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Gen Z and Beyond: Trends Set to Drive the Next Wave of Consumer Behavior
Gen Z and Beyond: Trends Set to Drive the Next Wave of Consumer Behavior

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In today's social media-driven world, consumer influence is passing from Millennials to Generation Z or Gen Z. This transition is poised to reshape markets even further. These cohorts are changing how brands approach branding, products, and customer experiences. Their unique value proposition, preferences, and digital fluency have created a dynamic landscape where adaptability and innovation are critical.  

Brands across the globe are dealing with technological development and global cultural transformation. For this reason, analyzing consumer behavior is more important than ever to sustain and adapt to the evolving landscape. The future of consumer behavior is equally pivotal at an unprecedented rate. As we progress into 2025, brands must comprehensively understand the trends driving these changes. 

Let's examine the key trends shaping the next wave of consumer behavior and gain insights into how brands can stay ahead in the competitive landscape. 

  • Changing Demographics and Preferences 

Generation Z and millennials are the most influential generations contributing to the current trends in retail globally. Millennial and Generation Z consumers are the first generation to have grown up with overall access to digital technologies and online shopping. These consumers shop online, are heavily influenced by social media, and possess high-tech savvy. Owing to this, they are ready to engage with brands in digital ecosystems that deliver technology-aided personalized interactions.  

  • Preferences for Sustainable and Ethical Products 

Sustainability and ethical considerations are shaping changing consumer interests. Gen Z and Millennials today are at the forefront of the change towards sustainable consumption and shopping. Gen-Zers value sustainability and are willing to pay for sustainable and ethical products. Most people look for product reviews online, while some also look up the manufacturing details. Maximum customers review the products before making a purchase and are willing to pay a premium price for products sourced ethically or sustainably. That is why brands must adapt to the growing popularity of thrifting and second-hand shopping.  

Their eco-consciousness extends beyond products. It includes packaging, supply chains, and brand advocacy. Gen Z consumers expect companies to take meaningful stances on climate change, diversity, and ethical sourcing. By adopting sustainable or ESG practices, being transparent, and showcasing measurable progress, brands can highlight initiatives such as carbon-neutral operations, recyclable packaging, or fair-trade practices to nurture credibility and loyalty. 

  • Driving Hyper-Connectivity with Digital Natives 

The first true digital natives, the Gen Z population, have grown up in the world world of social media, smartphones, and instant access to information. For them, the internet is an extension of their reality. Hyper-connectivity among this generation further drives their expectations of brands. Today, 65% of Gen Z consumers prefer digital-first experiences. For them, seamless and personalized digital interactions are non-negotiable.  

Immersive tech, including augmented reality (AR) and virtual reality (VR,) is shaping Gen Z consumers' perceptions of brand engagement, promising a future where physical and digital interactions will merge seamlessly. To cater to Gen Z consumers, brands must invest in cutting-edge technology and prioritize user-friendly digital experiences. This involves creating AR-powered shopping apps, maintaining a strong presence on emerging platforms, and staying digitally agile. 

  • Rise in Demand for Personalized Shopping Experiences 

One of the most influential factors for Gen Z consumers is personalization. Due to improvements in data analytics and artificial intelligence, retailers can offer personalized shopping experiences. Apart from enhancing the shopping experience, this level of personalization helps customers develop a positive attitude towards the business and are more likely to return for other purchases.  

With personalization continuing to dominate, consumer preferences are leaning towards tailored experiences. This has compelled brands to adopt the necessary technologies and strategies to meet these demands. 

  • The Experience Economy: Beyond Transactions 

Gen Z and Generation Alpha prioritize spending on experiences over material possessions. This growing focus on the “experience economy” reshapes the retail and hospitality sectors. From immersive pop-up shops to gamified loyalty programs, brands are reevaluating ways to engage with their consumers.  

By creating memorable and shareable experiences that align with their brand’s ethos, brands can offer value through events, workshops, or digital experiences that foster community and engagement. 

  • Wellness and Mental Health Priorities 

Wellness, encompassing physical, mental, and emotional, today lies at the forefront for Gen Z. They seek brands that support their holistic well-being, ranging from skincare brands that embrace clean beauty to brands promoting mindfulness and mental health. Generation Alpha is also growing up in an era where wellness is integrated into everyday life, driven by parental influence and technological advancements such as wearable health trackers. 

Brands must position their products or services as contributors to holistic well-being. By investing in wellness-focused messaging and supporting mental health endeavors, brands can resonate with their health-conscious consumers. 

Looking Ahead: The Future of Consumer Behavior 

Today, the influence of Gen Z consumers is growing, and Generation Alpha is also entering the arena. With new expectations being placed on brands, they are only set to grow. These cohorts require more than products—they seek authenticity, purpose, and meaningful connections. 

Brands embracing digital fluency, sustainability, personalization, and wellness will thrive in this evolving landscape. By adapting quickly and aligning with these values, brands can meet the expectations of Gen Z consumers and inspire loyalty in a new generation of conscious and empowered consumers. 


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Supriya Dixit
Vice President Marketing & Chair of Sustainability Committee

I believe in stories. I'm invested in marketing that tells impactful stories that can translate into meaningful and enduring relationships between brands and their varied stakeholders. I'm invested in data that tells such stories honestly. I'm invested in people; in observing them, connecting with them, and understanding what drives their behavior and why. I like to translate this understanding into crafting relevant and meaningful offerings. I believe that creativity, authenticity, and empathy, when channeled honestly can change the world. That is exactly what I like to bring to my work. I know travel to be a sure shot way to harness all the three above. 20 countries & 43 cities, and counting.

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