Retail, Food and Consumer Products

The industry is attracting prominent investment as it has robust growth potential with increasing consumer demand. There are significant innovations in e-commerce and AI-enabled personalization, which are rendering significant opportunities for differentiation. According to the International Trade Administration, global B2C e-commerce revenue is anticipated to surge by USD 5.5 trillion by 2027. Additionally, in the U.S., the data published by The Food Industry Association in 2024 showed that there were 45,575 supermarkets in the country, highlighting the sector’s wide reach and scale. In India, the direct selling industry was USD 2.57 billion in 2024, showcasing the resilience and growth of the country’s consumption.

Top investment-relevant trends in the retail, food, and consumer products industries

Innovation in health, wellness & functional food

The domain is attracting significant investment as it lies at the confluence of the various long-term economic and demographic trends. Investors are seeing lucrative opportunities for growth driven by rising consumer health awareness and scientific advances. According to the Global Wellness Institute, in 2024, the healthy eating, nutrition & weight loss industry reached USD 1,148 billion. Other than this, the CRN consumer survey on dietary supplements stated that 74% of the adults in the U.S. reported taking nutritional or dietary supplements. Additionally, the market is also gaining traction as consumers are inclining towards adopting preventive healthcare, and the inclusion of functional foods and wellness products aid to fill the prevention gap, further propelling market growth.

Most Supplement Users Say They are Essential

Source: crnusa.org

Video commerce and interactive digital shopping

Several companies are investing in video commerce and interactive digital shopping as consumers are opting for engagement while shopping. There has been a surge in preference for visual learning, and younger generations are expecting video-led experiences. According to data published by UN Trade & Development, in 2021, 2.3 billion people shopped online. The statistics highlight the scale of online retail activity and the huge revenue potential tied to increasing digital engagement formats. Video-based shopping is gaining traction as it lowers the path to purchase from discovery.

Surge in inclusion of smart food packaging

Significant investment has been made in smart food packaging as market players are seeking to align with transitioning consumer demands and increase the efficiency of the global supply chain. Also, food waste has become a vital environmental and economic issue. The data published by the World Resources Institute in November 2024 shows that more than 40% of the food is wasted or lost globally along the value chain, exposing a major strategic oversight in the food system. While the adoption of smart and innovative packaging extends shelf life using time temperature indicators and can alert consumers or retailers when the food is no longer safe.

Increasing preference for organic foods

With a burgeoning structural shift in consumer demand and rising awareness of pesticide exposure and long-term risks, there has been increased investment in the organic food industry. The Research Institute of Organic Agriculture stated in February 2025 that the worldwide organic farming area has widened, reaching 98.9 million hectares, highlighting the vast scope. Also, companies are finding that organic products are delivering better margins, as consumers are willing to pay more for organic in a myriad of categories. Other than this, sustainability and ESG pressure are accelerating adoption. There is prominent brand differentiation with the organic foods; as a result, retailers are pushing organic food aggressively.

Incorporation of science-led & longevity-focused skincare

Modern consumers are skeptical of vague marketing and significantly ingredient literate. Companies are giving importance to the dermatologist endorsements and clinical trials. Instead of depending on the short-term benefits, brands are significantly giving emphasis to the modern research-validated products. This approach enables companies to differentiate in an overcrowded market, establish stronger consumer trust, and justify premium pricing through proven efficacy.