Inflation is impacting consumer behavior. Mitchell Cooper, brand manager at KitchenAid Small Appliances, Whirlpool Corporation, says that inflationary pressures will drive consumers to cook more at home than they have in the last year.

“As consumers feel inflationary pressures, they save cash by first cutting small luxuries like eating out,” says Cooper. “When consumers cook at home, the perceived value of products that make this task easier/enjoyable will increase. For example, white collar professionals throughout 2022 began returning to office – with this increased time spent commuting vs 20/21, consumers might see high value in products/accessories that enhance the comfort & ease of being in a vehicle. Additionally, as was seen in the 2008 recession, expenditure in cheap thrills categories (alcohol, candy) will increase as consumers seek immediate & low-cost ways to relieve distress and find pleasure.”

Cory Sexson, vice president & general manager, emerging brands & breakthrough innovation at Tropicana Brands Group predicts that consumer value will be redefined. “The pandemic shed light on the increased importance of health and wellness, the value of shared experiences, and the importance of slowing down and living with intention,” says Sexson. “However, with macroeconomic shifts looming, brands are going to have to continue to meet consumers where they are, but will need to find new ways to redefine the consumer value equation as wallets will be increasingly stretched.”  

Brands will look to break through economic stress by entertaining consumers in fun ways. “Nostalgia from 80’s/90’s/00’s brands continues to excite families as parents love to pass their childhood favorites down to their kids and show some love from their childhood,” says Michael Abata, director growth partnerships, CAMP.

Brand purpose

Consumers will continue to support brands that share their values this year.

“We will start to see brands show up differently in 2023 with the culmination of multiple influences,” says Rae Wang, director of treat marketing, Dairy Queen. “The fight for transactions (for the brand) and the growing importance of authentic, value-driven brands (for the consumer) will be the catalyst for many changes including ‘Customer Service as Marketing.’ I think we will see brands showcasing, and getting more credit for, the 1:1 service/experience they offer to guests- both in earned and paid channels. Not only demonstrating the brand’s authentic values, but also answering the why as consumers face hard choices on who to purchase from. Chick-fil-a has started to adopt this strategy in their TV spots telling stories about relationships between their crew and guests, in addition to brands like Chewy getting talk value and heightened brand love from stories of them sending flowers to pet owners after loss.”

“My trend/prediction for next year is that brand purpose will be more important than ever before,” says Andrea Schwenk, chief marketing officer at Egglife Foods. “With the immense information overload that today’s consumer has, coupled with inflationary pressures and tightening wallets, brands will need to be more focused than ever on a clear and meaningful brand purpose to differentiate and connect with consumers.”

“A trend or prediction that’s top of mind for me as we look to next year is the importance of a diverse-first approach for brand marketing,” says Erica Jones, Senior Manager, Cultural & Inclusive Marketing, Kellogg Company. “The multicultural population is growing in America, and it is critical for brands to keep in mind that Gen Z is inherently multicultural. Diversity must be infused throughout our work and start with deep insights on diverse cohorts that ultimately results in great work that is meaningful and makes an impact.”

“The growth of plant-based protein products over the past few years has been undeniable,” says Eric Mills, associate director, innovation at The Kraft Heinz Company. “However, as prices in supermarkets continue to increase, how will consumers react to the typically high cost of those items? Will they continue to prioritize including more plants in their diet and make tradeoffs elsewhere? Or will they be forced to manage rising costs by moving away from those dietary choices?”

Innovation and tech

“One trend in the promotions space, aside from the continued shift from print tactics to digital tactics, will be leveraging AI to move from descriptive targeted offers to prescriptive offers,” says KC Glaser, senior manager, brand experience, loyalty at General Mills. “More companies will use AI and machine learning to parse through huge amounts of data we receive to recognize patterns and give every user a unique journey.”

“As budgets get cut and staffing streamlines, companies are going to look for more efficiencies across content strategy, creative production and reporting. I’m in the thick of it at my current company and lead efforts at my previous employer,” says Katie Hepler, Director, office of the CMO, Life Time Inc. “The new normal is going to be doing equal to previous years with less resources and figuring out how to structure work so team members don’t burn out. It doesn’t stop with marketing, brand and comms – these efforts will reach other business areas like operations and sales (they need us!).”

“Attention/eyeballs are shifting at a faster rate than ever before. I think we’ll see more effective opportunities in streaming, and certain social channels,” says Drew Brinckerhoff, marketing director at Ben’s Original, North America, Mars. “With this consumption shift and a proliferation in media, we’ll need to wade through the fragmentation. The route to mental availability is growing in complexity.”

“My prediction for the next year is that companies are going to start leveraging first-party data for more than just targeted advertising,” says Bryce Boothby, director, global technology at McDonald’s. “Companies are looking at how they can improve the customer experience through a better understanding of who their customers are and what they like. Creating a connected experience from end to end that is truly unique from customer to customer.”

Metaverse‍

“With mounting pressure on the Metaverse and Web3 from brands, marketers and consumers alike, the focus and attention will shift back to Gaming to drive digital engagement with fans and audiences at scale,” says Bryan Waddell, brand marketing manager at Hot Pockets, Nestlé.

“2023 is poised for several significant shifts and advancements in marketing as we see more brands discover opportunities surrounding the metaverse, we prepare for a cookie-less future, and there is a continued push for transparency in tech,” says Holly Spaeth, vice president, corporate branding & partnerships at Polaris. “Having said that, I believe next year we will continue to see the rise of the micro-influencer and further monetization opportunities for content creators. We are poised to see a race between the publishing platforms to keep these creators creating and doing so attached to their brand and offering.”

“It will be more important for brands to represent the culture of their audiences, which will factor into consideration and, ultimately, sales,” says Erin Griffin, Vice President of Marketing & Communications, Riddell.  “We are focused on acting at the speed of culture to maximize brand relevance, be increasingly opportunistic, and remain relevant with our many stakeholders.”

“As we look to 2023, I’m watching brands who are investing in their digital experiences to build communities,” says Olivia Ross, senior digital marketing manager at El Pollo Loco. “There is tremendous opportunity in leveraging first party data in new ways, introducing Web 3.0 into marketing, and creating holistic experiences around insight; I think we’ll see a lot of magic come out of marketing departments next year and I’m eager to see how brands start to bring these opportunities to life.”

Zach Berliner, Senior Director, Sponsorships, Lifestyle & Experiential Marketing, Constellation Brands, expects the continued evolution and merger of IRL experiences and virtual/digital extensions. “How will metaverse, AR/VR, etc. further impact the behaviors and experiences of our consumers? How will a potential recession that on the horizon impact consumer behavior around their choices of what to drink, where and with whom.  Will the post-Covid Roaring 20s thesis uphold?”

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After taking off in recent years, these challenger brands are facing a tough market looking ahead to 2023. Building loyalty among consumers will help.

“Growth hacking tactics that DTC brands have relied on for years are no longer nearly as effective as they once were, so brands will go old school and invest in building meaningful connections to their customers through community, content and elevated in-person experiences,” says Ryan Eckel, brand president at Tracksmith. “These brands will realize that digital touchpoints with their customers aren’t enough, so we’ll see exciting innovations in physical retail and experiential marketing.” 

Higher priced digital ads will likely continue into 2023, forcing DTCs to get creative with how they manage their marketing budgets.

“The iOS attribution apocalypse feels like ages ago, and most digital marketers have acclimated to the new normal of higher customer acquisition costs and an uncomfortably large data gap,” says Jamie Wardlow, vice president of marketing at Lume Cube. “For better or worse, with CPA pain tolerance at an all-time high, 2022 was a year for exploring new media or platforms for most marketers. 2023 will be a new war of attrition as most brands fight the urge to dial back spending and look to unlock more marketing efficiency through better creative insight and testing strategies. Good luck out there.”

For Drinks.com, a brand that lets consumers order alcoholic beverages online, has been navigating this market with a focus on customer loyalty. 

“2023 will bring us much more of the uncertainty we’ve seen over the last couple of years. We are increasingly unable to rely on channels that have helped DTC in the past, such as social media, search ads, and other platforms for acquisition tactics,” says Brandon Amoroso, president and founder of Electriq, a DRINKS company. “But with uncertainty, there is opportunity. DTC brands that succeed and weather the storm will be hyper-focused on customer experience, building customer loyalty, and creating and cultivating direct relationships through SMS, email, and other owned channels, rather than through an intermediary like Meta or Twitter.”

In an economic downturn, digital marketing – which DTCs tend to be especially good at – are the best ways to drive ROI.

“As the market continues to shift away from traditional advertising, especially for DTC brands, I expect to see many companies looking for ways to force digital marketing to work for them the way that those traditional channels did for brick-and-mortar brands for decades,” says Caroline Duggan, chief brand officer of Lumineux. “Those who are more fluid will seek out ways to move with consumer sentiment, leaning into third-party endorsement strategies combined with a return-to-form for copywriting that I find particularly thrilling. The copy I see delivering for brands requires storytelling à la David Abbot. Clean, clever and thoughtful wins the race in our current atmosphere, and those willing to rise above the lazy and (I’d say) scared-to-death communication of years past will find themselves forging meaningful, lifelong relationships with consumers. And what could be better than that?”

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Brands are no longer just in the market to sell a product, they are showing up and authentically embedding themselves into the entertaining events that consumers attend. Expect entertainment to be on the agenda for brands in 2023 as they look for ways –both in person and digitally – to delight consumers in 2023. 

“The past few years have changed the way we see marketing, evolving from entertainment to using creativity to solve consumer and business problems,” says Richard Oppy, vice president of global brands at  Anheuser-Busch InBev. “For AB InBev, we had a record-breaking year at Cannes but even more exciting was that most of our recognized work weren’t ads. Taking an “action, not ads” approach is how you earn respect and trust from consumers, and this sentiment will continue in 2023 and beyond. Second, the world continues to become increasingly dynamic and as a result, agility is essential. Good ideas can come from anywhere, and when they do, they move fast.”

In 2022, Bose hosted music listening events on Record Store Day, facilitating an entertaining experience in a place that consumers want to be. Expect more of these types of activations in 2023. “It’s really about us just creating unbelievable content around the community of music fans, to help celebrate their passions,” says Jim Mollica, chief marketing officer at Bose. “I’m really excited that we have some big things coming up around the corner. To start, things that you’ll see at South by Southwest and some other experiences along the way, where you would expect us to be, where music plays a critical role and share that with the legion of passionate music fans.”

Streaming will continue to be a huge driver in the entertainment industry, but the amount of choice has escalated and fragmented the market. With price increases in subscription fees, many of the larger players including Netflix, Disney+ and Paramount+ have recently entered the ad-supported model, which gives brands a new opportunity to get in front of consumers in these highly engaged entertainment channels. Expect to see more brands enter the space in 2023. While brands will still spend more on traditional TV in 2023, ad spend on streaming services will increase to around one-sixth of linear TV ad spend next year, according to Insider Intelligence.

Next year, brands will also continue to work with celebrities and creators in their content, in newer and more unexpected ways. 

“Celebrity talent, especially musicians, are crossing genres and becoming multi-hyphenates. It may seem initially surprising to see artists unexpectedly pivoting in their careers, but many of them are working on new, passion “side” projects that are outside their labeled lanes,” says Anna Gregorek, senior director of music brand partnerships, UTA. “An EDM artist will now have a country album or a musician who has never partnered with a corporate company are now becoming creative directors and ambassadors to their favorite brands. Post pandemic, artists feel the urgency to find ways to tick off their ‘bucket list’ dreams and career aspirations. Get ready to be surprised by some of your favorite artists in 2023 for their choice of recordings, brand collaborations and events.”

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“The beyond beer category as a whole continues to be the choice of younger LDA (21+) drinkers,” says Lesya Lysyj, chief marketing officer, Boston Beer Company. “We’re seeing a wide range of new entrants into categories such as spirits-based seltzers and ready-to-drink cocktails and that’s where we expect much of the growth to come from.” 

The vodka category was the largest white spirits category worldwide in the last couple of years and is expected to maintain its growth. Quentin Meurisse, VP, business acceleration and planning at Absolut says the global travel retail and on-trade premise business did well in 2022 as a result of lifting the covid restrictions. “The spirits industry in general, and the vodka category in particular, is still experiencing ‘revenge conviviality’ – a boost recovery from covid where consumers long for socializing and enjoying drinks,” says Meurisse. “As the wider emerging premiumization trend of spirits consumption is now reaching the vodka category, we will see propositions reflecting the growing interest in the distilled process, purity in liquid, etc.”

Pernod Ricard has seen first quarter sales grow by 22% and expects “dynamic” sales to continue throughout 2023, driven primarily by the Scotch category and its iconic brands Jameson, Absolut, Beefeater and Martell, the company reported in its most recent quarterly report. Diageo is predicting 5-7% sales growth for 2023-2025.

Mindful consumption is a trend that is expected to continue in 2023 as spirits brands support consumers looking to drink more responsibly. As Diaego heads into the holidays, the company is running a campaign called “Drops of Advice,” about how to celebrate in a healthy manner. Expect this messaging to continue in 2023.

“As the world’s leading premium drinks company, Diageo is committed to changing the way the world drinks for the better, by celebrating moderation and continuing to address alcohol-related harm,” says Ana Fitzgibbons, director of Diageo in Society, North America. “We want people who choose to drink to drink better, not more.”

“Looking ahead to 2023, the increased awareness for healthier lifestyle among consumers and especially for the younger generation will continue, resulting in continued interest in products with lower ABV that are suitable for daytime drinking and more frequent social occasions,” adds Meurisse. “We also expect the category to see more collaborations with celebrities and influencers as has been common in tequila brands in the past years. The alternative type of collaboration will be with other products and brands in adjacent industries like the collaboration between Absolut and Tomorrowland.” 

Purpose will also be a key attribute for spirits brands looking to connect with audiences with shared values. Expect to see support for sustainability among other values next year. “One trend which cannot be ignored is consumers’ demand for brands to be embracing sustainability,” adds Meurisse. “And they increasingly want to be part of a brand’s transparent journey and progress towards its goals – opening up a huge opportunity for brands to engage with consumers to inform sustainable strategic thinking and direction. Needless to say, talking the talk won’t be enough – it has to be underpinned by concrete action.”

Beer sales are expected to increase 8% in 2023 as the category continues to expand with a range of craft beers, non-alcoholic beers and seltzers. Danish brewer Carlsberg reported that inflation has not hit the beer sales category yet but said it could impact beer sales in 2023 as brewers continue to raise prices. “So far we have seen very little evidence of any consumer impact of rising inflation,” said Cees’t Hart, CEO of Carlsberg Group, in a quarterly earnings statement.

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As digital engagement and fan player connections have increased through social media and more streaming opportunities brings more events home, expect digital engagement and more immersive experiences in sports marketing in 2023. 

“I couldn’t be more excited about the outlook for the Sports category in 2023,” says Marissa Solis, senior vice president of global brand and consumer marketing at the National Football League. “As fans continue to face challenges in their everyday lives with the economy and rising global tensions, sports will continue to be an escape and a unifier that many long for. The stakes will be high in terms of our fans’ expectations for engaging experiences.”

“In 2023, there will be more ways to watch than ever before through new streaming and DTC options,” says Solis. “We will not only bring the game closer to our fans’ fingertips, but we will have the ability to also bring all the exciting narratives that surround the game and experiences on and off the field. Technology will allow us to tell deeper ‘helmets off’ stories and connect with our fans on a more intimate level and on their terms…bringing the game to them always and anywhere.”

“More streaming content will be created which allows fans to see the behind the scenes of the NFL,” says Cheyenne Cantor, executive at UTA Entertainment Marketing. “This will further deepen the relationship these new fans have with their new favorite players, coaches, and even cities. This content gives new and existing fans the opportunity to feel as though they know these athletes on a personal level. Like the success of the Netflix show, Formula 1: Drive to Survive, I would expect to see documentary style content following the NFL and/or specific teams allowing for further engagement and brand love.”

As more players connect with fans with more personal storytelling through social channels, brands will have an opportunity to support these stories. Nationwide has plans to amplify the stories of women athletes in 2023.

“For Nationwide, creating opportunity around women’s sports and supporting the athletes is a space where we see growing momentum and great potential,” says Ramon Jones, EVP and chief marketing officer at Nationwide. “Our partnership with the National Women’s Soccer League is an example of such a commitment. Since our sponsorship began in spring of 2021, we’ve invested in growing the game and we’ve developed a community impact platform that benefits charitable partners in each team market. We also recently piloted a program where we hosted several NWSL players for a two-week professional development experience at our company headquarters in Columbus, Ohio. We look forward to continuing to support the league both on and off the pitch in 2023 and beyond.”  

Justin Toman, head of sports marketing & partnerships at PepsiCo expects the strength and value of live sports to continue to grow, with the sports tech and sports media sectors driving the majority of growth. “Growth may be measured, especially in the first half of 2023 when macro-economic conditions are likely to slow fan demand for the sports they love, but not erode it,” says Toman. “Properties and brands are likely to be a bit more cautious with emerging sponsorship categories and technology to avoid a crypto/NFT-style crash. Test-learn-scale will be the approach to ensure initiatives are profitable, stable and sustainable. I’ll be closely watching the on-going intersection of sports and politics as Paris ’24 starts to really come into focus and the road to World Cup ’26 in the US officially begins.”

Cantor also expects to see opportunities in the globalization of American sports like the NFL. “We’re seeing globalization of many sports, particularly the NFL,” says Cantor. “With games in the UK, Germany, and Mexico City the past few years, the NFL remains focused on building relationships with fans outside the United States and growing the game of American football. The extravagant ‘one-off’ games leave the fans wanting more and overseas games create a perfect opportunity for unaffiliated sports enthusiasts to connect with a team and build that overall fandom.”

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Financial services brands that can help ease consumer uncertainty will be better positioned to thrive in this environment. As we look to 2023, expect financial services brands to be focused on delivering reliable experiences that offer stability. 

“The category is going to be very tough for the foreseeable future,” says Josh Palau, SVP, growth marketing and media at Lending Tree.  “If rates continue to go up, there’s no doubt some people will pull back. It’s going to be volatile over the next six to eight months to figure out where things settle and what consumers are comfortable doing. How that plays out depends on how you maintain your brand positioning. Building an actual brand that delivers an amazing experience that makes people want to continue to come back and refer to their friends is what will win out.”

Jill Cress, chief marketing officer of H&R Block suggests that in this environment, brands should be focused on providing value to consumers. “Think about just the headwinds of what’s happening with inflation and people being concerned about what that means is something that we want to think about in the way of the value that we can provide,” says Cress.

She also expects the gig economy to grow next year and says H&R Block has resources to support these creators. “The gig economy will continue to be pervasive,” Cress adds. “People are choosing that lifestyle because it allows them to have flexibility. It allows them to maximize their time and earning on their own terms. Brands will need to think about what that means for how to reach consumers. How are they thinking about their relationship with money and spending in the retail environment? We will see compression in omnichannel and just really understanding the consumer journey is going to be incredibly important.” 

Consumer payment habits will be impacted by the economic downturn, according to Lily Varon, analyst at Forrester. “As consumers begin to really feel the effect of the looming state of the economy, we will see a shift in payment habits, including the comeback of cash,” she writes. “As liquid money is exhausted, consumers will stampede to “buy now, pay later” options and back to credit cards.” 

David Sandstrom, chief marketing officer at buy now, pay later firm Klarna says: “Consumers’ expectations and demands around how they shop and pay will continue to increase as we head into the new year. They want flexibility, convenience, and trust in the services they use. Whether they prefer to pay immediately, pay later, or pay over time, companies that enable them to buy with confidence, while saving them time and money along the way will be most valued. And those to truly stand out will offer consumers shopping utility beyond just payment features, such as allowing them to budget their finances, track deliveries, discover new brands, search, and get what they need all in one place.”

Financial services brands have been focusing on appealing to younger audiences to maintain their customer base in recent years and expect this to continue in 2023. 

“It’s all about Gen Z. Millennials are going to move to the background as more companies and brands develop strategies to win with the younger Gen Z audience as they think about future growth,” says Tia Cummings, vice president of marketing at Square. “More focus on brand purpose. This is tied to my previous point around Gen Z as they very much care about brands with purpose. But, we also tend to see that during tough times (i.e. Covid), brands double down on purpose initiatives meant to support their consumers/customers. And as I expect us to be in a recession for 2023, brands who are showing up for their consumers/customers in meaningful ways will continue to win in market. Streaming will continue to grow as a media channel. This isn’t new but a continuing trend that I expect will accelerate as companies like Netflix launch an ad-supported model for the first time.”

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Yet, despite concerns about the economy, Magna still projects an increase in ad dollars for 2023, in its latest forecast. This spend will require strategic expertise, and agencies that succeed will need to show their value next year.

“Many experts are predicting a recession, and whether it happens or not, it’s better to be prepared,” says Damaune Journey, global chief growth officer at 72andSunny. “I think there are three critical steps to helping brands thrive in such environments. 1. Rely on and lean into close, committed agency partnerships. 2. Use strategic creativity to your advantage by redefining target markets in ways you can win. 3. Be bold in your creative executions.” 

As brands have smaller budgets heading into the new year, agencies will be pitching themselves as strategic partners that help them earn a better return on investment amid tighter times.

“The agency world will prosper in 2023 when it does its thing and leads the way—not by replicating what a client’s superpowers are, but by complimenting them,” says Mick McCabe, global chief strategy officer at Ogilvy. “As the going gets tough next year, agencies indispensability will come from continuing to be tangibly and viscerally in touch with people and customers, deeply understanding their day-in-day-out lives and unleashing creativity in all its forms towards clients hunt for growth. That means the agencies that thrive will be sweating clients’ real business problems, and owning those problems, too—those that do will get imaginative on the answers, sprinting with diverse, cross-functional teams that make magnetic things. True agency and brand impact will be measured by who’s doing all of these things brilliantly and consistently.”

In 2023, brands will be looking for ways to prove their purpose and this could show up in looking for partners that share their values. Whether that means hiring a more diverse staff or partnering with agencies that are committed to fighting climate change, expect agencies to be having conversations with clients about how they are working for a more equitable and environmentally friendly world. 

“What we also must consider as responsible digital marketers, is what carbon footprint is created when all these technologies are used at the same time and how the ROI calculation not only accounts for campaign performance, but also for proactive efforts to de-carbonize the marketing technology ecosystem that is often overused,” says Oleg Korenfeld, chief technology officer of WPP healthcare marketing agency CMI Media Group and Compas. “The byproduct of this process can be as bad as other more known factors that affect the global carbon footprint, such as coal and oil. Simplifying the tech stack and pushing everyone who is part of it to be more calculated about their technology and how it affects the overall execution is something I really want to focus on going into 2023.”

Digital investment has escalated rapidly since the pandemic, as consumers spend more time in digital channels. These below the line investments are often cheaper, more personalizable and deliver better ROI. Expect to see brands upping their investments in data in 2023 and agency partners supporting this strategy. 

“As consumers settle into long-term, digital-first habits, two things have increased simultaneously: the value of consumer data signals and their awareness of how they are targeted,” says Lauren Hanrahan, CEO of Publicis’ Zenith Media agency. “This results in stronger negative responses to irrelevant advertising, and a wrong move based on poor data interpretation can result in alienation of consumers. At Zenith, our Data Strategy & Platforms (DPS) team works with data to find actionable insights, improving a client’s ability to connect with consumers and improving consumers’ digital experience.”

The metaverse will likely continue to be a hot topic among agencies in 2023 as they look to support and guide brands in these new territories. In 2022, holding companies including WPP and Publicis were among those that launched metaverse practices to deal with growing client demand to experiment in these virtual spaces. Publicis Groupe’s new metaverse and web3 trends report predicts that after a year of experimentation, in 2023 brands will take a multiverse approach to the metaverse, particularly as they look to reach Gen Z consumers.

“For most, 2022 was a year of learning. Establishing core goals, brands built relationships with consumers through virtual and blockchain-connected experiences,” says Keith Soljacich, head of innovation at Publicis Media. “In 2023, we expect to see continued growth and evolution as more of the biggest brands in the world launch their campaigns, using technology to create a seamless user experience. It’s going to be an exciting year.” 

While metaverse will likely remain a place of engagement and not necessarily transactions next year, commerce will continue to be at the forefront as a revenue driver for brands. “Agencies will need to have both a product and services mindset to be able to support commerce in the future,” says Amy Lanzi, chief operating officer at Publicis Commerce. “Shoppers, as well as organizations, are complex and we can’t possibly keep up with all of the places consumers shop and ways platforms are transforming without using products to give us the intelligence needed to personalize experiences.”

In planning for next year, Laura Cona, chief growth officer at Wunderman Thompson North America, summarizes it up. “In the face of increasing business headwinds, CMOs are making deliberate choices around where, and with whom, they invest to inspire action and ROI,” she says. “They require partners who bring ambidexterity to flex with them from one brief, or year, to the next to catalyze growth. Partners who can assemble an all-star team to crush big, magnetic creative ideas and a specialist team to build tech, social and commerce experiences.”

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Passenger car sales in 2023 are predicted to be 85 million vehicles, down from 90 million pre-pandemic in 2019, according to LMC Automotive. Cautious consumers and challenges sourcing parts are issues challenging the industry. Despite these circumstances, car manufacturers are optimistic about innovations in electric vehicles and digital enhancements to shopping for cars.

“This is one of the most revolutionary times in the car industry. Automobile manufacturing is seeing innovation at a scale never before seen,” said Angela Zepeda, chief marketing officer, Hyundai Motor America. “I see 2023 as a continued focus on technology, range and performance. Technology for electrified vehicles is equally as good as those with internal combustible engines and you’ll see more products, choices and enhanced technology for consumers in 2023.”

Melissa Grady, chief marketing officer at Cadillac, is also excited about electric car adoption and the evolution of the consumer experience in 2023. “Next year, as the trajectory of EV penetration continues to rise and inventory constraints continue to lift, the consumer experience will be more important than ever,” says Grady. “We as brands will need to meet consumers where they are in the shopping, buying, or ownership experience and exceed their expectations each step of the way.”

Allyson Witherspoon, vice president and U.S. chief marketing officer at Nissan, says that during these uncertain times, the company has been reliant on building strong brands and will continue to do so next year. 

“Over the last two years with COVID and supply chain shortages, we have maintained a steady focus on building brand equity and as we return to more stable inventory levels in 2023, this investment will demonstrate its value,” says Witherspoon.  

Nissan will also continue its focus on offering consumers digital shopping options to make it easier to browse cars digitally. “From our very fresh and competitive product lineup, to the expansion of Nissan@Home online retailing, to our committed dealer network, and the brand narrative alive in our creative content, we are able to clearly communicate what Nissan is offering today’s consumers,” adds Witherspoon. “Looking ahead, we anticipate the continued transition to an electric, autonomous and connected future. With more technology enhancement comes the need for immersive digital experiences to allow customers to learn about our products and technologies; in the New Year we’ll continue to explore metaversa experiences for consumers to learn and play on their terms.”  

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“During the pandemic, consumers sought comfort with the familiar,” said Linda Lee, chief marketing officer, meals & beverages at Campbell Soup Company. “As we move into an endemic, our itch for discovery and mobility returns but is limited with tighter wallets.  Consumers will continue to reach for the familiar, the sure thing, but will seek for a twist, a bit of discovery and experience at home that offers the best value.”

As inflation has caused consumers to tighten their spending, the competition will be fierce for brands to get noticed by consumers.

Josh Blacksmith, senior director of global consumer relationships & engagement at Kimberly-Clark said that “More than ever, they are seeking simplicity in their lives. At the same time, we see the continued fragmentation of the media landscape, and I’d predict that CPG brands will have an increasing need to drive ease and convenience in key moments to generate meaningful impact and avoid getting lost in the clutter.” 

“Overall, this will push those in the CPG sector to create relevance through meaningful and connected consumer experiences – enabling brands to create value for consumers that extends well beyond a product’s functional attributes,” Blacksmith continued. “I foresee another exciting year ahead that’s fueled by continued advances in data accessibility and connectivity, AI/ML journey-based technologies, and agile creative capabilities.”

How brands show up is more important than ever. “‘Content is king’ will become ‘context is king—’ consumer empathy will be more important than ever as economic pressures impact every household,” said Liz Caselli-Mechael, head of digital and content at Nestle. “Marketers will need to deeply understand how those pressures are impacting the consumer experience and raise the bar on delivering true value and connection in that context.”

Shopping behaviors changed during the pandemic and online grocery shopping is not going anywhere. “Remote work, at some capacity, is here to stay. We think that will continue to mean more opportunities to cook from home and purchase through ecommerce,” said Jill Pratt, chief marketing officer at McCormick. “We’re focused on providing intuitive recipes and tips that meet people where they are from a time and comfort level in the kitchen. We also are focusing on increasing and improving our ecommerce and DTC offerings to offer that added level of convenience.”

“Our teams are really leaning into TikTok, with varied strategies that hit the right tone for our McCormick, Frank’s RedHot, OLD BAY, and Cholula brand fans,” she continued. “For years we heard about how the human attention span was shorter than a goldfish. TikTok has found a way to engage users – they’re spending the most time in this app, willing to view increasingly longer video formats, and reporting that they’ve been influenced to purchase. 

Consumers will continue to seek CPG products based on taste and health. “Consumers will continue to prioritize their health and wellness in really dynamic and exciting ways – but the state of the US consumer will remain complex. Danone has a broad portfolio of nutritious (and delicious) foods and beverages, but we need to understand the unique value they can offer to consumers, and how shoppers are assessing value differently in a climate of economic uncertainty,” said Linda Bethea, head of marketing at Danone. “Consumer value includes price, but also factors like taste, ingredient quality and nutrition. Success in today’s evolving and complex environment requires deep consumer understanding along with agility to provide value across the spectrum.”

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Influencers have long played a key role in promoting beauty products online but this is shifting to creators as more consumers look to their social platforms such as YouTube, TikTok, Instagram, and Twitch to seek beauty advice. 

“165 million people joined the creator economy since the start of the pandemic. That is mind blowing. Brands that understand the difference between influencers and creators understand that the opportunity that lies in 2023 and beyond is not on followership, but on capturing the storytelling craft at scale,” says Anisha Raghavan, chief marketing officer at Walgreens Boots Alliance. “As the intersection between social media and social storytelling continues to evolve, the value of relinquishing your brand’s message to creators – getting other people to talk about you rather than you talking about yourself – will only climb.”

While digital will continue to play a key role in marketing cosmetics, consumers are returning to stores where they can test products in person. This year saw a 36% increase in foot traffic to shop for beauty products as consumers were less concerned about the pandemic and wanted to return to the store, according to a recent report from NPD.

As consumers return to stores, beauty brands are expanding product lines with a range of colors to support a diverse consumer base with a range of skin tones.

“For the past year, mass-market color cosmetics has been growing at ~+10% vs last year (Nielsen IRI data as of 9/10/2022), indicating consumers are back and re-engaging with the category post-Covid lockdowns,” says Jeremy M. Lowenstein, chief marketing officer of Milani Cosmetics. “Brands are back to launching new and exciting product innovation at a steady pace, with focuses on core categories like foundation, concealer, lip color and mascara. Moving into 2023, like most, we are closely monitoring consumer foot traffic and consumer spending behavior given the macroeconomic environment. We are confident that cosmetics will continue to grow and that brands like Milani are poised for success given the brand’s ability to deliver prestige-quality products at an accessible price point that are developed with every skin-tone in mind.” 

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