Gen Z spending habits: The trends marketers need to know in 2025

Gen Z have been called everything from the TikTok generation to the loneliest generation. But the truth is they’re a lot more complex than any simple label can capture.

Born between the late ‘90s and 2012, they’re a mix of high schoolers figuring out life, and young professionals stepping into their prime career years. And while they’re not a monolith, one thing is clear: they know what matters to them.

They’re not just chasing trends; they’re shaping them. They prioritize experiences over material things and they’re far more likely to scroll and shop on their phones than browse in-store.

With their digital-first, value-driven mindset, they’re flipping the script on how brands should engage with them. So let’s dive in and take a closer look. 

Why Gen Z’s spending habits matter

Gen Z may not outspend millennials just yet, but they’re the next-most dominant consumer force. Even those still in school know what they want and what they expect from brands. Ignore their motivations, and you’ll be left out before the conversation even starts.

Shaped by the 2008 recession and the pandemic, Gen Z are financially savvy and brand-conscious. They’ve grown up with social media, trusting influencers and peer recommendations over traditional ads. They don’t just scroll; they shop, interact, and set trends in real time.

For them, spending centers on digital convenience. Mobile banking, digital wallets, and Buy Now Pay Later aren’t just nice-to-haves - they’re the norm. They expect seamless, cashless transactions that fit into their fast-moving world. If brands want to win Gen Z’s loyalty, they need to back it up with effortless digital experiences.

Key Gen Z spending trends for 2025

Here are six key Gen Z spending habits for 2025. Want the full picture? Check out our deep dive into Gen Z characteristics.

1. Value-driven shopping: Gen Z wants ethics and affordability

Call them demanding - or just particular - but Gen Zers know what they want and what matters.

They’re sometimes said to be the “green generation”, but it’s not that simple. Gen Z aren’t any more willing than the average consumer to pay extra for eco-friendly products. In EU5 markets, the number willing to pay more has dropped 15% since 2020.

It’s not that Gen Z don’t care, they just want brands to do the heavy lifting. Of all US generations, they’re the least likely to feel personally responsible for the environment and the most likely to say brands should do more. Discounts for reusable cups, buy-back programs for pre-loved furniture, and trade-in rewards for tech waste are all great ways for brands to win Gen Z’s approval.

Gen Z are both budget-conscious and tech-savvy, but price still rules; 51% say it’s the top factor when buying household essentials.

For other goods, Gen Z blends cost-consciousness with ethics. They believe eco-friendly choices shouldn’t come with a hefty price tag. One way for brands to respond to this is to double-down on discounts — 2 in 5 Gen Z actively search for coupons before buying.

In the US, Gen Z are 8% more likely than the average consumer to buy secondhand. And despite Facebook's older-skewing reputation, visiting Facebook marketplace is the second most popular action taken in the past month among US Gen Z.

So is fast fashion over for Gen Z? Not yet, but platforms like Depop, Poshmark, and Vinted are undoubtedly making an impact. Depop use has grown 8% since 2022, and Vinted has seen a 47% surge in visits from Gen Z in the UK and France.

2. Digital-first consumers: Online shopping and social commerce dominate

Gen Z grew up with smartphones, and now they’re a leading group in ecommerce with a clear mobile-first mindset. In the past week, 27% bought new or secondhand products using their mobile phones. Additionally, in the US, 32% of Gen Z use their mobiles to shop or browse for products online. Mobile grocery shopping is another area seeing major growth with Gen Z, up 40% since 2021.

While older generations use social media to connect, Gen Z mixes social with shopping. Over a quarter say they use social platforms to find products. To keep up, brands need to make their social presence engaging and shoppable.

And they’re not just researching products on social media, they’re buying there too. Gen Z in North America and Europe are 16% more likely than the average consumer to use Instagram Shopping Bag. In the past year, the number of Gen Z outside China using TikTok Shop has jumped 14%.

As digital natives, many Gen Z are keen to embrace AI. Over half say they would consider using it for price comparisons, and 2 in 5 say they would use AI for shopping support, with AI-powered recommendations reshaping how Gen Z interacts with brands. As we’ve seen elsewhere with Gen Z, money matters - they’re 22% more likely than the average consumer to say budgeting support would make them consider using AI while shopping online.

3. Buy Now, Pay Later (BNPL) and flexible payment preferences

Gen Z are changing the payment game. While older generations like baby boomers rely more on traditional payment methods, Gen Z are embracing flexible alternatives like Buy Now, Pay Later. Buy Now, Pay Later (BNPL) services like Klarna and Afterpay are steadily growing - no surprise given Gen Z’s focus on saving money.

BNPL continues to grow in certain markets. Indonesia leads the league, while markets like the UK have seen a jump of 16% since 2021. In the US, BNPL is still gaining traction, with at least 10% of Gen Z using it weekly. 

As you’d expect from a group who’re glued to their phones, Gen Z are particularly comfortable with mobile payments and digital wallets. Nearly a quarter have used services like Apple Pay or Samsung Pay in the last month. Mobile payments aren’t just growing, they’re surging, up 46% among Gen Z since 2021, making them 60% more likely than the average American to have used Apple Pay.

The point is that brands targeting Gen Z need to keep up and give them what they want. Flexible payment options like interest-free splits and subscriptions aren’t just nice-to-haves, they’re the new normal this financially savvy generation expects.

4. Experience over possessions: Where Gen Z prioritizes their spending

Similar to previous generations, Gen Z prefers to splurge on experiences rather than material goods.

So where does their disposable income actually go? Travel, dining, and entertainment are all contenders. Naturally social media trends play a big role in shaping their choices.

30% of Gen Z outside of China turn to social media for travel inspiration, including domestic trips. And they’re not just looking, they’re also booking, with over a quarter having reserved a domestic vacation online in the past 3-6 months.

Gen Z are also more likely than other generations to travel solo when they find a destination they love. 34% are planning a trip alone, compared to 29% of millennials, 23% of Gen X, and 21% of baby boomers.

But it’s not just about vacations; Gen Z seek unique, shareable experiences. In the US they’re 23% more likely to be interested in food and drink festivals. Elsewhere they’re 19% more likely to spend on experiences like a spa day or a day out.

Gen Z also dive deep into digital media and gaming, from streaming to metaverse purchases. If a game’s free, they’re all over it, with nearly half having played or downloaded a free-to-play game at some point.

But while Gen Zers love a freebie, they’re also willing to spend when it counts. They’re 36% more likely to have purchased an in-game item or feature using microtransactions. And once they’re immersed, they’re 31% more likely to have bought a game add-on or DLC in the past year.

Bottom line? As brands move away from in-store physical media, Gen Z are right there with them. In fact they’re 33% more likely than average to buy video games from online stores or digital platforms.

5. Financial anxiety is reshaping Gen Z spending behavior

Gen Z has weathered economic storms, from the 2008 crisis to the pandemic, shaping how they approach education, careers, and money. A combination of rising inflation and student debt means that many have become financially cautious, focusing on stability and value-driven spending.

How worried are Gen Z about the economy? It’s a mixed picture. The cost of living is a concern for many, but despite the challenges, they’re optimists at heart. Over the next six months, 55% believe their country’s economy will improve. They’re also 15% more likely than the average s to say their personal finances will get better.

Still, Gen Z aren’t diving into big, life-changing purchases just yet. Only 6% are planning to buy property. They’re also holding off on major life milestones. Since early 2024, the number of Gen Zers planning to get engaged has dropped 25%, while those planning to marry is down 16%.

As a value-driven generation, Gen Z wants to make every dollar count. Financial education and money management are top priorities. Many seek out resources to improve their financial literacy, with 22% wanting their bank to offer a financial advice hotline and 38% wanting access to online financial courses.

For financial brands this is a huge opportunity. Gen Z aren’t just looking for a bank - they want a financial partner that helps them reach their goals. Finance brands who take on that role will prosper.

6. Loyalty is earned: How Gen Z engages with brands

Brands must work hard to earn Gen Z’s trust, and even harder to keep it. They’re the least brand-loyal of all generations and don’t think twice about switching.

What does Gen Z look for most? In a word, reliability. They expect brands to be authentic and consistent across every touchpoint. Social media and user-generated content play a huge role in building trust; Gen Z want real connections, not marketing speak.

Over half of Gen Z use social media to explore brands, and they’re 31% more likely than average to use vlogs to find information on a company.

They’re also deeply influenced by online conversations and social proof. Gen Z are 12% more likely than the average to say‘likes’ and positive comments on social media would make them more likely to buy online. Clearly peer validation is a key part of their buying process.

Gamified shopping and reward programs also work, with 24% of Gen Z saying loyalty points would make them more likely to buy online.

Implications for marketers and businesses

Gen Z undoubtedly values authenticity. To earn their loyalty, brands need to lead with transparency, storytelling, and shared values. Want to know how your brand stacks up? Track your brand health and gauge consumer perception.

Gen Z’s loyalty is hard-won and easily lost. They’re quick to jump between brands, so staying connected is key. Engage directly, personalize conversations, and create experiences that make them feel valued.

Social proof matters. Gen Z relies on social media and peer opinions, making influencer marketing a powerful way to connect. To find out which platforms matter most just check out our latest social media stats.

As we’ve said, they also love a good deal and they’re not afraid to shop around. Loyalty programs and rewards keep them coming back, while seamless mobile shopping and flexible payments make buying easier. And while they care about sustainability, price still comes first - they won’t pay extra just because something’s eco-friendly.

How to use GWI Spark for insights on Gen Z spending habits

Gen Z shopping habits can be hard to pin down. Navigating these nuances isn’t easy, but GWI Spark helps you spot the trends and craft the right message.

Here’s one example: Gen Z aren’t any more likely than other consumers to pay extra for eco-friendly products. They expect brands to step up, but without passing the cost onto them.

GWI Spark shows that Gen Z loves second-hand shopping, a key insight that could inspire a brand to sell refurbished items or create products made from recycled materials.

And that’s just the start. With GWI Spark, you’ll uncover insights to shape your marketing, strengthen connections, and meet Gen Z on their terms.

Final thoughts

Winning over Gen Z isn’t just about knowing what they buy. It’s also about recognizing the beliefs, priorities, and emotions that influence their purchasing behavior.

Brands aiming to make a splash in 2025 can tap into Gen Z’s preferences. Focus on immersive experiences, second-hand goods, and cutting-edge technology. Above all, to win over Gen Z, brands must build authenticity. As more Gen Zers enter and advance in their careers, brands that meet their expectations will be the ones that thrive.