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Gen Z's complex consumer behavior challenges businesses: Euromonitor

Whilst supporting social and environmental responsibility, Gen Z’s are reluctant to pay extra for these values, the report said.

The complex views of Generation Z, which accounts for up to 23% of the global population in 2023, on social activism, technology, and spending poses challenges for businesses, Euromonitor International revealed.

According to Euromonitor's Voice of the Consumer: Sustainability Survey (January-February 2023), despite Gen Z’s strong support for social and environmental causes, many hesitate to prioritise these values in their purchasing decisions.

About 55% of Gen Z respondents expressed concerns about climate change, but most were reluctant to pay extra for sustainable products.

The report said that to close the gap between values and actions, businesses must make Gen Z feel acknowledged and empowered. With 2024 being the largest global election year, Gen Z's voting power is expected to surpass that of Baby Boomers, highlighting their increasing influence when they feel empowered to participate.

Whilst Gen Z is digitally savvy, they also expressed scepticism about technology's impact on their well-being. As a result, they are exploring alternative communication platforms like WhatsApp, WeChat, Discord, and Telegram for more meaningful interactions. 

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Financially, Gen Z faces challenges, with Euromonitor's 2023 Lifestyles Survey identifying them as the most financially distressed generation. Yet, they are still willing to splurge on novel experiences, indicating a blend of rationality and impulsivity in their spending habits.

To engage effectively with Gen Z, businesses should adopt a multichannel delivery approach, focusing on video-centric social media, communication apps, and gaming platforms. Embracing creativity through co-creation practices can empower Gen Z to shape corporate strategies, driving consumer-driven innovation. Authentic engagement is also deemed crucial as Gen Z values meaningful, emotional brand conversations over traditional marketing content. 

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