Gen Z’s consumer culture & habits encompasses a diverse array of categories that reflect their unique preferences, lifestyle, and evolving consumer culture. Despite many Gen Zs still residing in their family homes, their influence extends significantly into the family’s choices in fast-moving consumer goods. This influence is particularly evident in the family’s purchase decisions regarding essentials like milk, fruits, and vegetables. Whether as part of a family unit or navigating independent living, Gen Zs behavioural trends allocates a noteworthy portion of their budget to specific categories, offering insights into their priorities and values.
One striking aspect of Gen Z’s spending behavior revolves around beauty and self-care items, indicating a heightened awareness and emphasis on personal grooming and well-being. This generation places a significant emphasis on maintaining and enhancing their appearance. Their expenditures on skincare products, makeup, and other beauty essentials plays a prominent role in their financial allocations.
Equally notable is Gen Z’s inclination towards frequent impulse purchases, which constitute a substantial portion of their overall spending. These impromptu buys include a variety of tempting treats such as cookies, salty snacks, ice cream, chocolate, and ready-to-eat meals. This pattern suggests a desire for indulgence and convenience, aligning with the fast-paced and digitally connected lifestyle that characterizes Gen Z.
As they mature, Gen Z’s spending habits are expected to evolve from indulgence to essential items. Yet, their tendency for impulse purchases, driven by a desire to experiment, remains strong. Brands, particularly in snack categories, should capitalize on Gen Z’s exploratory nature to attract these consumers.
While social media undeniably plays a significant role in shaping consumer preferences, it may come as a surprise that only 12% of Gen Z’s purchasing decisions are directly influenced by it. This modest percentage suggests that Gen Z consumers adopt a discerning approach to online recommendations, particularly evident in their preferences for personal care items. Despite the prevalence of social media, word-of-mouth recommendations remain a pivotal factor in their decision-making process. Listen to our podcast on how social media can also influence the decisions of Gen Zs here.
Interestingly, while family opinions heavily influence their choices in essential consumer staples, such as groceries, friends’ recommendations hold considerable sway in categories like alcoholic beverages. This nuanced behavior underscores the importance for brands to not only leverage social media platforms but also prioritize building strong relationships with influencers and fostering positive word-of-mouth marketing strategies to effectively engage with Gen Z consumers across various product categories.
In essence, the expenditure categories for Generation Z reflect a dynamic interplay of individual preferences, societal trends, and evolving consumer dynamics. Understanding and adapting to these spending patterns are crucial for businesses and brands seeking to connect with and cater to the distinctive needs and desires of this influential demographic.
Written by Pearl Isemin, Retail Services.