Gen Z: Architects of a New Spending Era

By Gargi Rathod

2 Jan 2025

Shaping the Future of Consumerism with Authentic Insights from Facts Fodina

Facts Fodina

Gen Z is redefining the rules of spending. As the first truly digital-native generation, they’re not only influencing trends—they’re driving a new era of consumer behavior. In 2025, understanding their purchasing power is crucial for businesses aiming to stay ahead. Here’s a quick look at how Gen Z is reshaping the landscape:

  • Purpose-Driven Purchasing
  • For Gen Z, buying isn’t just about the product—it’s about what the brand stands for. This generation values sustainability, ethics, and social responsibility. A recent survey revealed that 72% of Gen Z prefers to purchase from brands that share their social values. Businesses that align with these priorities are seeing increased customer loyalty and brand affinity.
  • Digital Shopping Experience
  • Born into a world of smartphones and online shopping, Gen Z expects a seamless digital experience. 60% of Gen Z shoppers say they prefer shopping online over in-store due to the convenience and variety it offers. Brands that provide smooth mobile-first experiences, fast checkout processes, and personalized recommendations will stand out to this generation.
  • Influence of Social Media
  • Social media platforms, especially TikTok and Instagram, are powerful tools for Gen Z’s purchasing decisions. 40% of Gen Z consumers have purchased a product after seeing it on TikTok, highlighting the importance of viral trends and influencer marketing. This generation is significantly influenced by user-generated content, meaning organic and relatable brand interactions have a higher chance of resonating.
  • Financial Savviness
  • While often portrayed as spenders, Gen Z is highly financially conscious. 60% of Gen Z respondents say they prefer to save money, and 44% would rather shop for affordable, high-quality products than expensive brands. They gravitate toward value-driven purchases and expect transparency, with clear pricing and value-added benefits like loyalty programs.
  • Experiential Over Material
  • Experiences are now more valuable than material possessions for Gen Z. 72% of Gen Z consumers prefer to spend money on experiences, such as travel, dining, and entertainment, rather than physical goods. Businesses that offer unique, memorable experiences—both online and offline—are likely to engage Gen Z shoppers more effectively than those focusing purely on products.

Gen Z is not just changing how businesses sell products—they’re reshaping the entire consumer landscape. With this generation projected to have $143 billion in spending power by 2025, understanding their preferences and values will be key to business success. At Facts Fodina, we provide the data-driven insights you need to connect with Gen Z and thrive in this new era of consumerism.