These viral videos include moments such as seeing their products in stores for the first time, and more casual, conversational late-night baking sessions to authentically foster a supportive community. (Source)

Masa. Frustrated by the widespread use of seed oils in processed foods, founder Steven Arena set out to create a chip that wouldn’t leave him feeling sluggish. His solution was to revive traditional methods, frying hand-made corn tortillas in grass-fed beef tallow—an animal-based fat used for centuries in cooking and skincare—and preparing them with an ancient Aztec technique that preserves the corn’s nutrition. The result is a chip that not only delivers incredible flavor but also leaves consumers feeling great, as evidenced by countless testimonials. By prioritizing high-quality ingredients and embracing “old-fashioned” methods, Masa Chips has become Erewhon’s number—one chip brand, proving that rediscovering traditional practices can pave the way for modern innovation. (Source)

Smalls. Smalls is a pioneer in the world of human-grade cat food, setting a new standard for quality and convenience (voted the #1 healthy cat food brand!). By combining a personalized omnichannel approach with innovative features like tailored quizzes and a 24/7 text line, Smalls connects deeply with cat parents, making it easier than ever to understand and meet their feline friends’ needs. “Cat concierges” work with cat parents to ensure the transition to Smalls is as seamless as possible, leading to an incredibly high retention rate. With a seamless direct-to-consumer subscription model, Smalls offers a user-friendly experience that has fed over 100,000 cats, redefining what cat food can and should be. (Source)

Jukebox. Jukebox elevates the shower from a daily routine to a moment of self-expression and self—connection, blending better ingredients with a playful approach. By crafting soap with natural ingredients and a cold-process method, Jukebox delivers “really, real soap” that nourishes and cares for the skin. At the same time, the brand embraces fun with playful product names and scents—like “Gettin’ Figgy With It” and “Mango No. 5″—and joyful messaging that encourages creativity and delight. Head of Jukebox, Emily Woods, explains, “While women’s face products are everywhere, they only cover 3.5% of the skin. Jukebox covers the other 96.5%.” Jukebox is making its joyful shower experience accessible to even more women. (Source)

Native Pet. Native Pet understands that when it comes to your pup, “their health is your happiness.” That’s why they’re committed to creating the highest-quality products in pet nutrition with supplements that make a real difference. Through creator collaborations and their “Dog is our Native Tongue” campaign, the brand has built a tight-knit community of dog lovers who educate one another on this emerging category. Additionally, their unique ambassador program helps the brand feel more authentically connected to the pet community, leveraging trusted pet influencers (and their pets) as a vehicle for education and brand awareness. (Source 1, Source 2)

The Real Cereal. The Real Cereal is bringing this breakfast staple back to its glory days. With only two ingredients, The Real Cereal delivers a refreshing return to simplicity, away from the artificial additives and ingredients that have flooded today’s cereal aisle. And the simplicity of its ingredients isn’t the only nostalgic touch – the brand’s retro packaging and classic SKUs, ‘Corn Flakes’ and ‘Rice Crispies’, are straight from the 70s, delighting consumers with a moment of nostalgia in every bowl. The brand is making strong inroads, having tripled its distribution footprint over the past year. (Source 1, Source 2)

Graza. Before Graza, the olive oil category was split between low-quality basics and over-priced premium brands. Graza changed the game with high-quality, accessible oils wrapped in playful, modern packaging. They made olive oil approachable, even helping people understand its diverse use cases with intuitive, fun “sizzle” and “drizzle” names. With a strong social media presence, Graza turned olive oil from a mundane kitchen staple into a Gen Z status symbol. They’ve also partnered with larger brands in other categories to bring upscale olive oil pairings right to consumers – whether that’s a cranberry, chocolate, & olive oil yogurt bowl in partnership with Chobani, or an olive oil cake at Partner’s coffee shops. Their debut SKUs sold out within hours, and the brand hasn’t slowed down—expanding into refillable bottles, chips, and even “Grazola.” (Source)

Nature Fresh Farms. Nature Fresh Farms is shaping the future of produce with innovative greenhouse farming, setting new standards for sustainability and accessibility. As climate change disrupts traditional farming methods and consumers expect fresher, year-round produce, retailers are turning to indoor-grown produce to ensure a steady supply. This approach provides fresh, high-quality, clean, and value-add items year-round, making it easier for consumers to maintain healthier diets. Nature Fresh Farm’s proprietary “Greenhouse Clean” promise underscores their commitment to delivering clean, pure produce, and makes it easy for consumers to recognize the immediate benefits of choosing indoor-grown options. Beyond meeting today’s needs, Nature Fresh Farms was recently recognized for its innovative use of AI to enhance the efficiency and affordability of its greenhouse farming model, driving accessibility for even more consumers. (Source 1, Source 2)

Olive & June. Meet Olive & June, the brand transforming the at-home manicure experience. Originally launched as a nail salon, its 2019 pivot to an at-home product line cemented Olive & June as a leader in the nail care industry. Founder Sarah Tuttle’s “obsession with community” has been key to its success, pairing high-quality products with unmatched consumer engagement. From brochures and YouTube tutorials to Instagram Live boot camps and Zoom masterclasses, Olive & June’s educational approach has cultivated a loyal following of DIY beauty enthusiasts. Through these tools and easy-to-use products, Olive & June empowers consumers to take their manicures into their own hands (literally!), making having well-polished nails an experience accessible to all. In 2023, it became the fastest-growing nail brand and was recently acquired by Helen of Troy for $240 million. (Source 1, Source 2, Source 3)

These 2.0 strategies are not only the domain of emerging Challenger brands, they are harbingers for breakthrough, durable growth as evident by the success of more established brands:

1. OLIPOP
The soda category has undergone one of the most transformative shifts in CPG this decade. First spotlighted in our 2020 Challenger Brand Study, OLIPOP has grown from an emerging player to a modern soda powerhouse delivering indulgence without compromise. Walmart’s creation of a dedicated Modern Soda shelf underscores the growing momentum of this revolution.

2. DUOLINGO
Duolingo is transforming language learning by gamifying and personalizing the experience, making it less intimidating and more inviting. The playful presence of its mascot, Duo, brings the brand’s personality to life; Duo offers reminders and motivational messages, and makes appearances on social media in quirky moments, like attending a Charli XCX concert. Within the Duolingo community, users are encouraged to connect with fellow learners through forums and compete on leaderboards. Together, these elements make language learning approachable, enjoyable, and deeply engaging.

3. MAGNUM
Magnum Ice Cream, owned by Unilever, is elevating the nostalgia of classic ice cream novelties with its new “Mood Food” line, featuring three emotion-inspired flavors: Euphoria, Wonder, and Chill. Each flavor is carefully crafted with unique tastes and textures designed to bring these emotions to life. The “Mood Food” line taps into the growing trend of emotional eating, inviting people to savor moments of self-care, celebration, or mindfulness—all through the magic of ice cream.

We’ve identified 4 strategies characterizing how this next wave of Challenger Brands is successfully breaking through in this ever-more competitive landscape.

They have one thing in common, an acute attention to delighting their consumers – the tried-and-true way that Challenger Brands will still disrupt category leaders in the Challenger 2.0 world. As always, we want to hear from you! If you’d like more information on any of our challenger brand studies, or want to share a brand of your own, please reach out at [email protected].

The Hyper-Unit Growth Playbook

The Hyper-Unit Growth Playbook

The Hyper-Unit Growth Playbook

Rise of Unit Performance

In today’s inflationary environment, dollar growth is no longer king, with brands increasing price to keep up with costs. Instead, Unit Growth reigns supreme today.

Manufacturers care more about unit economics than ever before, equity research analysts are tracking it and, most importantly, leading retailers are now using unit growth and velocities to inform assortment, promotion and category decisions. Unit growth has become a leading indicator for brands that seek durable, resilient growth, beyond their revenue management playbook.

Hyper-Unit Growth Brands

To understand how brands are driving unit growth, we identified the brands that are exploding with double-digit unit growth and represent a significant business (>$150Mil in Revenue).

We narrowed our list to what we’re calling our Top 10 Hyper-Unit Growth Brands that are representative across categories, tenure and company types. We analyzed these brands to understand HOW they’re performing at such a high level with consumers in today’s environment.

We’ve translated our learning into a model with concrete principles that can apply broadly across categories regardless of brand size, category and age!

Hyper-Unit Growth brands prioritize strategies to drive habitual consumption by understanding how to integrate your brand into consumers’ daily, weekly, or monthly rituals- make it a necessity and easy to buy, use and replenish. Driving habit formation has been a staple of successful digital platforms which place consumption at the tips of your fingers: big platforms like Amazon with Subscribe & Save or subscription-based health services like Whoop and Oura.

Brands that rely not only on external triggers, such as subscription notification, but also internal triggers, which come from a deep need for the product, cement habits to the point where purchase is automatic rather than something that needs to be justified. Rinse and repeat services, products, and brands are becoming essential to consumers’ everyday lives.

Unlock habitual consumption with three principles:

1. Build a superior value equation
2. Inspire multiple occasions
3. Be easily accessible

These come together to create our hyper unit growth engine and altogether drive habitual usage.

Build a Superior Value Equation

A superior value equation comes to life when a brand strives to define its market position with no competition – with instead a core goal of serving the crucial, relevant consumer needs with valued benefits, along with the best ways to deliver on them.

International Delight brings fun and nostalgic flavors to consumers at a price that delights just the same. Brand licensing with other well known products and flavors boosts their flavor profile with favorites like Hershey, Cocoa Pebbles, and Cinnabon. While partnering with pop culture phenomenons boost the brand’s profile- collaborations with the recent Mean Girls movie, and TV shows like the newest season of Bridgerton. The combination of nostalgia, pop culture references, and variety makes International Delight accessible to more consumers than being just a coffee creamer.

A standout for its strong brand ethos and premium ingredients, Kodiak is all about delivering tasty and nutritious food in a protein-packed, convenient way. From on-the-go professionals to parents juggling busy schedules, Kodiak makes breakfast quick, easy, and nutritious for all with its oatmeal and flapjack cups, while simplifying at-home baking with its squeezable flapjack mix.

Sumo Citrus has made a name for itself in the world of citrus- consumers are delighted by the better benefits Sumos offer them vs. their regular mandarin or orange: They’re bigger, easier to peel, have no seeds, and taste that much sweeter! Paying the premium price for this mandarin is worth it to consumers – who flock to social media to rave about how Sumo makes their favorite fruit that much sweeter!

Vital Farms brings “ethical food to the table” through their responsibly produced eggs and butter. Their farmer’s market-inspired packaging conveys not only aesthetic appeal but the brand’s ethos, with egg cartons that proudly state, “tended by hand on small family farms” and “made with fresh air and sunshine.” For those willing to pay a little extra, Vital Farms is the perfect way to show they care about their health, the environment, and happy chickens

Be Easily Accessible

Accessibility – ensuring your brand is easy to find, buy, and use – is one of the core drivers of habitual brand usage. One click accessibility right at the fingertips of shoppers is crucial to keep people coming back – and prevent them from straying elsewhere! In today’s world, this means outsized shelf presence, multiple points of interruption in store, and showing up digitally. Brands need to always be only one arm’s length, or one click, away.

Rao’s Homemade has expanded into soups, pastas, and frozen entrées. From the brand’s inception, consumers have enthusiastically paid a premium for their sauce, drawn to the clean, high-quality ingredients and the brand’s ability to communicate craftsmanship and authenticity. Their premium packaging and brand block turns retail into their #1 medium to drive sales- supported by retailers that realize the boost to their category performance when Rao’s converts more consumers into the brand.

The search is on for fun and novel ways to caffeinate, and Alani Nu attracts Gen Z
shoppers looking for a buzz. Colorful packaging and nostalgic flavors like Hawaiian Shaved Ice bring a playful and fresh twist to the category – and remind people of their favorite childhood treats! The brand’s success is propelled by its strong instore presence, with endcaps, presence in the cooler, and special displays keeping it top-of-mind and encourage consumers to grab a few as they shop around!

In a crowded snack aisle, Nature’s Bakery stands out as the go-to for parents wanting healthier treats that kids love, while also catering to various dietary needs. Nature’s Bakery provides an engaging online experience that educates and turns one-time visitors into loyal fans. Engaging social content draws in consumers, while features like Subscribe & Save and a slew of rewards programs keep people coming back!

Inspire Multiple Occasions

This lever is all about giving consumers more ways to use your product or view your brand outside of its core offering. Being able to use one product for a diverse range of occasions sparks consumer interest, and encourages them to buy more so they can use it for all the moments they want to!

Lifeway Foods has elevated kefir and farmer’s cheese from dull dairy staples into trendy must-haves. Their Instagram serves as a hub for discovering new ways to mix their products into everyday recipes, and consumers turn to TikTok by the millions to whip up their own unique takes on these healthy but tasty innovations. While kefir is often associated with breakfast, Lifeway products can be used to elevate any meal.

Liquid IV’s hydration powders can be used by anyone, anywhere, and the brand’s fun and fresh flavors attract athletes and non-athletes alike. With benefits across energy, immunity, gut health, and sleep, there’s no shortage of moments to grab a packet of their electrolytes—whether it be following a workout, the morning after a social evening, on an airplane, or daily use to put your wellness shield on.

In a category once dominated by heavy gym goers and lackluster products, Premier Protein is shaking things up with tasty but nutritious protein solutions for shoppers of any sort. The brand celebrates the many possibilities for ready-to-drink enjoyment through its socials which offer inspiration for DIY indulgence. The versatility resonates with consumers, who are eager to share creations like “profee” (protein coffee), guilt-free “nice cream” spun in their Ninja Creamis, or even pudding!

Hyper-Unit Growth Playbook

Superior Value Equation: Be consumer need centric

Constantly improving upon the value equation, by prioritizing needs vs wants that fit into consumers’ day to day life is crucial to driving habitual usage. Brands need to understand both the core consumer needs at the heart of their decision making and the broader frame of reference in which people make decisions – and what they’re comparing your brand to – to grasp the context. A superior value equation is essential to bring in new households and drive repeat purchase.

Inspire Multiple Occasions: Understand your demand spaces

Understanding the demand spaces in which your brand can play in is critical to spurring incremental consumer usage and regimen. Consumers are motivated by underlying needs, many of which ladder up to internal triggers that can prompt instinctual repurchase. Once brands understand where to play, they can pinpoint how to best meet consumers’ needs in these spaces with priority demand plan elements.

Be Easily Accessible: Online to offline (O2O) execution

Bringing people in – and slotting into their busy lives – requires meeting consumers where they are and making it as convenient and obvious as possible that this product is a great fit for their needs. Starting point is using channels to take control of the consumer relationship both physically and digitally . Understanding the consumer role each channel fulfills, and what will delight consumers across each of these channels, will be the key to pulling on the right levers to achieve growth. In a decidedly omni channel environment, brands need to both stand out in-store as well as online with search and media to be “above the fold” and consistently show up organically for shoppers.

Let’s get in touch, we have more insights to share on each of the trends above! Reach out to us at [email protected] to discuss winning, growth boosting strategies.

Price is What You Pay, Value is What You Get

Price is What You Pay, Value is What You Get

Price is What You Pay, Value is What You Get

A Roadmap to Driving Consumer Choice

Tide and Ice-T might seem like an unlikely duo, but they teamed up for a memorable reason: cold calls. The Tide campaign called upon (no pun intended) the likes of celebrities from Annie Murphy to Mark Messier to amplify its broader #TurnToCold effort. In the commercials, Ice-T and WWE wrestler “Stone Cold” Steve Austin ring up their high-profile friends to inform them that Tide Pods clean clothes better in cold water than its cheaper competitor does in hot. The campaign’s purpose is two-fold; in emphasizing the high performance of Tide detergent in cold water, consumers can expect cleaner clothes while saving money on their energy bill and feeling better about their carbon footprint.

While the #TurnToCold commercial appears lighthearted and humorous, we also see a smart marketing strategy. Rather than competing with bargain brands on price, Tide asked a different question: how can we demonstrate the value of choosing Tide over the bargain brand? #TurnToCold is Tide’s answer, and it focuses on the benefit side of the value equation over price comparisons. This is a concept with broad application beyond the world of washers and dryers. At Seurat, we think it’s of critical importance to maintain a pulse on consumer decision making, and now more than ever brands must understand how Americans are defining value as they make product choices.

A glance at Wall Street headlines tells one story; major indices rally to heights not seen since 2022, inflation steadily moderates, and U.S. GDP shows promising growth.

However, this is just one side of the story. To understand the entire economic picture, we must also consider Main Street, where the average American works, shops, and lives. A closer look reveals that household debt is at an all-time high and real average income has declined by nearly five percent since 2019. The government stimulus and COVID lockdown savings that once padded Americans’ bank accounts and boosted discretionary spending are now depleted, and sticky inflation across major household spending areas like food and housing continues to eat away at consumers’ sense of financial stability.

Amid economic turbulence, Americans are finding it hard to maintain optimism.

The average American has experienced one too many ups and downs in recent years to maintain hope in a stabilizing economy. The Consumer Confidence Index has trended down over the past three years, with many Americans planning to reduce spending in key categories such as Sports & Outdoor, Home Furnishing, and Housing. These feelings of uncertainty have compelled consumers to change where and how they shop. More consumers are turning to value-oriented retailers in search of deals and selecting value brands or private label at the shelf. Amazon’s recent record-setting $14.2 billion earned during Prime Day underscores just how many consumers are feeling financially squeezed. Even higher-income households are feeling the effects, with 35% of those earning over $150k annually expressing concerns about meeting their financial needs and intending to cut back on spending in areas like entertainment and dining out.

Even as Americans tighten their purse strings, brands still have valuable opportunities to connect with and delight consumers.

Americans express a willingness to spend more for products that make them feel good about themselves and about the world around them. As emphasized by Warren Buffet, separating value from price reveals that the cheapest option isn’t always the most valuable one. Shoppers consider the price but also weigh the intangible costs and benefits that a brand offers, and achieving success through economic cycles means staying attuned to these values and how they might be shifting. Winning brands are the ones that are able to maximize their consumers’ value equations through changing times.

Across a variety of categories and products, we’ve identified five macro drivers of value beyond price that brands can use to be the preferred choice among consumers:

Driver #1: Convenience

As people return to the office and are increasingly mobile, demand is rising for convenient meal, snack and beverage options. Consumers are willing to pay more for food products and services that complement their on-the-go lifestyles.

Driver #2: Functional Benefits

Consumers are increasingly focusing on health and the ability of specific foods and beverages to help support physical and mental well-being. It therefore comes as no surprise that 78% of consumers are willing to pay more for all-natural labels, which is evidenced by sales of products touting functional benefits growing in share. For example, in the past four years, functional beverage sales have surged by 54%, outpacing the market by 11%. Consumers often believe paying more for functional products is worth the perceived increase in benefits.

Driver #3: Customization

As consumers seek more meaningful and tailored experiences, personalization has become a key driver of success for some brands. Shoppers appreciate the creative and bespoke touch that customized products offer. From buying hair care products formulated to your needs to enjoying music blends curated specifically for your taste, demand for unique products is transforming purchasing behavior and showcasing how deeply consumers value individualization.

Driver #4: Sustainable Choices

As focus on environmental and social issues grows, shoppers are increasingly looking to make an impact with their dollars. For example, 67% of shoppers are willing to pay more for Fairtrade products, with an average willingness to spend 9.7% more for sustainability. This trend reflects a strong alignment between personal values and buying decisions, with many consumers choosing to support companies that reflect their beliefs, albeit at a higher cost. Brands that prioritize eco-friendly practices, fair labor, and ethical sourcing demonstrate that business success and sustainability can indeed go hand in hand.

Driver #5: Packaging

Innovating package architecture provides opportunities to capture new consumers and expand a products’ use-cases. Offering hummus in squeezable to-go packs allows consumers to use it as a spread while bypassing soggy bread or the hassle of bringing a tub of hummus to the office. Cylindrical tissue boxes designed for cupholders circumvent cluttered glove boxes and attract consumers looking to have tissues readily available in their car. No matter the product, with the right packaging strategy brands can create new consumption occasions and drive incremental purchases.

To leverage these value drivers, it’s critically important to start with a deep understanding of the consumer decision process to unpack valued (or missing) benefits within the category along with the best ways to deliver on them. We’re confident that with the right insights and strategic approach, brands can not only align with evolving consumer values but also grow their impact and profitability regardless of the economic climate.

If you’re interested in learning how to maximize your brand value through a deeper dive into insights or value strategy, we’d love to continue the conversation. Please reach out at [email protected].

No Cap: Disruptive Gen Z Trends

No Cap: Disruptive Gen Z Trends

No Cap: Disruptive Gen Z Trends

Overview:

Did you know Gen Z’s attention span is just 8 seconds? That’s about how long it takes to scroll past a meme or see a TikTok video go viral…then become old news. Welcome to the whirlwind world of Gen Z trends, where today’s slay is tomorrow’s cringe.

Forget everything you thought you knew about consumer behavior—Gen Z is rewriting the rulebook. In today’s fast-changing world, Generation Z, born in the late 1990s through early 2000s, leads the charge in redefining societal norms through their unique preferences and behaviors. Gen Z is outspoken and unapologetic, representing a generation with unparalleled access to information, diverse perspectives, and significant impact on global trends.

Gen Z makes up roughly 20% of the population and has over $360 billion in spending power, influencing what we buy, how we live, and what we believe. Many brand owners don’t understand just how different Gen Z is from previous generations. As a result, brands struggle to effectively engage this mobile-first, socially conscious generation.

In a competitive market, staying relevant requires shaking up old category norms and embracing a modern, even rule-breaking approach. By unlocking insights behind Gen Z’s behavior and cultural preferences, we uncover what drives their decisions and how brands can succeed with this influential generation of consumers. Here are 6 Gen Z trends to watch out for:

What it is:

It’s the strategy of integrating video game elements, such as challenges and points, into non-game environments to drive engagement, loyalty, and motivation.

Insight:

Gen Z is perpetually plugged in, spending 9+ hours per day on screens. With 90% of Gen Z being video gamers, they are wired for gamified experiences, and their shopping experience needs to be equally as engaging. Traditional shopping lacks the stimuli Gen Z expects in their daily life, and gamification is a way to engage Gen Z shoppers with new brands or brand experiences. With the gamification market projected to grow 25% from 2024-2030, there is a big opportunity for brands and retailers to increase Gen Z buy-in by incorporating game design features into the shopper journey.

Brand doing it right:

Peloton launched gamified rides that mimic a dynamic video game experience instead of watching an instructor through a 2D tablet. Riders must push themselves to score – high resistance, cadence, and output allow them to rack up points and move up the leaderboard. The sense of progress and achievement keeps riders hooked and coming back for more.


What it is:

Social commerce is the process of selling products directly through social media. From product discovery to checkout, the entire shopping experience takes place integrated with content on social media platforms.

Insight:

Social media is not just for scrolling! Social shops, such as TikTok Shop and Instagram Shop, spur discovery and purchase without users having to leave their social media feeds. US TikTok Shop sales hit $17.5 billion in 2024 with 75% of TikTok users saying they base their household purchase decisions on products they discover in the app. For Gen Z, social media is synonymous with shopping, making it central to discovery.

Brand doing it right:

E.l.f. Cosmetics has thrived on TikTok Shop by creating engaging content like trendy challenges and creative tutorials that appeal to the platform’s users. The brand collaborates with popular TikTok influencers and uses live streams to showcase products and interact with viewers. By integrating TikTok Shop, e.l.f. provides a seamless shopping experience with exclusive deals. Their relatable, fun brand voice and active engagement with user-generated content further enhance their success on the platform. By effectively combining these strategies, e.l.f. Cosmetics has tapped into TikTok’s vibrant and engaged community, driving brand awareness, engagement, and sales.


What it is:

In a time of uncertainty and stress, Gen Z looks fondly to eras they didn’t actually experience but perceive favorably, driving them toward products and aesthetics that evoke nostalgia.

Insight:

Gen Z looks back to the past to escape anxiety about the future of climate change, rapidly rising inflation, and global unrest. Nostalgia is escapism and Gen Z is embracing any way out: music, movies, fashion, and products. 80% of US Gen Zers like when brands bring back old aesthetic styles and 74% love when brands produce retro products.

Brand doing it right:

Olipop is a healthier soda that appeals to Gen Z through retro branding and throwback flavors. It positions itself as a healthier alternative to traditional soda while using cultural references from past decades in its advertising and social media. By blending nostalgic elements with modern health benefits, Olipop effectively attracts Gen Z, offering a product that reminds them of the past and fits their current lifestyle.


What it is:

Gen Z purchases products to curate aesthetics that align with their ideal self-image, using them as tools to express and enhance their personal identity.

Insight:

Growing up with social media has driven Gen Z to develop distinct aesthetics that reflect their cultural identity and set them apart from previous generations. Gen Z is willing to spend to join in on trendy “core” aesthetics. One popular aesthetic is “gorpcore”, which is when outerwear from brands like Patagonia, Arc’teryx, and Salomon are styled and worn as streetwear. Gen Z’s obsession with “cores” has driven over 1 billion views on aesthetic trend YouTube videos. Aesthetics aren’t just for fashion – food, beverage, and beauty brands are leaning into bold, bright aesthetics, social media appeal, and convenience to grab Gen Z’s interest.

Brand doing it right:

Glossier, celebrated for its minimalist beauty products, captivates Gen Z with its sleek, pastel packaging and emphasis on natural, dewy finishes that enhance everyday looks. The brand’s effortlessly chic aesthetic aligns perfectly with Gen Z’s preference for understated beauty. Its strong online presence and community-driven marketing make it easy for Gen Z to connect with and purchase its products, reinforcing the brand’s commitment to style and authenticity.


What it is:

Private label brands are taking off, connecting with Gen Z through “dupes” and resonant value propositions.

Insight:

Gen Z struggles with the realities of being financially independent in a world where household finances are more challenging than ever. They look for ways to be smart savers wherever possible. “Dupe” culture makes knock-offs permissible and even celebrated, evidenced by the 3.7B+ views of #dupe videos on TikTok. Private Label is praised by Gen Z for its “CPG dupes” with 64% of Gen Z always/frequently buying store brands. In the era of “dupes”, name brands need to be even more creative and diligent about communicating their value proposition to Gen Z since a brand name doesn’t always carry the same cred it once did.

Brand doing it right:

Walmart’s Great Value Chicken Dipping Sauce is considered a good dupe for Chick-fil-A Sauce, closely matching its sweet and tangy flavor. It’s more affordable, widely available in Walmart stores, and offers a similar taste experience for those who don’t have easy access to Chick-fil-A.


What it is:

Gen Z is increasingly aware of environmental issues and the impact associated with product consumption, but the convenience and affordability of consumer products continue to drive their use.

Insight:

Gen Z’s commitment to sustainability at times conflicts with their purchase behavior as they weigh the cost of products and struggle with ‘green’ claims made by brands. While 91% want to buy sustainable products, only 39% are willing to pay more for them. High living costs, climate frustration, and conflicting messages undermine their commitment to products deemed better for people and the planet. This struggle is evident in the projected 37% increase in per capita plastic waste by 2060.

Brand example:

The Stanley Cup tumbler has become a popular alternative to plastic water bottles. However the tumbler is made from plastic and other non-recyclable materials, and its production is resource intensive. Marketing it as a better alternative to single use options obscures the negative impact of limited recyclability, excessive packaging, and lack of durability.


Conclusion:

These Gen Z trends reveal a generation deeply influenced by technology, social awareness, and a desire for authentic, personalized experiences. In summary, brands that recognize and cater to these preferences will be well-positioned to engage and capture the loyalty of this influential generation.

1. Unlock Gen Z’s shopping potential by meeting them where they are

Gen Z’s shopping habits are shaped by their extensive screen time and gaming interests, leading them to favor interactive shopping experiences digitally and IRL. At the same time, social media platforms like TikTok and Instagram have become integral to their shopping practices, serving as primary channels for product discovery and purchase. Brands can effectively engage Gen Z by integrating gaming elements into their retail strategies and leveraging social commerce to create engaging omnichannel shopping experiences.

How will your brand leverage gaming elements and social media platforms captivate and engage Gen Z?

2. Align brands and communication with Gen Z’s unique needs and concerns

Gen Z is drawn to nostalgia and curated aesthetics, finding comfort in retro designs and expressing their ideal self-image through bold, trendy products. Influenced by social media, they invest in items that align with their personal identity. However, their strong environmental awareness conflicts with the realities of consumable products. Brands must navigate this complexity by integrating nostalgic and aesthetic appeal into their offerings while addressing the balance between sustainability and practicality.

Which past trends do you see making a comeback, and how will your brand jump on them?

3. Offer unique value to stand out in a sea of “dupes”

To capture Gen Z in a market where private label is winning, brands must emphasize authenticity, shared values, and strong digital engagement. Despite being price-conscious, Gen Z will spend more on name brands that offer compelling value, such as higher quality, ethical practices, and exclusivity. Effective use of social media and influencer partnerships, along with unique and personalized experiences, can set a brand apart and build loyalty by aligning with Gen Z’s desire for individuality and meaningful connections.

How will your brand stay ahead and leverage the “dupe” trend in response to the growing consumer preference for private label products?


Ready to connect with Gen Z consumers? Let’s get in touch, we have more insights to share on each of the trends above! Reach out to us at [email protected] to discuss winning strategies to drive success with the next generation of consumers.

New Vocabulary Words:

1. No Cap:
Meaning: No lie, for real, genuinely.
Example: “I’m telling you, this game is the best, no cap.”
Origin: Originates from hip-hop culture, where “capping” means lying.

2. Flex:
Meaning: To show off or brag.
Example: “He’s always trying to flex his new car.”
Origin: Derived from bodybuilding and fitness culture, showing off muscles.

3. Simp:
Meaning: Someone who does too much for a person they like.
Example: “He’s such a simp for buying her all those gifts.”
Origin: Initially derogatory, it has become more mainstream.

4. Yeet:
Meaning: To throw something with force; also used as an exclamation of excitement.
Example: “He just yeeted that ball across the field!”
Origin: Became popular through Vine and TikTok videos.

5. Bet:
Meaning: An affirmation, agreement, or approval.
Example: “Want to hang out later?” “Bet!”
Origin: Common in African American Vernacular English (AAVE), widely adopted in mainstream culture.

6. Slaps:
Meaning: Really good, especially in reference to music.
Example: “This new song slaps!”
Origin: Refers to the percussive quality of music that’s hard-hitting.

7. Finsta:
Meaning: Fake Instagram account, typically used to post more personal content.
Example: “I only post those pictures on my finsta.”
Origin: A portmanteau of “fake” and “Instagram.”

8. Ghosting:
Meaning: Suddenly cutting off all communication with someone without explanation.
Example: “He ghosted me after our third date.”
Origin: Popularized with the rise of online dating and texting.

9. Glow Up:
Meaning: A significant improvement in appearance, health, or style.
Example: “She had a major glow up over the summer.”
Origin: Derived from “grow up,” but focusing on physical or lifestyle changes.

10. Stan:
Meaning: An obsessive fan.
Example: “I’m a total stan for this band.”
Origin: From Eminem’s song “Stan,” which tells the story of an obsessed fan.

11. Fam:
Meaning: Close friends or family.
Example: “What’s up, fam?”
Origin: Shortened form of “family.”

12. Low-key/High-key:
Meaning: Low-key means somewhat or secretly; high-key means very or openly.
Example: “I low-key love this song” / “I high-key need a vacation.”
Origin: Terms adapted from musical terminology.

13. Mood:
Meaning: Used to express that something is relatable.
Example: “That cat napping is such a mood.”
Origin: Gained popularity on social media platforms like Twitter.

14. Tea:
Meaning: Gossip or news.
Example: “Spill the tea!”
Origin: Derived from “T” in drag culture, meaning truth.

15. Salty:
Meaning: Bitter or upset.
Example: “She was salty about losing the game.”
Origin: Slang that has been popularized through social media.

16. Woke:
Meaning: Socially aware and attentive to issues of social justice.
Example: “Stay woke about what’s happening in the world.”
Origin: AAVE, has entered mainstream usage.

17. Rizz
Meaning: Shorthand for charisma, used when someone has a charming or magnetic personality
Example: “He’s got serious rizz.”
Origin: Became popular through social media platforms like TikTok and YouTube.

The Power of Purpose: Harnessing Brands for Good

The Power of Purpose: Harnessing Brands for Good

The Power of Purpose: Harnessing Brands for Good

Ask a marketer about their priorities these days, and you’ll likely hear a few common refrains – navigating economic uncertainty, incorporating AI technology and creating personalized experiences, to name a few. But more so than ever before, purpose has found its way into the conversation.

This comes as no surprise: Gen Z is inheriting a world riddled with challenges, and it seems everywhere you turn there’s a new data point proving how much they care about purpose. As EY aptly observes, “While the core issues that unite them vary from region to region, Gen Z is laser-focused on enacting change and taking action to achieve the future they desire for themselves and the world around them.” Once considered a nice-to-have, purpose is rapidly becoming an imperative for brands to grow with future generations. Even non-Gen Z consumers report that purpose significantly impacts purchasing decisions and loyalty. A recent study suggests consumers are four times more likely to support a brand with a strong purpose and six times as likely to stick by that brand in a challenging moment. The thing is, while it’s easy to declare a priority, purpose is challenging to execute well. Our experience suggests brands fall into one of three camps:

Laggards:

The worst offenders make thinly veiled attempts to take advantage of cultural conversation in a way that has little or no connection to their DNA. This manifests in inauthentic executions that ring hollow – for example, appropriating the rainbow during Pride Month or loudly praising female leaders on International Women’s Day while women remain woefully underrepresented on boards and in the top ranks of management.

Mainstream:

Most brands have admirably committed to doing good in a way that’s tied to the category in which they compete. Coffee and chocolate brands source ingredients in ways that are sustainable for people and planet. Apparel brands donate shoes or socks to people in need. This is good business, and we need these brands to continue their efforts.

Leaders:

A select few brands – and the focus of this paper – have managed to embrace purpose in a way that amplifies their core tenets. That is, their impact work is not just relevant to their category, but central to their brand promise. Consider this purpose marketing nirvana: complete harmony between what the product does for consumers and what the brand does for the world.

Here are 10 brands that can inspire the rest of us to harness the power of purpose.

ByHeart

ByHeart is on a mission to build a future where all caregivers can feel amazing about feeding their babies – regardless of how they do it. The product itself is a clean-ingredient, USA-made, all-in-one infant formula that boasts a closest-to-breastmilk protein blend and removes the need to choose between functional benefits like brain or digestive health. Its online community cluster provides expert answers and advice for breastfeeding and formula feeding. And every purchase contributes to ByHeart’s Open-Hearted Initiative, which together with nonprofit Baby2Baby provides infant formula, nutritional education & other essentials resources to families who need it most – lessening the burden & worry for caregivers while advocating for change that makes feeding more equitable. To date, ByHeart has donated more than 160,000 feeds.

Fenty Beauty

Fenty Beauty is on a mission to make beauty accessible to all. The brand, founded by Rihanna, took the industry by storm in 2017 with “The Fenty 40,” its radically inclusive portfolio of foundations including skin tones that are historically harder to match. (The portfolio has since expanded to include over 50 shades.) Fenty’s 2022 Icon Lipstick campaign featured the tagline “Made to Be Seen,” elegantly weaving the product benefit with a message of inclusivity and inviting consumers (especially BIPOC) to stand tall and be seen. Fenty Beauty also has a long-standing partnership with the Clara Lionel Foundation, which has given more than $100M in grants across the Caribbean & is dedicated to supporting BIPOC communities. A pioneer of ultra-inclusive beauty, it has catalyzed “the Fenty Effect,” spurring other beauty brands to launch their own product lines that are not just inclusive of brown & black consumers, but truly designed for them.

Cotopaxi

Outdoor adventure gear brand Cotopaxi asserts that “adventure inspires people to see the world and make it better.” While its products are ideal for seeing the world, they clearly deliver on making it better, too: Cotopaxi gear is designed to create as little waste as possible, with 94% of products containing repurposed, recycled or responsible materials. By next year, 100% of their products will meet this standard. Cotopaxi’s brand promise goes beyond minimizing manufacturing waste and invites consumers to take part in the process. Their trade-in & repair program (Mas Vida) allows consumers to trade in old gear for gift cards, and the trade-ins are then repurposed and given new life, quite literally becoming part of the fabric of their next product. A delightful upshot of this process is that many products are unique: their beloved Kapai bags are made entirely from leftover fabric scraps, with local artisans deciding how to piece them together in the most interesting way.

Chewy

Pet e-tailer Chewy.com has a passion for pets. The website gives new and seasoned pet parents access to an endless supply of products and services designed to help pets lead happy, healthy lives. Optional subscriptions make pet parenting even easier by delivering everything from premium food to flea treatment and peepee pads right to your door. The brand shows up across touchpoints with warm, inviting visuals and small, personal touches that reinforce its identity as a trusted partner in pet parenthood. Not surprisingly, the brand is also active in philanthropic efforts, donating essentials to rescues and facilitating adoptions to connect pets with loving homes. To date Chewy has donated more than $180MM in pet products to ensure shelter and rescue animals get the quality care they deserve.

Melissa & Doug

Toy manufacturer Melissa & Doug is on a mission to make the world a better place for children through the power of play. In a world of screens and dwindling attention spans, Melissa & Doug toys are 100% screen-free & designed to spark imagination. Beyond providing obvious social and emotional development benefits, the portfolio famously includes wooden toys that are longer-lasting and biodegradable. Melissa & Doug’s approach to philanthropy thoughtfully centers around creating more opportunities for open-ended play among children who might otherwise lack them: to date they’ve donated over 5,000 screen-free toys to pediatric patients & family support centers, contributed over 500 volunteer hours to causes dedicated to helping children thrive (from stocking backpacks to hosting food drives), and given directly to charitable organizations that assist children in unstable environments.

Blueland

Blueland’s mission is to make it “easy to be eco,” focusing primarily on eliminating single-use plastic from our oceans and landfills. The portfolio includes pods of dish, laundry and toilet cleaning products designed to be used the same way as conventional products but without the plastic. As CEO & co-founder Sarah Paiji Yoo says, “we work tirelessly to remove barriers to using our products and ensure they’re just as effective as they are convenient. No one should have to sacrifice a clean home for a clean planet.” Blueland educates consumers about going green not only by proving its products are highly effective, but also by publishing practical tips for sustainable living. The brand is highly involved in activism, with Paiji Yoo playing a key role in initiatives like Amazon’s plastic-free shipping pilot and recent legislation banning plastic pods in New York City.

Cora

Cora’s mission is to make period care accessible to all – inspired by the belief that every body deserves comfort. This belief manifests in products like 100% organic cotton tampons and pads, and in its portfolio of reusables, including discs, cups and period underwear. As a B corp, the company meets the highest standards of verified social and environmental performance, public transparency, and legal accountability. And with each purchase, Cora donates period products and body literacy resources to people who might otherwise go without. As CMO Dana Cohen notes, “Our giving mission is important to our customers, but also to our employees, who feel like we’re making a difference. To date, the brand has donated 24MM products, with 75% of domestic giving dedicated to BIPOC communities.

KIND

KIND Snacks is committed to creating a kinder and healthier world – one act and one snack at a time – with a brand promise that includes being kinder to our bodies, our communities and our planet. ‘Bodies’ involves a commitment to wholesome, low-glycemic snacks with high-quality, recognizable ingredients and no artificial sweeteners or sugar alcohols. ‘Communities’ includes local service and a project connecting companies with frontline institutions in need of various qualify of life goods. ‘Planet’ includes initiatives like the Almond Acre Initiative, a pilot program whose goal is to source 100% of almonds from farms leveraging regenerative farming techniques, as well as pollinator advocacy. These three pillars create a cohesive brand promise that reinforces the relationship between how we treat ourselves, others and the world around us.

Applegate Farms

Applegate Farms, LLC is focused on ‘Changing the Meat We Eat®’ by developing a holistic system that connects the health of humans, animals and the planet. The idea is simple: make products that taste good and do good by committing to a future in which meat is produced responsibly, with no antibiotics – ever – and a focus on humane treatment of animals. To date Applegate has raised 12MM animals in higher welfare conditions and provided craveable protein free from 700 prohibited ingredients. They’ve made significant donations to nonprofits and prevented nearly 700,000 pounds of harmful chemicals from entering our waterways. Next up is embracing regenerative agriculture: Applegate has committed that by 2025, 100% of their beef hot dogs will be sourced from certified regenerative farms. Senior Director of Mission & Advocacy Carolyn Gahn notes that to hold itself accountable, as of 2023 the company publishes an annual mission report measuring progress against its Mission Standards Index, which includes people, environmental sustainability, ingredient integrity and animal welfare.

Harmless Harvest

Harmless Harvest is working toward a future where coconut agriculture has a net positive impact on our climate. The connective tissue is replenishment: coconut water (and the brand’s other coconut-based products, like yogurt) provide electrolyte-rich hydration that replenishes the body, and the commitment to regenerative coconut farming is designed to replenish the planet. Harmless is loyal to the Nam Hom coconut, sourcing from organic certified farms in Thailand, where the company is headquartered and where its investment translates to new school uniforms, water filtration systems and mobile medical trucks for preventative healthcare in local communities. While there’s still work to be done, there are already demonstrable benefits to the ecosystem, soil, crop yield, farmer income and end product.

When it comes to purpose, thinking like a leader isn’t easy. Thankfully, these brands (and dozens more) are setting a new precedent where purpose isn’t just good business, it’s another lever for building and scaling great brands.

If you’re interested in rethinking your brand purpose, we’d love to continue the conversation. Please reach out at [email protected].