Let’s be real. Trend analysis isn’t just about following the hype. It’s about recognizing meaningful patterns and using data to forecast the future.
In this guide, we’ll break down the steps to conducting an effective trend analysis and, most importantly, how to ensure that your forecasts are as close to reality as possible. Let’s dig into trends.
What is trend analysis?
Trend analysis is a process of examining data over time to identify patterns, shifts, and emerging opportunities. Unlike a crystal ball (which we’re sure every researcher would love to own), trend analysis relies on data-driven insights. Businesses use trend analysis to anticipate consumer behavior, market shifts, and industry changes.
Dig deeper: What is trends analysis in market research?
Why trend analysis matters for business strategy
Keeping up with trends isn’t just for fashion designers and social media influencers. Companies across all industries (e.g. CPG, finance, technology, healthcare) use trend analysis to:
- Make data-driven decisions instead of gut-based guesses.
- Stay ahead of competitors by spotting shifts before they become mainstream.
- Develop products and campaigns that align with consumer needs.
- Mitigate risks by predicting downturns or changing consumer preferences early.
How to conduct a trend analysis (step-by-step)
Ready to put your trend-y hat on? Here’s how to conduct a trend analysis like a research expert.
Step 1: identify sources of trend data
Any good researcher will conduct a trend analysis by starting with gathering good data. You need reliable sources to separate true trends from fleeting fads. Here’s where to look:
- Primary data sources: Customer surveys, focus groups, interviews, and internal sales data.
- Secondary data sources: Industry reports, competitor analysis, social media listening, and news articles.
- Trend-tracking tools:
- Google Trends – for real-time search behavior trends.
- Social listening platforms – for monitoring online conversations.
- Market research reports – for getting research-backed data; companies like Nielsen, McKinsey and even Dig have tons of those.
Step 2: gather and organize data
The next step in doing a trend analysis means that once you have your sources, you need to organize the data based on:
- Consumer behavior trends (e.g. increased demand for plant-based foods)
- Technological advancements (e.g. rise of AI-driven marketing)
- Cultural or societal shifts (e.g. a growing emphasis on sustainability)
Step 3: Analyze Patterns and Signals
When conducting a trends analysis, step three is to look for patterns that indicate a trend is forming. Ask yourself:
- Is the trend accelerating, slowing down or plateauing?
- Is it appearing in multiple industries?
- Are major brands or thought leaders acknowledging it?
Elizabeth Cross, Dig’s Senior Manager of Trends & Innovation, notes that:
“Decoding patterns and signals to reveal both enduring and emerging trends shaped by consumer shifts is the superpower of Dig’s Trends and Innovation team. With sharp insights and strategic foresight, we stay ahead of the curve, connecting the dots to deliver clear, actionable insights that create real impact for our clients.”
Types of analysis to apply:
- Historical trend analysis: Looking at past trends to predict future movements.
- Comparative analysis: Benchmarking against competitors.
- Sentiment analysis: Measuring how people feel about a trend via online conversations.
Step 4: validate trends with more data
Not every so-called trend is worth your attention. To ensure a trend is real and not just a passing craze:
- Cross-check multiple sources.
- Monitor consumer adoption rates.
- Look at long-term search and social media interest.
- Conduct more primary research (our Upsiide platform is a great place to gather consumer feedback or run brand awareness studies)
Step 5: forecast future trends
Once you’ve identified a solid trend, it’s time to predict its future trajectory.
- Use predictive analytics: AI-powered tools can model different future scenarios.
- Consider the trend lifecycle:
- Emerging: Just starting to gain traction.
- Growing: Gaining widespread interest.
- Mature: Becoming mainstream.
- Declining: Fading or being replaced by a new trend.
Common mistakes to avoid in trend analysis
It’s easy to fall into some pitfalls while analyzing trends. Here are some mistakes a less experienced researcher might face:
- Relying on just one data source: Diversify your sources and cross-reference from multiple sources for accuracy.
- Confusing fads with long-term trends: Remember that short-lived crazes peak quickly and disappear; trends sustain.
- Ignoring cultural context: A trend in one region or demographic may not translate elsewhere.
Best practices for getting accurate trend analysis results
- Combine qualitative and quantitative data: Numbers tell part of the story; consumer sentiment adds depth.
- Use AI and automation: Leverage trend-tracking tools to spot shifts faster.
- Experiment and test insights: Pilot new ideas based on trend findings before full-scale implementation.
- Relate back to your industry: Not all trends apply to every sector; prioritize insights that align with your business.
- Don’t forget about the competitive landscape: Acknowledge how competitors are reacting to the same trends.
How to present trends in an innovative way
At Dig, we always think of new ways to make our research be more accessible, fun, and easy to digest. So, we thought “Trend reports are great. But what if you could step into one?”
In January 2025, our Trends & Innovation team took a deep dive into women’s wellness and uncovered many major shifts.
But what’s the fun in putting them in a simple Power Point, if instead you could do something more ✨ interactive ✨?
So, we decided to build an immersive Dig Wellness Studio in Miro!
Here’s a sneak peak of the trends you’ll discover:
- Menstrual Balancing Boom: Foods, supplements, and lifestyle solutions designed to help women regulate their hormones.
- Menopause-Friendly Foods: Snacks and beverages created to serve this often-overlooked market and support symptom relief.
- Mood Munchies: Functional foods infused with adaptogens, nootropics, and superfoods to support stress relief, focus, and emotional well-being.
- Thinfluence Redux: Brand activations and new products that got adapted as GLP-1 medications like Ozempic reshape conversations around weight.
Step inside our Dig Wellness Studio now.
How to do trend analysis, in a nutshell.
Trend analysis is a sophisticated process that requires diligence and accuracy. From identifying reliable data to analyzing patterns and validating insights, this process can provide valuable insight and set your brand up for in-market success.
