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Insight of the Day: Gen Z Spending Habits and Values Shaping Retail Future

Findings:

Gen Z, born between 1996 and 2009, is poised to become a major retail force, expected to account for 17% of U.S. sales by 2030. This generation is already shaping key markets like beauty, food, and resale, with unique behaviors driven by social media, health-conscious choices, and digitally-native habits.

Key Takeaway:

Gen Z is leading trends in beauty, plant-based food, and resale, heavily influenced by social media and e-commerce. Their spending habits reflect a strong preference for sustainability, new experiences, and digital-first retail solutions.

Trend:

Gen Z is driving demand for plant-based alternatives, resale platforms, and beauty products discovered via social media. This cohort is reshaping industries by prioritizing health, ethical consumption, and digital convenience.

Consumer Motivation:

  • Beauty: Gen Z is highly engaged with beauty products, using social media to discover new items and valuing experimentation. Over 40% cite trying new products as a top reason to purchase.

  • Food: Their preference for plant-based foods is driven by health, animal welfare, and environmental concerns.

  • Resale: Gen Z is motivated by affordability and sustainability, with secondhand shopping being a key behavior.

What is Driving the Trend:

  • Social media influence: Nearly 80% of Gen Z uses social media to find beauty products, far more than previous generations.

  • Health-conscious lifestyle: Gen Z’s avoidance of meat and dairy reflects growing concern for health, animal welfare, and sustainability.

  • E-commerce growth: Gen Z’s comfort with digital platforms is expected to fuel a surge in e-commerce sales and resale market growth.

Who Are the People:

The article focuses on Gen Z consumers who are shaping the future of beauty, food, and retail with their sustainability-driven values and preference for digital-first experiences.

Description of Consumers’ Product or Service:

Gen Z’s key product interests include:

  • Beauty products discovered through social media, with frequent purchases of items outside their routine.

  • Plant-based meat and dairy alternatives, with a preference for products that mimic traditional foods.

  • Resale platforms for secondhand clothing and accessories.

Age Group:

The article focuses on Gen Z (aged 15-28 in 2024), who are emerging as a powerful consumer group with digitally-native behaviors and a strong focus on sustainability and health.

Conclusions:

Gen Z’s values and spending habits are reshaping retail, with their focus on health, sustainability, and digital experiences. Businesses need to adapt by emphasizing plant-based foods, social media-driven marketing, and secondhand offerings to attract and retain Gen Z customers.

Implications for Brands:

  • Brands must invest in social media advertising and create innovative beauty products that appeal to Gen Z’s desire for experimentation.

  • Retailers should prioritize plant-based offerings and highlight their health and environmental benefits.

  • The resale market will continue to grow as Gen Z favors sustainability and affordable fashion.

Implications for Society:

Gen Z’s preferences for plant-based diets and sustainable shopping will likely contribute to a broader societal shift toward ethical consumption and environmental responsibility.

Implications for Consumers:

Consumers will benefit from a growing number of plant-based food options, more beauty products tailored to their preferences, and increased access to secondhand clothing as the resale market expands.

Implication for the Future:

Gen Z’s digital-first mindset will drive further innovation in e-commerce, resale, and social media marketing, leading to increased sustainability in retail and a more connected consumer experience.

Consumer Trend:

Gen Z is driving trends in beauty, food, and resale, with a strong preference for digital experiences, plant-based diets, and sustainable fashion.

Consumer Sub-Trend:

  • Social media as a discovery tool: Gen Z heavily relies on social platforms to find and purchase beauty products.

  • Resale and secondhand shopping: Gen Z’s preference for secondhand apparel reflects their cost-conscious and eco-friendly values.

Big Social Trend:

Gen Z’s focus on sustainability and ethical consumption is shaping broader retail trends, pushing industries toward greener practices and digital engagement.

Worldwide Social Trend:

Globally, Gen Z’s digital-first behavior and preference for sustainable products are influencing markets, from beauty to food to resale, reflecting a growing demand for socially conscious and tech-driven solutions across the world.

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