Gen Z’s Spending Power and Shifting Priorities Highlighted in Global Report from NielsenIQ

NielsenIQ (NIQ), in partnership with World Data Lab (WDL), has published Spend Z: A Global Report, offering a comprehensive analysis of Gen Z’s consumer behavior, values, and spending habits. As the largest generation globally, Gen Z is poised to reshape the consumer market, with their spending power projected to reach $12 trillion by 2030. The report emphasizes that brands must not only understand Gen Z’s preferences but also recognize the financial challenges influencing their decisions.

The report details how economic pressures are shaping Gen Z’s purchasing habits. In Singapore, over half (53%) of Gen Zers cite rising food prices as their primary concern. Additionally, nearly one in five (19%) worry about utility bills and job security. These concerns are echoed across Asia, where 32% of Gen Zers express anxiety over food prices, and 22% are troubled by economic downturns.

Gen Z’s financial struggles extend beyond basic expenses, with many finding it difficult to maintain healthier lifestyles. The report highlights a gap between their aspirations for better health and the practical challenges they face, such as the higher cost of nutritious foods and the convenience of fast food. In Singapore, nearly one in four (24%) Gen Zers report difficulty in maintaining a healthy diet—the highest among all generations surveyed. Furthermore, almost a third (30%) frequently choose quick and convenient meal options.

These concerns are expected to influence their spending during the Black Friday season, with a focus on strategic, value-driven purchases. For Gen Z, authenticity, diversity, and digital-first experiences are integral to their buying journey. About 68% of Singaporean Gen Zers rely on authentic peer reviews and recommendations before making a purchase, while 50% prioritize buying only what they will use to minimize waste.

Gen Z’s shopping habits reflect a blend of traditional and modern approaches. While 75% prefer shopping in physical stores offering the lowest prices—a figure notably higher than the Asia average of 66%—their overall approach is omnichannel. Nearly 74% browse both physical stores and online platforms to compare prices and deals, and 78% research products and promotions online before purchasing.

Additionally, two-thirds (67%) of Singaporean Gen Zers invest in the latest technology, believing it enhances their lives and saves time. This adaptability underscores their commitment to combining the immediacy of in-store shopping with the convenience of online research and purchasing.

Economic concerns have made Gen Zers increasingly pragmatic, with one in four (25%) opting for more affordable alternatives in the past three months. Nearly seven in ten are open to switching or trying new brands for better prices, and 71% dedicate time to researching the best deals.

According to Louise Hawley, Managing Director at NielsenIQ, the Spend Z report underscores the importance of value-driven choices for Gen Z consumers. She highlighted that businesses must align with Gen Z’s values of authenticity, quality, and wellness. Hawley emphasized that brands need to integrate these values naturally rather than adopting superficial strategies that appear insincere. As Gen Z prioritizes finding deals that reflect their principles without compromising on quality, brands must adapt to this evolving consumer mindset.

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