Trends and consumer shifts in 2026 every SME leader should know

What’s coming in 2026: trends and consumer shifts every SME leader should know

As we step into 2026, the business landscape for small and medium-sized businesses (SMEs) continues to move and change as quickly as ever.

But this isn’t about chasing shiny trends or reacting to every new headline.

2026 is shaping up to be a year where strategic clarity, human connection and grounded leadership are going to matter more than ever.

The businesses that will do well won’t necessarily be the loudest or the fastest. They’ll be the ones that are clear on who they are, how they help, and where they’re heading, and who make thoughtful decisions rooted in purpose, not panic.

Here are the 10 key trends and consumer behaviours I believe will have the greatest impact on SMEs in 2026:

1. Economic uncertainty means being smart about growth

Entering 2026, consumer caution is still very real, particularly in the UK, where spending hesitancy hasn’t fully lifted (The Guardian, UK consumer confidence reporting).

At the same time, the picture for small and medium-sized businesses is mixed:

•  some sectors are under pressure from rising costs and tighter margins (The Times, UK business confidence surveys)
•  others are proving remarkably resilient, adapting faster than larger organisations ever could (Axios, SME resilience analysis)

This isn’t a moment to freeze, but it is a moment to be more intentional.

Takeaway: 

 The opportunity in 2026 isn’t about growing for growth’s sake. It’s about focusing on what matters most, staying flexible and maintaining a relentless focus on customer value. Businesses that know exactly where and how they add value consistently outperform the competition.

2. Community and connection as a competitive advantage

In a world overloaded with content, notifications and noise, people are craving something simpler and more human.

We’re going to see:

•  a rise in slower, more intentional living (Vogue Business, consumer lifestyle trends)
•  more digital breaks and boundaries (McKinsey, digital wellbeing research)
•  a stronger desire to feel seen, heard and connected, not sold to

Strong brand communities and genuine connection are no longer “nice extras”. They are a real source of resilience, advocacy and long-term loyalty for small businesses.

It’s not about building a massive audience. It’s about attracting the right one.

Takeaway: 

Create meaningful spaces, online and/or in person, where your customers, clients or community can connect is going to be key. Human-centred brands don’t just survive uncertainty; they build trust and goodwill that compounds over time.

3. AI moves from optional to operational

Artificial intelligence is no longer something to “experiment with when you have time”.
In 2026, it’s becoming an essential part of day-to-day business operations.

If you’re not already using AI to improve and enhance how your business runs, you are at serious risk of falling behind.

We’re moving from:

•  trying tools and dipping a toe in the water
•  to embedding AI into daily workflows, forecasting, content creation, customer support and operations

The biggest shift isn’t just technological. It’s strategic.

Leaders who use AI well, not those who use it everywhere, will have a significant advantage (FSB small business technology outlook).

Takeaway: 

This isn’t about more tools. It’s about using them intentionally. Start by being clear on your purpose, boundaries and ethics, then apply technology where it genuinely saves time, improves decision-making or enhances customer experience.

4. Digital, hybrid and remote working as the norm

Geography is no longer the barrier it once was.

•  teams, suppliers and customers are increasingly more widely distributed
•  SMEs can collaborate, trade and hire across borders with ease
•  flexible and hybrid working is an expectation, not a perk (CIPD future of work research)

This opens up huge opportunity for both businesses and employees, but only if strong culture and clear communication are in place.

Takeaway: 

 Freedom without structure rarely works. Clear expectations, strong internal communication and shared values now matter more than physical presence ever did.

5. Marketing: how customers find you is changing fast

Search and discovery are undergoing a quiet but significant shift.

Consumers are increasingly using AI assistants, such as ChatGPT, alongside or instead of traditional search engines like Google to find products, services and recommendations (Gartner, future of search predictions).

That means your business now needs to be visible and understandable to machine customers as well as humans.

At the same time, video has moved from a “nice to have” to an expectation. It is no longer confined to platforms like YouTube.

Video is taking the lead across:

•  websites
•  social channels
•  search
•  email
•  audio and podcast platforms (Smartly-Digital-Advertising-Trends-2026)

Storytelling, personalisation and sales are becoming increasingly video-led (WARC and HubSpot video marketing reports).

Takeaway: 

The mandate for 2026 is clear: simplify your message, connect your channels and make technology work harder for your brand, not the other way around.

6. Consumers are more intentional about where they spend

I’ve been talking about this since COVID, I wrote about it in my book, and I believe in the power of this shift more than ever as we move into 2026.

People are thinking far more carefully about who they buy from and why.

Values-led purchasing is no longer niche (Forbes consumer trust studies). Customers expect:

•  authenticity
•  transparency
•  proof, not promises
•  alignment between what a business says and what it does

Trust, wellbeing, sustainability and credibility are becoming baseline expectations.

Your “why” is no longer just a feel-good statement. It’s a strategic asset.

Takeaway: 
Make your values visible in how you operate, communicate and make decisions. Grounded, honest and transparent storytelling builds trust and loyalty far more effectively than polished perfection ever will.

7. Personalisation with purpose

Customers want experiences that feel relevant and easy, but they don’t want to feel watched.

AI is unlocking more personalised customer journeys, enabling better attention to detail and more thoughtful experiences from the very start of the relationship (Salesforce State of the Connected Customer).

Takeaway: 
Smart personalisation respects privacy, builds trust and genuinely helps. When done well, it shows customers that you value them as individuals, not data points.

8. Sustainability shifts from “nice to have” to mandatory

Sustainability is moving firmly out of the voluntary space and into regulation.

With increased government requirements and pressure from larger organisations, expectations will continue to filter down to SMEs (UK government sustainability and EPR guidance).

Businesses will be expected to move beyond token gestures and embed sustainability and corporate social responsibility into everyday operations.

Takeaway: 
Sustainability decisions made now will directly affect future cost, compliance and reputation.

9. Cyber security becomes a strategic issue

Cyber security will be a major issue in 2026.

Customers, partners and teams are paying closer attention to:

•  data protection
•  ethical operation
•  security standards

Cyber attacks are no longer limited to big brands. According to the UK Cyber Security Breaches Survey, around 42% of small businesses reported phishing attacks in the past year, with the average cost of the most disruptive attack close to £8,000.

With tighter requirements around cloud services, multi-factor authentication and backups, preparation matters.

Takeaway: 
Compliance is a trust issue. Cyber security is now a brand and leadership responsibility, not just a technical one.

10. People, skills and wellbeing take centre stage

Employment legislation, including changes to national insurance, payroll, probation periods and zero-hours contracts, will continue to add pressure for SMEs (Employment Rights Bill summaries).

At the same time, there are clear opportunities:

Skills and apprenticeships
New incentives and funding mean it is cheaper and easier for SMEs to hire apprentices and invest in future talent (UK government apprenticeship funding).

Employee wellbeing
Wellbeing is no longer a “nice to have”. Research from Aviva shows that 99% of UK SMEs recognise the importance of employee wellbeing, linking it directly to retention, productivity and culture.

Takeaway: 
People don’t stay because of perks. They stay for clarity, care and culture. Businesses that lead well internally will always be stronger externally. This is at the heart of my ‘Inside-Out’ approach.

2026 is a year for leadership

If the last few years have been about survival and adaptability, 2026 is about strategic intentionality.

Strong leadership this year will look like:

•  focusing on what matters most and saying no to what doesn’t align
•  genuinely caring for both your team and your customers
•  applying technology where it improves outcomes
•  communicating with clarity, transparency and honesty

Your business doesn’t need to chase everything or spin all the plates.
It needs to lean into what aligns with your vision, who you serve and where you’re going.

That’s how you build something that lasts.