The NRF and NiQ’s 2024 State of Gen Z report offers a comprehensive look into the unique preferences and behaviours of Gen Z, a demographic with increasing influence on global spending and market trends. Born between 1998 and 2012, Gen Z represents a significant and growing economic force, accounting for 17.1% of global spending or $9.8 trillion. Their spending is projected to grow at twice the rate of previous generations over the next decade, showcasing their impact on various industries.

As digital natives, Gen Z navigates a world shaped by economic volatility, technological advancements, and evolving social norms. However, their approach to financial security differs notably from other age groups. For example, Gen Z ranks "material security" and "ambition" highly as personal values, reflecting their focus on achieving financial independence and stability. In contrast, traditional career progression or “working hard” holds less appeal for them, indicating a shift away from conventional success metrics.

Gen Z also exhibits a balanced relationship with technology. While they are enthusiastic about digital platforms, social media’s pervasive influence has made them aware of its potential downsides, such as increased anxiety and feelings of jealousy. This generation’s nuanced view of technology extends to their shopping habits, with Gen Z leading other demographics in digital shopping preferences and social media engagement. Platforms like TikTok and Instagram play a vital role in their purchasing decisions, and influencers significantly shape their brand perceptions. Yet, despite their digital savvy, Gen Z values in-store shopping experiences, seeing it as an enjoyable activity.

The 2024 report highlights Gen Z’s complex approach to sustainability. Although Gen Z advocates for environmental responsibility, barriers like high costs and limited disposable income hinder their ability to fully align their purchasing with sustainable practices. Many young consumers continue to purchase from fast fashion brands while aspiring toward greener options. This underscores their desire for brands to provide affordable, accessible sustainability options and clear guidance on eco-friendly actions.

Politically and socially, Gen Z is the most activist-minded generation, willing to participate in protests and advocate for issues they care about. Their disillusionment with traditional political structures is balanced by a commitment to social causes, including environmental reform, mental health, and social equity. They expect brands to reflect these values, emphasising accountability and transparency.

For brands aiming to resonate with Gen Z, it’s essential to prioritise authenticity, transparency, and a strong stance on social issues. The 2024 NRF and NiQ report demonstrates that this demographic’s expectations go beyond transactional interactions; they seek genuine connections with brands that align with their core values. By understanding these evolving preferences, businesses can better position themselves to engage with Gen Z, fostering loyalty and growth in a fast-changing market landscape.