Amid ongoing economic uncertainty and the growing impact of AI on the labour market, Generation Z has lost some of its optimism when it comes to career prospects and household income. This is the finding of a recent trend study by the international market research agency Mintel. At the same time, Gen Z remains willing to spend money on non-essential items, with 59 per cent stating they prefer to live in the moment rather than plan for the future. According to Mintel, it is crucial for brands to understand this duality in order to build connections with this influential target group.

Tension between saving and spending

Generation Z is a dynamic generation in transition. According to the new Mintel data, as they get older, Gen Z is taking responsibility for their own spending and household budgets. 61 per cent are currently saving more money than in the previous year. This is a reaction to the economic situation in Germany. The fact that more than half are nevertheless willing to spend money on non-essential items highlights a tension between financial caution and consumer optimism. Savings goals also reflect this inner conflict: they are predominantly short-term in nature, such as for travel and consumer electronics. Ultimately, Generation Z cannot be reduced to a uniform behaviour or mindset. Brands that recognise these contradictions and address them specifically, rather than simplifying them, could be the most successful, according to Mintel.

Less perfection, more humour

The trend forecast also suggests that young consumers are increasingly developing a sense that there is a lack of novelty, as they perceive online content to be becoming ever more homogeneous and predictable. 59 per cent of Gen Z believe that AI-generated content on social media makes the platform less appealing. This presents an opportunity for brands to differentiate themselves, as Gen Z prefers brands that are authentic and approachable. In a highly curated digital world, they are more likely to be drawn to brands that embrace humour, spontaneity and imperfection. They have a strong desire for transparency and human connection and are becoming increasingly critical of staged, polished content. According to Mintel, they respond positively to behind-the-scenes content and unfiltered moments that showcase personality and character. Brands should therefore show their human side more clearly, for example through authentic stories, team insights and customer experiences.

Source: Mintel