In 2025, consumer preferences are shifting significantly, with a pronounced emphasis on experiences over material possessions. This evolution is reshaping industries, particularly commercial real estate, hospitality, and the culinary sector, as they adapt to meet the growing demand for immersive and communal experiences.
The Experiential Economy Takes Center Stage
The modern consumer, especially within Generation Z, is prioritizing sensory-rich experiences that offer personal fulfillment and social connection. This trend is evident in the increasing popularity of functional foods marketed as tools for optimization and self-care, as well as the normalization of non-alcoholic beverages among the sober-curious generation. Comfort foods are being redefined, with ‘chaos cakes’ and edible décor gaining traction. These developments highlight a broader cultural shift towards valuing experiences that engage multiple senses and provide a sense of community.
Implications for Commercial Real Estate and Hospitality
This experiential shift is driving significant changes in the commercial real estate and hospitality sectors:
- Mixed-Use Developments: There’s a growing demand for spaces that seamlessly blend living, working, and leisure. Developments that integrate residential units with retail, dining, and entertainment options are becoming increasingly popular, catering to consumers’ desire for convenience and community.
- Experiential Retail: Traditional retail spaces are evolving into immersive environments where consumers can engage with brands on a deeper level. This includes interactive showrooms, pop-up experiences, and venues that combine shopping with entertainment and dining.
- Hospitality Innovations: Hotels and restaurants are focusing on creating unique, personalized experiences. This includes the rise of private, home-like accommodations that offer autonomy and informality, as well as dining experiences that tell a story or provide a cultural connection.
The Rise of Food-Centric Experiences
Culinary experiences are at the forefront of this experiential shift:
- Gastronomic Adventures: There’s an increasing demand for unique dining settings, such as underwater restaurants or exotic locations, offering diners memorable and social media-worthy experiences.
- Cultural and Story-Driven Cuisine: Diners are seeking deeper connections to their meals, favoring food that tells a story or reflects cultural heritage. This trend is leading to the popularity of restaurants that offer personal narratives behind their dishes.
- Functional and Sustainable Foods: There’s a growing interest in foods that offer health benefits and are produced sustainably. This includes the rise of functional beverages, plant-based options, and locally sourced ingredients.
Supporting Statistics
Recent reports indicate that consumers are reallocating their spending towards experiences that offer value, sustainability, and cultural relevance. This shift is evident in the success of premium grocery brands and experiential dining options, which have become new ‘splurge’ items for aspirational consumers.
The global experiential market is projected to continue its growth trajectory, with sectors like experiential retail and hospitality innovations leading the way. This growth is driven by consumers’ increasing desire for personalized and meaningful experiences over material goods.
The year 2025 marks a pivotal moment where experiences eclipse material possessions in consumer priorities. For commercial real estate developers, this presents a unique opportunity to innovate and create spaces that cater to the experiential desires of modern consumers. By focusing on mixed-use developments, experiential retail, and food-centric experiences, developers can meet the evolving demands of the market and contribute to the creation of vibrant, community-focused environments.
Sources
Vogue Business – ‘6 Food Trends Fashion Needs to Know About in 2025’ https://www.voguebusiness.com/story/fashion/6-food-trends-fashion-needs-to-know-about-in-2025
Condé Nast Traveler – ‘The Biggest Travel Trends to Expect in 2025’ https://www.cntraveler.com/story/the-biggest-travel-trends-to-expect-in-2025
Food & Wine – ‘Restaurant Trends to Look Forward to in 2025, According to Chefs’ https://www.foodandwine.com/2025-restaurant-trends-chefs-8765609
BGSF – ‘2025 Real Estate Forecast: Key Opportunities for Commercial and Multifamily Properties’ https://www.bgsf.com/post/2025-real-estate-forecast-key-opportunities-for-commercial-and-multifamily-properties