1. Gen Z’s unique values and increasing economic power
Gen Z, those born between 1997 and 2012, represents a seismic shift in the consumer landscape. They’re the first generation to grow up entirely within the digital age. That upbringing has shaped their preferences and fundamentally changed how they interact with brands and make decisions. We’re talking about a generation that blends the physical and digital worlds seamlessly, demanding a level of adaptability most companies haven’t fully embraced yet.
Consider the numbers: Gen Z’s purchasing power is projected to hit $12 trillion by 2030, growing at a blistering compound annual growth rate (CAGR) of 4.02%. That’s double the rate of Millennials and a strong indicator that this group will drive market trends for years to come.
Social media platforms like TikTok, Instagram, and YouTube are their primary research and shopping channels. These platforms, while great places to advertise, are also the hubs of Gen Z’s decision-making. But don’t mistake them for a purely digital crowd. Nearly half of their purchases still happen offline, which underscores a critical insight: hybrid strategies are non-negotiable. To connect with Gen Z, businesses need to align their physical and digital offerings in ways that feel seamless and intentional.
Don’t ignore the personal aspect either. Over 60% of Gen Z prioritize mental health and personal well-being, a mindset that informs not just how they live but also what they buy. They value brands that reflect this priority, expecting companies to embrace holistic values that align with their own.
2. Purchasing decisions driven by authenticity, sustainability, and community
Authenticity
Authenticity is a word thrown around often, but for Gen Z, it’s a must-have. This generation grew up in a world of constant online content, so they can spot inauthenticity from a mile away. Forget highly polished ads that look like they came from a corporate marketing manual. Gen Z connects with brands that offer raw, unfiltered, and human content.
This is where influencer marketing plays such a major role. Influencers—people who often feel like peers—bridge the gap between corporations and real life. They provide a sense of relatability that corporate advertising struggles to achieve. The lesson here is simple: be real or risk irrelevance. If you’re not showing up authentically, Gen Z will move on without a second thought.
Sustainability
Environmental and social responsibility are no longer value-adds and have become the price of entry for this generation. Gen Z expects brands to demonstrate how they’re making a meaningful difference. And they want transparency—everything from where materials are sourced to how waste is managed. If you’re cutting corners, they’ll find out.
The numbers back this up: 62% of Gen Z prefer sustainable brands, and 73% are willing to pay more for environmentally friendly products. That willingness to invest in sustainability sends a powerful message.
Community
Gen Z is looking for more than to buy products, they want to join communities. They expect brands to create spaces for dialogue, collaboration, and connection. Social platforms like TikTok and Reddit are prime examples. These advertising platforms are places where brands and consumers can interact in meaningful ways.
Building a community doesn’t mean talking at your audience. It means listening, engaging, and sometimes taking a step back to let the community lead the conversation. The brands that succeed with Gen Z are the ones that empower their customers to feel like stakeholders, not buyers.
3. The health and wellness tech industry exemplifies Gen Z values
If you want a case study on how to connect with Gen Z, look at the health and wellness tech industry. Companies like Calm and Talkspace have nailed it by addressing mental health—a top priority for this generation. They created ecosystems. Their platforms offer resources, community spaces, and support systems that resonate deeply with Gen Z’s values.
Transparency is a big part of their success. These companies openly share their pricing, processes, and even challenges. That kind of openness builds trust, which is one of the most valuable currencies in today’s market. It’s not about being perfect, but brands do need to be real.
Workplace wellness is another area where Gen Z is driving change. Brands like TARA Mind are shaping what it means to take care of employees. For Gen Z, while mental health is a personal issue, it’s also seen as a societal one. They expect employers to prioritize it, and companies that don’t will struggle to attract and retain top talent.
Platforms like TikTok, Reddit, and newer entrants like Bluesky amplify these efforts. These tools for marketing are offering spaces for genuine interaction and community building. Health and wellness brands have shown that when you align with Gen Z’s values, the impact goes far beyond individual sales to create loyalty and advocacy.
4. Omnichannel presence, video content, and financial sensitivity
Content strategy
Marketing to Gen Z requires a different approach. They’re online shoppers and they’re omnichannel consumers. Sure, they start their journeys digitally, but nearly 50% of their purchases happen offline. This means businesses need to connect the dots between digital and physical touchpoints.
Authenticity is key, but so is value-driven content. Gen Z wants to see how your brand contributes to the bigger picture—socially, environmentally, or culturally. And don’t waste time with heavy-handed ads. They’ll see right through it. Instead, focus on storytelling that informs, entertains, or inspires.
Video usage
Video content is a must-have. Gen Z consumes video for education, reviews, entertainment, and more. Brands that diversify their video offerings—short-form, vertical, horizontal, and long-form—are the ones that win their attention. Accessibility is just as important. Captions, for example, are important.
Financial behavior
Gen Z is financially savvy. They wait for discounts, with 71% preferring to buy on sale. They’re also joining loyalty programs at a growing rate (15% annually). This tells us something critical: they value relationships with brands that reward their loyalty and respect their financial realities.
While they prioritize spending on food, entertainment, and experiences, they’re open to other categories if the value is clear. Brands that emphasize long-term benefits and align with their values will capture their attention and their wallets.
5. Prioritize hybrid experiences, AI personalization, and community-led growth
- Hybrid experiences: Gen Z straddles the digital and physical worlds seamlessly. Brands must do the same. QR codes in stores that link to online content or AR experiences that improve real-world interactions are just a few ways to bridge this gap.
- AI personalization: AI has the power to create highly tailored experiences, and Gen Z expects nothing less. Whether it’s product recommendations or dynamic content, personalization driven by AI, it’s the new baseline.
- Community-led growth: This generation responds to grassroots efforts over top-down campaigns. User-generated content, peer-to-peer interaction, and online communities are the future. Brands that empower their audiences to shape the conversation will build deeper loyalty.
- Lessons from health-tech: Health-tech brands have shown that authenticity and accessibility are the winning formula. The broader lesson? Digital innovation works best when paired with real-world impact. Whether you’re in tech, retail, or beyond, that principle is universal.
Final thoughts
To succeed with GenZ, brands must align with their values: authenticity, sustainability, and community. Build genuine relationships, not just transactions. If you can deliver on that promise, Gen Z will reward you with loyalty, advocacy, and long-term growth.
Gen Z will transform your market eventually, whether or not your brand is prepared to meet them on their terms. Are you authentically connecting with this generation’s values, or are you stuck in outdated approaches that won’t survive their scrutiny? Gen Z want partnerships that align with their vision for a better future. Is your brand ready to lead in this new era, or will it be left behind as a relic of the past?
