In an era where legacy brands dominate shelves and screens, a quiet revolution is underway: consumers are increasingly drawn to scrappy, creative challenger brands punching above their weight.
But what makes someone pick Olipop over Coca-Cola? Or a niche skincare startup over L’Oréal?
Our latest report Small Brands, Big Opportunities unpacks what attracts and deters consumers from trying smaller, less established brands. The findings are a must-read for marketers, brand strategists, and insights professionals looking to understand how trust is built (or broken) in a crowded consumer landscape.
Curious But Cautious: Most Consumers Are Willing to Try — With Limits
The good news for upstart brands? Consumers are open. Really open. In fact, 76% say they’re likely to try a brand they’ve never heard of. And 60% report switching from a big brand to a smaller one. That number jumps to 68% for 25- to 34-year-olds, a demographic known for early adoption and shifting brand loyalty.
But there’s a catch. Most only do it sometimes. Just 10% say they always choose challenger brands, with the risk tolerance lowest within high-stakes categories like tech or baby products. Food and beverage, on the other hand, offers a gateway, with 70% open to trying something new.
How Do Consumers Discover These Brands? It Depends on Who’s Asking.
The No. 1 source of discovery across all age groups is still word of mouth. But younger consumers rely heavily on digital channels. Among 18- to 24-year-olds, 53% say they discover new brands via online search, while 55% of 25- to 34-year-olds cite social media. Influencers move the needle as well, but mostly for Gen Z, with 40% of 18- to 24-year-olds crediting influencer content for discovering a challenger brand.
This suggests that challenger brands must tailor their outreach to optimize for search and influencer visibility for younger audiences, while cultivating in-store presence and recommendation-worthy experiences for older cohorts.
What Really Drives Trial? (Spoiler: It’s Not Just Ethics)
While many consumers perceive smaller brands as more ethical and socially responsible, those values don’t necessarily drive purchase decisions. Price, innovation, and curiosity have far greater impact:
- 48% are motivated by better value or lower prices
- 39% are drawn to unique or innovative products 38% say they’re just curious to try something new
And what holds them back? Only 10% cited lack of trust. The biggest blocker is product quality concerns, mentioned by 27% of respondents. For challenger brands, that means the biggest marketing challenge isn’t familiarity, it’s credibility.
Why This Matters — And How MX8 Can Help
In a world where attention is scarce and brand discovery is fragmented, understanding how people evaluate and adopt new brands is more critical than ever. This research provides a blueprint for challenger brands looking to position themselves more effectively — and for established players seeking to understand how they're being disrupted.
At MX8 Labs, we don’t just track these trends — we enable brands to act on them. Our AI-powered research platform lets lean teams run sophisticated, custom research studies at lightning speed, surfacing insights that help challenger brands outmaneuver their larger rivals.
*Ready to go deeper? Use the form below to download the full report and uncover more insights — including demographic breakdowns, category-specific trends, and tactical recommendations for turning consumer curiosity into lasting loyalty. *