EXCLUSIVE: TikTok spurs lower spending among Gen Z consumers
A trend on TikTok is influencing young shoppers to cut back on consumption.
According to results of a new survey of 1,000 U.S. Gen Z consumers from deals and discounts platform CouponFollow exclusively released to Chain Store Age, three-in-five respondents follow a trend called “underconsumption core.” Popularized on the TikTok short video platform (which faces a possible ban in the U.S. on Jan. 19, 2025), the trend promotes cutting unnecessary expenses, prioritizing financial security, and pursuing sustainability.
[READ MORE: The top social shopping platform for Gen Z is TikTok]
On average, respondents reported saving $250 per month, with one-in-four saving more than $500 monthly after adopting this lifestyle. By gender, male respondents saved slightly more than female — $300 compared to $240 monthly.
When it comes to discretionary spending, dining out topped the list for respondents of both genders — 56% of men and 55% of women have cut back in this category.
Leading areas for reduced spending among surveyed women include online shopping (53%) and fashion or clothing (51%), while surveyed men more often cut back on subscriptions (41%) and general online shopping (41%).
The most commonly canceled subscriptions among all respondents were video streaming services, like Netflix and Hulu, with 65% opting out. Gaming subscriptions (34%) and music streaming platforms like Spotify (30%) also saw significant drops.
In addition, one in four respondents have reduced spending on groceries and nearly 35% are spending less on coffee.
Leading motivations to reduce spending
On average, respondents to the survey are managing around $4,000 in debt with nearly four-in-10 owing more than $5,000. More than one-in-three (35%) respondents say debt repayment has negatively impacted their mental health.
Top respondent motivations for reducing their spending include:
- Financial security (58%)
- Avoiding financial stress and anxiety (55%)
- Preparing for future goals such as home ownership or travel (40%)
- Reducing debt (37%)
- Avoiding consumer culture and materialism (30%)
Categories where Gen Z is increasing spending
Despite a general trend toward lower consumption, more than one-in-five respondents admitted to increasing their spending in the following product categories:
- Footwear (35%)
- Beauty and personal care products (29%)
- Specialty foods or beverages (27%)
- Travel (25%)
- Kitchen appliances or cookware (23%)
Other findings
- Three-in-four respondents said TikTok has inspired a more savings-focused mindset.
- One-in-five respondents identified TikTok as a primary influence on their financial habits.
- Female respondents were 35% more likely than men to credit the app for guiding their money decisions. Women were also 20% more likely than men to feel pressure to follow TikTok trends like underconsumption core.
- Nearly three-in-four respondents who adopted underconsumption core reported decreased impulse buying.
