Circana has delivered its 2025 outlook, predicting that economic pressures will ease in 2025, providing opportunities for growth in the retail industry.

The market research firm hosted its annual State of the Industry event on Thursday, covering anticipated shifts in the economy, strategies for maximising opportunities in the retail industry, and insights into consumer behaviour.

Circana advised brands and retailers to insulate against price sensitivity by providing 'permission platforms'. These opportunities include indulgent experiences, i.e. bringing out of home experiences into the home; amplifying affordability & inspiration by showcasing value and benefits to evolve the conversation beyond price; currency-of-convenience, i.e. finding the sweet spot between creativity and convenance for home-cooks; appealing (non) attributes, i.e. leveraging the trends resonating with a sufficient consumer audiences like sugar-free or high protein; and blurring boundaries, and social sensations - blurring category and channel boundaries to out create excitement.

"When we talk about changing the conversation we're talking about value. And moving the dial towards benefit-incentives rather than only price incentives. That's how Australians determine value for money. It's about price. But equally about benefits that signify quality," said Insights Director - Australia, Circana, Daniel Bone.

"Changing the conversation helps protect brands against ongoing price sensitivity and also allows us to create permission-to-spend in more creative ways."

The firm also forecasts that technology, particularly the power of data and AI, will be a focus for brands and retailers in 2025. Importantly, Circana asserted it will be the quality of data and how it is leveraged by brands that will make the difference in delivering elevated customer experience.