Engaging Gen Z: very demure, very mindful

Our next webinar is upon us! We’ll be back on 2nd October with Why sustainability isn’t selling: Don’t lead with green. Together with panellists across different sectors of FMCG and sustainability, we will focus on buying motivators, diving into why understanding them is crucial for brands with purpose or value-added benefits. 

Over the past few weeks we’ve been digging into the topic of buying motivators, questioning whether sustainability qualifies as a main driver of choice anymore. This is a question explored by BCG in their growth strategy The Future is Mainstream Green. As, despite the rise in conscious consumerism, there remains a gap between consumer consideration and purchase. Check out our latest article for a real-world example of how one brand tackled this disconnect.

We touched on the so-called ‘Say-Do’ gap in our first article, especially in relation to Gen Z. Set to be the largest and wealthiest generation, brands overlook Gen Z at their peril. So in this blog, we’ll be taking a look at this tech-savvy, health-conscious generation, their buying behaviour and of course, what motivates them.

Digital natives

Gen Z is the first generation to grow up with unparalleled access to the internet. They’ve been fully immersed in the digital world from day one. The result is a generation that’s entirely comfortable with collecting and cross-referencing information, both on- and offline (1).

Gen Z’s round-the-clock engagement with the digital world means that this is a generation not streamlined into narrow standards or appeals, as with Boomers and Millennials. Influencer opinion and research is widely disseminated on TikTok, YouTube, podcasts and more, which fuels Gen Z’s affiliation with the notion of ‘being true to yourself’ (NIQ p10), rather than adhering to expectations or norms.

This constant access to information allows Gen Z to make faster, more informed choices, especially in regards to their purchases. With this level of digital scrutiny also comes discourse, resulting in a higher level of brand engagement than ever seen before (2).

So it’s clear that understanding Gen Z’s behaviour, both online and offline, is crucial. As, while online research and shopping are vital to this generation, physical POS remains a key factor in purchasing decisions. 

Wealth, purchasing and pester power

Gen Z – encompassing those who are roughly between the ages of 12-27 – is a growing generation in terms of economic influence. Gen Z’s global purchasing power is currently 450 billion USD, and expected to rise as they mature into their max earning and purchasing potential (3). Younger members of Gen Z can’t be overlooked either, with the ‘pester power’ phenomenon prevalent in homes and at POS.

Even given the long list of global challenges, from political conflicts to economic crises, Gen Z has more spending power than the generations that preceded it – and that is true across all continents (4). Without doubt, Gen Z’s current and future spending will shape the consumer-goods industry, making it imperative for brands to invest in understanding Gen Z’s values and behaviour early-on. 

Sustainability, maybe

We touched on the Say-Do gap in our first article, exploring how Gen Z is a generation that cares about sustainability. However, according to the 2024 NIQ report, Spend Z: Gen Z Changes Everything, this dedication to value-led causes doesn’t always translate into spending. For instance, Gen Z reports being concerned about the climate and environmental justice (with 77% saying they won’t buy from countries with poor environmental standards (5)), but that’s in direct opposition to this generation’s love and consumption of fast fashion and tech gadgets.

As Gen Z reportedly has a ‘heightened awareness of “value”’ (NIQ p11), brands can leverage multiple USPs to make products more attractive.

Products with multiple benefits, eg. health, safety, sustainability, can help to raise the consumers’ perception of value, which is important for Gen Z shoppers, who value transparency and authenticity. According to NIQ’s report, products with multiple (two or more) sustainability attributes saw a 2.5 times higher sales lift than products that carried only a single sustainability claim (NIQ p11).

Generational influence

Finally, Gen Z’s influence over other generations can’t be ignored. Today, trends go viral in a matter of hours, whether it’s fashion or beauty drops selling out, or viral dance trends changing the way musicians write songs. 

Gen Z uses social media for one of their key motivators: health and fitness. For Gen Z, fitness is a social activity, and gym culture is huge. Alongside this, reduction in alcohol consumption, and focus on gut health are important drivers for Gen Z. This is spilling out across the generations, helping to reshape societal norms, such as older generations adopting a more holistic view of health and wellbeing.

Gen Z are also the most globally influential generation, having grown up with the entire global internet at their fingertips. In fact, just 44% of Gen Zs total spending comes from Western countries (NIQ p10). Equally, as the younger Generation Alpha starts to arrive on social media platforms, Gen Z’s legacy will influence these younger social media users until they, too, start to make their own mark.

Gen Z is a key audience for all brands looking to future proof their strategies. Keen to learn how to effectively engage Gen Z by aligning your sustainability USPs with their buying motivators? Join us on the 2nd October as we unpick these questions and more.

Register here for free. 

If you’re looking for support on your marketing or sustainability journey, get in touch.

We’d love to help out. toby@catchafireagency.com | +44 (0) 7880 696 385