Understanding and Analyzing Market Trends

market trend

A market trend is the general direction a stock, currency or other asset is moving in over the course of time. It’s important for businesses to understand and analyze market trends so they can stay ahead of consumer demands, adjust business practices and more.

A trend can be upward, downward or sideways and can last from days to years. Governments may also skew market trends using fiscal or monetary policy. Market trends are usually shaped by investor and trader sentiment as well.

Trend analysis isn’t about relying on gut feelings or hunches – it’s about identifying shifts in consumer behavior that reveal new opportunities to grow your business. It’s about being able to anticipate what’s coming next – and then acting on it before your competitors do.

Trends can be long-term, such as the growth in demand for sustainable products, or short-term – like the rise and fall of popular baby names or fashion fads (like flare jeans or bucket hats). Some are seasonal, while others gain momentum over time – such as a growth in tech usage or a reduction in sugar consumption. Keeping your finger on the pulse of these trends reveals insights about how your consumers might change over time, and allows you to make smarter decisions about pricing, product development and marketing strategy. In fact, our 2025 US Consumer Trends Report revealed that, while consumers’ attitudes and behaviors around sustainability are growing, many are not yet making the necessary changes to their daily habits.