Top 5 Trends Small Businesses Should Watch in 2026
As a small business owner entering a new year, planning ahead and staying informed can help you gain clarity and confidence as you develop business plans and set goals. As technology advances and customer expectations change, taking proactive steps now can help you develop a solid game plan, so you’re ready for any challenges and opportunities that lie ahead.
In this post, we outline five trends that you can expect to see as we enter 2026, including:
- Increased AI integration and automated systems
- More locally sourced products and materials
- The value of human connection over speed
- The rise of nano-influencers
- Video-first social media marketing strategies
1. Increased AI Integration and Automated Systems
Artificial intelligence (AI) made huge advancements in 2025, setting the stage for further developments in 2026. A noticeable trend is the increasing number of tools and software that have integrated AI features to enhance their offerings.
From assisting business owners with customer service, inventory management, and data analysis, to automation tools helping streamline repetitive tasks like scheduling and financial management, several AI and automation integrations help businesses run more efficiently. In fact, 90% of small and medium-sized businesses report that AI makes operations more efficient, 87% say it helps them scale their services, and 86% say it improves their margins.
In 2026, many small business owners, depending on the industry, can benefit from paying attention to how AI and automation evolve throughout the year. New tools will emerge, and existing platforms will enhance their AI capabilities, introducing features designed to streamline processes and reduce the workload for small business owners. By exploring these options early and identifying existing tools you can use, you can improve productivity and enhance customer experiences going forward.
With many Canadian small business owners already using AI for tasks like marketing content creation, trend analysis, and data reporting, and 53% expecting their AI investments to deliver positive results within the next year, the shift toward deeper AI adoption is well underway. As AI tools become more accessible and automation capabilities continue to expand, we can expect AI to become a central part of everyday business operations in 2026 and beyond.
2. More Locally Sourced Products and Materials
Sustainability is not necessarily a new topic of conversation, but customer expectations for businesses to adopt sustainable practices remain strong, with trends leaning toward sourcing sustainable, local products.
As a small business owner, recognizing the growing interest in sustainability and understanding how to integrate it into your practices can be a powerful way to meet changing consumer expectations. One consideration is sourcing inventory or materials from local vendors. A recent survey found that 84% of Canadians are paying more attention to where products come from, which means that highlighting local sourcing can strongly influence purchasing decisions.
Additional research helps demonstrate this shift in behaviour, as nine in ten Canadians want retailers and grocery stores to promote Canadian products, while 77% say they’ll choose Canadian products even if they cost more. This preference is also reflected in global trends, as 47% of consumers report that buying from locally owned companies is an important factor in their purchasing decisions.
Leaning into local sourcing practices can help small businesses generate interest and meet the expectations of increasingly conscious consumers.
Learn more: How to Implement Sustainable Practices in Your Small Business
3. The Value of Human Connection Over Speed
Providing customers with a positive experience is something businesses of all sizes should aim for, but as customer expectations continue to evolve and AI becomes ubiquitous, more consumers place greater value on qualities that feel personal and relationship-driven. In 2026, this trend is shifting toward prioritizing genuine human connection rather than focusing solely on speed or efficiency.
As technology becomes integrated into daily operations and automated replies become more common, customers increasingly appreciate the authenticity and “human touch” that only human interaction can deliver. They are looking for thoughtful service, not rushed responses, and many consumers say they want more of that human interaction in the future.
Of course, speed and convenience are still elements of a positive customer experience. However, new research finds that 86% of consumers say empathy and human connection are more important than quick response time in providing a superior customer experience.
In 2026, small business owners can lean into this trend by personalizing responses rather than providing generic messages, including writing custom inserts for customer shipments. Other ways include showing genuine interest in customer needs by offering tailored recommendations, training staff to provide empathy in their interactions, and sharing the behind-the-scenes of the business so consumers can connect with the fact that a real person is managing operations, which can often be overlooked if not actively communicated.
4. The Rise of Nano-Influencers
User-generated content can be an excellent marketing tool for small businesses, as it involves actual customers creating content for your business, making messaging feel much more authentic. While some brands choose to work with influencers with large followings, 2025 saw brands opting for nano-influencers, which is a trend we can expect to continue in 2026, as nearly three-quarters of agencies report that these smaller, niche influencers will generate more impact than celebrity endorsements next year.
Nano influencers have between 500 and 10,000 followers. While their audiences are smaller than those of mega-influencers with over one million followers, nano influencers deliver the highest engagement rate across influencer categories. Their communities are more tightly connected due to their smaller size, and followers often view their content as more genuine and relatable.
For small business owners, this ongoing shift can present a valuable opportunity. Nano influencers are often more affordable, more flexible to work with, and in many cases may already be customers who genuinely love your products or services. This can make marketing outreach more efficient. Learn more about how you can get customers to market your small business for you here.
5. Video-First Social Media Marketing Strategies
Video-first social media marketing is a strategy that prioritizes video as the main way to engage with audiences. With the popularity of TikTok, YouTube Shorts, and Instagram Reels increasing in 2025, we can expect the trend toward creating short-form videos to continue building momentum and engaging audiences.
According to 2025 data, 89% of businesses use video as a marketing tool, while 87% of consumers say they’ve been convinced to buy a product/service just by watching a video in the past year. If your small business isn’t already focused on video content, 2026 can be the year to take a closer look at this trend to see where you can begin implementing. And you’ll be in good company, as 53% of small businesses plan to invest more in video marketing/advertising in 2026.
A great way to start producing video content is to create short, authentic clips that showcase your business, including who you are and what products and services your business has to offer. From behind-the-scenes to how-to demos (if applicable), stay true to your brand storytelling while creating content your audience would value. You don’t need a large budget or production equipment to create these videos; authenticity is most important.
Kick Off 2026 with The UPS Store
We are excited to help you reach your small business goals in 2026! Find out how you can become a GET MORE Rewards member to save on many of our services, including shipping, packaging, mailbox rentals, printing, and more. You can also find a location near you to speak with one of our team members.
The UPS Store wishes you a wonderful 2026 with continued success for your small business!