What are the biggest challenges facing consumer brands and retailers in 2026?

RPC’s new Consumer Brands & Retail horizon scanner, The Drop by RPC, explores what lies ahead for the sector over the next 12 months – from costly new packaging regimes to increased tax scrutiny and litigation risk.

AI infrastructure, fast-evolving consumer protection regimes, sweeping changes to cookies and tracking, and tougher scrutiny from regulators and HMRC are just some of the key challenges facing consumer brands and retailers this year.

Drawing on insights from RPC's experienced lawyers across the Consumer Brands & Retail group, The Drop by RPC highlights the key watchouts for in-house teams and the practical steps to take now.

Ciara Cullen, RPC Partner and Consumer Brands & Retail Sector Lead, comments: "As we look ahead in 2026 and beyond, consumer brands and retailers are navigating an exceptionally dynamic landscape. Regulatory expectations are rising, enforcement is becoming more assertive, and the pace of technological change is accelerating. Those businesses that invest now in understanding the legal and regulatory horizon, building cyber and operational resilience, and embedding responsible innovation into their strategies will be best placed not only to manage risk, but to seize the opportunities that this period of transformation presents."

Highlights include:

• The CMA's investigation into online pricing practices
  Under the Digital Markets, Competition and Consumers Act (DMCCA), the CMA can now enforce consumer law directly and fine companies up to 10% of worldwide turnover. We explore how its cross-economy focus on online pricing and consumer journeys will impact retailers and brands.
• Increasing investment in AI infrastructure
  As the UK doubles down on AI innovation, we look at the benefits and risks of scaling AI across operations and advertising – and the regulatory regimes and safeguards businesses need to have on their radar.
• Changes to cookies legislation
  With regulators rethinking cookies and tracking, retailers must revisit consent mechanisms, banners and adtech partnerships, and accelerate first-party data and consent-based strategies.
• Act now on cyber resilience
  With cyber incidents on the rise, consumer-facing businesses are firmly in the firing line. We outline what building a foundation of cyber resilience looks like in practice for organisations of all sizes.
• Navigating the evolving packaging landscape
  New regimes such as the Extended Producer Responsibility (EPR) and the forthcoming Deposit Return Scheme (DRS) will drive significant new costs and compliance requirements. We share practical tips for in-house legal teams as sustainability becomes core business strategy.
• Rising HMRC scrutiny
  Against a backdrop of shifting tax policy, HMRC is expected to sharpen its focus on consumer brands and retailers in 2026. We assess where increased compliance activity and potential disputes are most likely to arise.
• A closer look at the Employment Rights Act
  The Employment Rights Act (ERA) will introduce over 25 sweeping reforms to employment law. We hone in on three key areas for the sector: strengthened unfair dismissal protection, harassment and whistleblowing reforms, and guaranteed hours for zero hours and agency workers.
• Changes to business rates
  From 1 April 2026, business rates changes announced in the Autumn Budget 2025 took effect. We consider what the new permanent multiplier and the end of temporary relief mean for retail, hospitality and leisure businesses.
• M&A trends in consumer brands and retail
  Whilst it is still happening, M&A in consumer brands and retail has become more selective. We look at how, in a less stable macroeconomic environment, buyers and sellers are treating deals less as a race for scale and more as a way to reshape portfolios, protect margin and acquire capabilities quickly.

For more insights and to read the full guide, click here.