New research highlights retail trends to watch in 2026
Data specialist CACI has unveiled its predictions for the retail and grocery sector in 2026, including the trends set to define the sector this year.
The research found that wellness-led purchasing will continue to feature in everyday grocery spend in 2026, as shoppers prioritise products that support energy, performance, and preventative health. The protein-rich foods, supplements, and sports nutrition category is also set to continue its expansion this year.
CACI also said that retailers positioned that are strongly in health and supplements are expected to benefit from sustained demand Holland & Barrett for example reported +7.5% growth for January 2026 year-on-year. Growth is also anticipated across mainstream grocery, as protein and functional ranges expand.
The research also anticipates continued momentum in health and beauty, fuelled by the mainstreaming of wellness routines and increased adoption of at home beauty technology. Sales of products such as LED face masks and advanced skincare devices are projected to grow, as consumers seek professional grade results at home.
Another emerging growth factor is men’s skincare, with CACI identifying rising frequency amongst male shoppers, with brands such as The Ordinary and Kiehl’s broadening their category and attracting more buyers.
Within online retail, CACI found that Social commerce is expected to continue its rapid expansion throughout 2026, driven by platforms such as TikTok Shop, Facebook Marketplace, and Instagram Shopping. Major grocery and retail brands arrived on TikTok Shop in 2025 – including Marks & Spencer, Lidl, and Sainsbury’s – and CACI forecasts the platform will continue its path as a major e-commerce platform.
Influencer-led marketing is expected to remain a critical driver of conversion, particularly Gen Alpha shoppers, whilst 46% of Millennials and 63% of Gen Z stated that they have previously purchased goods or services from a social media platform, according to data from CACI’s Voice of the Nation survey.
Alex McCulloch, director at CACI, said: “One of the most important dynamics shaping 2026 is the widening gap between what consumers need and what they want to buy. While households remain focused on value and essentials, our data is tracking sustained growth in more desire-driven categories, whether that’s functional health products, beauty tech, or purchases made through social discovery.
“The retailers that will outperform are those that recognise and strategically respond to this duality. It’s no longer enough to optimise for essential spend alone, success will come from understanding where consumers are wanting to trade up, treat themselves, or invest in performance and wellbeing.”