By Elizabeth Elliot, Senior Innovation Specialist, GM Business Growth Hub Estimated reading time: 3 minutes Date: 28th July 2026
After another summer of heat alerts, disrupted travel and prolonged dry spells, many businesses are asking how climate change will affect their operations.
A better question might be: how is it affecting your customers?
One recent example comes from an unexpected place. According to recent media reports, demand for low- and no-alcohol beer continues to grow, with warmer weather cited as one factor influencing consumer choices. Faced with hotter temperatures, many people are reaching for lighter, more refreshing alternatives.
On the surface, it might seem like a story about beer. In reality, it's a story about consumer behaviour.
When people's habits change, markets change too. And for businesses willing to pay attention, that's where some of the biggest opportunities for innovation can be found.
The Real Impact of Climate Change Happens at Home
Climate change is often discussed in terms of global targets, emissions and environmental policy. But consumers experience it much closer to home.
It's the employee working through another hot afternoon in a spare bedroom that was never designed to be an office.
It's the family looking for ways to keep their house cool without seeing energy bills climb.
It's the café owner adapting outdoor seating to deal with both intense sunshine and sudden downpours.
These aren't headline-grabbing events, but they are changing expectations, purchasing decisions and daily routines.
For businesses, understanding these small behavioural shifts can reveal opportunities that competitors may overlook.
When Trends Collide
The most powerful innovations often emerge when multiple trends intersect.
Take the rise of hybrid working. More people are spending their days at home, while unusually warm weather is increasing demand for comfortable living and working environments. Together, these trends could create growing opportunities for products and services that help people manage temperature, energy use and wellbeing.
This might include:
- Smart technologies that optimise heating and cooling
- Improved shading, ventilation and insulation solutions
- Climate-resilient home improvements
- Outdoor spaces designed for more extreme weather
- Hospitality venues adapted for changing customer expectations
Innovation doesn't always mean inventing something entirely new. Sometimes it means recognising that the context around existing products has changed.
Could Water Be the Next Big Consumer Challenge?
While recent headlines have focused on heat, businesses should also be watching another long-term trend: water.
As periods of dry weather become more common, pressure on water resources is expected to increase. Most consumers don't currently think about water use in the same way they think about energy consumption, but that could change if costs rise and conservation becomes a greater priority.
If that happens, demand may grow for innovations such as:
- Smart water meters
- Water-saving devices
- Grey-water recycling systems
- More efficient domestic and commercial technologies
Just as rising energy prices accelerated interest in energy-efficient products, water could become the next area where consumers actively seek ways to reduce waste and cost.
The Opportunity Is in the Signals
Climate change may be a global challenge, but businesses often encounter its effects through hundreds of small customer decisions.
A different drink choice. A change in commuting habits. Greater interest in home cooling. Increased awareness of water usage.
Individually, these behaviours can seem insignificant. Together, they can signal the direction of future markets.
The businesses that thrive won't necessarily be those with the biggest research budgets or the most advanced technology. They'll be the ones that spot these shifts early, understand what is driving them and respond before everyone else.
Because innovation rarely starts with a new product. More often, it starts with a new observation.
Looking to Stay Ahead of Changing Consumer Behaviour?
GM Business Growth Hub's Innovation service helps businesses identify emerging trends, uncover new opportunities and turn ideas into practical action.
Whether you're developing a new product, adapting to changing customer expectations or exploring future market opportunities, our Innovation specialists can help you take the next step.
Get in touch to find out how Innovation support could help your business stay ahead of the curve.
About the Author:
Elizabeth Elliot, Senior Innovation Specialist
Elizabeth is a Senior Innovation Specialist at GM Business Growth Hub with a First Class BSc (Hons) in Textiles and Materials Science from The University of Manchester. She specialises in eco-innovation, circular economy business models and supporting SMEs to develop and commercialise new products, services and business concepts.
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