Gen Z big on beauty products, QSR, resale
A new survey on Gen Z spending habits and values show how the cohort is poised to shape the future of retail.
Bloomberg Intelligence’s data shows that Gen Z (born between 1996-2009) is expected to account for about 17% of U.S. sales by 2030, compared to 4.7% in 2023 and 3.3% in 2019. In select categories such as beauty, food and resale, Gen Z consumers are already shaping the market.
Beauty
Bloomberg Intelligence’s report found that over 30% of Gen Z respondents classify themselves as “beauty devotees,” based on the survey. This is nearly twice the overall survey results, even though the amount who have a set routine is similar for Gen Z (33.5%) compared to all respondents (36%). Over 75% of Gen Z respondents regularly use products beyond basic beauty staples.
Nearly 80% of Gen Z respondents agree that social media is the best way to find new beauty items, far more than millennials (62%) and Gen X respondents (42%). Higher awareness of more products via social media may also contribute to Gen Z's stronger desire to try items outside normal routines. Over 40% of Gen Z cite trying a new product as a top reason to buy, compared to 37% of millennials and 29.5% of Gen X. Nearly half (45%) of Gen Z respondents spend $50 or more per trip to beauty retailers.
Dining/food
Data shows that Gen Z consumers are opting for quick-service restaurants and skipping the drive-thru. Gen Z reduced drive-thru use 7% in the first quarter of 2024, and one-in-four polled said they expected to cut it further.
Gen Z is also avoiding meat and opting for plant-based alternatives. Only 28% of the cohort ate meat on a weekly basis, and the figure was little better for dairy, at 35%, based on a Bloomberg Intelligence survey. About 41% of Gen Z buys plant-based meat, and 45% alternative dairy, on a weekly basis. In contrast, the weekly figures for boomers show purchases of such items at only 5% and 14%, respectively.
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Products for which Gen Z widely outspends other groups include plant-based meat products that mimic chicken (51%), bacon (34%) and steak (28%), as well as dairy alternatives for cheese (48%). About 38% of Gen Z consumers buy plant-based offerings because they're perceived as healthier, followed by a motivation for animal welfare (28%) and claims that the products are better for the environment (27%).
E-commerce and resale
Bloomberg Intelligence says that digitally-native Gen Z may help fuel a 1.75x jump in U.S. e-commerce sales, including apparel, to $2.89 trillion in 2030, up 8% compounded annually. In 2023, 52% of shoppers and nearly two-thirds (65%) of Gen Z and millennials purchased second hand apparel, based on GlobalData. Of consumers shopping secondhand, 63% total made online purchases in 2023, while 71% of the two age cohorts did so.
In 2023, 41% of consumers and 50% of Gen Z and millennials looked firstly to secondhand for deals. Consumers are also reselling their clothes, with 25% of shoppers and 33% of Gen Z and millennials doing so. According to eMarketer, Gen Z uses Depop, OfferUp and Poshmark at higher rates, while millennials opt for Bonanza, RealReal and ThredUp.
