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The new age of Gen Z is characterized by their unique perspectives, digital fluency, and strong social consciousness. This generation is significantly shaping the future by influencing trends in technology, culture, and the global economy. From their consumption habits to their values and behaviors, Gen Z is driving change and redefining what it means to be connected and socially responsible in the modern world.
Unmasking the real lives of young adults
It’s easy to assume those closest to your age have similar life experiences. While you may have started school at the same time, life milestones only represent relatable moments, overlooking the unique experiences that shaped us during those times.
Relying solely on demographic data leads to broad assumptions about consumers’ attitudes, self-perceptions, and motivations. By using a comprehensive view of the consumer, we shift from defining them on paper to understanding individual perspectives that only in-depth research can reveal.
A generation isn’t defined by traditional data collection methods, so it’s time to introduce the real Gen Z.
This report isn't without its flaws. While we encourage marketers to think beyond demographics, analyzing high-level Gen Z trends necessitates some generalizations about this group – which we advise against.
We recognize the diversity of individuals and aim to highlight tendencies for context rather than making definitive claims about all Gen Z consumers. Readers should avoid assuming all individuals align with these general trends and use our insights for broader strategic guidance.
Mental Health Matters More Than You Might Think Gen Z is the generation most likely to report having a mental health condition, yet they are the least comfortable discussing it. Brands need to incorporate mental health considerations into campaigns as this issue becomes increasingly significant.
Short-Form Content is (Mostly) King Gen Z adopted TikTok faster than any other generation, indicating their preference for short-form videos. However, in many markets, long-form videos (over 10 minutes) are equally popular, so brands should focus on content format, not just length.
Gen Z Workers Are Quietly Embracing AI Gen Z is the most enthusiastic about AI, with many already using it regularly, even for work. This presents an opportunity to encourage AI adoption among future workers who are native to the technology.
Target Interests, Passions, and Media Preferences Gen Z’s identity is defined by their hobbies, interests, values, and beliefs rather than their age. Brands should prioritize psychographic factors over age, language, or gender when profiling their audience.
Gen Z Finds Information Without a Search Bar Gen Z looks beyond search engines for information, favoring image, voice search, and AI chatbots. While chatbots won't replace traditional search, they enhance the search experience for this audience.
Every generation comes with its share of stereotypes, like baby boomers being workaholics or millennials being lazy. Myths like these tend to mask the true nature of an audience, so it’s crucial to challenge these preconceptions if brands want to engage with their consumers authentically.
Based on extensive research, social media posts, and general internet chatter, we’ve compiled a shortlist of the things people often associate with Gen Z and crunched the numbers to distinguish fact from fiction.
Starting with a global approach gives us an initial sense of which stereotypes hold up. Take the stereotype that Gen Z loves playing video games, for example. Outside of China and India, Gen Z is more likely to play video games, but only by 9%. While this preconception holds some truth, it doesn't make Gen Z distinctly more likely to play video games than other generations globally.
Then there are misconceptions that don’t track, like Gen Z’s association with the word “woke.” This term is hard to define but often implies that this generation is more altruistic than their elders. To investigate, we examined several data points: Do Gen Z take an interest in other countries? Do they believe in equal rights or think immigration is beneficial for their country? Surprisingly, Gen Z is less likely to agree with these statements compared to older generations.
A deeper look reveals that these perceptions vary significantly across different markets. For instance, altruism is more prevalent among Gen Z in Greece, Croatia, and Portugal, but much less so in Japan, Saudi Arabia, or Egypt.
While there might be some truth to common stereotypes about Gen Z, the reality is rarely black and white. Our data provides brands with the nuanced understanding necessary to engage authentically with this diverse and complex generation. By challenging preconceptions and digging deeper into the data, brands can connect with Gen Z in more meaningful and effective ways.
Addressing Mental Health: A Key Concern for Gen Z
The notion that Gen Z is "more prone" to mental health issues is a prevalent stereotype, and brands need to be mindful of their messaging around this sensitive topic.
Global Trends in Mental Health
Globally, Gen Z is the generation most likely to report having a mental health condition while also being the least comfortable discussing it. This discrepancy can be attributed to various factors: the looming threat of climate change, the economic impact of COVID-19 on their job prospects, and the increasing inaccessibility of home ownership. These issues contribute to a heightened sense of anxiety and uncertainty among Gen Z.
However, it's important to recognize that these challenges are not exclusive to Gen Z. Millennials, too, face many of these problems. Moreover, cultural differences play a significant role. For instance, Gen Z in countries like China, Taiwan, and Türkiye are much less likely to report having a mental health condition.
The Unique Case of the US Market
In the US, the situation is particularly acute. Gen Z Americans are over three times more likely than the global average to report having a mental health condition and are 12% less likely to feel comfortable talking about it. This could be attributed to various factors, such as gun violence, political polarization, and other societal pressures unique to the US. For brands targeting US consumers, it's crucial to incorporate mental health considerations into their campaigns. Ignoring this reality could alienate a significant portion of their audience.
Embracing Adulthood: New Opportunities for Brands
As the oldest members of Gen Z enter their mid-20s, they are beginning to navigate major life milestones such as starting careers, purchasing homes, getting married, and becoming parents. This transition presents new opportunities for brands to connect with this demographic.
Targeting Emerging Needs
With Gen Z stepping into adulthood, they are encountering new needs and discovering products and services that cater to these life changes. Industries such as automotive, insurance, and finance are particularly relevant. For instance, Gen Z might be purchasing their first cars, exploring home insurance options, or seeking financial advice for the first time. Brands in these sectors have a unique opportunity to engage with Gen Z by offering tailored solutions that address their specific concerns and aspirations.
Strategies for Effective Engagement
To effectively engage with Gen Z, brands should consider the following strategies:
Authentic Messaging: Gen Z values authenticity and transparency. Brands should communicate honestly about mental health and other sensitive topics, avoiding superficial or insincere messaging.
Cultural Sensitivity: Recognize and respect the cultural differences that influence Gen Z's attitudes towards mental health. Tailoring messages to resonate with specific markets can enhance the effectiveness of campaigns.
Supportive Initiatives: Implement initiatives that support mental health, such as partnerships with mental health organizations, creating supportive communities, and providing resources for mental well-being.
Lifecycle Marketing: Develop marketing strategies that evolve with Gen Z as they transition through different life stages. Offering relevant products and services at each stage can foster long-term loyalty.
Innovative Engagement: Utilize innovative platforms and technologies to connect with Gen Z. Short-form video content, interactive social media campaigns, and AI-driven customer service can enhance engagement and build meaningful connections.
Conclusion
Understanding and addressing the unique challenges and opportunities presented by Gen Z is crucial for brands looking to engage authentically with this generation. By acknowledging the mental health issues prevalent among Gen Z, especially in the US, and recognizing their evolving needs as they transition into adulthood, brands can develop strategies that resonate deeply with this influential demographic. Through authentic messaging, cultural sensitivity, supportive initiatives, and innovative engagement, brands can build lasting relationships with Gen Z and contribute to their well-being and success.
% of Gen Z outside China and India who are...
Gen Z consumers still have a way to go before their spending power matches that of older generations. The lifestyle disruptions caused by COVID-19 led many to start saving earlier than planned, with two-thirds still living at home, allowing them to build up savings. However, they are 40% less likely to have high purchasing power compared to other generations. The assumption that Gen Z has money to burn is largely unfounded, especially in markets like the Philippines, Indonesia, and Mexico.
Gen Z encompasses a broad age range, leading to significant differences in their life experiences and financial situations. A Gen Z individual fresh out of high school has vastly different priorities and resources compared to one working full-time. This diversity requires brands to adopt nuanced strategies when targeting this generation.
Young Gen Z (16-21 years old)
In the next six months, many 16-21 year-olds will begin dating, and some may even consider getting engaged, though marriage is likely still a distant prospect. This group is focused on education, early career steps, and forming social connections.
Older Gen Z (22-26 years old)
In contrast, 22-26 year-olds are contemplating significant life changes such as leaving their current job or starting a family. This demographic is navigating early career development, financial independence, and long-term relationship commitments.
Understanding the economic realities and diverse life stages of Gen Z is crucial for brands aiming to connect with this generation. While they may not yet have the spending power of older generations, their potential for future financial independence and purchasing power should not be underestimated. By recognizing their unique challenges and aspirations, and by tailoring strategies to address their specific needs, brands can build lasting relationships with Gen Z consumers. As this generation continues to mature and evolve, staying attuned to their changing behaviors and preferences will be key to successful engagement.
Gaming isn't unique to Gen Z, but their approach to gaming is. Essentially, they are a more social generation; they are more frequently found playing online, and their habit of playing with strangers or new contacts made through gaming is particularly notable.
% of Gen Z gamers outside India and China, in these groups, who in the last month have played...
Gaming isn't just a common interest among Gen Z; it's a significant part of their social fabric. Even when it comes to first dates, gaming is less likely to be a turn-off topic for Gen Z compared to sports or pop culture. This is something dating services might want to consider when representing Gen Z in their advertisements. As they grow older and take on more responsibilities, gaming remains a prominent activity. In 16 markets, Gen Z parents are actually more likely to play online than those without children, and they tend to play less alone, indicating that their children are picking up on the hobby.
The marketing opportunities associated with gaming are vast. Influencer partnerships, advertising, sponsorship, and in-game purchases resonate well with Gen Z, much like any gaming audience. So, why is this data particularly important for marketers? It highlights the unique way Gen Z interacts with gaming, providing insights for more accurate depictions of gamers in marketing campaigns. Understanding these nuances helps brands connect with this generation more authentically and effectively.
% of each generation, outside China and India, who've watched the following types of TV or used the following services/platforms in the last month
The way Gen Z consumes video content varies significantly by market. In South Korea, Malaysia, and Taiwan, Gen Z is much more likely than the average consumer to watch online videos. Additionally, TikTok usage outside China and India has surged by 43% since Q4 2020, and over 40% of Gen Z users watch or upload content to Instagram Reels every month.
Brands have recognized these trends, leading to a focus on repackaging content into more engaging, bite-size chunks. This strategy is effective for reaching Gen Z, though it doesn't completely negate the impact of traditional TV ads. However, our data shows a clear preference for online formats; streaming has consistently outpaced linear viewing, and despite a 7% decline in engagement since 2021, YouTube remains the most popular video service among Gen Z.
The stereotype that Gen Z has shorter attention spans needs reevaluation. In markets like Greece, Hong Kong, and South Korea, where shorter videos are indeed popular, Gen Z also watches longer videos (over 10 minutes). Brands must focus on creating engaging content in a crowded attention economy. Today, Gen Z product discovery favors video content over traditional search engines, indicating that the format and engagement level are more critical than the length of the content.
By understanding and adapting to the diverse video consumption habits of Gen Z, brands can create more effective and engaging marketing strategies that resonate with this dynamic generation.
Like everyone else, Gen Z has its contradictions. Instead of generalizing them, we should recognize the diversity within this generation. By seeing the bigger picture, brands can better understand the motivations behind both their healthy and unhealthy habits to meet their needs effectively.
Gen Z is navigating the transition into adulthood, relishing their newfound freedom. This involves balancing unhealthy habits typically associated with their age group with the positive behaviors they adopt, providing a comprehensive view of their actions.
In five European markets, Gen Z is the least likely generation to smoke cigarettes or tobacco products, which might seem health-driven. However, they are less likely than average to consider themselves health-conscious. Instead of avoiding smoking entirely, they have turned to vaping, with over one in four reporting that they do so.
How much more/less likely Gen Z vapers are to say/do the following than the average Gen Z
Gen Z vapers are more likely than average to regularly drink alcohol, eat fast food, believe social media is beneficial to society, and show interest in gambling. They enjoy social drinking, being online, staying active, and following sports. Despite their unhealthy habits, their perspective on health might surprise you. The reasoning? If they're playing soccer and attending online fitness classes, they believe they can offset the effects of vaping.
There's also the perception that Gen Z is addicted to their phones, which holds some truth. They spend more time on their phones than any other generation, with over one in four scrolling for at least six hours daily. Despite this significant screentime, these heavy mobile users also focus on financial health rather than physical health. They are more likely to be price-conscious, save money regularly, and value financial security. In tough times, they are the first to cut back on unnecessary spending.
It’s easy to make assumptions about Gen Z behavior, but thinking their actions aren’t well thought out is outdated. Unhealthy habits are often balanced with 'healthy' actions, and brands need to move beyond preconceived notions of how Gen Z behaves.
When you think of Gen Z, you might picture a student in university accommodation, but this is increasingly inaccurate. As of early 2022, the number of Gen Z individuals working part-time or full-time surpassed those studying, with full-time employment soon to become the norm for this group.
% of Gen Z* who say they have the following employment status/job seniority
Contrary to accusations of being 'lazy' and 'not wanting to work,' Gen Z is the generation most likely to describe themselves as career-focused, with 47% of full-time Gen Z workers identifying this way. It's natural for them to want to progress in their careers, but this ambition often comes at the expense of a healthy work-life balance. Over 1 in 5 Gen Z workers report feeling overworked.
Certain groups within Gen Z particularly feel the strain of overwork. These include members of the LGBTQA+ community, buyers of CBD-infused products, individuals with mental health or sleep-related conditions, and those suffering from migraines.
This trend of feeling overworked isn't solely driven by workplace factors, but mental health support is essential in the workplace. Despite its importance, only 19% of Gen Z workers have access to mental health benefits. The positive impact of such benefits is clear: companies that provide mental health support structures contribute to the wellbeing of their employees and benefit from a more engaged and satisfied workforce. Providing mental health support should be seen not as a preference but as a necessity for attracting and retaining top talent.
With AI making significant strides in 2023, concerns about its use are common. However, Gen Z tends to view AI positively. They are more likely to be interested in AI, supportive of using it for creative projects, and believe the technology should operate without legal constraints. As Gen Z enters the workforce, employers will need to meet their expectations regarding AI integration in the workplace.
Gen Z's approach to work and technology is reshaping the modern workplace. Their career focus, despite accusations of laziness, demonstrates their ambition and drive. However, their wellbeing must be supported through adequate mental health resources. Additionally, as AI becomes increasingly prevalent, understanding and meeting Gen Z's expectations will be crucial for employers. Companies that proactively address these needs will not only foster a healthier work environment but also attract and retain top talent from this dynamic generation.
% of Gen Z workers who...
While hiring managers may find the integration of AI a challenge, it can actually be an advantage. Just as Millennials brought extensive internet experience to the workplace, Gen Z is doing the same with AI. Companies have the opportunity to hire AI-natives who can creatively utilize this technology for business innovation.
Data indicates that AI is already a significant part of working Gen Z’s routine. Over half of Gen Z employees report using AI tools monthly. Among those using ChatGPT, 55% find it helpful for information retrieval, 49% for skill improvement, and 44% for text/data analysis. Although each workplace will have its own guidelines for AI use, Gen Z's enthusiasm for the technology presents an opportunity to stay ahead in the evolving workplace and meet the expectations of this tech-savvy generation.
Gen Z's familiarity with AI can be a powerful asset for businesses. By embracing their AI proficiency, companies can foster innovation and stay competitive in a rapidly changing landscape. This approach not only addresses the current challenges faced by hiring managers but also aligns with the expectations and skills of Gen Z talent.
Misinformation is already a key talking point of the upcoming US presidential election, and with AI playing a role for the first time, the landscape could become even more complex. Understanding how AI can be leveraged to better inform voters is crucial, as the long-term ramifications will impact future generations.
Social media platforms will be critical in tackling misinformation during the election. For US Gen Z, social media is the leading source of political information; among those who have engaged with US political content in the past month, 2 in 3 encountered it on social media. Furthermore, 25% of Gen Z consider social media to be their most trustworthy source of political information.
Over two-thirds of US Gen Z believe it’s essential for media platforms to implement third-party fact-checking measures for political news. AI can play a significant role in achieving this. Gen Z's support for the benefits of AI in art, media, and the workplace indicates a positive reception towards using AI for political fact-checking as well.
When used correctly, AI can help combat misinformation and provide accurate information to voters. This technology can enhance the credibility of political content on social media by identifying and flagging false information, thus supporting third-party fact-checking efforts. By ensuring that accurate information reaches the electorate, AI can help voters make informed decisions.
As AI integrates into the electoral process for the first time, its role in combating misinformation and ensuring the integrity of political information is paramount. Social media platforms, trusted by Gen Z for political content, will need to adopt AI-driven fact-checking measures to meet the expectations of this tech-savvy generation. Properly harnessed, AI can contribute to a well-informed electorate, crucial for the health of the democratic process.
The youngest members of Gen Z were born after Facebook and Twitter had already begun signing up their first users. As true digital natives, they have grown up immersed in the internet, making them uniquely positioned compared to previous generations. Understanding what sets Gen Z apart can help brands stay ahead of the curve. One key aspect is examining how people present themselves online, which can provide insights into their motivations and the opportunities they present.
Globally, 36% of social media users say they present themselves as a different persona online, with this figure rising to 39% among Gen Z. Contrary to the belief that these younger users are hiding behind fake profiles to troll others, the reality is quite different. Gen Z values being taken seriously, and the importance of a digital profile is increasing.
When examining which social media platforms have the most users adopting different personas, the usual suspects come to mind: Reddit, X (formerly Twitter), and Instagram. However, the most significant growth since the end of 2022 has been among LinkedIn users. This trend reflects Gen Z's growing professional ambitions, indicating that they are not just using social media for personal expression but also for career development and networking.
Brands can leverage these insights to better connect with Gen Z by understanding the following:
Gen Z's deep integration with the digital world shapes how they present themselves online and their motivations behind it. By understanding these dynamics, brands can develop more effective strategies to engage with this generation. As Gen Z continues to grow professionally and personally, staying attuned to their online behaviors and preferences will be crucial for brands aiming to connect authentically and meaningfully.
% change in the number of Gen Z, outside China, who adopt different personas online and say the following
Gen Z, the youngest digital natives, have always had the internet as a backdrop to their lives. As they transition from students to professionals, their behaviors and interests evolve in significant ways that brands need to recognize.
Gen Z's interest in business and entrepreneurship is growing, as evidenced by their increasing awareness of publications like Forbes, The Economist, and the Financial Times. They're also purchasing laptops and even irons—products that have seen declining sales historically—as they prepare for professional life. This shift highlights the importance of brands staying attuned to the changing lifestyles of Gen Z as they enter the workforce.
To effectively reach Gen Z, brands must understand the underlying motivations behind their social media usage. While demographics can provide some insights, the true value lies in comprehending the "why" behind their behaviors. Gen Z uses a wide variety of platforms, with Instagram and TikTok seeing significant gains as personal messaging tools and shopping platforms. This shift isn't just about platform popularity but about how Gen Z engages with these platforms.
Despite assumptions that Gen Z is abandoning Facebook, the majority still use it regularly. However, Instagram remains their favorite platform, while TikTok is perceived as having the most significant cultural influence. Gen Z's motivations for using these platforms have shifted towards personal connections and commerce, which brands must leverage to create more engaging content.
Gen Z doesn't prioritize demographic factors like age, gender, language, and location when defining their identity. Instead, hobbies, interests, values, and beliefs top their list. This insight is crucial for brands, indicating that audience profiling should go beyond age assumptions to focus on what truly matters to Gen Z.
Moreover, Gen Z is cautious about their privacy, often providing false information on social media, gaming platforms, and online shopping sites to protect their identity. Brands targeting Gen Z need to recognize these behaviors to avoid missing their audience entirely.
In the Asia-Pacific region, live video streaming is particularly popular among Gen Z, with Indonesia leading the way at 39%. These livestream viewers are highly engaged in the digital world, participating in activities like watching product reviews, engaging with sponsored ads, and creating their own content. European football presents a significant opportunity for brands, as these viewers are more likely to watch competitions like the Europa League and Champions League.
While search engines remain popular, Gen Z is diversifying their search methods, frequently using social media platforms, AI chatbots, voice search, and image search. Platforms like Pinterest, which integrate search, social, and commerce, are particularly appealing to Gen Z shoppers who prioritize discovering products that match their taste and style.
AI search has quickly resonated with younger adults, offering better personalization and complementing other search mediums. While AI is a hot topic, it enhances rather than replaces traditional search behaviors.
Gen Z's transition from students to professionals brings significant changes in their behaviors and interests. Brands that understand and adapt to these shifts—focusing on authentic engagement, professional aspirations, and evolving social media and search behaviors—will be better positioned to connect with this dynamic generation. By prioritizing consumer values and interests, brands can create more meaningful and effective marketing strategies for Gen Z.
For questions or comments write to writers@bostonbrandmedia.com
Source: GWI
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