If you’ve spent any time on social media in the past few years, you’re probably familiar with Generation Z (also known as Gen Z or Zoomers). Why? Because as the first generation to have full access to the internet, they’re fully immersed in the online world. In fact, they’re dominating it.
“Generation Z stands out with their innate ability to adapt to and excel in today’s digital environment. With constant access to the internet, social media savvy and mobile device at their fingertips, Gen Z’s technological savvy is reflected in their seamless and intuitive adoption of online shopping and commerce,” said Stephanie Chevalier, global e-commerce expert at Statista.
But one thing you might not realize about Gen Z is how powerful they are as consumers. And that power is growing, to the point where Tom Hedges, senior trends analyst at market research firm GWI, says Gen Z is actually shaping our culture through social media.
But why is Gen Z so powerful in the consumer sphere?
What makes Gen Z such a powerful consumer?
Gen Z refers to individuals between the ages of 12 and 27. To be precise, they are people born between 1992 and 2012. So what makes this age group of consumers so influential?
Well, the main reason is literally their age.
Gen Z includes consumers who are entering the workforce and growing in popularity, which means they have crucial disposable income.
According to market research firm Exploding Topics, Gen Z has a global purchasing power of $450 billion, a figure that is expected to rise in the coming years as they mature and attain the greatest income and purchasing power.
But it’s not just the older members of Gen Z who have purchasing power: Their younger counterparts have it too, through their ability to pester their parents for the drinks and snacks they want — a phenomenon known as “begging power.”
“Advertising directly to kids who don’t have the means to buy things for themselves may not seem like the cleverest thing to do, but marketers have long known how effective it can be to use kids as proxy advertisers,” says Claire Seale, money writer at British bank NatWest.
But while Gen Z has significant purchasing power, their predecessors, Millennials, Gen X, and Baby Boomers, should not be discounted either, as they may be at different stages in life but still have significant purchasing power. In fact, Baby Boomers have a purchasing power of $548 billion per year, far more than Gen Z. This makes them the most economically powerful generation, with one big difference: they are in decline, while Gen Z is in the prime of their days.
So what is the young and influential Gen Z buying?
Gen Z is proving its purchasing power and influence. GettyImages/SolStock
What is Gen Z buying?
Gen Z’s buying style is very unique. Not only have they changed what they buy, but they have completely changed the way they talk compared to previous generations. While Millennials, Gen X, and Baby Boomers are well known for their high alcohol consumption and sedentary lifestyles, Gen Z is very committed to health and wellness. And this has a huge impact on their eating and drinking habits.
“With health and fitness information now more accessible online, Gen Z’s eating habits are markedly different from previous generations,” Kyle Crowley, nutritionist at protein powder brand Protein Works, told FoodNavigator. “Unlike millennials and Gen Xers, who relied on traditional media to enforce narrow beauty standards and restrictive diet ideals, Gen Z has grown up with a wealth of information available through platforms like TikTok, YouTube and podcasts. Social media influencers and new scientific research have transformed their understanding of nutrition and fitness.”
And this movement towards healthier lifestyles is also contributing to gut health being one of the strongest food and beverage trends of the past five years.
Additionally, younger generations are falling out of favor with alcoholic drinks, leading to a decline in alcohol consumption across Europe.
This is partly a result of the health impacts of drinking alcohol and the dramatic change in forms of entertainment. Whereas previously many people would go to a pub or bar after work, now, with gym culture becoming widespread, some go to the gym or fitness classes. Terms like #fitness, #fitspo, #fitfam, #fitgoals have taken social media by storm as one of the most searched and posted forms of content. Also, most influencers are more likely to post pictures of their post-workout protein shakes than beers.
“A significant proportion of Gen Z abstains from or moderates alcohol consumption and sees fitness as a social activity rather than just physical activity,” Crowley says.
But in addition to exercising and living a healthy lifestyle, Gen Z also has a penchant for sweet treats.
“While previous generations of young people used alcohol and smoking to relieve stress and escape their worries, Gen Z has a sweet tooth,” Jonny Forsyth, Mintel’s food and drink director, told Food Navigator.
Gen Z is following in Millennials’ footsteps and continuing to drive the plant-based trend.
“Younger consumers are driving consumption of vegetarian and vegan food, a trend that presents a huge opportunity for sustainable food brands,” said Tove Malmqvist, senior manager at insights and strategy consulting firm GlobeScan.
Gen Z has made health and wellness a trend that is spreading to other generations. GettyImages/enigma_images
How is Gen Z influencing other consumers?
Gen Z is not only a very powerful consumer in terms of their own purchasing power, but they also have a very powerful ability to influence other consumers – and the way they do this is by being active on social media.
“Gen Z consumers are influencing other generations through health and wellness trends,” adds Crowley. “Gen Z’s approach to diet and fitness is slowly shifting societal norms as older generations become aware of and adopt Gen Z’s more holistic approach to health. With the rise of social media, Gen Z health trends are widely shared and highly visible, influencing the attitudes and behaviors of other age groups.”
And this impact extends not only to food and beverages, but also to supplements.
“The market is also responding to Gen Z preferences, such as increased demand for nutritional supplements and high-protein foods, which are influencing the purchasing habits of older consumers,” Crowley adds. “This cross-generational influence highlights Gen Z’s increasingly influential attitude toward health and wellness.”
How can brands attract Gen Z consumers?
Engaging with Gen Z is essential to future-proofing your food and beverage brand because they are not only a powerful consumer, but they also influence the next generation of powerful consumers, Gen Alpha.
But how do you engage with them? Through social media, where they go for entertainment and to connect with friends. Get on Instagram and TikTok and start posting about your brand. Keep it light-hearted and fun, and you’ll hook them and quietly introduce them to your product. It’s stealth advertising. And for the older members of Gen Z, LinkedIn gives you a place to engage with them as they enter the workforce and advance their careers.
“LinkedIn is becoming an increasingly important space for everyday conversation and for tips and advice,” Alison Battisby, founder of marketing firm Avocado Social, said at IFE 2024. “Engagement on the platform has doubled in the last year, with significantly more people posting, commenting, sharing and liking. As long as consumers are on LinkedIn, it’s worth being on it.”
To learn more about how to engage with your consumers through social media, check out our feature “Increasing Consumer Engagement Through Social Media.”
Gen Z is proving to be a powerful consumer group and influencer. GettyImages/Thx4Stock
