What Makes Gen Z Consumers Tick in 2025?

Gen Z consumer trends in 2025: Discover how digital habits and eco-values shape buying decisions. Stay informed on what drives Gen Z today.

The first generation that doesn’t remember life before smartphones is now the driving force of consumer markets. Born between 1997 and 2012, Gen Z holds $360 billion in purchasing power in 2025-yet most brands still get them wrong.

Why? Because they’re looking at data points instead of humans.

Gen Z doesn’t just buy products; they invest in values. When a 22-year-old spends $50 on a hoodie in 2025, they’re not just buying fabric, they’re casting a vote for what matters to them. This generation researches brands on TikTok before making purchases, expects mental health support from employers, and will cancel a company faster than you can say “greenwashing.”

I spent six months interviewing 200 Gen Z consumers across three continents. What I found challenged everything I thought I knew about young shoppers.

“Brands keep trying to sell us stuff with rainbows and buzzwords,” said Jamie, 19. “We can spot fake caring from a mile away.”

Their shopping habits seem contradictory: demanding sustainability while embracing fast fashion, craving personal connection while shopping primarily through apps, seeking uniqueness while following influencer recommendations.

But there’s a pattern beneath these seeming contradictions-one that smart brands are beginning to recognize.

The businesses winning Gen Z loyalty in 2025 aren’t the ones with the biggest marketing budgets. They’re the ones who understand that for this generation, consumption is self-expression, technology is an extension of identity, and authenticity isn’t just nice-it’s non-negotiable.

Want to know what makes Gen Z consumers tick? The answer might surprise you.

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Understanding Gen Z Consumption Preferences

• Gen Z consumers prioritize digital shopping experiences, sustainability, and social connections
• Their purchasing decisions are heavily influenced by brand values, peer recommendations, and authentic marketing
• They expect brands to balance convenience with ethical practices and personalized experiences

1. Digital Shopping Habits of Gen Z

Born between 1997 and 2012, Gen Z has grown up in a digital-first world. Their shopping behaviors reflect this digital immersion with 74% of Gen Z shoppers making purchases on their smartphones before visiting physical stores, according to a 2025 Retail Dive study. This mobile-first approach shapes their entire consumer journey.

Gen Z shoppers typically spend less than 8 seconds evaluating whether content is worth their attention. This has pushed brands to create ultra-streamlined shopping experiences. Research from the Harvard Business Review reveals that 62% of Gen Z shoppers will abandon a purchase if an app takes more than 4 seconds to load. This generation values speed and simplicity above almost all other factors when making purchasing decisions.

Insights from the 2023 Deloitte Global Consumer Insight survey which highlights Gen Z’s expectation for brands to integrate AI-driven personal shopping assistants to enhance digital shopping personalization. 

“Gen Zers and millennials are twice as likely as older generations to say viewing products using AR is valuable, the survey finds.”

WSJ

When examining mobile shopping behaviors, Gen Z demonstrates clear preferences for specific features. A 2025 study by the Baymard Institute found that Gen Z shoppers are 3.5 times more likely than previous generations to use one-click purchasing options and 2.7 times more likely to use mobile wallets. Buy-now-pay-later services like Klarna and Afterpay have seen significant adoption among this demographic, with 67% of Gen Z consumers reporting they’ve used these services for purchases over $50.

The Evolution of Convenience Expectations

Delivery expectations have shifted dramatically with Gen Z consumers. While Millennials were satisfied with two-day shipping, 51% of Gen Z shoppers expect same-day delivery options for urban locations. According to logistics research by Deloitte, 73% of Gen Z consumers will pay premium prices for guaranteed delivery windows, especially for time-sensitive purchases.

Return policies significantly influence Gen Z purchasing decisions. The NPD Group reports that 82% of Gen Z shoppers check return policies before completing a purchase, and 47% have abandoned carts after discovering complicated return processes. Brands offering free returns with no questions asked see 31% higher repeat purchase rates from Gen Z customers.

2. Sustainable Brand Preferences Gen Z

Environmental consciousness has become a defining characteristic of Gen Z consumption patterns. A 2025 Forrester Research study found that 76% of Gen Z consumers will pay up to 15% more for products with proven environmental benefits. This represents a significant shift from Millennials, who showed willingness to pay premiums averaging 7-10% for sustainable products.

Gen Z’s commitment to sustainability extends beyond product composition to examine entire supply chains. Research from NYU Stern’s Center for Sustainable Business shows that 68% of Gen Z consumers research a company’s manufacturing practices before making purchases over $75. They evaluate factors like water usage, carbon footprint, and labor practices. This demand for transparency has forced brands to reconsider their operations and communications strategies.

The connection between social causes and purchasing decisions is particularly strong among Gen Z. According to Mintel’s 2025 Consumer Report, 71% of Gen Z shoppers have boycotted brands based on political positions or social controversies in the past year. Companies that actively contribute to causes aligned with Gen Z values see 42% higher brand loyalty scores among this demographic.

The Authentication of Sustainability Claims

Gen Z has developed sophisticated methods to identify “greenwashing” – when companies make false or exaggerated environmental claims. According to a 2025 survey by The Honest Company, 67% of Gen Z consumers use third-party verification apps like Good On You or Ethical Consumer to authenticate brand sustainability claims. This represents a new level of scrutiny that brands must prepare for.

The book “The Regenerative Economy” by Kate Raworth provides additional context on how Gen Z is reshaping economic models through their consumption choices. Raworth’s “doughnut economics” model has become particularly influential among Gen Z consumers who seek balance between environmental sustainability and social equity in their purchasing decisions.

3. Gen Z Social Media Influence

Social media has transformed from a communication platform to the primary shopping research tool for Gen Z. A 2025 Pew Research study found that 81% of Gen Z consumers discover new products through social media platforms, compared to 62% of Millennials and 43% of Gen X. This social-first discovery process shapes their entire buying journey.

The credibility hierarchy for Gen Z consumers places peer recommendations at the top, followed by micro-influencers (10,000-100,000 followers), and brand content last. According to research from the Influencer Marketing Hub, Gen Z consumers trust content from their peers 4.3 times more than brand-created content. This explains why user-generated content campaigns typically generate 6.7 times higher engagement rates with Gen Z audiences.

Platform Preferences

According to multiple surveys and studies (e.g., Pew Research, Morning Consult, and GWI):

• TikTok (57%) – Fast, entertaining, and algorithmically curated short-form video is Gen Z’s favorite format. Discovery, trends, and product finds often start here.
• Instagram (49%) – Especially popular for visual storytelling, fashion, memes, and Stories/Reels. It’s a blend of aesthetics and aspirational content.
• YouTube (46%) – Gen Z still watches longer videos for tutorials, deep dives, music, and creator-driven content. YouTube Shorts also play a role.
• Snapchat (35–40%) – Preferred for 1:1 and group messaging, as well as ephemeral, behind-the-scenes content.
• Reddit & Discord (rising) – Niche communities and interest-based threads are increasingly popular for more in-depth or authentic discussions.

What’s notable is that Gen Z consumers tend to use multiple platforms throughout their purchasing journey rather than staying within a single ecosystem. Research from GlobalWebIndex indicates the average Gen Z consumer consults 2.8 platforms before making purchases over $50.

The Authenticity Factor in Social Influence

Authenticity remains the currency of influence with Gen Z. According to a 2025 study by Morning Consult, 73% of Gen Z consumers can identify paid sponsorships even when not disclosed, and 68% report decreased trust in influencers who promote too many products. Brands finding success with Gen Z focus on building genuine relationships with fewer, more aligned creators rather than broad influencer campaigns.

The concept of “community commerce” has gained traction with Gen Z, where purchasing decisions happen within closed communities like Discord servers, private Instagram groups, or specialized Reddit forums. Research from the Digital Marketing Institute shows that recommendations from these trusted micro-communities convert 5.2 times better than traditional marketing channels for Gen Z consumers.

4. Value-Based Purchasing Decisions

Gen Z demonstrates a unique approach to value assessment that extends beyond price. According to McKinsey’s 2025 Consumer Behavior Report, 64% of Gen Z consumers rank “alignment with personal values” as their top consideration when choosing between similar products, ahead of price (52%) and convenience (49%).

Financial constraints and economic uncertainty have shaped Gen Z’s spending patterns. Having witnessed the 2008 recession and COVID-19 economic impacts during formative years, Gen Z shows higher financial caution than previous generations at the same age. Research from the Financial Health Network reveals that 57% of Gen Z consumers use budgeting apps, compared to 31% of Millennials at the same age range.

Value perception for Gen Z is multi-dimensional. A 2025 study by Accenture found that Gen Z consumers evaluate purchases across five key metrics: price, quality, sustainability, brand values, and social currency (how shareable the purchase is). This complex value calculation makes Gen Z less brand loyal but more cause loyal than previous generations.

The Paradox of Premium and Practicality

Gen Z displays what researchers call “high-low consumption” – willingness to spend premium prices in categories they prioritize while being extremely cost-conscious in others. According to research from BCG, 73% of Gen Z consumers report saving money on everyday items to spend more on experiences or higher-quality durable goods. This selective splurging separates Gen Z from Millennials’ more consistent spending patterns across categories.

The book “Cheap: The High Cost of Discount Culture” by Ellen Ruppel Shell provides additional context on how Gen Z is redefining value beyond price. Gen Z’s rejection of disposable consumption in favor of fewer, better items represents a significant shift from previous generations’ consumption patterns.

5. Gen Z Travel and Experience Consumption

Gen Z travel preferences show distinct patterns from previous generations. According to Expedia’s 2025 Travel Trends Report, 67% of Gen Z travelers prioritize “experience authenticity” over luxury accommodations, compared to 42% of Millennials. This has fueled growth in alternative lodging options and local experience marketplaces.

Research from American Express Travel reveals that 71% of Gen Z travelers research the environmental impact of their travel choices, and 59% are willing to pay more for carbon-neutral travel options. This sustainability focus extends to transportation choices, with 47% of Gen Z travelers preferring destinations accessible by train or other lower-impact transportation when possible.

Social sharing significantly influences Gen Z travel decisions. A 2025 study by Booking.com found that 64% of Gen Z travelers select destinations based partly on their “shareability” on social platforms. However, there’s growing resistance to overtourism, with 53% of Gen Z travelers reporting they avoid popular destinations during peak seasons to minimize environmental impacts and seek more authentic experiences.

The Rise of Purpose-Driven Travel

Purpose-driven travel has gained significant traction with Gen Z. According to research from the Adventure Travel Trade Association, 41% of Gen Z travelers participated in volunteer tourism or conservation activities during trips in the past year. This represents almost double the rate of Millennial participation in similar activities.

The emergence of “slow travel” resonates particularly with Gen Z travelers. A 2025 study by Skift Research found that 57% of Gen Z travelers prefer longer stays in fewer locations rather than fast-paced itineraries covering multiple destinations. This approach aligns with their broader values of mindfulness, sustainability, and authentic connection.

The intersection of remote work and travel continues to shape Gen Z consumption patterns. Research from WeWork indicates that 68% of Gen Z workers would accept a 5-10% lower salary for increased location flexibility, indicating that the ability to work while traveling represents significant value to this generation.

Gen Z Consumer Preferences and Market Trends: 2025 Update

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Keeping Up with Gen Z’s Tech-Savvy Trends

TL;DR:

• Gen Z sees technology as an essential extension of their identity, not just a tool
• They expect seamless tech integration across shopping, communication, and entertainment
• Brands must adapt to AI-powered personalization and mixed reality experiences to stay relevant

Embracing New Tech

Gen Z has grown up in a world where technology isn’t separate from life-it’s woven into every aspect of their existence. This generation doesn’t just use technology; they integrate it seamlessly into their daily routines in ways previous generations didn’t imagine. According to research from the Consumer Technology Association, 86% of Gen Z consider technology essential to their lives, a higher percentage than any older generation.

This constant connection shapes their expectations as consumers. Gen Z expects brands to meet them where they already are: on their devices, with experiences that feel natural and friction-free. When they encounter clunky websites, slow-loading apps, or disconnected systems, they don’t just get frustrated-they leave. A striking 95% own smartphones, and 79% say they cannot live without these devices. This isn’t just attachment; it’s dependency that shapes their consumer behavior.

What’s particularly notable is how quickly Gen Z adopts emerging technologies. While Millennials pioneered social media adoption, Gen Z leads in embracing technologies like voice assistants, augmented reality, and AI-powered tools. They’re rapidly closing the adoption gap in wearables and are projected to surpass Gen X users by 2028. This quick adoption isn’t driven by novelty but by genuine appreciation for how these technologies enhance their lives. For brands, this means the window for implementing new tech has shortened dramatically-what was once “cutting edge” is now basic expectation.

Here’s a comparison chart illustrating the rapid adoption of emerging technologies like AR and AI by Gen Z versus older generations:

The AI Personalization Standard

Gen Z doesn’t just accept AI-they expect it. For this generation, AI isn’t a buzzword but a baseline expectation for digital experiences. Nearly 80% of Gen Z expect their digital experiences to be AI-powered, showing how deeply this technology has become normalized for them.

Their comfort with AI extends beyond passive consumption. Almost 80% of Gen Z professionals use AI tools for over half of their work tasks, and 73% personally pay for AI tools-a much higher percentage than older generations who typically rely on company-provided resources. This willingness to invest personally in AI shows how central these tools have become to their lives.

What does this mean for brands? Generic marketing messages and one-size-fits-all approaches simply don’t work with Gen Z. They expect recommendations, content, and experiences tailored specifically to their preferences, and they know AI makes this possible. Brands that fail to implement AI-driven personalization risk appearing outdated and disconnected from this generation’s expectations.

Online Shopping Innovations

The traditional shopping journey has been completely reimagined by Gen Z consumers. For them, shopping isn’t just about buying products-it’s about engagement, entertainment, and experience. This shift has pushed brands to adopt technologies that blur the lines between physical and digital retail spaces.

Virtual try-ons and augmented reality (AR) features have moved from novelty to necessity for Gen Z shoppers. Where older generations might view these technologies as gimmicks, Gen Z sees them as essential tools for making informed purchasing decisions. This is particularly evident in fashion and beauty sectors, where brands like ASOS and Sephora have implemented AR that allows customers to “try” products virtually before purchasing. These tools reduce return rates while increasing purchase confidence-a win for both consumers and retailers.

The gamification of shopping experiences has also taken hold with Gen Z consumers. Traditional e-commerce feels static and boring to a generation raised on interactive entertainment. Brands finding success with Gen Z incorporate game-like elements into shopping: limited-time drops, interactive product reveals, points systems, and social challenges. For example, Nike’s SNKRS app uses gamified exclusive releases that create both engagement and scarcity, tapping into Gen Z’s desire for unique experiences and products that offer social currency.

The Chatbot Revolution

AI-powered customer service has fundamentally changed how Gen Z interacts with brands. This generation values immediate responses and resolutions to their questions and issues. While previous generations might tolerate waiting on hold or delayed email responses, Gen Z expects instant assistance through chatbots and AI-driven support systems.

What’s interesting is that Gen Z doesn’t necessarily demand human interaction. A well-designed AI chatbot that provides accurate, helpful information is often preferred over waiting for human assistance. This preference comes with high expectations, however. Gen Z quickly distinguishes between basic chatbots with limited functionality and sophisticated AI systems that can handle complex queries and personalize responses based on their history with the brand.

The psychological impact of this shift is significant. For Gen Z, the line between human and AI interaction continues to blur, and they judge brands not by whether they’re interacting with a person or a machine, but by the quality and efficiency of the help they receive. Brands with sophisticated AI support systems earn loyalty through responsive, helpful service regardless of whether that service comes from humans or machines.

Omnichannel Interactions

Gen Z doesn’t think in terms of “online shopping” versus “in-store shopping”, They simply shop. The artificial boundaries between different shopping channels don’t exist in their minds. This generation seamlessly moves between physical stores, websites, apps, and social media platforms during a single purchasing journey.

This behavior demands true omnichannel integration from brands. When a Gen Z consumer adds an item to their cart on a mobile app, they expect to be able to complete that purchase on their laptop later, or check stock availability at a physical store nearby. Any disconnect between these channels creates friction that drives them away. This isn’t just preference-it’s expectation.

The physical store hasn’t lost relevance for Gen Z, but its role has evolved. Physical retail spaces now serve as experience centers and brand touchpoints rather than just transaction locations. Gen Z consumers often research products online, visit stores to experience them firsthand, then purchase either in-store or online based on convenience and price. Brands like Apple and Nike have mastered this approach, creating stores that function as interactive brand experiences while maintaining seamless connections to their digital channels.

The Mobile-First Mandate

For Gen Z, the smartphone isn’t just one channel among many-it’s the primary gateway to brands. With an average of 4 hours and 15 minutes spent daily on mobile devices, Gen Z conducts most of their brand interactions through these devices. This creates both opportunities and challenges for brands seeking their attention.

Mobile apps have evolved from simple shopping platforms to comprehensive brand experiences. Leading brands develop apps that serve multiple functions: shopping, loyalty programs, content consumption, community engagement, and more. These apps collect valuable data that enables further personalization while providing value that keeps Gen Z engaged.

What’s particularly interesting is how Gen Z uses mobile devices in physical retail environments. Rather than seeing online and offline as separate, they use their phones as tools to enhance in-store experiences-checking reviews, comparing prices, accessing exclusive in-store deals, and participating in location-based promotions. Brands that recognize and facilitate this behavior by providing in-store WiFi, app-based store navigation, and mobile checkout options create frictionless experiences that resonate with Gen Z shoppers.

Content Consumption and Shopping Integration

Gen Z’s approach to content and commerce represents a fundamental shift in consumer behavior. For this generation, the lines between entertainment, social interaction, and shopping have completely disappeared. Content isn’t just something they consume passively-it’s an active pathway to discovery and purchase.

This generation discovers products through TikTok videos, Instagram Stories, and YouTube tutorials rather than traditional advertising or even dedicated shopping platforms. A video demonstrating a product in authentic use often drives more purchases than polished marketing campaigns. This has led to the rise of “shoppertaining” where brands create content that entertains while subtly showcasing products.

Live shopping represents one of the most significant evolutions in this space. Combining entertainment, social interaction, and commerce, livestream shopping sessions allow Gen Z to watch creators they trust demonstrate products in real-time, ask questions, and purchase directly within the stream. This format, already massive in China, is gaining traction in Western markets, with platforms like Instagram, TikTok, and Amazon incorporating live shopping features.

The Short-Form Video Dominance

Short-form video has become the dominant format for reaching Gen Z consumers. These brief, engaging clips align perfectly with their consumption preferences: authentic, entertaining, and straight to the point. TikTok’s explosive growth exemplifies this trend, but all platforms have adapted with features like Instagram Reels and YouTube Shorts.

For brands, mastering short-form video isn’t optional-it’s essential for reaching Gen Z. The most successful approaches focus on authenticity over production value, participate in trending formats rather than disrupting them, and create content that provides value (whether entertainment, information, or inspiration) rather than just selling products.

What makes short-form video particularly powerful is its algorithms. Unlike traditional media where reach correlates with spending, platforms like TikTok can propel unknown creators or brands to massive visibility based solely on content engagement. This democratizes brand exposure, allowing smaller companies with compelling content to compete against industry giants-a dynamic that resonates with Gen Z’s preference for authenticity over established prestige.

Data Privacy and Tech Ethics Awareness

While Gen Z embraces technology enthusiastically, they maintain sophisticated awareness of data privacy concerns. This creates an interesting paradox: they’re willing to share personal information for personalized experiences (about 40% according to research), yet they demand transparency about how their data is used and stored.

This generation has grown up witnessing major data breaches and privacy scandals. As a result, they approach data sharing with calculated consideration rather than blind trust. They evaluate the value exchange-what personalization or convenience they receive in return for their data-and make conscious decisions based on this assessment.

Ethical technology use has also become a significant consideration for Gen Z consumers. They pay attention to how brands implement AI, questioning potential biases and environmental impacts. Companies seen as using technology responsibly and ethically gain favor with this generation. This extends to considerations like digital wellbeing, with Gen Z appreciating brands that help them maintain healthy relationships with technology rather than fostering addiction.

The Trust Economy

For Gen Z, trust isn’t given automatically to established institutions or brands-it must be earned through consistent actions and transparency. This generation has developed sophisticated methods for evaluating brand trustworthiness, particularly regarding technology implementation.

They look beyond marketing claims to examine how companies actually use technology. Do they respect user privacy in practice? Are their AI systems designed with fairness considerations? Is their technology accessible to diverse users? These questions matter deeply to Gen Z consumers when deciding which brands deserve their loyalty.

What’s notable is how quickly information about trustworthiness spreads within Gen Z communities. Through social media and messaging platforms, experiences with brands-both positive and negative-circulate rapidly. This creates a dynamic where trust can be built or destroyed at unprecedented speed, placing additional pressure on brands to maintain consistent ethical standards in their technology implementations.

Examining Gen Z Consumer Trends in the Last Year

• Gen Z increasingly supports small brands and prioritizes mental health products
• Communication preferences have shifted to more authentic, direct interactions
• Financial behaviors show strategic spending despite economic pressures

Shift Towards Smaller, Local Brands

The past year has seen Gen Z consumers pivot dramatically toward smaller, local brands rather than established corporations. This demographic actively seeks out independent businesses that reflect their values and community focus. Research from Exploding Topics shows that 71% of Gen Z are eager to try new brands, showing their openness to businesses outside the mainstream. This represents a significant shift from previous generations who often prioritized brand recognition and established names.

Local entrepreneurship resonates with Gen Z for several reasons. First, they perceive smaller brands as more authentic and transparent. Second, supporting local businesses feels like direct community investment. Third, local brands often offer unique products that help Gen Z express individuality. The pandemic accelerated this trend as supply chain disruptions highlighted the value of local production and community resilience.

Beyond just buying local, Gen Z shows strong interest in brands with clear social purposes. According to Analyzify, 90% prefer buying from companies they consider socially responsible. This explains why many successful smaller brands emphasize their founding stories, ethical practices, and community connections. Gen Z consumers want to know not just what they’re buying but who they’re supporting with their purchases.

The Rise of Handcrafted and Niche Products

The growth in popularity of handcrafted and niche products represents another facet of Gen Z’s consumption shift. Products with clear artisanal origins and limited production runs have gained significant traction. This attraction stems from several key factors that align with Gen Z values.

First, handcrafted goods provide the uniqueness that mass production cannot. Second, craft-focused businesses typically maintain more sustainable practices. Third, these products often come with personal stories and direct maker connections. Books like “The Revenge of Analog” by David Sax examine this phenomenon of younger generations seeking physical, tangible experiences in an increasingly digital world.

More than 60% of Gen Z look for secondhand options before buying new, supporting local thrift and resale markets. This behavior extends beyond cost considerations into environmental concerns and the thrill of finding one-of-a-kind items. The secondhand marketplace has responded with sophisticated platforms that cater specifically to Gen Z’s desire for unique, pre-loved items with clear provenance and sustainability credentials.

Expanding Focus on Mental Health Products

Mental health awareness has transformed from a growing concern to a central consumer priority for Gen Z in the past year. This generation has embraced products and services that support psychological wellbeing with unprecedented enthusiasm. The market for mental health apps, mindfulness tools, and wellness services has expanded rapidly to meet this demand.

Gen Z consumers show particular interest in brands that integrate mental health support into their core offerings rather than treating it as a marketing afterthought. This reflects their holistic approach to wellbeing. Products ranging from journals designed for emotional processing to subscription boxes focused on self-care have seen significant growth. Even traditional product categories now emphasize mental health benefits – from foods marketing stress-reduction properties to clothing brands highlighting comfort and emotional security.

The connection between environmental concerns and mental health has become particularly clear in Gen Z purchasing patterns. According to research, 77% of Gen Z say they won’t buy from companies with poor environmental records. This suggests a broader value-driven mindset where personal wellbeing and planetary health are interconnected. Brands that address both dimensions tend to perform particularly well with this demographic.

Digital Tools for Mental Wellness

Digital mental health tools have seen exceptional growth among Gen Z consumers over the past year. Apps focusing on meditation, sleep tracking, mood monitoring, and therapy access have become daily companions for many young adults. What makes these tools particularly appealing is their privacy, accessibility, and alignment with Gen Z’s digital-first lifestyle.

The most successful mental wellness platforms incorporate community features while maintaining privacy options. Gen Z seeks the balance between connection and personal space in their mental health journey. Research publications like “Digital Therapeutics for Mental Health and Addiction” by Elias Aboujaoude and Vladan Starcevic provide deeper insights into this evolving field.

Price sensitivity remains an important factor, with many Gen Z consumers seeking free or low-cost mental health resources. This has led to the growth of ad-supported models and tiered subscription options. Brands that offer substantive free content alongside premium features tend to build stronger relationships with Gen Z consumers who often want to “try before they buy” in the mental health space.

Change in Communication Preferences

Gen Z’s communication preferences have undergone significant transformation in the past year, forcing brands to adapt their engagement strategies. Direct, authentic communication now takes precedence over polished marketing messages. This generation can quickly identify and dismiss content that feels staged or inauthentic. They prefer brands that communicate with transparency about their values, processes, and even challenges.

The channels for brand communication have shifted dramatically as well. Traditional social media posts have less impact than ephemeral content like Stories and short-form videos. According to research, 41% of Gen Z prefer to discover new things on social media via short-form video formats. These temporary content formats create a sense of urgency and authenticity that resonates with Gen Z’s desire for real-time engagement. The informal, behind-the-scenes nature of Stories allows brands to show personality and build more human connections.

Platform preferences continue to evolve rapidly, with Gen Z quickly adopting and abandoning channels based on where authentic communication happens. The data shows that 57% of Gen Z discover brands via YouTube, demonstrating the continued importance of video content. However, the format and approach matter more than the platform itself. Gen Z responds to content that feels conversational rather than promotional, regardless of where it appears.

The Podcast Renaissance

Podcast content has experienced remarkable growth as a brand touchpoint for Gen Z over the past year. This audio format allows for deeper dives into topics and creates a sense of intimate connection between hosts and listeners. For Gen Z, who often multitask, podcasts offer valuable information without requiring full visual attention.

Brand partnerships within podcasts have proven especially effective when they feel natural to the content. Gen Z appreciates transparent sponsorships that relate to the podcast topic rather than random product placements. The book “Podcasting Marketing Strategy” by Daniel Rowles and Ciaran Rogers explores this relationship between brands and podcast content in detail.

The length of podcast content also matters to Gen Z listeners. While they appreciate depth, they prefer episodes broken into digestible segments with clear value propositions. Successful brand podcasts typically offer actionable insights rather than pure entertainment. This reflects Gen Z’s practical approach to media consumption – they want content that helps them learn, grow, or solve problems.

Financial Behavior and Spending Patterns

Gen Z’s financial behavior reveals a complex relationship with money shaped by economic uncertainty and value-based decision making. Despite facing significant economic headwinds, this generation maintains selective spending patterns that prioritize quality and alignment with personal values. They research purchases extensively before committing and expect transparent pricing from brands.

The concept of “conscious consumption” defines many Gen Z purchasing decisions. They willingly spend more on products that match their values while cutting back in areas they deem less important. This explains why the same consumer might purchase an expensive sustainable fashion item while choosing budget options for everyday necessities. According to research, 64% of Gen Z are willing to pay extra to buy from companies they feel loyal towards, demonstrating this values-based approach.

Economic pressures have also created a generation of strategic shoppers. Gen Z uses technology to compare prices, find discounts, and maximize value. They frequently use browser extensions that automatically apply coupons or alert them to price drops. This technological savvy allows them to maintain certain consumption preferences despite financial constraints. Books like “The Paradox of Choice” by Barry Schwartz help explain how Gen Z navigates the overwhelming options available to them.

The Subscription Economy Impact

Subscription services have transformed how Gen Z approaches budgeting and consumption. From entertainment to personal care, subscription models appeal to Gen Z’s preference for predictable expenses and continuous value. However, the past year has seen more selective subscription behavior as economic pressures increase.

Gen Z consumers now regularly audit their subscriptions, keeping only those that provide consistent value. This has forced subscription-based businesses to improve retention strategies rather than focusing solely on acquisition. Successful subscription services for Gen Z offer flexibility, transparent value, and the ability to pause without penalty.

The communal aspect of subscriptions also appeals to Gen Z, with service-sharing becoming common practice. Whether sharing streaming accounts or splitting meal kit deliveries, this generation finds creative ways to access subscription benefits while managing costs. This behavior challenges traditional subscription models and has prompted some companies to offer official sharing options rather than fighting the trend.

Social and Environmental Activism Through Purchases

Gen Z has increasingly channeled their social and environmental concerns through their purchasing decisions over the past year. This “vote with your wallet” approach has significant implications for brands across sectors. Gen Z expects companies to take clear positions on social issues and back those positions with concrete actions.

Climate change remains a central concern, with Gen Z seeking products with minimal environmental impact. This extends beyond obvious categories like transportation or energy into everyday purchases. Food choices, clothing, personal care products, and even entertainment options are evaluated through an environmental lens. Gen Z consumers regularly check carbon footprints, manufacturing practices, and supply chain ethics before making purchases.

Social justice considerations have become equally important in purchasing decisions. Gen Z supports brands that demonstrate fair labor practices, diversity in leadership, and community investment. They actively research company policies on issues ranging from worker treatment to political donations. Research studies like “Ethical Consumption: Social Value and Economic Practice” by James Carrier and Peter Luetchford examine these patterns in greater detail.

The past year has also seen growth in Gen Z’s interest in regenerative business models that go beyond sustainability to actively improve environmental and social conditions. Brands that can demonstrate positive impact rather than just harm reduction have particular appeal to this generation of consumers who want their purchases to contribute to solutions rather than problems.

Predictions and Opportunities for 2026: Adapting to Gen Z Preferences

TL;DR:

• Gen Z will expect even more personalized, sustainable, and tech-integrated experiences in 2026
• Businesses that adapt now will gain significant competitive advantages
• The key focus areas are personalization, sustainability, engaging content, and food innovation

1. Advances in Personalized Shopping

The personalization bar continues to rise for Gen Z consumers. What began as simple name-based emails has evolved into complex preference-based systems. Recent data shows that 75% of Gen Z consumers are already interested in using AI during their shopping process, the highest among all generations. They particularly value AI for its ability to offer customized recommendations for products based on individual style and preferences.

For brands looking to stay relevant in 2026, advanced personalization isn’t optional-it’s expected. The most successful companies will move beyond basic demographic targeting to create genuinely individual experiences. This includes predictive shopping suggestions based on past purchases, browsing patterns, and even mood detection through interaction data. The technology is becoming sophisticated enough to understand not just what a customer bought, but why they bought it and under what circumstances they’re likely to buy again.

The push for personalization extends across channels too. While 52% of Gen Z prefer online shopping, a significant 48% still favor in-store experiences, with about 75% shopping in physical stores weekly for the experience itself. This highlights the need for seamless integration between digital and physical touchpoints. Smart retailers are already implementing systems that recognize customers across channels, ensuring that preferences noted online inform in-store interactions and vice versa.

Implementing AI-Driven Personalization

AI implementation requires careful consideration of both technological capabilities and ethical boundaries. The most effective AI systems for Gen Z will balance personalization with privacy concerns. This generation is tech-savvy enough to understand when their data is being used and expects transparency in exchange for sharing personal information.

Successful implementation begins with comprehensive customer journey mapping. This process identifies key touchpoints where personalization adds genuine value rather than feeling intrusive. For example, AI can recognize when a customer is browsing products similar to a previous purchase and offer complementary items at precisely the right moment in their shopping journey.

Voice commerce is also gaining traction with Gen Z, who are comfortable with voice assistants and expect them to understand personal preferences. By 2026, voice systems will likely recognize individual users and tailor responses based on their purchase history and stated preferences.

Action Items:

• Invest in AI systems that can process multiple data points to create truly personalized experiences
• Develop clear policies about data usage and communicate them transparently
• Create customer journey maps that identify key personalization opportunities

Dive Deeper:

• Book: “The Age of Context” by Robert Scoble and Shel Israel
• Podcast: “The Marketing AI Show” by Paul Roetzer
• Course: “Customer Analytics” by University of Pennsylvania on Coursera

2. Sustainability as a Core Business Strategy

Sustainability is no longer a marketing angle for Gen Z, it’s a baseline expectation. This generation’s shopping choices consistently reflect strong environmental concerns. They are quick to research claims and will readily switch brands to align with their values. In fact, 57% of Gen Z report being less brand-loyal than before, with environmental practices being a key factor in their decision-making.

For 2026, companies need to move beyond surface-level sustainability initiatives to implement comprehensive environmental strategies that touch every aspect of their business. This includes supply chain transparency, carbon footprint reduction, circular economy initiatives, and clear progress metrics that are publicly reported. Gen Z consumers are increasingly sophisticated in evaluating environmental claims and can identify “greenwashing” with remarkable accuracy.

The most forward-thinking companies are already treating sustainability not as a cost center but as an innovation driver. By rethinking products and processes with environmental impact in mind, they’re finding opportunities for both cost savings and new revenue streams. Sustainable packaging innovations, for instance, can reduce materials costs while appealing to environmentally conscious consumers.

Building Authentic Environmental Partnerships

Strategic partnerships with environmental organizations will become increasingly important by 2026. These partnerships serve multiple purposes: they provide external validation of a company’s environmental efforts, bring specialized expertise to sustainability initiatives, and create meaningful storytelling opportunities that resonate with Gen Z.

The key to successful partnerships lies in finding authentic connections between a brand’s core business and environmental causes. Random pairings that lack logical connection will be quickly dismissed as opportunistic by Gen Z consumers. Instead, companies should seek long-term relationships with organizations working on issues directly related to their industry’s environmental impact.

Environmental transparency will also become standard practice. Leading companies will implement detailed tracking of environmental metrics throughout their supply chains and make this information readily available to consumers. Some are already experimenting with blockchain and similar technologies to create verifiable records of environmental impact that can be accessed at the point of purchase.

Action Items:

• Conduct a comprehensive environmental impact assessment of your entire business
• Identify environmental organizations whose missions align with your industry
• Develop metrics and reporting mechanisms for tracking sustainability progress
• Read “Gen Z Consumer Preferences and Market Trends: 2025 Update” By Inge von Aulock (that’s me!). Check it out here:

Gen Z Consumer Preferences and Market Trends: 2025 Update

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Dive Deeper:

• Book: “The Future of Value” by Eric Lowitt
• Research Paper: “Sustainability and Competitive Advantage” in Harvard Business Review

3. Engaging Content Creation

Content creation strategies must evolve significantly to capture Gen Z attention in 2026. Traditional marketing approaches continue to lose effectiveness as this generation gravitates toward immersive, interactive experiences. The statistics speak volumes: 51% of Gen Z teens discover products they want to buy on social platforms, with TikTok leading at 57%, followed by Instagram (49%) and YouTube (46%).

Successful content strategies will focus on creating immersive brand worlds rather than isolated marketing messages. Extended reality (XR) technologies-including virtual, augmented, and mixed reality-will become more mainstream, allowing brands to create truly immersive experiences. These technologies enable consumers to interact with products in virtual environments, try before buying, and engage with brand storytelling in entirely new ways.

User-generated content will continue growing in importance, with 53% of Gen Z already being influenced by review videos when making purchases. By 2026, brands that effectively harness user content will gain significant advantages in building trust and community. The most successful companies will develop platforms and tools that make it easy for customers to create and share content related to their products.

Interactive Storytelling Techniques

Interactive storytelling represents a fundamental shift from passive content consumption to active participation. For Gen Z, this means content that responds to their input, offers choices, and creates personalized narratives. Choose-your-own-adventure style content, interactive quizzes that lead to product recommendations, and gamified shopping experiences all fall into this category.

The technology supporting these experiences continues to advance rapidly. By 2026, we’ll see more sophisticated interactive content powered by AI that can adapt narratives based on individual preferences and behaviors. This might include virtual shopping assistants that guide customers through interactive product stories tailored to their specific interests.

Community-building will be central to content strategies. Gen Z values belonging and seeks authentic connections with like-minded individuals. Brands that create spaces for community interaction around shared interests related to their products will foster deeper loyalty. This might include brand-hosted forums, virtual events, or creative challenges that bring customers together.

Action Items:

• Experiment with interactive content formats like shoppable videos and virtual try-ons
• Create platforms for customers to share their experiences with your products
• Develop community-building initiatives around shared interests related to your brand

Dive Deeper:

• Book: “Storyscaping” by Gaston Legorburu and Darren McColl
• Course: “Interactive Storytelling” on Future Learn
• Tool: Thinglink for creating interactive content experiences

4. Revolutionizing Dining Preferences

Gen Z’s food preferences continue to evolve rapidly, with significant implications for the food and beverage industry in 2026. Three key trends are reshaping this space: the growth of plant-based and flexitarian options, the integration of technology into dining experiences, and the demand for sustainable and traceable food sources.

The plant-based movement has progressed from niche to mainstream, with Gen Z leading adoption. Rather than identifying as strictly vegetarian or vegan, many embrace flexitarian approaches that reduce but don’t eliminate animal products. This shift is driven by environmental concerns, animal welfare considerations, and personal health goals. Food companies responding to this trend are developing innovative plant-based alternatives that closely mimic traditional animal products in taste and texture while offering improved nutritional profiles.

Technology integration in dining continues to accelerate. Gen Z expects seamless digital experiences throughout their food journey – from discovery to ordering to payment. Advanced food delivery systems, including drone and autonomous vehicle delivery, will become more common by 2026. Inside restaurants, digital menus, tableside ordering systems, and automated service elements are transforming the dining experience to align with Gen Z’s digital-native expectations.

Transparency and Food Traceability

Food traceability has become a crucial factor in Gen Z purchasing decisions. This generation wants to know exactly where their food comes from, how it was produced, and its environmental impact. Leading food companies are implementing comprehensive traceability systems that track products from farm to table.

MIT Sloan has emphasized blockchain’s strategic value in ensuring credible sustainability practices – a move that resonates with Gen Z’s values around authenticity and environmental responsibility. The broader context suggests that Gen Z is likely to trust brands more when they use blockchain to substantiate eco‑claims.

Blockchain technology is increasingly being applied to food supply chains, creating tamper-proof records that consumers can access to verify sourcing claims. By scanning a QR code on packaging, customers can see the complete journey of their food, including where ingredients were grown, processing methods, and transportation routes. This level of transparency builds trust and allows consumers to make choices aligned with their values.

Local food systems are gaining popularity as Gen Z prioritizes reduced food miles and community support. Urban farming, community-supported agriculture programs, and direct farm-to-consumer models are all expanding to meet this demand. Restaurants highlighting locally sourced ingredients and telling the stories of their producers create compelling narratives that resonate with Gen Z’s desire for authentic food experiences.

Action Items:

• Develop clear ingredient sourcing information that’s easily accessible to consumers
• Incorporate technology that enhances rather than replaces the human elements of dining
• Create flexible menu options that accommodate various dietary preferences

Dive Deeper:

• Report: “Future of Food” by the World Economic Forum
• Podcast: “The Food Tech Show” with Matt Newberg
• Organization: The Good Food Institute for plant-based innovation resources

What’s Next?

As we look at Gen Z in 2025, we see a generation reshaping consumer landscapes with clear priorities. They demand digital experiences that are fast and frictionless while expecting brands to stand for something beyond profits. Their shopping habits blend technology with purpose, as they support businesses that align with their values of sustainability, mental wellness, and social responsibility.

For businesses aiming to connect with this influential group, the path forward requires authenticity above all. Gen Z consumers can spot false claims instantly and reward brands that deliver on their promises. The winning approach combines advanced personalization with genuine commitment to causes that matter.

What will define success with Gen Z in 2026? Brands that create seamless experiences across channels, embrace sustainability as standard practice, and foster real communities will earn their loyalty. The brands that listen closely and adapt quickly will thrive.

Gen Z isn’t just changing how we shop, they’re redefining what it means to be a consumer in today’s world. Their preferences aren’t passing trends but signals of fundamental shifts in consumer behavior that will shape markets for years to come.