What is the consumer behavior of Generation Z? How do centennials shop, and which brands do they prefer? This generation, consisting of individuals born between 1997 and 2012, is beginning to define new consumption trends.
As this age group enters adulthood, their influence on the economy becomes increasingly noticeable. From the analysis of the dossier “Millennials & Gen Z in the U.S.: Consumer goods and shopping behavior” by Statista, here are some key insights into the behavior of these young consumers. These are valuable insights for any brand aiming to attract this new audience.
Demographics and Purchasing Power
- Population share: In 2023, Generation Z represented approximately 20.69% of the U.S. population. Millennials (born between 1981 and 1996) accounted for around 21.71%; Generation X (born between 1965 and 1980) made up about 19.51%, and Baby Boomers (born between 1946 and 1964) about 20.93%.
- Disposable income: The average disposable income of households led by Generation Z was $49,618 in 2022, while Millennials registered $89,641; Generation X, $108,615; and Baby Boomers, $73,086.
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Consumer Behavior
- Annual spending: Generation Z households spent an average of $47,975 annually in 2022, reflecting a conservative approach to their consumption habits. Millennials spent $74,782; Generation X, $91,382; and Baby Boomers, $66,362.
- Shopping preferences: Most of Generation Z prefers online shopping.
Digital Influence and Social Media
- TikTok dominance: TikTok stands out as the most influential platform for Generation Z, with 43% of users purchasing products seen in ads.
- AI adoption: Over 55% of Generation Z supports brands using artificial intelligence to personalize recommendations and improve customer service.
- Some 62% of Gen Z reported making purchases after seeing ads on social media, highlighting the effectiveness of these channels in driving immediate purchase decisions.
Values and Sustainability
- Environmental awareness: Nearly two-fifths of centennials value sustainable packaging in their purchasing decisions, and 66% prioritize companies’ sustainable practices.
- Animal welfare and natural/organic products: About one-third of Generation Z also values these aspects when shopping, underscoring their inclination toward ethical and responsible consumption options.
- Social commitment: Social justice and diversity are important criteria for this generation, which seeks brands whose values align with their own.
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Seasonal Shopping Behavior
- Holiday spending: During the 2023 holiday season, Generation Z planned to spend less than $1,300, compared to $1,918 by Millennials.
- Black Friday regrets: Sixty percent of this generation regretted their Black Friday purchases, the highest percentage among all generations, indicating more reflective buying behavior.
Search Behavior
- Approximately 46% of Gen Z preferred using social media platforms over traditional search engines to find information online, reflecting their preference for immediacy and the integration of social networks in their daily browsing.
- Millennials: They also use social media to search for information, albeit less frequently than Gen Z, highlighting greater diversity in their use of digital platforms.
- Receptiveness to Product Placement: A significant percentage of Millennials and Gen Z have been exposed to product placement marketing, showing a generally positive reception to this type of strategy. This underscores the importance of integrating products naturally into content they already consume.
Source: Statista, “Millennials & Gen Z in the U.S.: Consumer goods and shopping behavior”
