Gen Z Is Spending Less - But Demanding More

Gen Z is spending less overall due to economic pressures like inflation and tariffs, but they’re becoming more intentional with their purchases. They prioritize brands that align with their values, those that offer transparency, authenticity, and a strong social presence. Influenced by peer reviews on platforms like TikTok, Reddit, and Discord, Gen Z favors purpose over polish. Brands that co-create with their audience and emphasize trust over tradition are capturing this generation’s loyalty and attention.

In a market once defined by rising consumerism, a profound shift is underway, led by the most connected, informed, and scrutinizing generation yet: Gen Z. Born between the late 1990s and early 2010s, this cohort is coming of age in a turbulent economic era. Inflation, tariffs, student debt, and the rising cost of living have made them more financially cautious than millennials before them. But this doesn’t mean Gen Z isn’t spending, it means they’re spending differently.

Gen Z is buying less overall, but when they do spend, they’re doing so with precision. This is a generation that demands more from brands: more authenticity, more transparency, and more alignment with their personal values. For companies still relying on glossy advertising, legacy status, or outdated influencer tactics, the message is clear, adapt or be ignored.

The Economic Reality Behind Gen Z’s Intentional Spending

Unlike previous generations who embraced consumption as a marker of success or stability, Gen Z is far more skeptical of traditional consumerism. According to recent studies, Gen Z consumers are spending more time comparing prices, seeking peer reviews, and waiting for sales, even for essential purchases. AI-powered comparison tools, TikTok reviews, Reddit threads, and Discord forums are their go-to sources before hitting "add to cart."

Add to that the macroeconomic forces reshaping their wallets:

• Persistent inflation has raised the baseline cost of living.
  
  
• Tariffs and global supply disruptions have made everything from skincare to sneakers more expensive.
  
  
• A challenging job market means many Gen Zers are navigating gig work, freelancing, or delayed full-time employment.
  

The result? An incredibly discerning generation of buyers who have little patience for fluff and high expectations of value.

Less Quantity, More Quality - With a Side of Purpose

Where Gen Z chooses to spend, they go deep. They may buy fewer items overall, but they will invest in brands that align with their identity and ethics. This is a generation that actively curates their consumption to reflect their worldview.

Winning Brand Attributes Among Gen Z:

1. Ingredient and Supply Chain Transparency

Whether it’s clean skincare, ethical fashion, or sustainable tech accessories, Gen Z wants to know what’s in a product, who made it, and how. Glossy packaging and vague buzzwords don’t cut it anymore.

Example: Gen Z consumers are turning to platforms like INCIdecoder to verify skincare ingredients, and seeking out brands that publish their carbon footprint or sourcing certifications directly on product pages.

Actionable Insight: Ditch the jargon. If you can’t explain your ingredients or sourcing in plain English, or better yet, with user-generated video, Gen Z will move on.

2. Purpose Over Polish

Gen Z doesn’t want perfection, they want proof. Legacy brands with billion-dollar ad budgets are often outperformed by indie startups that show real people, real problems, and real-world values. The brands that win are the ones that stand for something and show up consistently, whether it’s around sustainability, mental health, inclusivity, or economic equity.

Example: Brands like Parade, Blume, and Youthforia have carved out fierce loyalty by taking a stance on social issues and building brands rooted in community, not celebrity.

Actionable Insight: Build your brand like a person, not a billboard. Show the mess, the mission, and the evolution. Gen Z rewards honesty, not polish.

3. Peer-Reviewed Credibility (Not Just Influencer Collabs)

Gen Z doesn’t trust traditional influencers nearly as much as previous generations did. What they do trust? Everyday users sharing unscripted experiences. Product reviews on TikTok, unboxing threads on Reddit, and Discord group recommendations now drive more discovery and conversion than celebrity endorsements or curated content.

If a product isn’t circulating organically in these social spaces, it might as well not exist in the Gen Z universe.

Actionable Insight: Shift part of your marketing budget toward creator seeding and community engagement. Create products worth talking about, then make it easy for users to share their authentic experiences.

From Transactional to Relational: Co-Creation Is the New Conversion

What sets Gen Z apart even further is their desire to co-create with brands, not just consume passively. They want to feel like stakeholders, collaborators, and contributors to the brands they support. This is especially evident in how they interact with brand communities on platforms like Discord and TikTok, where feedback loops are direct and influence can be earned in real time.

Forward-thinking companies are taking note. From design input and product naming to content collaboration and live feedback sessions, Gen Z wants a say. And when they get it? They become your fiercest advocates.

Example: Glossier, a pioneer in community-led beauty, built much of its product line from feedback loops and blog comments. Today, newer brands like Dieux and Topicals are taking it further—responding to DMs, testing formulas via community panels, and spotlighting customer content before their own.

Actionable Insight: Create mechanisms for co-creation. Use polls, DMs, Discord chats, or user submissions to involve your community in product development or marketing campaigns. The more collaborative your brand feels, the deeper the loyalty.

How Legacy Brands Can Adapt (Without Rebranding Overnight)

Gen Z’s expectations might feel daunting, but brands, regardless of age, can evolve without losing their identity. It’s not about becoming a “Gen Z brand”; it’s about becoming a brand that respects their values and behavior.

Here’s where to start:

• Audit Your Brand Story: Is it honest? Is it current? Is it shared in your customers’ own words anywhere? Update messaging to reflect transparency and mission.
  
  
• Decentralize Your Content: Your most powerful content likely isn’t on your homepage, it’s in TikTok duets, Reddit AMAs, and Discord testimonials. Make it easier for Gen Z to find and contribute to these narratives.
  
  
• Go Micro and Local: Micro-influencers and niche communities often yield higher trust and engagement than macro campaigns. Partner small, go deep, and think long-term.
  
  
• Design for Dialogue, Not Monologue: Comment sections, Q&A stickers, and DMs aren't just customer service tools—they’re strategic brand touchpoints. Use them.
  

Looking Ahead: Intentional Consumption Is Here to Stay

Gen Z’s new approach to consumption isn't a phase, it’s a reflection of deep societal and economic shifts. As AI, automation, and global volatility continue to shape the market, Gen Z will lean even harder into informed, intentional buying. They will reward brands that respect their time, match their values, and invite their voice.

For brand leaders, this is a critical moment. The playbook is changing and the brands that listen, adapt, and build with their audience (not just for them) will not only survive but thrive.

Key Takeaways for Brands:

• Gen Z is spending less but valuing more, especially transparency, purpose, and authenticity.
  
  
• Traditional marketing tactics are losing power; peer validation and social-first storytelling are taking over.
  
  
• Co-creation and community-building are no longer optional. they’re core to brand relevance.
  
  
• Adaptation doesn’t require reinvention, but it does require courageous honesty and strategic empathy.

For questions or comments write to contactus@bostonbrandmedia.com