A new KPMG report reveals that consumer and retail CEOs are navigating ongoing economic and geopolitical uncertainty with growing confidence in the global economy, while taking decisive action to future‑proof their businesses through AI, workforce transformation and sustainability. The KPMG 2025 Global Consumer and Retail CEO Outlook shows leaders balancing cautious growth expectations with targeted investments to strengthen margins, supply chains and long‑term resilience.
Based on responses from 120 C&R CEOs, the report highlights a sector adapting to polarized consumer demand, rising cost pressures, and accelerating technological change while remaining focused on steady, sustainable growth.
Global economic uncertainty persists, but confidence in resilience grows
Consumer and retail CEOs report improved confidence in the global economy, with 65 percent expressing optimism about growth, up from 58 percent in 2024. However, company growth confidence has softened to 77 percent versus 82 percent in 2024, reflecting a difficult trading environment, characterized by K shaped consumer demand. Additionally, compared to other sectors surveyed, fewer C&R CEOs anticipate annual earnings growth of 5-9.99 percent (just 13 percent against a cross-industry average of 18 percent), signaling a tougher market. M&A remains an important, though more selective, growth-lever. Just 35 percent of CEOs expect high‑impact acquisitions, the second lowest of any sector, highlighting a shift towards strategic rather than transformational deals.
AI investment accelerates as leaders pursue efficiency, personalization and trust
AI has rapidly shifted from a phase of experimentation to active implementation within the C&R sector. Today, nearly two-thirds (64 percent) of CEOs rank AI as their top investment priority—a notable increase from 57 percent last year. Even as companies face persistent cost pressures, 73 percent of leaders plan to allocate between 10 percent and 20 percent of their budgets to AI initiatives in the coming year. This is the second-highest level of any sector surveyed, underscoring the sector’s enthusiasm for AI’s tangible benefits in driving productivity and reducing costs.
Personalization stands out as a key advantage, with 13 percent of C&R CEOs identifying it as the primary benefit of AI—higher than any other sector. This focus reflects the industry’s commitment to building deeper connections with consumers by understanding their unique preferences and lifestyles. The emergence of agentic AI is also on the horizon: 44 percent of executives anticipate it will have a significant impact on their organizations, while 55 percent expect AI to play a pivotal role in helping consumers make informed decisions and 32 percent expect AI to make decisions autonomously.
Talent strategies evolve as CEOs redesign work for an AI‑enabled future
C&R CEOs recognize that AI transformation is as much about people as it is about technology. Nearly three‑quarters (73 percent) are redesigning roles and career paths as part of a long‑term AI workforce strategy, and 82 percent say AI is already reshaping employee development. The most significant talent challenge remains bridging the gap between existing capabilities and the skills required for AI‑enabled roles, cited by 32 percent of CEOs. In response, organizations are scaling broad‑based training programs (47 percent), redeploying employees into AI‑supported roles (44 percent), and partnering with external AI specialists to pass their knowledge on to staff (50 percent).
Commitment to sustainability: A strategic edge for CEOs
Despite variations in how ESG is evolving across markets, consumer and retail CEOs see sustainability as a significant opportunity. Over half (53 percent) report that ESG priorities are integrated into their core business strategies—higher than any other sector, underscoring the seriousness with which C&R organizations approach sustainability.
Central to the ESG challenge are supply chains, where the complexity of global operations poses significant obstacles. Decarbonizing these intricate supply networks is identified as the primary hurdle to achieving net-zero ambitions, according to 34 percent of CEOs. Simultaneously, a majority (63 percent) acknowledge that stakeholder expectations around ESG are evolving more rapidly than their organizations can keep pace, intensifying the pressure for credible action and transparent reporting.
“While consumer & retail leaders are realistic about the immediate growth challenges in a tough market, they are not standing still. We see a sector that is aggressively harnessing AI not just for efficiency, but to create deeper, more personalised connections with their customers. This investment in technology is matched by an equally crucial investment in people, as leaders redesign roles to build a workforce of the future,” said Isabelle Allen, global head of consumer, retail & leisure, KPMG International.
