Curious About What Gen Z Is Buying? The Answer May Surprise You

As its oldest members enter their mid-20s, Gen Z is coming into its own as an economic force. The generation’s spending power is likely to reach $12 trillion by 2030, and with Gen Z making up a quarter of the global population, their spending habits will shape markets for decades to come.

Gen Z Values and Spending Habits

Understanding the values that are common across Gen Z is important to understanding where the generation is likely to spend its money. 

Gen Z is the first generation to be truly digitally native, with implications for access to information and markets all over the world. The generation values authenticity but also experiences increased isolation due to virtual over in-person engagement. Climate is a primary concern and may dictate elements of Gen Z’s spending habits.

Unsurprisingly, then, Gen Z tends to shop online. However, their share of in-store dollars spent is higher than that of any other previous generation.

What Is Gen Z Buying?

Gen Z is quality-conscious, prioritizing high-quality items over those that are on sale or cheaper than alternatives. They tend to be less brand-loyal than older generations, but also less concerned about local production. This may translate into an increased interest in private label alternatives to national brands across many product categories.

With the oldest members of Gen Z approaching the age at which individuals typically get married, buy a home, and have children, as a group, they are less concerned with these landmarks than earlier generations. In fact, one of Gen Z’s top aspirations is global and domestic travel.

In the next decade, the health category is likely to see some of the strongest demand growth among Gen Z consumers. “Health” in this case refers to health-conscious products such as those with desirable nutrients and ingredients, or those that are eco-friendly. When it comes to beauty products, for example, Gen Z tends to look for clean, cruelty-free options with natural fragrances. Desirable foods tend to be those free from artificial ingredients, high in protein, and low in sugar.

It’s also noteworthy that, because many Gen Zers live with their parents, their household purchase habits are impacted. Households with at least one Gen Z resident tend to prefer combo or variety packs of different foods. Sexual health products tend to also be priority purchases.

The Bottom Line

With the oldest members of Gen Z nearing 30 years old, spending habits across the generation are emerging. Gen Z will likely be the biggest generation of all time and will wield enormous spending power. 

However, this group tends to spend in unique ways compared with other generations. Despite being digitally native, Gen Zers continue to spend heavily in brick-and-mortar stores. Keeping these habits and trends in mind for companies marketing to Gen Z will be essential.