By Katherine Williams

It’s no secret that Gen Z is a powerful generation when it comes to business. With huge spending power and a changing vision of consumption, understanding Gen-Z consumer behavior and consumer values is crucial for brands to connect with Gen Z. Here are five Gen-Z statistics businesses need to know.

1. Gen Z has a U.S. spending power of $143 billion.

Gen Z is on track to become the largest group of consumers by the end of 2020. It’s not a generation to ignore, and with immense spending power, the consumer interests of Gen Z have never been more important. Understanding what Gen Z cares about can help brands tap into this unique consumer base in an authentic and successful way.


2. 61% of Gen Zers claim they base purchasing decisions off peers.

Traditional channels of celebrity advertisements aren’t effective with Gen Z, a generation that values authenticity above all else. Gen Z looks to their peers when deciding what to spend their money on, meaning that brands need to shift to micro-influencer and customer-sourced marketing. To Gen Z, everyone’s an influencer, so tapping into more local channels of influence will make your brand feel more genuine and trustworthy.


3. 68% also said that they expect brands to contribute to society.

Gen Z is a socially aware, politically active generation. Members of Gen Z have grown up organizing protests around the issues of climate change, feminism, and racial justice, and they want to see those values reflected in the brands they support. Brands that are visibly committed to a certain cause in their business practices, such as by employing formerly incarcerated individuals or going carbon neutral, are the brands that Gen Z loves.


4. 77% of Gen Z says that they feel more positively toward a brand when they promote equality on their social media channels.

There are two things that Gen Z cares about more than anything else: social justice and social media. Apps like Instagram and TikTok are the perfect places for brands to share their values and the causes they support in order to reach Gen Z. For Gen Z, social media is a place of genuine political potential, so they are drawn to brands that amplify resources for equality.


5. 65% try to learn the origins of anything they buy.

Gen Z is also committed to sustainability, through both political action and ethical consumption. Gen-Z consumers want to know that their products have been made in a process that is positive for workers and the planet. Plus, Gen Z loves any behind-the-scenes looks at a brand’s environment! A genuine, transparent, and ethical brand strategy is key to engaging Gen Z.

Is your business looking for Youth creatives or Generation Z directors? Contact our Gen Z advertising agency in Los Angeles today so our team can help!