What's in, what's out: Marketing trends you need to know in 2025

Coming up with accurate predictions for the year ahead seems a little ambitious and absurd given the volatility of the post-pandemic world so far.

Thankfully, in the microcosm of marketing, experts can make a few educated guesses that are likely to pay off. These are powered by any or all of the following: decades of experience in the business, reams of bespoke research, and new-fangled AI-based tools that help cut through the clutter and arrive at useful and usable insights.

Our editors provide a further layer of filtering, trawling through reams of reports and research that began to land in our inboxes as early as November. We bring you yet another easy-to-digest overview of the major trends likely to play out through 2025 in a handy guide. Stay tuned for updates through the rest of this month.

WHAT TO WATCH OUT FOR IN 2025

There's nothing modest about the growth in the modest wear segment

While sportswear and activewear continue their dominance of the apparel industry, modest wear—apparel and footwear favoured by Muslim consumers—is on a remarkable growth trajectory. The State of the Global Islamic Economy 2023/2024 report expects Muslim consumers to spend a whopping $428 billion on apparel and footwear by 2027, up from $318 billion in 2022, growing at a CAGR of 6.1%.

This estimate is ratified by findings from the Trender report created by fashion and apparel focused e-commerce firm Zalora. The report points to a 33% year-on-year growth in modest wear during Q1 2024, fuelled by shopping around the Hari Raya festival. In Malaysia, consumers are gravitating towards premium offerings within the modest wear category with 25% of consumers opting for purchases in the $47 to $62 price bracket. Hijabs are becoming status symbols in Malaysia according to a report from Janio Asia, with an RM 800 ($177) limited edition hijab selling out in five minutes. Malaysia-based Bawal Exclusive sold a custom-made hijab featuring Japanese textiles and crystals from Swarovski for RM 50,000 ($11,182), indicating a growing appetite for luxury modest wear.

To tap into a growing niche like modest wear, brands would do well to cast aside pre-conceived notions about the audience, and realise that given the diversity of customer segments, a one-size-fits-all approach will deliver only limited success.

Goodbye generic ads, hello bespoke experiences
Source: Trend 2025 from InMobi

The promise of truly personal communication has been the holy grail of marketing through much of the digital era. There have been several barriers to accomplishing this goal ranging from data requirements to the expense involved in creating and delivering a message to an audience of one.

However, the move from a broadly “personalised” internet to a truly “personal” internet is now closer than ever before.

Vasuta Agarwal, chief business officer, consumer, and performance at InMobi believed this change will be driven by the rise of generative advertising. Built on AI’s ability to revolutionise areas such as audience targeting, pricing strategies, and supply path optimisation, generative advertising will help brands operate with greater precision. Brands will be able to understand a consumer’s unique content consumption patterns and seamlessly integrate tailored advertising to deliver bespoke experiences.

Conversational AI will be the next big thing
Source: Sinch's 2025 predictions on digital customer communications

While we are yet to encounter a single customer who relishes the prospect of speaking to an AI-powered chatbot instead of an actual human, that could change through the course of this year. Communication platform as a service firm Sinch predicts that “generative AI will be a game changer”, estimating that 80% of enterprises are expected to adopt conversational AI by 2025. With these advancements in AI, notifications that were previously delivered via SMS will switch to the more interactive RCS (rich communication service) messaging format. Notifications will thus have the potential to become a valuable touchpoint, allowing a customer to schedule deliveries or make purchases directly within a message. Conversational commerce enabled by AI will also help apps double up as digital storefronts. Customers will be able to browse, interact, and make purchases without having to exit the app.

Less noise, more loyalty and the power of fandoms
Source: We Are Social's Think Forward 2025 report

Through 2025, there will be a push back against the maximalist impulses that have driven internet culture over the past few years. A report from We Are Social has identified a backlash against “a treadmill of micro trends, notifications and noise online.” Part of this trend is an increased participation in fandoms of different sorts—people bound by a common interest or passion wanting to feel a part of something bigger. As a result, marketers are curating and creating intimate experiences that are aimed at customer-only or closed social groups.  Some brands have begun prioritising community bonding trips for regular customers rather than influencers to tap into these more personal fan-based connections.