If the first half of 2025 taught us anything, it’s that business as usual is over.
From AI integration to retail media dominance to the rise of social commerce, this year has made one thing clear: agility isn’t optional—it’s the cost of entry. Consumer behavior continues to evolve, economic pressure remains high and traditional paths to growth have splintered. Yet in the chaos, we’ve seen new strategies emerge.
This is our pulse check for the second half of the year—what’s working, where leading brands are investing and how to navigate what comes next.
What the First Half Made Clear
2025 started fast—and unpredictably. Tariff pressures, softening consumer spend and budget constraints collided with rising expectations across channels. In this landscape, three truths have emerged:
Brand loyalty is fragile. Value-first shoppers are quick to switch.
Shelf space is now digital. Visibility is algorithmic, not aisle-based.
Speed matters—but clarity wins. The best brands have adapted in real time—not with perfect plans but with strategic responsiveness.
The CPG brands pulling ahead haven’t waited for the fog to clear. They’ve moved decisively—anchored in fundamentals but built for flexibility.
Five Trends Defining 2025 (So Far)
1. Omnichannel isn’t a strategy—it’s the standard
Consumers don’t think in channels. They move fluidly between in-store, mobile and social—expecting cohesion, not just presence. In this environment, brands must show up consistently and compellingly across every touchpoint, from DTC to TikTok to shelf. The strongest brand ideas stretch—transforming into flexible, multi-format systems. It’s not just about showing up everywhere, but ensuring every expression feels connected, intentional and resonant.
2. Retail media is redefining growth
Retail media is no longer experimental—it’s essential. According to an eMarketer report, US retail media off-site ad spend is expected to grow 42.1% in 2025, more than twice the rate of on-site spend. By year’s end, it will represent 17.9% of all digital media spend, with projections pushing it beyond 20% in 2026. But growth alone doesn’t guarantee performance. Brands must navigate a fragmented ecosystem of platforms, measurement standards and creative constraints. What separates the leaders is not how much they spend but how strategically they show up—especially through pack, story and assets designed for brand impact.
3. AI’s real value lies in speed—and a premium on humanity
AI is transforming how brands build—from personalization and forecasting to content development and scaling. But in a world of infinite automation, brands that express humanity win. The strongest systems scale through automation—but stay rooted in meaning, emotion and values people actually care about.
4. Social commerce is real business
What once was a test channel now drives conversion at scale. Platforms like TikTok, Instagram and YouTube have become full-service storefronts—where discovery, engagement and purchase happen simultaneously. Culturally fluent brands are developing identities and storytelling that thrive in feed-first, commerce-enabled environments. It’s not about following culture. It’s about designing with it.
5. The sustainability signal is getting lost in the noise
Consumers are increasingly skeptical of sustainability claims that feel vague, opportunistic or hollow. The brands that continue to earn trust are those that lead with measurable, transparent action—clear about what they’re doing and why. Authentic sustainability narratives stand out when they’re clear, expressive and credible—designed to resonate across every touchpoint, not just appear in messaging.
Mid-Year Missteps to Avoid
Even high-performing brands risk falling behind when outdated behaviors persist. These are the most common missteps we’re seeing—and the shifts needed to move forward in the back half of the year:
1. Waiting for perfect data before acting on AI
Brands stuck in planning mode miss the momentum that comes from testing and learning. In a space where speed matters more than certainty, the goal is to start small, learn fast and scale what works.
2. Treating content like a one-size-fits-all message
Uniform storytelling across platforms and audiences results in diluted impact. Today’s content must flex—modular, format-aware and tailored to how people actually engage across channels.
3. Thinking of retail media as ad space, not brand space
Retail media isn’t just a line item in the media plan—it’s now a critical brand touchpoint. When brands treat it as transactional, they miss the opportunity to build equity, relevance and partnership.
4. Relying on loyalty mechanics without emotional engagement
Points programs alone don’t earn loyalty. Consumers expect value exchanges that feel personal, reciprocal and dynamic. Brands that integrate loyalty into the broader brand experience create stronger connections—and better retention.
The Back Half Belongs to the Bold
The second half of 2025 won’t reward risk aversion. It will favor brands that move decisively—those building smarter, leaner systems that respond to cultural shifts, technological change and commercial pressure in real time.
We’re already seeing it play out. Leading CPG brands are using AI to validate product ideas before full R&D investment, shortening timelines and de-risking innovation. They’re launching creator-powered campaigns built for conversion, not just awareness. They’re deepening retailer relationships through data clean rooms and shifting from static storytelling to dynamic co-creation.
So what does it look like to scale smarter in 2025 and beyond?
It’s building brand systems that grow without losing meaning—systems that flex across channels, absorb insight in real time and express what makes you different, clearly and consistently.
The brands that do this well will be the ones who:
- Activate AI with purpose—focusing on utility, not novelty—to build systems that accelerate personalization, insight and innovation.
- Design for distribution—not just differentiation—by aligning brand systems with the environments where they need to perform: from retail media to marketplaces to mobile commerce.
- Translate consumer learning into brand evolution—using behavioral signals and retail insight to clarify positioning, sharpen relevance and drive smarter product development.
- Build flexible ecosystems—where every touchpoint reinforces what the brand stands for, how it’s different and why it matters.
Scaling smarter isn’t just about moving faster. It’s about building with intention—so your brand grows with clarity, agility and staying power.
ABOUT LPK
LPK is a modern brand consultancy that applies insightful strategy and beautiful creativity to harness change—making momentum that grows brands and businesses.
