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Navigating MZ Generation Consumer Trends in 2025: Traits, Behaviors, and Market Implications

General Report June 19, 2025
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TABLE OF CONTENTS

  1. Defining the MZ Generation: Profile and Core Values
  2. Value-Driven Spending: The Rise of Intentional Purchases
  3. Technology Adoption: Balancing Connectivity and Conscious Disconnect
  4. Retail and Loyalty Reimagined for MZ Consumers
  5. Sustainability and Ethical Consumption: Paradox and Potential
  6. Conclusion

1. Summary

  • As of June 19, 2025, the MZ generation, encompassing both Millennials and Generation Z, is compelling brands to rethink their marketing strategies and product offerings. Characterized by distinct values and behaviors, this cohort demonstrates significant purchasing power while concurrently influencing global consumer trends. Driven by a desire for purpose and authenticity, the MZ generation favors brands that align with their values, as reflected in their intentional spending habits. A comprehensive analysis of their defining traits reveals five pivotal trend areas: the prioritization of purpose-driven and value-oriented purchases; a selective approach to technology usage that sees a surprising resurgence of 'dumbphones' alongside the embrace of the metaverse; evolving expectations for retail experiences and loyalty programs; and the ongoing sustainability paradox that highlights their inclination toward ethical consumption integrated with a penchant for fast, convenient options. Drawing from recent surveys, industry reports, and market analyses, insights gleaned herein are invaluable for businesses seeking to effectively engage this influential consumer segment.

  • The core values of the MZ generation emphasize authenticity, community, and purposeful consumption, which are evident in their shopping behaviors. Both Millennials and Gen Z show a pronounced preference for brands that exhibit transparency and a genuine commitment to sustainability and social responsibility. Recent findings illustrate that up to 92% of consumers identify themselves as intentional buyers who prioritize whether their spending reflects their values, with 96% of Gen Z affirming their desire for ethical considerations in their purchases. Furthermore, the landscape is significantly shaped by 'cancel culture, ' wherein Gen Z consumers are wary of supporting brands that do not align with their ethical stances, thereby complicating their loyalty dynamics. This segment's evolving relationship with technology, marked by a selective affinity for digital engagement, underscores a broader trend towards balancing connectivity with conscious disconnection, as seen in their increasing use of 'dumbphones.' Together, these insights highlight a substantial shift in consumer behavior that businesses must understand to thrive.

  • Retail environments are adapting to meet the expectations of the MZ generation, characterized by their demand for experiential shopping that blends the physical and digital realms. As they push for more interactive and personalized retail experiences, organizations are responding by enhancing their loyalty programs to reflect the preferences of younger consumers, who favor convenience and targeted offerings over traditional loyalty metrics. Additionally, the grocery and fast-moving consumer goods sectors are undergoing transformations fueled by e-commerce growth, demanding that retailers embrace innovation to cater to the unique values of the MZ cohort. In conclusion, the findings suggest a comprehensive understanding of consumer preferences is pivotal for brands aiming to navigate the complexities of modern market dynamics effectively.

2. Defining the MZ Generation: Profile and Core Values

  • 2-1. Demographic scope of Millennials and Gen Z

  • As of June 19, 2025, the demographic landscape shaped by the MZ generation—comprising Millennials and Generation Z—continues to evolve significantly. Millennials, born approximately between 1981 and 1996, and Gen Z, born from 1997 to the early 2010s, represent a crucial segment of consumers who are increasingly influential in shaping market dynamics. Collectively, they encompass a diverse population characterized by their robust digital fluency and unique consumer preferences. This group not only commands significant purchasing power but also significantly influences social trends and brand engagement.

  • Millennials, having navigated the economic challenges surrounding the 2008 recession and the proliferation of technology, have fostered a keen sense of consumer consciousness, marked by their pursuit of authenticity and experiences over possessions. Gen Z, often described as the first true digital natives, has an unparalleled access to technology and social media, which informs their shopping behaviors and expectations from brands. This intersection of two distinct, yet interconnected demographics necessitates an understanding of their unique attributes and shared values.

  • 2-2. Shared values: authenticity, community, and purpose

  • A hallmark of the MZ generation is their pronounced emphasis on authenticity. Both Millennials and Gen Z consumers prioritize brands that demonstrate genuine values and align with their personal beliefs. This identity-driven aspect of consumption influences their purchasing decisions, leaning heavily towards companies that are transparent in their operations, commitments to social justice, and sustainability practices. In their view, a brand's engagement in community-oriented initiatives and ethical practices contributes substantially to its reputability and desirability.

  • Community is another critical pillar for this cohort. Millennials and Gen Zers are motivated not only by personal interests but also by collective experiences and shared goals. This communal inclination manifests in their shopping habits, as they often opt for brands that foster connection and provide experiences that resonate with their social identities. Furthermore, the MZ generation is actively involved in advocating for societal changes, thereby expecting brands to play a proactive role in addressing global challenges.

  • 2-3. Selective digital engagement versus digital nativity

  • While the MZ generation is seamlessly integrated into the digital landscape, their approach to digital engagement is characterized by selectivity. On one hand, their digital nativity—having been born into a world of technology and the internet—enables them to navigate this space with ease. However, they are also discerning in their interactions with digital platforms, often favoring those that offer immersive, personalized experiences over traditional retail formats.

  • As observed in recent trends, Gen Z consumers exhibit a preference for platforms that facilitate community interactions, such as social media, while also increasingly seeking balance by embracing 'digital detox' practices. The rise of ‘dumbphones’ signifies a shift where some members of this generation are consciously opting for less screen time and more meaningful personal engagements. In this context, brands must strive to understand and adapt to these evolving digital consumption patterns, ensuring they meet the expectations for authenticity, personalized experiences, and community connections.

3. Value-Driven Spending: The Rise of Intentional Purchases

  • 3-1. Purpose-driven buying behaviors

  • As of June 19, 2025, there is a notable shift in consumer behavior, predominantly driven by the MZ generation. A recent survey by Lightspeed Commerce indicates that 92% of consumers are intentionally considering their purchases, with 40% reporting that they are 'very intentional' in their buying decisions. This trend reflects a deep commitment to aligning spending with personal values, as well as the increasing importance placed on brand authenticity. Gen Z, in particular, leads this movement, as 96% of respondents from this cohort express a desire for their purchases to reflect their values. Many in this generation are not merely choosing brands based on price or quality, but rather on the shared principles of sustainability, ethical practices, and social responsibility. For instance, 37% of Gen Z shoppers base their purchasing decisions on the environmental impact of brands, demonstrating a trend where moral considerations are now an integral part of consumer identity.

  • 3-2. ‘Cancel’ fear and its influence on brand loyalty

  • The concept of 'cancel culture' significantly influences shopping habits among younger consumers. A staggering 32% of Gen Z shoppers report a fear of being judged or 'canceled' for supporting brands that do not align with their personal values. This is an indicator of the generational emphasis placed on social identity and peer perception when making purchases. As a result, brand loyalty is tightly entwined with moral alignment. Brands that fail to demonstrate authentic commitment to social responsibility and transparency risk losing this vital demographic. The data reflects that nearly all Gen Z members acknowledge the weight of social pressures surrounding their purchasing choices, leading them to prioritize brands that not only resonate with their personal ethics but are also perceived as responsible within their social circles. Thus, fear of social backlash is driving a conscious pivot toward more value-aligned spending habits.

  • 3-3. Navigating the sustainability-intent gap

  • While the MZ generation champions sustainability, there exists a notable 'attitude-behavior gap' in their consumer habits, particularly within Gen Z. Despite the strong inclination toward eco-conscious products, many are drawn to the immediacy of fast fashion and trend-driven purchases, which can overshadow their sustainability intentions. This paradox is underscored by the popularity of brands like Shein, which, despite promoting rapid consumption, has gained significant traction among young consumers due to affordability and convenience. More than 70% of Gen Z rely on social media platforms, such as Instagram and TikTok, to discover sustainable brands, yet they are also vehicles for promoting rapid consumer trends that contradict their values. Bridging this gap requires brands to innovate, making sustainable products not only accessible but affordable. As younger consumers navigate a marketplace flooded with low-cost options, the challenge remains for them to prioritize their ethical aspirations while the allure of immediate gratification looms large.

4. Technology Adoption: Balancing Connectivity and Conscious Disconnect

  • 4-1. Engagement with digital transformation in daily life

  • As of June 19, 2025, the MZ generation is navigating a complex relationship with digital technology. On one hand, they actively engage with transformative digital platforms and tools that enhance daily life, including social media, e-commerce, and virtual experiences. According to a recent blog post discussing the metaverse, this evolving digital landscape facilitates immersive interactions that significantly reshape consumer behavior. As younger audiences explore augmented and virtual realities, they are reconceptualizing how they interact with brands and consume content across multiple dimensions. This transition toward more interactive environments signifies a broader trend: consumers are not just passive buyers but active participants in a digital culture. This participatory nature prompts a shift in engagement strategies, compelling brands to adapt their approaches to remain relevant in a rapidly changing technological ecosystem.

  • 4-2. Emergence of ‘dumbphones’ as a focus-reclaiming tool

  • Recent trends indicate a surprising pivot among Gen Z towards 'dumbphones'—simpler mobile devices designed primarily for calls and texts without the distractions of modern smartphones. An article published on June 18, 2025, highlights how this movement is driven by a desire to reconnect with the physical world and counteract the adverse effects of constant digital distractions. Many young individuals report feeling overwhelmed by the demands of smartphone notifications and social media pressures, leading to anxiety and a yearning for a more grounded existence. This 'dumbphone' trend is not merely nostalgia but rather a deliberate choice by users aiming to foster more meaningful interactions and a healthier work-life balance. By opting for these devices, Gen Z aims to reclaim focus and facilitate deeper connections with the world around them, making a clear statement against the pervasive culture of digital overstimulation.

  • 4-3. Opportunities in metaverse and virtual social experiences

  • Alongside the trend of minimizing device use, the MZ generation is also embracing the metaverse—a digital ecosystem where users can engage in immersive social experiences and virtual marketplaces. With platforms facilitating interactions that blend augmented reality (AR) and virtual reality (VR), brands are capitalizing on these opportunities to create innovative engagement strategies that resonate with younger audiences. For instance, the blog post titled 'The Metaverse and Social Media: Preparing Your Brand for Virtual Engagement, ' dated June 17, 2025, underscores the importance of creating interactive experiences, such as virtual storefronts and events, that enhance brand visibility and customer engagement. These immersive environments not only offer brands the ability to tell their stories in unique ways but also provide data-driven insights into user preferences, allowing for personalized marketing strategies. Therefore, the evolving landscape of the metaverse represents both an exciting frontier for digital engagement and a pivotal societal shift in how individuals connect, socialize, and interact with brands on a personal level.

5. Retail and Loyalty Reimagined for MZ Consumers

  • 5-1. Tailoring retail experiences to Gen Z expectations

  • The retail landscape is undergoing a seismic shift as brands seek to understand and cater to the MZ generation, particularly Gen Z, which has rapidly become a significant force in the consumer market. Gen Z, who constitutes a substantial segment of the population with over $360 billion in spending power in the U.S. alone, demands a retail experience that is markedly different from previous generations. They prioritize authenticity, seeking brands that resonate with their values, and they expect seamless integration of technology in their shopping pursuits. Retailers must adapt by creating environments that are more than just point-of-sale locations; they should be dynamic spaces where shopping is viewed as a social and experiential activity. Research indicates that more than 75% of Gen Z consumers favor physical stores for the tangible interaction they offer, yet they also have high expectations for technology integration, craving personalized and intuitive experiences that enhance their engagement.

  • 5-2. Redefining loyalty programs across travel and hospitality

  • As the influence of Millennials and Gen Z grows, they are transforming traditional loyalty programs in sectors like travel and hospitality. According to a recent survey, by 2030, these two generations will represent half of all U.S. leisure travelers, marking a significant increase from one-third in 2023. This demographic shift is reshaping the priorities within loyalty programs. Younger travelers favor programs that offer better pricing, convenience, and personalized experiences, highlighting the need for brands to adapt swiftly. For instance, the complexities of modern travel, including preference for comprehensive booking options and experiences beyond mere discounting, necessitate loyalty programs that resonate more with these younger travelers. Brands that successfully align their loyalty offerings with the expectations of the MZ generation are likely to foster deeper connections and enhance user engagement.

  • 5-3. Digital reinvention of grocery and fast-moving consumer goods

  • The grocery sector is witnessing a radical transformation driven by the e-commerce boom, especially in the wake of heightened demands from the MZ consumer cohort. The e-grocery market continues to grow significantly, with projections indicating that it will reach $2.82 billion by 2028. This growth is attributed to the increasing consumer appetite for speed and personalization in their shopping experience. Retailers are leveraging advanced technologies—such as AI-driven inventory systems and real-time delivery for groceries—to meet these evolving consumer expectations. Moreover, the rise of private labels that blend quality with affordability is redefining value in retail. The emergence of private labels not only addresses budgetary constraints but also aligns with the value-driven acquisition patterns observed among the MZ generation, who prefer brands that offer transparency and authenticity in their product sourcing and development.

6. Sustainability and Ethical Consumption: Paradox and Potential

  • 6-1. The sustainability paradox in MZ shopping habits

  • The concept of a sustainability paradox significantly characterizes the shopping behaviors of the MZ generation, specifically Gen Z. Despite being heralded as the 'sustainability generation, ' recent studies illustrate a pronounced internal conflict among these consumers. They demonstrate a strong commitment to eco-friendly values, yet their purchasing decisions often align more closely with the allure of fast, affordable, and trend-driven consumption. This discrepancy is emblematic of what researchers term the 'attitude-behaviour gap.' For instance, over 75% of Gen Z members assert that sustainability is more important than brand name, and 81% are willing to pay a premium for eco-friendly products. However, the immediate accessibility and appeal of fast fashion continue to override these intentions, showcasing an ongoing struggle to reconcile sustainable ideals with consumer habits.

  • Notably, the rise in app downloads for fast fashion brands like Shein—over 54 million in just the first 19 weeks of 2025—underscores the intensity of this issue. Such platforms, based on ultra-low production costs and rapid purchasing cycles, directly contradict the ethos of 'buy less, buy better' that is foundational to sustainability. Thus, while Gen Z displays an increasing inclination toward supporting sustainable brands, pressures from a hyper-consumerist market and social media are significant barriers to translating their aspirations into consistent purchasing behaviors.

  • 6-2. Demand for transparent CSR and credible environmental claims

  • As of mid-2025, there's a growing demand from MZ consumers for transparency concerning corporate social responsibility (CSR) initiatives and credible environmental claims. In a recent report released by Getty Images, a staggering 78% of consumers in Australia and New Zealand express skepticism regarding the authenticity of brands' environmental claims. This trend highlights a tipping point where consumers are no longer willing to accept vague or unverified sustainability promises. The implications are clear: brands must evolve from mere symbolic gestures to actionable and accountable practices that genuinely reflect their commitment to sustainability.

  • In response to rising climate awareness, consumers increasingly favor authentic narratives that resonate with their personal experiences. A significant portion of consumers—74%—indicate that they prefer visual content demonstrating the direct environmental impacts of climate change over idealized representations. As brands take steps to innovate their messaging and CSR practices, it is imperative that they focus on clarity and honesty to build trust among consumers. This shift requires brands to not only communicate their values effectively but also demonstrate real-world impacts, thereby fostering a deeper emotional connection with their audience.

  • 6-3. Strategies for authentic, values-aligned branding

  • To navigate the complexities of modern consumer expectations, especially among the MZ generation, companies are increasingly recognizing the necessity of aligning their branding strategies with authentic values. Key insights from the Getty Images report suggest that brands should focus on tangible storytelling that showcases both their challenges and achievements. This approach is vital for addressing eco-anxiety while simultaneously promoting a sense of eco-optimism among consumers, particularly as they show a strong preference for relatable imagery that highlights sustainable living.

  • Furthermore, the demand for innovative solutions that make sustainable choices more accessible to consumers is also rising. For instance, brands can leverage emerging technologies responsibly to enhance their sustainability narratives, engaging consumers who believe in the positive potential of innovation. Overall, integrating sustainability as a core aspect of a brand’s identity—if expressed through clear, honest, and impactful messaging—will not only meet the expectations of MZ consumers but also carve a niche in a competitive marketplace where authentic engagement is paramount.

Conclusion

  • In 2025, the MZ generation continues to exert extraordinary influence over the consumer landscape, primarily through an unwavering commitment to values-driven consumption, sophisticated digital engagement, and a heightened demand for brand authenticity. Companies that strategically align their products, communications, and loyalty programs with the priorities of this influential cohort—particularly regarding intentional spending, balanced technology use, and genuine sustainability—are likely to foster deep brand loyalty while ensuring sustained growth. The imperative for transparency in corporate activities, coupled with the creation of immersive digital experiences, is underscored as a way to resonate with MZ consumers amid their quest for meaningful connections and responsible consumption.

  • Looking ahead, businesses must prioritize adaptive retail models that reflect the dynamic interplay between MZ values and behaviors. Future strategies should also focus on continuous monitoring of evolving consumer trends, such as the growing usage of 'dumbphones' and the burgeoning interest in the metaverse, as these represent key areas where companies can innovate their engagement efforts. With transparency and authenticity as essential components of their branding, organizations stand to unlock new opportunities for connection and align more closely with the expectations of this generation. Overall, the insights derived from the MZ generation will be crucial for brands navigating the complex and rapidly shifting landscape of consumer behavior, emphasizing the need for resilience and adaptability in their approaches to marketing and engagement.

Glossary

  • MZ Generation: The MZ generation refers to the combined group of Millennials (born between 1981 and 1996) and Generation Z (born from 1997 to the early 2010s). As of June 19, 2025, this cohort significantly influences global markets by demonstrating distinct values such as authenticity, community, and purpose-driven consumption.
  • Digital Transformation: Digital transformation involves the integration of digital technology into all aspects of business operations, fundamentally changing how organizations operate and deliver value to consumers. As of mid-2025, the MZ generation is actively engaging with digital tools to enhance their everyday experiences, reflecting a broader shift in consumer behavior.
  • Dumbphones: Dumbphones are basic mobile devices that primarily support calling and texting without many of the features found in modern smartphones. This trend has emerged among Gen Z as a response to the overwhelming distractions of smartphones, promoting a conscious disconnect while fostering deeper personal interactions.
  • Cancel Culture: Cancel culture refers to a social phenomenon where individuals publicly call out or withdraw support from brands or people whose actions are deemed unethical or misaligned with personal values. As of June 2025, approximately 32% of Gen Z consumers express fear of being judged for supporting brands that lack alignment with their personal ethics, demonstrating the significant impact of social accountability on brand loyalty.
  • Sustainability Paradox: The sustainability paradox describes the discrepancy between consumers' strong preference for eco-friendly practices and their actual purchasing behaviors that often contradict these values. Despite the aspiration to support sustainable brands, many in the MZ generation find themselves drawn to fast fashion and trend-driven consumption due to convenience and affordability.
  • Value Spending: Value spending refers to the purchasing behavior characterized by consumers seeking products that reflect their personal values, such as ethical consumption and sustainability. Current trends indicate that a significant portion of the MZ generation identifies as intentional buyers, making conscious choices aligned with these values in their shopping decisions.
  • Metaverse: The metaverse is a collective virtual space that combines physical and digital realities, where users can interact, socialize, and participate in various experiences. As of June 2025, this phenomenon is gaining traction among the MZ generation, who use it to engage with brands through immersive experiences and virtual marketplaces.
  • Corporate Social Responsibility (CSR): Corporate social responsibility refers to a company's efforts to undertake initiatives that benefit society and the environment beyond its legal obligations. As MZ consumers increasingly demand transparency regarding CSR practices, brands must evolve from mere symbolic gestures to genuine actions reflecting their commitments to sustainability.
  • Ethical Consumption: Ethical consumption is the practice of purchasing products and services that are produced in a way that is considered morally right, which includes considerations for environmental sustainability, fair labor practices, and animal welfare. As of mid-2025, a majority of the MZ generation prioritizes ethical considerations in their purchasing decisions.
  • Digital Engagement: Digital engagement refers to the various ways users interact with brands through digital platforms, including social media, websites, and mobile apps. The MZ generation exhibits selective digital engagement, favoring personalized and immersive experiences while also seeking opportunities for 'digital detox' or a reduction in screen time.
  • Intentionality: Intentionality in consumer behavior refers to the conscious decisions made by consumers to align their spending with their values and beliefs. As of June 2025, the MZ generation demonstrates high levels of intentionality, with many actively considering how their purchases reflect their ethical and social beliefs.

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