Gen Z Consumer Analysis Report

Disclaimer: This report is for educational purposes only and should not be considered financial or business advice. Readers are advised to consult with qualified professionals for accurate decision-making related to their specific circumstances.

Gen Z Spending Trends and Influences

Gen Z's spending habits are influenced by a combination of factors, including their digital nativity, social consciousness, and economic experiences. Here are some key trends and influences:

  • Digital-First Mindset: Gen Z has grown up with the internet and mobile technology, making them the first truly digital-native generation. They heavily rely on online platforms for product research, price comparisons, and purchases.

  • Social Media Influence: Social media plays a significant role in shaping Gen Z's purchasing decisions. Platforms like TikTok, Instagram, and YouTube are key sources for product discovery, trend identification, and influencer marketing.

  • Value-Driven Spending: Gen Z is more likely to support brands that align with their values, such as sustainability, social responsibility, and ethical practices. They seek authenticity and transparency from companies.

  • Experience Economy: While Gen Z values products, they also prioritize experiences, such as travel, dining out, and live events. They are willing to spend money on activities that provide personal enrichment and social connection.

  • "Split-Brain Budgeting": Gen Z demonstrates a tendency to both save money and splurge on certain items or experiences. They may be frugal in their everyday spending but willing to spend on things they highly value.

  • Second-hand shopping: Gen Z is more likely to buy second-hand goods than older generations.

Top Companies Gen Z Spends the Most Money On and Why

Gen Z's spending is distributed across various sectors, with some companies and categories capturing a significant share of their attention and wallets. Here are some of the top areas and companies:

Fashion and Apparel:

  • Fast Fashion: Companies like Shein, ASOS, and H&M remain popular due to their affordability and trend-driven offerings.

  • Sustainable Brands: Brands that prioritize ethical production, eco-friendly materials, and inclusivity are gaining traction.

  • Second-hand Marketplaces: Platforms like Depop, Poshmark, and Vinted are popular for finding unique and affordable clothing.

  • Technology and Electronics:

  • Apple: Apple products, including iPhones, MacBooks, and AirPods, are highly desirable among Gen Z for their design, functionality, and brand image.

  • Sony: PlayStation remains a dominant gaming console for Gen Z.

    Beauty and Personal Care:

  • Gen Z spends a lot of money on beauty and skincare products.

  • They look for products that are clean, have natural fragrances, and are cruelty-free.

    Food and Beverage:

  • Quick-Service Restaurants: Companies like McDonald's, Starbucks, and Chick-fil-A remain popular for their convenience and affordability.

  • Gen Z's share of spending on eating and drinking is almost twice that of the overall population.

Factors That Go Into Shopping Habits

Several factors influence Gen Z's shopping habits:

  • Price and Value: Gen Z is price-conscious and seeks value for their money. They often compare prices, look for discounts, and utilize coupons.

  • Convenience: Online shopping and mobile platforms offer convenience, which is a key factor for Gen Z. They appreciate seamless checkout processes, fast shipping, and easy returns.

  • Social Influence: Recommendations from friends, family, and social media influencers play a significant role in their purchasing decisions.

  • Brand Authenticity: Gen Z values brands that are authentic, transparent, and have a clear purpose. They are more likely to support companies that align with their values.

  • Sustainability and Ethics: Environmental and social concerns influence Gen Z's shopping habits. They prefer brands that are committed to sustainability, ethical labor practices, and social responsibility.

Projecting the Future of Gen Z Spending

Gen Z's spending power is expected to increase significantly as they enter the workforce and their careers progress. Several projections can be made about the future of their spending:

  • Increased Online Spending: E-commerce will continue to grow, with mobile shopping and social commerce becoming even more prevalent.

  • Emphasis on Personalization: Gen Z will demand more personalized shopping experiences, with tailored recommendations, targeted advertising, and customized products.

  • Growing Demand for Sustainability: Sustainable and ethical products will become increasingly important, driving brands to adopt more responsible practices.

  • Rise of the Metaverse and Virtual Experiences: Virtual reality (VR) and augmented reality (AR) may create new shopping experiences and influence how Gen Z interacts with brands and products.

  • Health and Wellness: As Gen Z ages, spending on health and wellness products and services is likely to increase.

Primary Sources of Income, Amount of Income, and Typical Expenses

Gen Z's income sources and expenses vary depending on their age, education level, and employment status. Here's a general overview:

  • Primary Sources of Income:

  • Employment: Wages from part-time or full-time jobs are a primary source of income for many Gen Z individuals.

  • Allowances: Some younger Gen Z members may receive allowances from their parents or guardians.

  • Freelancing and Gig Economy: Gen Z is more likely to participate in the gig economy, earning income through freelance work, online platforms, and creative projects.

  • Amount of Income: Income levels vary widely. Younger Gen Z members may have lower incomes from part-time jobs, while older members with higher education levels and full-time employment tend to earn more.

  • Typical Expenses:

  • Housing: Rent or mortgage payments are a significant expense for Gen Z individuals living independently.

  • Food: Groceries and dining out are ongoing expenses.

  • Transportation: Car payments, public transportation costs, or ride-sharing expenses.

  • Education: Student loan payments or tuition fees can be a substantial expense for those pursuing higher education.

  • Clothing and Personal Care: Spending on apparel, cosmetics, and grooming products.

  • Entertainment: Spending on concerts, movies, streaming services, and other leisure activities.

  • Technology: Expenses related to smartphones, laptops, internet access, and other digital devices.

Attitudes Toward Spending and Saving Money

Gen Z exhibits a range of attitudes toward spending and saving:

  • Saving for the Future: Many Gen Z individuals recognize the importance of saving for long-term goals, such as buying a house, retirement, or travel.

  • Budget Consciousness: Gen Z tends to be budget-conscious, seeking value for their money and looking for deals and discounts.

  • "Doom Spending": Some Gen Zers engage in "doom spending," making impulse purchases to cope with stress or anxiety about the future.

  • Split-Brain Budgeting: As mentioned earlier, they both save and splurge.

  • Financial Literacy: Gen Z is generally considered to be more financially literate than previous generations, seeking out information and resources to manage their money effectively.

Works Cited

Barclays. "Karen Johnson on Gen Z spending trends | UK economy - Barclays." Barclays, https://home.barclays/insights/2024/11/Karen-Johnson-on-Gen-Z-spending/

EcoCart. "42 Statistics on Gen Z Spending Habits - EcoCart." Ecocart.io, https://ecocart.io/gen-z-spending-habits/

Exploding Topics. "85+ Stats on Gen Z Spending and Buying Habits (2024) - Exploding Topics." Explodingtopics.com, https://explodingtopics.com/blog/gen-z-spending-habits

GWI. "Gen Z spending habits: The trends marketers need to know in 2025 - GWI." Gwi.com, https://www.gwi.com/blog/gen-z-spending-habits

McKinsey & Company. "US consumers spending trends 2025 | McKinsey." McKinsey, https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-state-of-the-us-consumer

NielsenIQ. "A Report on Gen Z Spending Power - NIQ." Nielseniq.com, https://nielseniq.com/global/en/landing-page/spend-z/

NielsenIQ. "Unlock the unmatched spending potential of Gen Z: What brands need to know - NIQ." Nielseniq.com, https://nielseniq.com/global/en/insights/analysis/2025/unlock-the-unmatched-spending-potential-of-gen-z-what-brands-need-to-know/

Visa. "Searching for the consumer of tomorrow: The Gen Z opportunity - Visa." Visa.com, https://usa.visa.com/partner-with-us/visa-consulting-analytics/economic-insights/searching-for-the-consumer-of-tomorrow-the-gen-z-opportunity.html