Mars Study Projects AI-Driven Retail to Reach 788 Billion Dollars by 2035
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Automated AI agents will handle everyday consumer purchases over the next decade. At the same time, global retail will shift toward experiential spaces, according to research from Mars, Kantar and Synthesis.
Researchers analysed more than 180,000 data signals across four continents. The goal was to evaluate how consumer purchasing habits and retail platforms will operate through 2035.
The report identifies three primary shifts: algorithmic purchasing automation, granular personal curation, and experiential physical and digital storefronts. Intelligent software assistants will handle recurring household restocking. As a result, physical shops must transform from functional transaction points into entertainment and community destinations.
Automated repeat purchases and agentic commerce
Software agents now manage routine consumer replenishment without manual order placement. They process purchase histories, individual preferences and live inventory levels in real time. Artificial intelligence referrals to e-commerce brands jumped 752 per cent year on year during the 2025 holiday shopping season, according to data from BrightEdge. The firm projects that AI-driven commerce transactions will expand to $788 billion globally by 2035.
This dynamic splits retail into two separate tracks. Basic household necessities and staple groceries move into frictionless background fulfilment. Meanwhile, discretionary shopping becomes an intentional activity centred on product discovery.
Balancing personal curation with data governance
Consumer expectations for customised digital interactions continue to climb across retail categories. Research from TransUnion shows that 39 per cent of consumers now expect personalised online shopping experiences.
“The firm projects that AI-driven commerce transactions will expand to $788 billion globally by 2035.”
Tailored product recommendations require retail platforms to process deeper customer data streams. That requirement raises compliance demands around customer consent, data storage and cross-border consumer protection standards across international operating territories.
Physical stores pivot to entertainment
Physical stores and digital platforms are responding to automated replenishment by turning shopping trips into sensory destinations. Experiential brand venues recorded 15.3 per cent year on year growth, according to tracking data from Emarketer.
Online channels follow a similar path toward active engagement. Emarketer figures show that 22 per cent of United States digital buyers already purchase products directly through livestream broadcasts.
Snacking brands confront disappearing impulse buys
Background replenishment threatens traditional impulse-driven consumer packaged goods categories. Packaged food manufacturers built their distribution models around checkout aisles, end-cap displays and point-of-sale visibility in convenience stores and supermarkets. When automated algorithms reorder groceries based on historical basket data, unprompted impulse sales drop sharply.
Brand owners now need direct interactive touchpoints to introduce new items before algorithms lock shoppers into rigid consumption loops. Regional supermarket operators must redesign floor layouts away from dense shelving and toward dedicated sampling zones and interactive kiosks.
Retail chains started testing automated inventory reordering and cashierless checkout networks in late 2025. Consumer packaged goods manufacturers now face the 2026 holiday retail cycle as the next test of whether interactive digital activations can defend impulse purchase volumes against automated buying agents.
Questions & Answers
Q.What primary shifts in retail are identified by the Mars study?
What primary shifts in retail are identified by the Mars study?
The study identifies three primary shifts: algorithmic purchasing automation, granular personal curation, and experiential physical and digital storefronts. These changes will redefine how consumers shop and interact with brands by 2035.
Q.How will physical shops need to adapt to these changes?
How will physical shops need to adapt to these changes?
Physical shops must transform from functional transaction points into entertainment and community destinations. This is because intelligent software assistants will handle recurring household restocking, shifting basic purchases to frictionless background fulfilment.
Q.What challenge do snacking brands face due to automated purchasing?
What challenge do snacking brands face due to automated purchasing?
Automated replenishment threatens traditional impulse buys, as algorithms reorder groceries based on historical data. Brand owners need direct interactive touchpoints to introduce new items before algorithms lock shoppers into rigid consumption loops.
Q.Why does increased customisation raise data compliance concerns?
Why does increased customisation raise data compliance concerns?
Tailored product recommendations require retail platforms to process deeper customer data streams. This raises compliance demands around customer consent, data storage, and cross-border consumer protection standards across international operating territories.