How adult Gen Z and Millennials may be navigating economic uncertainty
Often when we talk about generations, it’s easy to get caught up in stereotypes and preconceived notions. (You know the comments: “All those Gen Z-ers do is spend time scrolling social media!”) Well, what would you say if you heard that Gen Z alone holds an estimated $360 billion in spending power, and will make up a quarter of the world’s population by 2030?1 All of a sudden, the influence of that generation holds much more weight, especially in a time when adult Gen Z and Millennials are navigating economic uncertainty that previous generations haven’t seen before.
According to eMarketer, 58% of adults have become less loyal to a brand due to rising costs.2 And while the Consumer Price Index reported that prices rose less than expected in November 2022, they are still up 7.1% from the previous year,3 indicating an uncertain future for brands and consumers alike.
Amazon Ads and Kantar conducted a study between November 2022 and January 2023 of 12,000 respondents from across the globe to better understand how consumers are responding to the current economic climate. Below, we share a few key takeaways on how adult Gen Z (18 to 25) and Millennial (26 to 41) respondents are navigating this period.
Take, for instance, the grocery category. While clipping coupons at the kitchen table may seem more like a relic of past generations, 44% of adult Gen Z and Millennial respondents attest to having spent increased time gathering information on product options and prices before making a purchase. Of course, that’s a reflection of changing priorities, with half of respondents from this demographic (50%) noting they’ve been spending more time cooking over the past three months, and almost half (48%) reportedly spending less on experiences (e.g., travel, dining out).
33% of adult Gen Z and Millennial respondents are willing to spend more if a brand’s values align with their own
39% of adult Gen Z and Millennial respondents would spend more if a brand practices sustainability and offers sustainable goods or services
Though adult Gen Z and Millennial audiences make up the youngest subset of adult buyers, make no mistake: Their spending power and purchase considerations are more important than ever. As adult Gen Z and Millennial consumers navigate this period of economic uncertainty, they will look to prioritize where they spend their hard-earned money. With these generations investing more time in gathering information about products and prices prior to hitting the buy button, it’s important for brands and advertisers to authentically communicate their brand values, and with purpose, to drive purchase consideration and brand loyalty.