4 Consumer Trends Small Business Owners Should Know

Customer behavior is always evolving. Keeping up with these shifts can help small businesses stand out.

According to McKinsey & Company’s State of the Customer 2026 report, released in June, consumers remain heavily influenced by technology. They’re also focused on health, seek experiences from companies and brands, and rely on their resourcefulness. Here’s more about what you should know about these trends and how you can capitalize on them in your marketing strategies. 

AI is shaping how people shop, especially Gen Z

The report found that 28% of Gen Zers use artificial intelligence tools to shop compared to 16% of baby boomers. And 60% of Gen Zers also regularly use the AI overview within traditional search platforms. Social media also remains an important platform. About a quarter of Gen Zers discover new brands on the platforms, which help them make purchase decisions.

Small businesses should position their products and services for AI-enabled platforms by ensuring their website and social media content features clear, structured information that’s easily scannable by large language models, such as FAQs.

SMBs should also lean into public relations and local media to release accurate messaging, which creates a credible narrative that AI models will “recognize and amplify,” the report says.

Health and wellness matters to consumers  

Consumers are increasingly health-conscious. The report revealed that more people are cutting back on alcohol, sugar, and ultra-processed foods, as well as taking GLP-1 medications and using wearable health trackers to monitor sleep and stress levels. But more than half say they struggle to achieve their wellness goals.

As consumers have more access to their health data, they’re often using it to drive their purchases. Small businesses should consider how to position their products and services to connect to these behaviors. For instance, restaurants should discuss the health aspects of their menu items, whereas cleaning, pest control, or home improvement businesses could lean into how their services can lower homeowners’ stress.

They seek experiences

Consumers said they prefer to spend their extra money on experiences instead of goods. They also prioritize experiences that enable them to spend quality time with others, relax, and learn. At-home experiences, such as streaming and social media, are especially appealing to Gen Z consumers.

Small businesses should think of ways to tie their offerings to social media experiences, such as games, contests, or interactive content. Creating unique experiences — online or in-person — are techniques that help small businesses stand out. 

Consumers are more resourceful than ever 

Cost remains a concern for consumers, and it’s driving what and how they buy things. They’re more likely to switch brands, buy different-sized packages, seek promotions, look for secondhand items, and take part in social media “buy nothing” trends.

The report found that 82% of consumers are using items longer before replacing them, 69% are repairing products instead of throwing them away, and 68% are actively reducing waste. About half of consumers reported that they’re “DIYing services they previously paid for,” like home repairs and beauty treatments.

Small business owners should focus on the value they’re offering customers by emphasizing the quality of their products or services, including their durability and versatility. Proprietors should also emphasize products’ “multilife use cases,”  repositioning them as investments, according to the report.

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