A new report has shed light on the incredible purchasing power and unique shopping habits of Generation Z (Gen Z). This generation, born between 1997 and 2012, wields a staggering $450 billion in global spending. But their shopping preferences are not just about the dollar amounts—they reflect deeper values and influence trends in today’s market.
Key Gen Z Spending and Buying Statistics
As digital natives, Gen Z has grown up surrounded by technology and the internet. According to the latest data, they are responsible for around 40% of global consumer purchases. Here are some eye-opening stats:
- 55 years of Gen Z uses ‘buy now, pay later’ services.
- 74% of them prefer mobile shopping.
- 58% have bought items they saw on social media.
- 40% say they shop based on a brand’s social media presence.
Gen Z’s Spending Power Stats
Did you know that by 2025, Gen Z online shoppers will outnumber Gen X? That’s right! They’re not only the next big consumers; they’re setting new trends in how businesses operate. They seem to prefer companies that take a stand on social issues, and more than half of them said they’d choose to spend their money where brands advocate for mental health and racial justice.
The Data Behind Gen Z’s Socially Motivated Spending
What drives their decisions on where to shop? Fifty percent of Gen Z believes that businesses should tackle social issues while 69% want brands to make efforts in racial justice. This generation is not just looking for trendy products; they’re supporting companies that align with their values.
How Gen Z Decides Where To Spend
When shopping, 36% of Gen Z has boycotted brands due to their principles or actions. Additionally, they show a preference for eco-friendly products, with 68% indicating they prioritize sustainable shopping choices. They’re known to be generous supporters of small businesses, indicating that they value personal connections with brands.
What Motivates Gen Z To Spend?
For Gen Z, shopping is not merely a chore; it is an experience. Over 80% of them have purchased secondhand items in part due to environmental concerns. Interestingly, 52% of them prefer using debit cards over credit. Convenience is key, with many expressing a desire for a quick checkout process.
Gen Z’s Preferred Payment Methods
Gen Z shoppers are comfortable using technology to purchase goods. More than half are interested in advancing payment methods like mobile payment services. They often rely on apps like Venmo and Cash App for transactions, making it easier for them to manage their money easily and effectively.
What Gen Z Spend Their Money On
Fashion is a big draw for this generation, with 75% of their purchases falling into this category. They spend more money on clothes than other generations, proving that Gen Z is shaping the fashion industry.
Gen Z’s Attitude Toward Influencers
When it comes to social media, Gen Z trusts influencers for product recommendations. In fact, 58% have bought something based on an influencer’s post. However, they aren’t naive—they’re looking for authenticity. Only 11% think all influencers are trustworthy!
Gen Z’s Online Spending Habits
Most Gen Z members enjoy online shopping, claiming it’s more convenient. Over 60% prefer researching products on platforms like YouTube and TikTok, where short-form videos guide them through shopping experiences. It validates how social media platforms have become essential for brands wishing to connect with this dynamic group.
Gen Z’s Investing Habits
But it’s not just about spending. Gen Z shows savvy investment habits as well, with 56% of them having invested in stocks. This demonstrates their understanding of financial growth and the importance of saving alongside spending.
Gen Z’s Saving Habits
While they are known for their spending, Gen Z also takes saving seriously. They maintain an average of 36% of their income in savings accounts. Nearly a quarter of them feels ahead of schedule for their retirement savings, highlighting their proactive approach to finances.
Miscellaneous Gen Z Spending & Buying Statistics
Lastly, the report revealed that 88% of Gen Z believes they can identify trends. They are potential trendsetters as they navigate their futures with a blend of technology, personal values, and social responsibility shaping their spending habits.
Overall, Gen Z represents a generation not just marked by their unique spending behavior but one that reflects social consciousness and environmentally-friendly choices. As businesses adapt to these shifting preferences, it’s clear that marketing to this generation requires a genuine commitment to values and authenticity.