Gen Z is the name everyone talks about. You hear about them in podcasts, social media, and even casual conversations. Brands, marketers, and businesses are all trying to understand them.
But who are they?
What makes them different?
And how do they behave in the digital world?
Gen Z is shaping the future of consumer engagement. They shop differently, interact with brands in new ways, and expect more than just good products. They value authenticity, fast experiences, and digital-first interactions. If businesses want to stay relevant, they need to adapt.
In this article, we break down Gen Z’s market trends, digital behaviors, and what brands must do to engage them. Our insights come from research, surveys, and real-world data. Let’s get started.
Understanding Gen Z: Who Are They?
Generation Z, commonly referred to as Gen Z, encompasses individuals born between 1997 and 2012. In the United States, this cohort represents approximately one-quarter of the population, making them a significant demographic group.
Gen Z is the most racially and ethnically diverse generation in U.S. history. As of 2019, the demographic breakdown is as follows:
- 50.9% White
- 13.8% Black
- 25.0% Hispanic
- 5.3% Asian
Additionally, 29% of Gen Z are either immigrants or children of immigrants, reflecting the changing patterns of U.S. immigration over recent decades.
This generation exhibits distinct behavioral traits compared to their predecessors. They have fewer teenage pregnancies, consume less alcohol, and are more focused on academics and career prospects. Moreover, Gen Z demonstrates a higher capacity for delaying gratification than teenagers from the 1960s.
Financially, Gen Z is emerging as a formidable force. In the U.S., they hold an estimated $360 billion in spending power. By 2030, they are projected to account for 25-30% of all luxury purchases, underscoring their growing economic influence.
Market Trends Shaped by Gen Z
Gen Z is shaping market trends faster than any generation before. With social media at their fingertips, they set trends in real time, influencing everything from shopping habits to brand expectations. Businesses that pay attention to these shifts can stay ahead. Below are five key trends driven by the Gen Z consumer market.
1. Digital-First Shopping
Gen Z prefers shopping online. They rely on e-commerce, social commerce, and mobile apps over traditional retail. Unlike previous generations, they are comfortable discovering brands through TikTok, Instagram, and YouTube. Platforms like Instagram Shop and TikTok Shop have made buying seamless, reducing the need to visit physical stores.
📌 Example: SHEIN, a fast-fashion brand, grew rapidly by focusing on social media and influencer marketing. They created a shopping experience around Gen Z’s mobile-first behavior, offering trendy items at low prices with fast shipping.
2. Sustainability and Ethical Consumption
Gen Z cares about sustainability. They research brands, check for ethical sourcing, and support companies that align with their values. Greenwashing—where brands falsely claim to be sustainable—doesn’t work with them. They demand transparency.
🔍 What to Learn: Businesses need to integrate real sustainability efforts, not just marketing buzzwords. Brands like Patagonia and Allbirds succeed because they are genuinely eco-conscious, using recycled materials and ethical production.
3. The Rise of Personalization
Gen Z expects brands to know them. Personalized experiences—from product recommendations to targeted ads—boost engagement and loyalty. They don’t want generic content; they want brands that understand their interests and behaviors.
📌 Example: Spotify Wrapped is a great example. It provides users with a personalized summary of their music habits each year. This not only engages users but also makes them share their results on social media, turning them into brand ambassadors.
4. Experience Over Ownership
Gen Z prioritizes experiences over material things. They value access over ownership, fueling the rise of subscription models, shared economy platforms, and digital goods. Whether it’s streaming services, gaming subscriptions, or renting clothes, they prefer flexibility over long-term commitments.
🔍 What to Learn: Brands need to rethink how they sell. Instead of one-time purchases, offering memberships, digital collectibles, or rental options can attract Gen Z. Companies like Netflix, Rent the Runway, and ClassPass have mastered this model.
5. Influencer & Community-Led Buying
Gen Z trusts influencers and online communities more than traditional ads. They rely on peer recommendations, online reviews, and social media creators before making a purchase. Brands no longer control the narrative—people do.
💡 Important Insight: Micro and nano influencers (with 10K-50K followers) often drive more engagement than big celebrities. They feel more relatable, and their recommendations carry more weight. Brands investing in these smaller influencers see stronger, more authentic connections with Gen Z consumers.
Gen Z’s influence on market trends is undeniable. Businesses that understand and adapt to these shifts will stay ahead in the evolving digital economy.
Digital Behaviors of Gen Z
Gen Z behaves differently in the digital world than previous generations. They grew up with smartphones, social media, and instant access to information. Some people criticize them for being "too online" or "always on their phones," but their unique approach to digital interaction is not a flaw—it’s a sign of change.
Understanding their behaviors is key for businesses and brands looking to connect with them. Here are four defining digital behaviors of Gen Z.
1. Social Media is Their Search Engine
Gen Z doesn’t just use Google to find answers as they prefer to turn to TikTok, Instagram, and Reddit. Whether looking for product reviews, travel recommendations, or study tips, they trust real experiences over traditional search results. Video-based platforms, in particular, are their go-to sources because they provide quick, engaging, and visually rich information.
For example, instead of reading a long blog about "best skincare routines," Gen Z searches for "morning skincare routine" on TikTok and watches a 30-second clip with visual proof of effectiveness. So, brands that would optimize for video searchability will gain a competitive edge.
2. They Value Authenticity Over Perfection
Unlike Millennials, who grew up with the Instagram “highlight reel” culture, Gen Z prefers raw, unfiltered content. They connect more with brands and influencers who show real-life moments rather than highly polished ads. Overly scripted marketing doesn't work on them as they are smart enough to spot insincerity instantly.
This behavior explains the rise of platforms like BeReal, which encourages users to post unedited, real-time photos. Brands that focus on casual, behind-the-scenes content and user-generated content (UGC) perform better with this audience.
If you too are running a Gen-z focused brand, you should focus on showcasing your authentic self.
3. They Engage in Multi-Platform, Multi-Screen Consumption
Gen Z doesn’t consume content linearly. They switch between multiple screens and platforms at once. They might watch Netflix while scrolling TikTok, or engage in a Reddit discussion while gaming. Traditional advertising struggles in this fragmented attention span, making immersive and interactive content essential.
To reach them effectively, brands need omnichannel engagement. For example, a brand launching a new product should not just rely on YouTube ads. They need TikTok challenges, Instagram stories, interactive polls, and even Discord communities where Gen Z can engage actively.
4. Privacy Matters—But So Does Personalization
Gen Z is more privacy-conscious than previous generations. They understand how data tracking works and are selective about sharing personal information. However, they still expect personalized experiences—just on their terms. They prefer brands that are transparent about data usage and give them control over how their information is used.
📌 Example: Apple’s App Tracking Transparency (ATT) feature was widely appreciated by Gen Z because it gave them control over app data collection. At the same time, brands like Spotify and Netflix keep them engaged with AI-driven personalized recommendations without feeling invasive.
Gen Z’s digital behavior is redefining how brands engage with consumers. Businesses that prioritize authenticity, interactivity, privacy, and multi-platform presence will resonate the most with this generation.
How Brands Can Connect with Gen Z
Every brand is different. Even when targeting the same Gen Z audience, the approach varies based on the industry, product, and brand identity. There’s no one-size-fits-all strategy. To get started, you need a deep understanding of your audience—and that begins with market research.
Market research helps answer critical questions:
- How do you reach Gen Z?
- What marketing channels work best?
- What messaging resonates with them?
- How do you position your brand in a way that feels authentic?
Without solid research, marketing efforts can miss the mark. If you’re unsure where to start, don’t worry.
At Consainsights, we specialize in market research tailored for Gen Z brands. Our team has years of experience and has helped over 30+ brands with custom research reports focused on:
- Market size & trends
- Consumer behavior insights
- Competitive landscape
- Brand positioning strategies
Let’s connect and build a data-driven strategy to take your brand to the next level. Reach out today!