AI-Powered Retail, Sustainable Campaigns and Holiday Demand, what it Means for the Consumer AI Market

Lede

Three recent updates from Salesforce’s consumer goods report, Watsons’ sustainability-focused retail campaign, and Deloitte’s forecast for holiday sales growth all point to meaningful changes in how technology, values-driven shopping, and seasonal demand are reshaping the consumer AI market. Together, these developments highlight a future where AI tools underpin smarter retail execution, align with conscious consumerism, and help brands manage cyclical surges with greater precision.

1.  AI Adoption Across Consumer Goods

In its newly released Consumer Goods Industry Insights Report 2025, Salesforce emphasized how artificial intelligence is moving from pilot projects to practical tools for frontline workers. From personalized promotions to predictive order management, the report showed companies increasingly integrating AI into core decision-making processes. Rather than being confined to data teams, AI is now shaping sales calls, inventory planning, and shopper engagement.

For the Consumer AI Market, this signals a shift from “nice-to-have” capabilities toward operational essentials. Retailers and brands that fail to embed AI risk inefficiencies in pricing, supply chain responsiveness, and customer targeting compared with peers that have already scaled adoption.

Traditional Trade Promotion Profitability Plateaus, But AI-Driven Personalization Emerges ss the Clear Outperformer

As shown in the donut chart above, trade promotions remain one of the largest expenses in consumer goods, yet fewer than half (46%) consistently generate a positive return on investment, a figure that has barely shifted in recent years. While these promotions are still essential for boosting in-store visibility and short-term sales, their high cost and inconsistent outcomes indicate that traditional approaches may be nearing their limits.

In contrast, AI- and data-powered personalized offers are delivering the strongest performance of all promotion strategies, outperforming loyalty programs by nearly 20 percentage points. This highlights a growing shift toward precision-driven engagement, where consumer AI tools are unlocking measurable advantages over legacy promotional methods.

2.  Sustainability Campaigns Meet Consumer Expectations

At the same time, Watsons’ “Sustainable Choices” campaign highlighted by The Consumer Goods Forum, illustrates how retailers are embedding environmental awareness into everyday shopping. By labelling eco-friendly products and rewarding sustainable buying behaviors, Watsons is responding to growing demand for transparency and responsibility in retail. 

As a result of the initiative, Watsons has listed more than 11,000 products across Asian markets, expanding access to sustainable options. The campaign has struck a chord with younger consumers, about two-thirds of members aged 25 or below purchased Sustainable Choices products in 2024, led by Thailand at 85%. Hong Kong, the Philippines, and Indonesia also drove strong sales and new memberships.

Year-on-year, purchases by members under 25 rose 4%, outpacing other categories and underscoring Gen Z’s growing role in shaping sustainable retail. The campaign continues to evolve alongside market demand, with Watsons also supporting the Global Coalition of Action on Climate Transition.

AI plays a behind-the-scenes role here as well, analyzing product attributes, customer preferences, and campaign outcomes. As brands look to scale similar initiatives, consumer AI systems that can balance ethical sourcing, carbon impact data, and profitability will gain importance.

3.  Holiday Retail Growth Forecast

Looking ahead, Deloitte forecasts a 3.5%–4.6% rise in holiday retail sales for 2025, with e-commerce again expected to grow at a faster clip than in-store shopping. Seasonal spikes like the holiday period remain one of the most complex challenges for retailers, testing both supply chains and customer engagement systems.

Consumer AI applications, ranging from demand forecasting to dynamic digital promotions, are critical to managing this volatility. Firms that can use AI to predict shifts in category demand or optimize staffing during high-traffic windows are more likely to capture market share without eroding margins.

4.  Next Move Strategy Consulting – Opinion, Impact and Near-Term Prospects

Viewed together, these three developments demonstrate that the consumer AI market is no longer defined only by technology capabilities but by the value delivered in real-world retail environments. Next Move Strategy Consulting sees several key implications:

• Operational integration over experimentation: AI in consumer goods is moving past isolated pilots. Companies that successfully integrate tools across sales, supply chain, and marketing functions will establish competitive barriers difficult for late adopters to overcome.

• Alignment with conscious consumerism: Sustainability-led retail initiatives like Watsons’ campaign signal a rising need for AI systems that track environmental metrics and support ethical product positioning. Providers who can merge ESG data with shopper insights will have a unique advantage.

• Seasonal adaptability as a differentiator: With holiday periods amplifying both risk and opportunity, retailers using AI-driven demand sensing, dynamic inventory allocation, and personalized digital campaigns will outperform peers reliant on static forecasting models.

In short, the consumer AI market is becoming the backbone of retail competitiveness, enabling efficiency, aligning with social values, and helping businesses thrive during demand peaks.

5.  Practical Suggestions for Stakeholders

• Retailers should prioritize embedding AI in frontline workflows, from store associates to online merchandising, to maximize adoption and ROI.

• Technology providers should develop tools that incorporate sustainability data, helping brands meet rising ESG expectations.

• Investors should monitor firms that demonstrate strong seasonal performance powered by AI, as these companies are likely to set benchmarks in execution.

• Policymakers and industry bodies can encourage responsible AI adoption by setting standards for transparency in algorithmic decision-making, especially around sustainability claims.

Conclusion

The convergence of AI adoption, conscious consumerism, and seasonal retail demand shows that the consumer AI market is evolving rapidly. Firms that treat AI as a core operational enabler, not a back-office experiment, will be best placed to deliver on efficiency, sustainability, and profitability in the years ahead.

About Next Move Strategy Consulting:

Next Move Strategy Consulting is a premier market research and management consulting firm that has been committed to provide strategically analysed well documented latest research reports to its clients. The research industry is flooded with many firms to choose from, what makes Next Move different from the rest is its top-quality research and the obsession of turning data into knowledge by dissecting every bit of it and providing fact-based research recommendation that is supported by information collected from over 500 million websites, paid databases, industry journals and one on one consultations with industry experts across a diverse range of industry sectors. The high-quality customized research reports with actionable insights and excellent end-to-end customer service help our clients to take critical business decisions that enables them to move beyond time and have competitive edge in the industry.

We have been servicing over 1000 customers globally that includes 90% of the Fortune 500 companies over a decade. Our analysts are constantly tracking various high growth markets and identifying hidden opportunities in each sector or the industry. We provide one of the industry’s best quality syndicate as well as custom research reports across 10 different industry verticals. We are committed to deliver high quality research solutions in accordance to your business needs. Our industry standard delivery solutions that ranges from the pre consultation to after-sales services, provide an excellent client experience and ensure right strategic decision making for businesses.

For more information please contact:

Next Move Strategy Consulting

5th Floor 867

Boylston St, STE 500,

Boston, MA 02116, U.S.

E-Mail: [email protected]

Direct: +18577585017

Website: www.nextmsc.com