Gen Z is set to spend on luxury goods at a rate three times faster than other generations. This new generation of luxury consumers has entered adulthood, and social media and influencers have made it easier to discover and fall in love with luxury brands.
Social media remains central to Gen Z's lives, not just for consuming content but for staying connected. The number of Gen Z TikTokers saying they use the platform for messaging friends and family rose by 82% between 2020-2024.
In its latest study, YPulse identified the most coveted luxury brands by Gen Z in Western Europe, with Gucci leading the way, followed by Rolex and Louis Vuitton. The results are based on a survey of 2,500 individuals aged 13 to 39 in Italy, France, Spain, Germany, and the United Kingdom.
Gen Z cares more about fashion and social issues
Gen Z is also more attuned to social responsibility. They're more likely to think that fashion brands should address social issues (60.2% vs. 53.8%) and that people who buy fast fashion don't care about the environment (49.1% v. 43.71%).
Gen Zers are known for working, shopping, dating, and making friends online; in Asia, Gen Zers spend six or more hours per day on their phones. Digital natives often turn to the internet when looking for any kind of information, including news and reviews prior to making a purchase.
Gen Zers are known for their social responsibility, dedication to social and political issues, and their demand for authenticity when it comes to brands and advertising. 53% of US Gen Zers want brands they shop at to support mental health, more than any other cause, according to a survey from ICSC and Big Village.
Current trends among Gen Z include gender-neutral fashion, sustainability, retro and vintage styles (like '90s and '00s aesthetics), streetwear influences, and DIY/customized clothing. They also embrace cultural diversity and are keen on supporting brands that align with their social values.
If you are between the ages of 12 and 27 years old, it's very likely that you are. Dubbed “the anxious generation” and “the loneliest generation,” over 60 percent1 of Generation Z (people born between 1997 and 2012) report experiencing significant stress and anxiety, including social anxiety.
Health and wellness have emerged as pivotal in Gen Z's beauty regimen, with many prioritizing products that offer clean, non-toxic, and natural ingredients. In fact, over 52.1% of respondents actively look for 'natural' claims on product labels, and 41.4% seek 'non-toxic' options.
Gen Z is set to spend on luxury goods at a rate three times faster than other generations. This new generation of luxury consumers has entered adulthood, and social media and influencers have made it easier to discover and fall in love with luxury brands.
Gen Z loves exploring new foods and dining out frequently. Here's what the report reveals: Favorite food: About 20% of Gen Z mentioned pizza as one of their favorite foods. No surprise there.
Turns out Lululemon is polarizing for Gen Z because they love the cute, trendy, and comfy clothes, but some socially conscious Gen Zers aren't thrilled with the brand's stance on body image.
A part of this bump can be attributed to the generation finally entering the full-time job market, leading to higher wages. But the biggest contributing factor in their financial boost is the Great Wealth Transfer, expected to hit Gen Z bank accounts in the years to come.
Gen Z, having grown up in a digital world, gravitates towards experiences that are both engaging and succinct. Daily fantasy sports perfectly cater to this demographic, providing quick, exciting, and dynamic interactions that align with their short attention spans.
Skincare experts warn that getting Botox or using anti-aging creams too early can cause unwanted side effects and that vaping and e-cigarettes, which Gen-Zers gravitate toward, can also cause premature aging.
According to the Adobe survey, 57% of Gen Z feel the most pressure to be ready at all times and characterise their jobs as repetitive and dull. Almost half of Gen Zers claim they frequently work in bed (in fairness, they also tend to live in smaller spaces).
Depending on the socioeconomic situation, some Gen Zers encounter issue-specific stress such as fears tied to housing instability, food availability and nutrition as well as debt. Academics also top the list with 61% of teens feeling the pressure to achieve good grades which leads to getting into a college of choice.
Like Millennial Pink, Gen Z colors favor the eye-popping Cyber Lime (forecasted to be big in 2024) and Digital Lavender, also aligned with inclusivity. “[Cyber Lime] can speak to all, which Gen Z is very sensitive to,” said Guilbert.
46% of Gen Z spent more on fashion than anything else in 2022 (5WPR) Gen Z was the only generation to have clothing and fashion as their top spending category. 30% of Gen Z spent more on beauty and personal care than anything else, far more than any other generation.
It's all about wearing what you want, mixing styles, and representing inclusivity, diversity, and equity in fashion. A typical Gen Z streetwear outfit consists of oversized clothing, such as custom t-shirts, baggy pants, custom hoodies, and chunky sneakers.
"Regardless of common conceptions, this study shows that Gen Z is still drawn toward more traditional job roles, with doctor, nurse, teacher and dentist all appearing within the top 25 ranking," Shah said.
Just look at the Gen Z product trends we've seen so far; they're selling out the Sephora shelves, bringing back New Balance sneakers, and buying Stanley tumblers like there's no tomorrow. Not to mention, they're using social media as a search tool over Google.
“Gen Z would have been going through some of their primary developmental stages regarding sexual initiation,” Kosenko said. “The average age of virginity loss is 17, and with COVID hitting during that time, individuals were not able to go through the typical developmental milestones on time.”