8 Generation Z Trends & Predictions for 2022/2023ーA Look Into What’s Next

Gen Zers are taking over Millennials as a leading market segment. Researchers spent years decoding Millennial behavior, whose technology-driven behavior transformed industries, entire economies, cultures, as well as our environment. Now, it’s time for the spotlight to shine on the newest stars, the first generation of truly digital natives.

The latest Generation Z trends show that members of this age group are quickly gaining ground and making their presence felt in today’s economy.

However, this transition suddenly experienced an unexpected turn as the entire world was engulfed by the COVID-19 pandemic. How are the Gen Zers faring so far in this global health crisis? In this article, we’ll show you the latest Gen Z trends that can help you get to know your newest target market better, during and after the pandemic.

key generation z trends

To eliminate confusion, let us first define Gen Z. Generation Z is the generation after the Millennials. Specifically, they were those born from 1995 to 2015.

Such categorization came from most researchers, who also classified generational breakdowns into separate groups (CGK, 2020): the Baby Boomers, born from 1944 to 1964; Generation X, born from 1965 to 1979; Generation Y, also known as Millennials and born from 1980 to 1994; and then comes the Generation Z.

Immense Economic Power

Now, you must be asking what Gen Z means to your business and why you, as a business owner, should care how these people choose to live their lives. The answer lies in this forecast: in 2020, Gen Z became the biggest generation in America at 86 million, surpassing Millennials by almost 4 million (Knoema, 2020).

And over the next two decades, Gen Z is forecast to increase by 2 million more due to migration (Knoema, 2020). In other words, Gen Z means business, and they are the next batch of customers you’ll be serving for a long while.

Source: Knoema (2020)

Understanding Gen Z’s consumer habits (NPD, 2019) can be vital to the success of your brand. After all, the oldest members of Gen Z are 24 years old this year, capable enough to consume products of various kinds. Gen Z already holds a whopping $143 billion of buying power as of 2019. This figure demands attention and can catapult revenues to new heights. That being said, let’s take a more detailed look into the latest trends among Gen Z-ers.

1. How COVID-19 impact Gen Z

COVID-19 has changed the entire world and how people live their lives. And this change, as most experts say, is likely the new norm today and for years to come.

Like other generational groups, Gen Zers think they are the most affected by the pandemic and will likely be for the rest of their lives. Same as how Millennials “own” September 11 of 2001 and World War II for Traditionalists, the global coronavirus health crisis is affecting the growing years of Generation Z, more than any other generation.

For one, Gen Z workers consider themselves as the most challenged when it comes to adjusting to the demands of remote work. In fact, over 33% say that working from home has adversely affected their work/life balance and suggest that their companies should provide them with the necessary tools to be more efficient in performing their remote work (CGK, 2020).

Likewise, an SHRM study found that around 50% of Gen Z employees experience burnout from their work (SHRM, 2020). Moreover, another study found that the majority of Gen Z are worried about their financial stability (80%), their employment prospects (67%), and being left behind in their studies (50%) (CGK, 2020). 

Gen Z and COVID-19

Key Takeaways

  • Gen Zers consider themselves as the most affected generation of the COVID-19 pandemic.
  • A third of Gen Z workers say that their work/life balance had been adversely affected.
  • The majority of Gen Z employees are worried about their financial stability.

2. Gender-fluid concepts

Over the past years, we’ve seen how more and more businesses are opening up to gender-neutral products, and for a good reason: Gen Z reports being a generation more accepting of non-binary products. Gen Z’s power extends in allowing a new wave of acceptance that’s not restricted to any gender at all. With this, various brands like Sephora and Telfar took the major steps to a more accommodating and gender-neutral industry.

As shown in several studies, binary-gendered options are a thing of the past. Back in 2015, Facebook, apart from the male and female options, started adding a third one: the custom option, where users can select from 58 different identities, such as androgyne, trans-male, trans-person, and more, prompting other brands and companies from various industries to do the same. Milk Makeup, a cosmetics brand, followed in 2016 by launching a makeup campaign that includes everyone, starting from trans models to cis straight men wearing makeup.

This shift to gender-neutral products opened new doors for businesses to expand their brands. This also allowed them to relate more to Gen Zers and retain them as loyal customers. The strategy improves customer experience for Gen Zers. Instead of products “made for men” or “made for women,” brands are using product categories instead and getting rid of stereotypical gender roles. Such a trend is expected to continue in the coming years as businesses prepare to cater to the demands of the new generation.

Source: Pew Research Center

Key Takeaways

  • More and more businesses are being more accommodating with gender-neutral products.
  • Gen Zers are more open to gender-neutral concepts.
  • Gender-fluid concepts will continue to expand in the coming years.

3. Gen Z’s food preferences

Gen Z’s preferences in food are defining the future of the food industry. A study revealed that Gen Zers are extremely health conscious in their food choices, with 67% of them considering the nutritional content of their food. According to the American Egg Board, Gen Z’s food choice focused mainly on three things: social media, convenience, and health (American Egg Board, 2020). They are also more likely to consume plant-based products, in contrast to their Millenial predecessors, which means they are more open to becoming vegetarians.

Because of COVID-19, Gen Z households spent $760 on food on monthly basis, with 72% (or $550) for grocery items (Food Industry Executive, 2020).  Likewise, 52% of Gen Zers were unlikely to shop in-person, while 34% are intending to sustain their high online spending rate even when the pandemic is through (American Egg Board, 2020).

It is worth noting that in 2016, reports say that Gen Zers already spent $78 billion on restaurants, and not many of them are of legal drinking age yet. Restaurant owners find Gen Zers are more open to authentic tastes and also more willing to try out new and out-of-the-box cuisines, which allows businesses in the food industry to be more creative and trendy with their menus.

Additionally, a study by Packaged Facts found that Gen Zers prefer eating snacks throughout the day instead of following the traditional three-course meal. This snack trend will continue in the coming years, thanks to 23% of Gen Z, who say that they prefer appetizers and snacks as opposed to regular meals. Thus, businesses in the food industry, apart from utilizing technological tools like restaurant management software, now have menus that offer smaller portions of their food to attract more Gen Z customers.

gen z and food preferences

Gen Z’s food preferences trends highlights

  • 52% of Gen Zers will not shop in-person because of COVID-19.
  • 34% plan to continue spending high on their online shopping even after the pandemic.
  • Gen Zers spent $78 billion on restaurants in 2016.
  • They are more willing to try out-of-the-box dishes.

4. The power of reviews

As a generation shaped by the internet, Gen Z consumers take online product reviews to heart. According to Social Media Link, 96% of Gen Zers often take time to read reviews or recommendations for products they are considering buying. Aside from using the most popular social media sites, online reviews are popular among Gen Zers, too, with nearly 8 out of 10 reading them before closing a transaction.

This trend emphasizes the importance of consumer reviews. Gen Z or not, positive reviews always lead to better profitability of your business, and thus, investing in reputation management software can pay off in the end.

Key takeaways

  • Online product reviews are essential factors in the purchasing decisions of Gen Z.
  • About 96% of Gen Zers take the time to read reviews before buying a product.

Most Popular Reputation Management Software

  1. Yotpo. A widely-used reputation management tool, known for its capability to enable clients to easily create product reviews on social media. Learn more about this plug-and-play solution in this Yotpo review.
  2. Qualtrics CX. A robust reputation and customer experience management platform that facilitates client feedback collection and analysis. Check our Qualtrics CX review for further details.
  3. Hootsuite. This is a leading reputation and social media management solution for businesses. For more information, read this Hootsuite review.
  4. Sprout Social. Helps to optimize social media reputation by improving how companies communicate with their clients. This Sprout Social review discusses in more detail its innovative features.
  5. BrandYourself. An online reputation management solution that’s designed to improve a company’s Google search results. Discover how you too can eliminate negative Google search outcomes in our BrandYourself review.

5. Concerns on mental health

Today’s current headlining issues, from immigration, sexual assaults, mass shootings, to environmental decline, are affecting the whole world, and it can be too much for anyone. With these issues plus, other internal and sociological factors, Gen Z becomes the generation feeling the impact more as compared to their predecessors. After that, they are the ones most likely to report mental health concerns. And Gen Z, being a big part of today’s workforce, considers mental health as a factor that affects their work environment.

Prior to the pandemic, a study found that many Gen Z workers usually suffer from anxiety and stress. Its follow-up study found that the stress levels of Gen Zers appeared to have declined, likely because of the general shift to remote work and the slower pace of life in general. Nonetheless, the study found that 48% of Gen Zs feel anxious or stressed all or most of the time (Deloitte, 2020).

In an earlier study, nearly 9 in 10 Gen Z adults report having at least one or more emotional or physical symptoms because of various stressors in their lives, according to a study by the American Psychological Association. About 58% report being depressed or sad, and 55% experience a lack of interest, motivation, or energy. This leads to companies encouraging workplace wellness programs in an attempt to take care of the mental health of their employees. As a result, employers can minimize the health care costs allotted to their businesses and workers.

What are the primary stressors of Gen Z workers?

Chart context menu
View in full screen
Print chart

Download PNG image
Download JPEG image
Download SVG vector image

Source: Deloitte (2020)

Designed by

Key takeaways

  • 48% of Gen Zs are always or often stressed or feeling worried.
  • About 9 in 10 Gen Z adults are likely to report having one or more physical or emotional symptoms because of stress.
  • Companies encourage workplace wellness programs to take care of the mental health of their employees.

6. Diversity as an asset

Political shifts, changes in education, and other social changes drove Gen Zers to become the most ethnically and racially diverse generation in the history of the United States. A study by the Pew Research Center reveals that 52% of Gen Zers are non-Hispanic white (Pew Research Center, 2019). In the next 10 years, Gen Zers will grow more in population and can make the majority of the population racially diverse.

With Gen Z considering diversity as a positive asset, businesses are prompted to develop a more inclusive and diverse brand, extending even further beyond advertising and products. Emarketer’s study results show that about 6 in 10 Gen Zers say they prefer seeing ads that have diverse families in them. They are also more likely to support brands that are proactive in tackling racial issues.

This only goes to show that Gen Zers are pickier when it comes to choosing companies to work for and brands to support. As a racially diverse generation, they need assurance from brands that discrimination won’t be tolerated. When doing business with Gen Zers, it’s crucial to take into consideration not only the market’s similarities but also their differences, leading to a more expansive product line.

gen z and diversity

Key takeaways

  • Gen Z is the most ethnically and racially diverse generation.
  • Diversity is a positive asset of Gen Z.
  • Being in a racially diverse society, Gen Zers are less likely to tolerate racial discrimination.

7. Sustainability as a factor

Sustainability is another thing to consider when dealing with Gen Zers. Along with Millenials, Gen Zers are pushing for a more sustainable and eco-friendly market in various industries. For younger generations, a product’s ecological footprint is very important. They seek high-quality and long-lasting products as opposed to disposable items. At the same time, sustainable materials find their way into this environmentally conscious generation.

One example is the clothing line Tentree. It successfully gained a massive social media following worldwide right after launching products that use only sustainable materials. The brand also associated with supply chain partners who are socially responsible. This led to an influx of traffic on their website due to an increase in international web visitors.

Gen Z respects brands that are highly conscious of the marks they leave on the environment. In a study by FirstInsight, about 73% of Gen Zers are willing to pay more for environmentally-friendly products (First Insight, 2020). Meanwhile, the same preference was shared by 68% of Millennials, 55% of Generation X, and 42% of Baby Boomers.

Source: FirstInsight (2020)

Key takeaways

  • Gen Z pushes for a more sustainable and eco-friendly industry.
  • There is more support from Gen Z when it comes to products that use sustainable materials.
  • 73% of Gen Zers are the most willing to spend more when buying from eco-friendly brands.

8. Consumption as an ethical concern

Today, Gen Z consumers expect more from brands and companies. One such expectation includes taking a stand on ethical issues. Before purchasing an item or supporting a brand, Gen Z first needs to know who made the product. Where the product is from and what was the process from which it was created are also their concerns. Consumption for them is of ethical concern, and they tend to stay away from brands that have ethical issues or are ignoring them.

It takes only minutes to search for someone’s background on the Internet. Hence, companies and brands need to be careful in maintaining a good image. That also includes a satisfactory level of handling ethical issues. According to a study, 62% of Generation Z are more inclined to purchase from sustainable brands (First Insight, 2020). Incidentally, 2020 is the year that the first batch of Gen Z joined the global workforce.

These trends lead companies to meet the ethical demands of Gen Z consumers. Marketing and work ethics are suddenly converged into one. Therefore, organizations need to be more careful in choosing which issues they should engage in. They should also ensure that they select the right persons to represent their brand.

gen z eco-friendly

Key takeaways

  • More than 6 in every 10 Gen Z prefer to buy sustainable brands.
  • Gen Z takes into consideration the ethical stands of companies when they are purchasing from them.
  • Companies or brands that take the proper stand in ethical issues are more likely to gain the support of Gen Z members.

Keeping Track of the Gen Z Trends

Generation shifts play a vital role in setting up consumer behavior. Each generation’s views can affect a broader population. Gen Zers, however, are the first generation of digital natives. This means their views and behavior are heavily influenced by technological innovation. And as such, it speeds up technological trends, affecting the market of various industries.

Likewise, because they feel they are the most affected by the pandemic, employers and businesses should better take note of what they demand since they are the largest generational group at present. Catering to their preferences will also benefit businesses mainly due to the strength of their purchasing power.

Finally, as Gen Zers overtake the previous generations, they bring with them new trends and behavioral patterns. These are what you’ll need to keep in mind as Gen Zers become future employees or potential customers. But if you’re looking for ways to serve your general customers even better, you can take a look at some of the best customer service tips we have compiled.



  1. CGK. (2020, September 8). Generational breakdown: Info about all of the generations. CGK.
  2. Knoema. (2020, April 16). US population by age and generation in 2020. Knoema.
  3. NPD. (2019, September). 3 ways to win over the thrifty Gen Z consumer. NPD.
  4. CGK. (2020, June). Leading multiple generations remotely. CGK.
  5. SHRM. (2020, June). Navigating COVID-19: Impact of the pandemic on mental health. SHRM.
  6. American Egg Board. (2020, June). A new generation to feed: Zeroing in on Gen Z’s preferences. American Egg Board.
  7. Wiley, C. (2020, February 5). Grocery shopping habits of Gen Z and Millennials. Food Industry Executive.
  8. Deloitte. (2020, July 2). White paper on millennials, Gen Z and mental health. Deloitte.
  9. Schaeffer, K. (2020, July 27). The most common age among whites in U.S. is 58 – more than double that of racial and ethnic minorities. Pew Research Center.
  10. First Insight. (2020). The state of consumer spending: Gen Z shoppers demand sustainable retail. First Insight.
James Anthony

By James Anthony

A senior FinancesOnline writer on SaaS and B2B topics, James Anthony passion is keeping abreast of the industry’s cutting-edge practices (other than writing personal blog posts on why Firefly needs to be renewed). He has written extensively on these two subjects, being a firm believer in SaaS to PaaS migration and how this inevitable transition would impact economies of scale. With reviews and analyses spanning a breadth of topics from software to learning models, James is one of FinancesOnline’s most creative resources on and off the office.

Leave a comment!

Add your comment below.

Be nice. Keep it clean. Stay on topic. No spam.


Why is FinancesOnline free? Why is FinancesOnline free?

FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. Please note, that FinancesOnline lists all vendors, we’re not limited only to the ones that pay us, and all software providers have an equal opportunity to get featured in our rankings and comparisons, win awards, gather user reviews, all in our effort to give you reliable advice that will enable you to make well-informed purchase decisions.