Why Gen Z and Alpha buy differently in 2025
A new kind of consumer revolution
Picture a teenager scrolling through TikTok: in under 60 seconds, they encounter a video about climate change, a fashion haul from a sustainable brand, and a viral ad for a drink that claims to plant trees with every purchase. This isn’t just content—it’s consumption wrapped in ideology. Welcome to the consumer landscape of Generation Z (1995–2009) and Generation Alpha (2010–2024), where shopping is no longer just about products; it’s about identity, purpose, and performance.
From financial anxiety to impulse buying: the Gen Z paradox
According to McKinsey’s 2025 consumer report, 40% of Gen Z in Europe and North America are concerned about their financial futures. Yet, they are the most likely to splurge or take on debt for what they consider “splurgeworthy” items. This tension reveals something deeper: these generations are shaped by instability but crave meaning. They know the world is fragile, so when they buy, it’s either deeply intentional or momentarily defiant.
Digital identities, algorithmic desires
Unlike their parents, Gen Z and Alpha don’t discover brands in shopping malls or catalogs. Algorithms curate their consumption journey. TikTok’s For You Page, Instagram reels, and YouTube shorts act as personalized storefronts. A 2024 European study reveals that 68% of teenagers claim their interests are influenced more by platforms than by peers or family.
This means brand loyalty is no longer built through slogans or ads, but through micro-moments of resonance—a video that feels real, a campaign that sparks emotion, a creator who “gets it.”
From value to values
Where previous generations prized durability and discounts, Gen Z and Alpha prize alignment. A brand must not only sell a product but signal a worldview. Key expectations include:
- Sustainability: From circular fashion to carbon-neutral shipping.
- Inclusion: Authentic representation in products and leadership.
- Mental health: Not just self-care slogans, but real support and advocacy.
- Political courage: Speaking out when it matters, even at commercial risk.
But beware: performative activism is quickly punished. These generations are digital natives with sharp bullshit detectors.
The new loyalty: splurge and switch
Brand loyalty has become more fluid. A Gen Z consumer might pay extra for a sustainable sneaker—then switch brands the next week if they feel the company was insincere. McKinsey reports that Gen Z is 13 points more likely than other generations to adopt buy-now-pay-later tools and is equally likely to walk away if a brand contradicts their values.
The decline of the middle: polarizing the market
In this new landscape, mid-tier brands are suffering. What thrives are two extremes:
- High-value, low-cost: Fast, functional, frictionless.
- High-purpose, high-aesthetic: Emotional, ethical, and beautiful.
The in-between—generic, forgettable, purely functional—is fading.
What brands must do
- Build for resonance, not reach: Micro-influence beats mass-market.
- Design with transparency: Share your process, not just your product.
- Embrace paradox: Today’s consumer wants comfort and urgency, ease and ethics.
Conclusion: Buying as a form of becoming
For Gen Z and Alpha, consumption isn’t just a transaction. It’s a statement. About who they are, what they stand for, and where they think the world should go. The brands that will win are those that understand this simple truth: in the age of algorithms and anxiety, the new currency isn’t just money. It’s meaning.
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