Trends analysis can often be overlooked by brands but when done right, it can be your secret weapon to stay relevant. It’s not just about tracking what’s popular today. In reality, trends research is a sophisticated process that can provide valuable insight and set your brand up for in-market success.

In this guide, we’ll explore the definition of trends analysis, the key objectives of trends analysis, the types of trends you should know, and share real-life examples of trends & foresight research looks like in action.

What is trends analysis?

Trends analysis, also known as trends research, is the practice of examining shifts in consumer behavior, market conditions, and societal preferences over time. By uncovering patterns and signals, trends analysis provides the foresight brands need to anticipate future developments.

What is the meaning of trends analysis?

In simple terms, trends analysis is about finding patterns in consumer behavior and preferences – both what is happening now and what will happen next. Trends research tracks shifts in consumer behavior, culture, and business markets over time. According to Dig’s Manager of Trends & Innovation, Joseph Baroud:

Trends and foresight analysis is not just about recognizing what is happening, but understanding why it’s happening. With this clarity, organizations can anticipate change and prepare for the future, instead of just reacting to it.

Joseph Baroud, Manager of Trends & Innovation, Dig Insights

By analyzing data from different sources — e.g. surveys, social media, and historical records — trends analysis identifies emerging opportunities and potential challenges for businesses.

What is the goal of trend analysis?

The primary goal of trend analysis is to empower decision-makers with actionable insights that fuel innovation and maintain competitive advantage. 

Brands that embrace trends and foresight gain the ability to meet emerging consumer needs ahead of their competitors, craft future-proof strategies or product roadmaps that stand the test of time, and lead the way as cultural innovators.

Joseph Baroud, Manager, Trends & Innovation, Dig Insights

Trends research helps brands create future proof strategies by looking at three specific variables:

What might the customer need?

One of the most critical goals of trend analysis is to understand and predict how consumer preferences will evolve. By identifying shifts in behavior and preferences, businesses can proactively align their products and services with future demand.

Where might the market change?

Trend analysis helps businesses identify high-potential categories that may not yet be saturated. Foresight also helps understand how the existing market may change, based on external factors. By using trends research to understand market change, brands can differentiate themselves and ensure they are taking advantage of the opportunities a new or evolved market brings.

How can we reduce uncertainty for the business?

Innovating or entering unfamiliar markets always carries an element of risk. However, trends analysis reduces this uncertainty by offering data-backed insights, so that brands can make informed decisions that minimize guesswork.

What are the main types of trends?

At Dig Insights, we know trends can take on many forms, so we categorize trends based on how brands should use them – trends to monitor, trends to act on soon, and trends to act on now. We call this our Trends Framework. This framework enables us to analyze and understand trends more effectively.

Monitor: evolutionary trends

Evolutionary trends involve gradual, continuous and incremental changes over time. They refine existing technologies, processes, products or ideas. These evolutionary trends  score high on online discourse impact scores, but low on early adopter surveys.

Act soon: emerging trends

Emerging trends have the potential to become impactful and disruptive in the future. They score high with early adopter surveys, but low with online discourse impact scores.

Act now: disruptor trends

The disruptor trends category indicates which trends bring significant or rapid changes that will reshape industries, markets or cultures. These disruptor trends score high both on online discourse impact scores and high on early adopter surveys.

What does trend analysis involve?

Trends analysis is a complex process that combines quantitative and qualitative data to uncover emerging patterns, validate insights, and predict future market dynamics. 

The approach can vary depending on the project, but our methodology at Dig Insights revolves around three core components:

Primary research

At the heart of trends analysis lies primary research, which captures direct insights from consumers. ​​Using tools like AI-powered thematic analysis and consumer pulse surveys, we assess the:

• Awareness: how familiar consumers are with specific trends or concepts.
• Appeal: the level of interest or emotional connection that consumers have with those trends.

This primary data helps establish a baseline for understanding how trends resonate with various demographics and early adopters. By leveraging AI, we can process large datasets efficiently, identifying patterns in open-ended responses, sentiments, and preferences to generate actionable insights.

Online behaviors and content

​​Social media and digital content provide a treasure trove of data about emerging consumer interests. By analyzing these online behaviors, we can uncover:

• Real-time discussions: what consumers are talking about on platforms like TikTok, Instagram, and Reddit.
• Emerging signals: niche trends or keywords gaining traction, which may indicate larger future movements.

This process taps into billions of online interactions, offering an invaluable perspective on how trends manifest in the digital landscape and influence consumer behavior.

Knowledge harvest

Knowledge harvesting for trends research is the process in which we synthesize insights from different sources to validate patterns and identify actionable opportunities. This includes:

• Data integration: combining internal data (e.g., consumer pulse surveys) with external sources like industry reports, academic studies, and market data.
• Pattern recognition: looking for recurring signals across different datasets to identify trends with strong foundations.

This holistic approach ensures that trends are not only identified but also validated, providing businesses with confidence in the opportunities and strategies derived from the analysis.

Why should you do a market trends analysis?

In a changing consumer world staying ahead of trends is crucial for businesses aiming to remain relevant and competitive. That’s where trends analysis comes in. Trends and foresight research offers many key benefits, such as:

• Identifying growth opportunities: trends research helps uncover unmet consumer needs and emerging desires, providing a roadmap for product innovation and marketing strategies.
• Building future-proof strategies: by anticipating shifts in consumer preferences and external factors such as culture and technology, brands can align with future market demands.
• Reducing risk: informed decision-making based on trend analysis minimizes uncertainty and ensures investments are directed toward high-potential areas.
• Driving category growth: leveraging trends allows brands to seize growth opportunities, redefine categories, and capture market share.

What does real-life trends analysis look like?

Trends research can feel like a complicated and mostly theoretical process, so let’s take a real world example of trends analysis in market research.

Flavored water trends that are making a splash

Dig’s Trends & Foresight department delved into the booming flavored water market. Our research revealed the six biggest trends shaping the water industry and how they align with micro and macro consumer trends.

The consumption of flavored water in the U.S. has more than doubled over the last decade. On TikTok, #WaterTok has amassed over 1 billion views, with content showcasing personalized water flavor stations, creative water “recipes,” and even fandoms for stylish water bottles like the Stanley Quencher. Our VP of Trends & Foresight, Shelby Walsh, dove (if you’ll pardon the pun) into the world of flavored water to better understand this growing category, and provide actionable advice for brands looking to make a splash (again, pardon the pun) in this space.

Some of the key trends identified were:

Every Occasion Adaptogens

New adaptogenic beverages targeting a younger female demographic with a blend of 70s psychedelia and modern aesthetics have reshaped the market, offering consumers occasion-based marketing, education, and personalized selection tools while catering to the rising interest in sober curiosity and alternative beverage options across various occasions. 

Think: Recess, Kin Euphorics, and Moment Botanical Water.

Elevated Infusion At-Home

As the demand for functional ready-to-drink beverages rises, the growing trend of filtering water among Americans presents an opportunity for at-home water systems to thrive, offering eco-friendly, high-quality water with added benefits like minerals, vitamins, hydrogen, caffeine, electrolytes, and various flavors, allowing consumers to enhance their water experiences and choose beverages based on specific needs.

Think: Mitte, Aquablue, and Bevi.

Sparkling Pre-Biotics 

The surge in interest around gut health, evidenced by rising Google searches and propelled by challenger brands like Olipop, signals a mainstream appetite for sparkling prebiotic beverages. This is presenting a growing opportunity in the water space for flavorful and convenient prebiotic options amidst a backdrop of increasing awareness of digestive health from the general population and the prevalence of diseases such as diabetes.

Think: Olipop, Poppi, and Fhirst.

Water for Energy

The energy drink market is shifting towards a more nuanced, low-calorie, and sugar-free options. This has prompted both established and new players to innovate on formulations, ingredients, and branding for broader consumer appeal, departing from more “aggressive” branding.

Think: Voli, Phocus, and TruFocus.

Learn more about the changing flavored water landscape with the full Trends Analysis webinar: 

TLDR: Trends analysis in market research

Trends analysis goes beyond observing what’s popular. It’s about understanding why trends emerge, how they evolve, and what they mean for businesses.

• Definition: trends analysis combines consumer research, online behavior tracking, and knowledge harvesting to uncover patterns and forecast future opportunities.
• Types of trends: trends can range from evolutionary (i.e., gradual changes), emerging (i.e., new ideas for early adopters), and disruptor trends (i.e. rapid movements), spanning consumer behavior, industry innovation, and cultural movements.
• How it’s done: by leveraging tools like AI, social media data, and diverse research sources, businesses can validate trends and align their strategies with emerging market dynamics.

Trends analysis empowers businesses to stay ahead, innovate confidently, and future-proof their strategies.