Forecasting future demand is the process of predicting customer purchase behavior and inventory needs in advance, so businesses can plan accordingly. It requires looking at historical trends, as well as utilizing predictive analytics tools to project what customers may need in the coming months or years. Forecasting can help companies anticipate purchasing decisions, plan for staffing and production levels, and ensure there’s enough stock available to meet customer demand. With clear insights into future customer needs, businesses can better prepare for changes in demand and maximize profits.