Gen Z is the youngest generation in America, and they’re ready to spend.
We’ve all heard about how millennials are going to save the economy, but that’s not true anymore. It’s actually Gen Z who will be leading the charge—because we’ve seen their shopping habits, and they’re more than ready to roll.
In this article, we’ll explore how Gen Z shopping habits differ from previous generations, how these differences can impact your business, and what you can do to capitalize on Gen Z’s unique preferences.
Here is the Key Gen Z Shopping Habits 2023 Stats
- 73% of Gen Z said that they shop online, and a majority of those shoppers (60%) said that they do so at least once a week
- 25% of Gen Z often make impulse purchases.
- 73% of Gen Z consumers are willing to pay 10% more for sustainable products.
- Sustainable shopping is one of the top shopping habits of Gen Z.
- Gen Zers find inspiration for their purchases from a diverse array of sources, including social media (47%) and shopping websites (51%).
- 52% of Gen Z in the US prefer to shop online, while 48% prefer to shop in-store.
- YouTube videos and Instagram posts are also influential in their purchasing decisions
Sources: (GWI, FirstInsight, SurveyMonkey, Bluestonepim)
Gen Z Online Shopping Habits
A recent study conducted by FirstInsight revealed some interesting insights into the online shopping habits of Gen Z. 73% of respondents said that they shop online, and a majority of those shoppers (60%) said that they do so at least once a week.
When it comes to what they’re buying, clothing and shoes topped the list, followed by electronics and beauty products. Gen Z shoppers are also more likely to take advantage of sales and discounts than their older counterparts – nearly three-quarters said that they always look for coupons or promo codes before making a purchase. With their spending power only set to grow in the years ahead, retailers would be wise to keep an eye on the shifting preferences of Gen Z shoppers.
How Many Gen Z Are There
As of 2020, 65 million Gen Z individuals were living in the United States. This is projected to increase to 71 million by 2025. Worldwide, there are currently 2.56 billion Gen Z individuals, which is estimated to grow to 2.72 billion by 2025.
The vast majority of Gen Z individuals are under the age of 20, with the oldest members of the generation born in 1996. In contrast, the youngest members of Generation Y were born in 1977.
This means that Gen Z makes up a significant portion of the world’s population and will soon be entering adulthood. As such, they are a highly coveted target market for businesses and marketers alike. Given their large size and purchasing power, it is essential to understand the values, beliefs, and preferences of Gen Z in order to successfully connect with this important demographic.
How Many Gen Z Consumer Are There
According to a recent report from MNI Targeted Media, Gen-Z will account for 40 percent of all consumers by 2020. This generational group is already having a profound impact on the marketplace, and businesses need to be ready to adapt to their unique needs and preferences.
Gen-Z consumers are digitally native, highly connected, and deeply engaged with social media and technology. They are also highly diverse, with a wide range of backgrounds and perspectives.
As a result, they have very different expectations for brands than previous generations. To succeed with Gen-Z consumers, businesses need to focus on creating innovative, authentic, and personalized experiences.
Gen Z Spending Power
As the oldest members of Generation Z begin to enter the workforce, they are quickly becoming a powerful force in the world of consumer spending. According to a study conducted by Gen Z Planet, members of Generation Z have an estimated spending power of $360 billion.
That’s a lot of buying power, and businesses are starting to take notice. From fashion brands to retailers to restaurants, more and more businesses are beginning to cater to the needs and wants of Generation Z.
And it’s not just big businesses that are benefiting from this trend. Small businesses and startups are also beginning to reap the rewards of catering to this powerful demographic. So if you’re looking to tap into the Gen Z market, now is the time to do it.
Gen Z Sustainability Stats
As the world becomes increasingly aware of the need for sustainability, it’s no surprise that young people are leading the charge. A recent study found that 73% of Generation Z consumers are willing to pay 10% more for sustainable products. This is a significant increase from the 66% of Millennials who said they were willing to pay more for sustainability in 2015.
It found that Gen Zers are particularly concerned about the environment, with 82% saying they worry about the state of the planet. This concern is translating into action, with 73% of respondents saying they had already made changes to their lifestyles in an effort to be more sustainable.
Generation Z is changing the way we think about sustainability, thanks to their enormous spending power and growing influence. Businesses and organizations will need to start paying attention if they want to remain relevant in the coming years.
How Gen Z Consumers Find New Products
85% of Generation Z learn about new products from social media. This is according to a recent study by Bluecore that was conducted in 2016. This is a significantly higher number than any other age group. Interestingly, the second most popular way that Gen Z consumers find new products is through online videos, at 54%.
This shows that Generation Z is highly influenced by digital media and technology when it comes to their purchasing decisions. In fact, 78% of respondents said that they are more likely to buy a product if they can see it in action online. This is something that marketers should keep in mind when targeting this age group.
Gen Z Purchases Influenced by Social Media
According to a new study by the National Retail Federation, 26 percent of Gen Z report using social media to make a purchase. The study found that social media is playing an increasingly important role in the purchasing decisions of young consumers.
Gen Zers are twice as likely as Millennials to say that social media is their primary source of information about new products and services. They are also more likely to say that social media influencers have a significant impact on their purchase decisions. The findings suggest that businesses need to focus on creating a strong social media presence if they want to reach this key demographic.
How Gen Z & Millennials Are Shopping on Their Mobile Device
Gen Z is the most digitally savvy and connected generation ever, spending an average of 10 hours a day online. Social media is their primary source of information and discovery, and it’s no surprise that Gen Z purchasing decisions are heavily influenced by what they see on platforms like Instagram, Snapchat, and YouTube.
A recent study found that Gen Z consumers are 2X as likely to shop on a mobile device than Millennials, and they’re also more likely to make impulse purchases. With social media becoming increasingly important in the Gen Z shopping journey, brands need to have a strong presence on these platforms in order to reach this key demographic.
Gen Z Going After Locally Sourced Product
In a recent survey, 44 percent of Gen Z respondents said they’re looking for locally sourced products. This is a significant increase from previous generations, who were largely indifferent to the origins of their food and other goods. There are a number of reasons why Gen Z is more interested in locally sourced products. For one thing, they’re more aware of the environmental impact of transportation.
They’re also concerned about the working conditions of farm workers and other laborers who are often exploited in the global supply chain. And finally, they believe that supporting local businesses is important for boosting the economy. Whatever the reason, it’s clear that Gen Z is leading the charge when it comes to demand for locally sourced products.
How Gen Z Trust Brands
A recent study from IBM Institute for Business Value found that 59 percent of Gen Z said they trust brands they have grown up with. This makes sense – if a brand has been around for a while, it’s more likely to be trustworthy.
In addition, Gen Z also values transparency and authenticity, so brands that are open and honest about their practices are more likely to gain their trust. Finally, Gen Z is very engaged with social media, so brands that have a strong presence on platforms like Instagram and Snapchat are more likely to build trust with this generation.
Gen Z and the Immense Power of Reviews
In today’s digital world, the opinion of one’s peers can hold a lot of weight. For members of Gen Z, this is especially true when it comes to making purchase decisions.
In fact, 82 percent of Gen Z said that peer reviews were extremely important to them when determining whether or not to buy a product. This stat is up 10 percent from just two years ago. The power of reviews is not lost on businesses either.
Many companies now actively seek out customer feedback in order to improve their products and services. For example, Amazon has made product reviews a key part of its success, giving shoppers an easy way to find out what others think about a potential purchase. In the end, it’s clear that the opinion of one’s peers can have a huge impact on both individuals and businesses alike.
How Many Gen Z Leave Review
According to a recent study that was reported by AfterPay, 43% of Gen Zers would leave a product review, compared to just 32% of millennials. This suggests that Gen Zers are more likely to take the time to share their thoughts on the products they purchase.
There are a few possible explanations for this difference. First, Gen Zers are digital natives who are comfortable using the internet and social media. They’re used to sharing their opinions online and they’re not afraid to speak up about the products they use.
Second, Gen Zers are more conscientious than previous generations. They care about making sure that other people have access to accurate information about the products they’re interested in.
And finally, Gen Zers are used to getting their opinion heard. With social media, they’re used to having a platform where their voice can be heard by brands and other consumers.
Gen Z Brand Relationships Authenticity Matters
32% of Gen Z consumers look to brand authenticity as a motivator for making purchasing decisions, according to SurveyMonkey. In today’s cluttered and noisy marketplace, it’s more important than ever for brands to focus on being authentic.
This means being transparent, genuine, and honest in all interactions with consumers. It also means staying true to your brand Values and mission. When brands are authentic, they build trust with consumers and create lasting relationships.
Gen Z is highly informed and skeptical, so they can quickly see through any false advertising or marketing gimmicks. If you want to win over this powerful consumer group, focus on building an authentic brand.
Gen Z Expectations At The Checkout
28 percent of Gen Z consider a simple online checkout experience as a purchase requirement, according to the Global Web Index Audience Report in 2020. In addition, 50 percent of Gen Z said they would leave a website if it was taking too long to load, and another 28 percent said an unclear return policy would prevent them from completing a purchase.
Furthermore, three-quarters of Gen Z said they were more likely to buy from brands that were authentic, and 68 percent said they were more likely to buy from brands that aligned with their personal values.
When it comes to interacting with brands, 68 percent said they preferred live chat over any other customer service channel. These findings point to a clear need for retailers to provide a frictionless online checkout experience and focus on authenticity and transparency if they want to win over Gen Z shoppers.
Gen Z and Power of Instagram
As the most plugged-in generation ever, Gen Z has a major influence on the way brands are marketed to and perceived by the general public. And with 75% of Gen Zers engaging with brands on Instagram, it’s safe to say that Instagram is a powerful tool for reaching this key demographic.
In addition, 47% of Gen Zers who follow brands have purchased something directly through the platform. So what makes Instagram so effective for marketing to Gen Z is its highly visual nature. This generation is extremely visual, and they prefer visuals and movies to text.
Also, they appreciate authenticity and are more likely to engage with brands that have a strong social media presence. With these factors in mind, it’s clear that Instagram is a powerful marketing tool for reaching Gen Z.
Gen Z Are Buying Through Social Media
According to a report from Alibaba, 48% of Americans aged 18-34 have purchased from social media, according to a recent report. The report found that the majority of these purchases were made on Instagram. Gen Zers are especially active on this platform, with 78% of them using it daily.
This generation is also very influencer-minded, with 60% of them saying that they have purchased something because an influencer recommended it. For brands, this presents a unique opportunity to reach out to young consumers through social media. Brands can leverage the power of Instagram to increase sales and establish loyalty among Gen Zers by generating compelling content and collaborating with influencers.