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70 Million Gen Z Are Coming! What Brands and Retailers Should Know

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Gen Z is the second-largest population in the U.S., and every day millions become consumers. We analyzed our latest How America Shops® reports to learn just what motivates these shoppers most. We then pulled our insights into five activations that retailers and brands will find relevant.

For The Youngest Generation, Gen Z Sure Gets Around

The oldest members of Gen Z are just 27 years old (and the youngest are 12), but they sure have pull with retailers and brands.

At nearly 70 million strong – the second-largest U.S. population behind Millennials – this rising cohort of consumers wields $360 billion in disposable income. And Gen Z consumers understand their spending influence, thanks to the digital feeds they’ve been absorbing since toddlerhood.

So we figured: We’ve been tracking Gen Z shopping behaviors since the oldest of them were 16 years old, and now they are a shopper-force with outsized influence. Let’s cross-reference their shopping behaviors and see what guidelines they reveal that can help brands and retailers motivate them to buy.

5 Preferences That Separate Gen Z from Other Generations

Our research revealed five Gen Z-specific preferences that separate them from the general population. The following trends from our insights data can help retailers and brands choose the most urgent trends to direct their future innovations.

Trend 1 Banner

Scanning beats location for ease.

Gen Z has watched the speed of self-checkout lanes all of their lives, so using them comes as naturally as using smartphones.

  • 42% of Gen Z think it’s most important to get in and out of a store quickly, which supports their passion for self-checkout …
  • 46% rank self-checkout as the most important service for an easy shopping trip. That’s 10 to 13 percentage points higher than Millennials, Gen X and Boomers.

Trend 2 Banner

Bytes beat bricks, but bricks have staying power.

Gen Z are more likely than total consumers to shop their values for re-use and their passions for uniqueness, as well as to shop social media sites and the newest online shops from China.

  • Thrift/consignment websites: 29% of Gen Z shop here, +15 percentage points more than other consumers.
  • Etsy: 30% of Gen Z shop the indie-artisans’ market, +10 percentage points above the total.
  • Social media sites: 38% of Gen Z shop social platforms such as Instagram, +14 percentage points more than our total sample across generations.
  • Online marketplaces that ship from China: 35% of Gen Z buy from retailers such as Shein and Temu, an 11 percentage point difference from the average.
  • And yet they find value in brick stores. It may come as a surprise, but Gen Z, regardless of all their expertise with digital tools, still rely on store displays (64%) and shelves (66%) to find new products.

Trend 3 Banner

They want the hard stuff, but not the brewed stuff.

Among the products that Gen Z are most likely, and least likely, to buy compared with the average shopper.

Hot Gen Z categories:

Food and Beverage

  • Hard seltzer: 49% of Gen Z vs. 30% of total shoppers are more likely to purchase hard seltzers.
  • Frozen snacks and sandwiches: 77% of Gen Z are likely to buy these convenient foods, vs. 62% of the total.
  • Gen Z is less interested in home brewed coffee, 59% vs. 71% total.

Beauty and Personal Care

  • Cosmetics and fragrance: 75% of Gen Z buy cosmetics, vs. 56% the total sample, and 50% of Gen Z buy personal fragrance, vs. 35% of the total.
  • Facial skincare products: 63% of Gen Z shop this category, vs. 52% of the average.
  • The sun care message has gotten through to Gen Z, with 54% buying these products, vs. 39% of the average.

Trend 4 Banner

Gen Z tends to go broad when it comes to defining what’s most important in their food choices.

These preferences could be a predictor of future food and category trends.

  • Gen Z are the most likely to rank organic and vegan foods important – up to +9 percentage points more than the total.
  • But they care less about added sugars, artificial ingredients and artificial colors, which may be a predictor of which food claims will be important to them in the future.

Trend 5 Banner

Gen Z needs a hand asking for a hand.

Gen Z consumers are the most stressed-out group and they are still young. If retailers and brands want to keep them in the store (and use that self-checkout), they should factor these findings into the experience:

  • They resist items under lock and key because they are less likely to ask for help: 47% of Gen Z are uncomfortable asking store personnel to help them with locked-up items, nearly +20 percentage points higher than the average.
  • Gen Z wants mental wellness: 34% of Gen Z increased spending on mental health in the last three years, +13 percentage points more than our total sample. Retailers and brands would benefit by including messages and images that reassure they’ve got their mental health in mind.

Is Your Store Built for All the Ages?

The big takeaway:

Gen Z are a diverse group that have much to say that’s different from the average, but they want to be recognized as part of the whole.

Retailers and brands that show they care about the traits of Gen Z customers, as well as customers of other ages, will more likely capture the trust of all – and a share of their $360 billion in spending power.

Do you want to get to know your Gen Z shoppers, and all shoppers, in more specific ways? Our How America Shops® research covers all ages and demographics. If you want a category-specific breakdown or tailored research, check out our consulting services, here.

The post 70 Million Gen Z Are Coming! What Brands and Retailers Should Know appeared first on WSL.


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