Gen Z Isn't Just Talking About a Potential Recession, They're Changing How They Shop
TLDR:
A potential recession isn’t looking in the peripheral, it’s already effecting how Gen Z is shopping, and your business–even if you haven’t noticed it yet
Young consumers are adjusting, strategizing and buying differently given the reactions of the economy
For brands that want to engage with Gen Z, be supportive, give actionable advice and build value
Gen Z isn’t sitting around scrolling through their phones while waiting for the government or economists to declare another ‘unprecedented’ event. A potential recession may be on the way, but with the added pressure of inflation and tariffs, Gen Z is already shifting their habits.
From fast fashion, thrift store finds, and buying fast food, the conversation around another economic downturn isn’t something this generation takes lightly, after growing up around 2008. Now, it’s something deeply personal that influences their everyday purchases and decisions.
A Potential Recession Is Shaping Gen Z’s Mindset
As recession indicator memes and potential recession checklists make their way around social media, we recently decided to check in with our Youthtellers (ages 15-27) on the topic to see how they’re feeling or if the economy is even something they’re discussing.
Turns out, potential recession talk is everywhere. Nearly 69% of our Gen Z respondents say that they hear people their age talking about a recession or recession indicators “all the time,” with only 2% saying they haven’t heard anything of the sort. But this talk isn’t casual background noise. It’s driving real concern and shifting habits.
As one 25-year-old from Arizona shared, “I expect a recession to impact how much gas I can get, groceries I can buy, and if I can find full-time employment. I already cannot afford to live on my own, so I may have to rely more on my parents.”
Another summed up the sentiment more bluntly: “I’m already broke—can’t get any worse... yes it can.”
Spending Is Shifting Fast
Faced with the possibility of a potential recession coming for their early adult years, Gen Z is already shifting how they spend their money. Many are focused on the necessities, with groceries, internet access, and transportation making the top of the list.
The ‘little treat’ culture Gen Z is so known for might be the first to go. Our Youthtellers told us that the first things they’re cutting will be delivery services, closely followed by fashion, entertainment, streaming subscriptions, and beauty products. The mindset seems cut and dry for the most part: if it’s not essential, it’s on the chopping block.
Yet, it’s important to note that for Gen Z, essentials are going beyond food and wifi. Many respondents also cited school (42%) and mental health resources (31%) as items they won’t compromise on.
How a Potential Recession Is Reshaping Brand Loyalty
When it comes to what Gen Z is shifting due to a potential recession, this isn’t just about cutting back, but shifting how they shop in general. Over 62% said that they’re very likely to begin shopping secondhand, budget buys, or even purchase dupes of more expensive items if prices continue to rise.
“I think everything is going to go up in price, and I’ll be back to shopping at the thrift stores, sadly,” said a 28-year-old from North Lauderdale, capturing the bittersweet tone of practical budgeting.
18% told us they’ve already made the shift to shopping this way.
When asked which brands feel the most essential, the top brands mentioned were budget retailers, with Amazon (64%), Walmart (56%), and Target (33%) dominating the list. Some other popular mentions were Spotify, Shein, and Netflix, with the caveat that these stores were seen as smaller, but affordable luxuries that could be ditched if the economy went further downhill.
What seems to survive is the popularity of Dollar Stores, McDonald’s, and budget, but eco-friendly, brands like E.L.F. Strangely, Apple also made the list of perceived durability and continued purchases, given that their products are durable and provide long-term value.
Should Brands Talk About the Potential Recession?
Yes!
Now is not the time to pretend everything is great when it’s not. 42% of our Gen Z consumers told us they wished that brands would be real or honest about the state of the economy. They know lowering prices isn’t possible, but giving honest, actionable tips (even if they include mentions of your products) was something that 37% supported.
Just don’t go for the doom and gloom vibe. Instead, focus on empathy. One Youthteller put it simply: “Don’t talk down to Gen Z. Approach it human to human, and don’t blame the generation for the conditions that make them less likely to be a consumer.”
For a deeper dive into insights like these, subscribe to our weekly Substack: https://adolescentcontent.substack.com/