What trends can businesses expect in the coming year? We asked BCU Business to Business experts and business organisations to list the key trends which will impact on businesses in 2025. Listed below are the 5 most popular drivers which we believe will affect business growth over the next year.
1. Generative AI
Generative AI has already had a big impact on the business world with global companies like Google, Amazon and Netflix using it to transform their existing business models in areas like online advertising, retail and media streaming.
Moving beyond a chatbot bolted on to existing products and services, those businesses that invest in generative tools and applications will be able to take advantage of exciting new businesses possibilities from cheaper manufacturing to higher retail sales.
2. Sustainable Business Models incorporating the Circular Economy
Driven by both government action and consumer demand, the move towards more environmentally friendly and sustainable business practices will be a key driver of change in 2025.
More businesses are finding that ‘going green’ is not only good for the environment and public relations but also makes sound business sense. Nationally the need to meet carbon neutral emissions and the switch to electric vehicles will gather pace so businesses that are ahead of the curve will reap the benefits.
Changing customer demands will accelerate these trends as people look to go green and save money at the same time. The development of circular processes – reusing materials and recycling resources – in a ‘closed loop’ system will also be a driver to save money, reduce waste and minimize environmental impact.
3. Remote working, learning, and training
Out of necessity remote working became incredibly important during the pandemic and while some employers are reviewing it, the option will continue to be popular with those in work or seeking work in 2025, particularly older employees.
Remote working has seen some employers make considerable savings on office space while digital collaboration tools allow employees to work much more effectively and to connect with busy suppliers and customers in their time. The government’s new lifelong learning entitlement is on the statue book and due to become law next year.
So, 2025 will see an upsurge in people taking short courses and bespoke training, with employers who invest in their staff seeing both productivity gains and a happier workforce.
4. Marketing to Gen Z and promoting DEI
In 2025 large numbers of Gen Z (people born from 1997 to 2012) will come of age and seek employment. As they establish themselves in the marketplace, they will exert increasing purchasing power, so businesses need to think about how to market themselves effectively to these new consumers.
Gen Z has some unique characteristics that businesses need to embrace when developing products and marketing campaigns. These include:
- Decisions based on digital dexterity
- High consumption of short-form content
- Strong preference for authentic and transparent brands
- Price led but with a passion for cause-based marketing and addressing social/environmental issues
- Sole reliance on mobile devices for shopping, socialising and entertainment
Diversity, Equity, and Inclusion (DEI) will continue to grow in importance as companies see the positive impact of fostering inclusive environments to do business. Businesses with a strong DEI program in place and who promote inclusivity beyond the workplace will be the ones attracting and retaining the top talent.
5. Resilience to ‘Global Shocks’
The world in 2025 will continue to be a very uncertain place which will create major challenges for businesses.
On top of ongoing conflicts in the Ukraine and the Middle East, there could be a trade tariff war driven by the new incoming President of the United States. This will contribute to create even greater economic uncertainty and fluctuating market conditions, so that developing resilience – the capacity to survive and adapt to these shocks – will be a key driver during the year ahead.
Those businesses that are not just able to ‘weather the storm’ but have proactively prepared to expect the unexpected will do best.
Building financial capacity, mitigating supply chain disruption, making up for skill shortages and developing new markets and products will be an essential part of not just surviving but thriving in 2025.
As we move into the New Year, businesses must be ready to adapt to a rapidly evolving marketplace. From utilising generative AI to being truly sustainable, embracing remote working to marketing to Gen Z and above all being resilient to global shocks, the trends shaping the future of business next year will be about embracing and capitalising on change.
BCU short courses
Birmingham City University offers a range of short courses aimed at businesses which will help participants to develop skills and knowledge, gaining professional development in their chosen field. We offer three different delivery methods across our provision – face-to-face instructor-led teaching, self-paced online learning or a blended mix of the two.
