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Navigating 2025: Key Consumption Trends of the MZ Generation

General Report June 23, 2025
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TABLE OF CONTENTS

  1. Defining the MZ Generation
  2. Digital-Native Behaviors and Channels
  3. Value-Driven and Ethical Consumption
  4. Price Sensitivity and Loyalty Dynamics
  5. Strategic Implications for Brands
  6. Conclusion

1. Summary

  • The MZ generation, encompassing both Millennials and Generation Z, has emerged as a pivotal consumer force by mid-2025. This cohort is characterized by strong digital-native behaviors that have reshaped traditional consumption patterns. Millennials, born between 1981 and 1996, represent a generation molded by the economic challenges of the early 2000s, notably the Great Recession, which has influenced their spending habits toward valuing experiences and brand loyalty. Conversely, Generation Z, born from 1997 to 2012, is defined as the first generation to grow up entirely in the digital realm, profoundly impacted by social media's dialogues around authenticity and connectivity.

  • In examining the traits that unify these two generations, a prominent theme is their aligning values, particularly concerning sustainability. Recent studies indicate that over 75% of Gen Z, along with many Millennials, prioritize eco-consciousness in their purchasing decisions, prompting brands to adopt transparent and ethical practices. However, there exists a paradox where economic realities, particularly among Gen Z, often clash with sustainability ideals, highlighted by their behavioral patterns that lean towards fast fashion. This discrepancy illustrates the complexities brands face when trying to resonate with these consumers, as they navigate between desired values and accessible choices.

  • Furthermore, the current mid-2025 landscape points to significant shifts in digital engagement channels, especially with the rise of livestreaming commerce and the effectiveness of short-form video content. These platforms have become pivotal for brands aiming to reach younger audiences, allowing for direct engagement that fosters trust and immediacy in commerce. The integration of advanced AI tools in marketing strategies has accentuated this trend, facilitating the creation of personalized experiences that resonate deeply with MZ consumers' preferences.

  • The generational divide in loyalty dynamics is also a critical component of MZ consumer behavior. As price sensitivity escalates due to ongoing economic uncertainty, Gen Z has shown a stronger inclination towards price loyalty, in contrast to the Millennial preference for brand loyalty. This behavioral divergence necessitates tailored marketing strategies that can effectively address the unique motivations of each demographic. Brands must evolve their loyalty programs to encompass both price-conscious incentives and personalized experiences to foster enduring connections with this diverse consumer base.

2. Defining the MZ Generation

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

  • The MZ Generation, comprising Millennials and Generation Z, spans a demographic range that reflects significant cultural and technological shifts. Millennials, typically defined as those born between 1981 and 1996, have witnessed the advent of the internet and the digital revolution during their formative years. In contrast, Generation Z, born from 1997 to 2012, is the first generation to be raised entirely in the digital age, with social media and mobile technology as integral parts of their daily existence.

  • As of June 2025, both Millennials and Gen Z represent a significant proportion of the global workforce and consumer markets. Millennials are often characterized by their experience of significant economic crises early in their professional lives, such as the Great Recession, which has influenced their economic behaviors markedly, from housing purchases to spending on experiences. Conversely, Gen Z consumers display heightened expectations for brands in terms of authenticity, social values, and instant connectivity. According to recent studies, Gen Z is heavily influenced by social media platforms and expects seamless digital engagement, thus reshaping how brands communicate and market themselves.

  • 2-2. Shared values and generational overlap

  • A notable aspect of the MZ Generation is the shared values that bridge Millennials and Gen Z, particularly regarding sustainability and social responsibility. Both demographics prioritize brands that reflect their commitment to ethical practices and transparency. The recent push for sustainability reflects a generational shift where over 75% of Gen Z and many Millennials regard eco-consciousness as a critical factor in their purchasing decisions. This alignment of values has created a marketplace that demands both ethical marketing and sustainable product offerings.

  • However, a paradox exists within this commitment to sustainability; many Gen Z consumers struggle to reconcile their ideals with the temptations of fast fashion and instant gratification offered by the retail landscape. Reports indicate a significant portion of Gen Z expresses dissatisfaction with their consumption patterns, often leading to the so-called 'attitude-behavior gap' where intentions do not always translate into actions. This complexity suggests that while both generations share values, their economic realities influence their purchasing behaviors differently, presenting unique challenges for brands aiming to align with these consumers.

  • As businesses cater to this dual generation, strategic marketing that emphasizes authenticity, personalized experiences, and a clear commitment to social values can resonate deeply with both Millennials and Gen Z. Brands that can effectively communicate their sustainability efforts and offer genuinely ethical options are likely to forge long-term loyalty among this influential cohort.

3. Digital-Native Behaviors and Channels

  • 3-1. Social media’s evolution and algorithm-driven engagement

  • As of mid-2025, social media continues to transform from a platform primarily for authentic engagement into a sophisticated ecosystem dominated by algorithms and targeted advertising. This evolution necessitates that brands rethink their marketing strategies in the face of complex algorithms that govern visibility and engagement. According to a recent study, social media now serves multiple roles across the customer journey, including awareness, consideration, purchase, and post-purchase loyalty. Brands are advised to implement multi-dimensional strategies that balance paid investments with organic engagement to ensure adaptability and relevance in today’s dynamic environment.

  • The role of AI in social media is highlighted, where it not only enhances algorithms that determine content visibility but also informs audience profiling and content customization. Brands are leveraging AI tools for performance optimization, emphasizing both paid and organic strategies to maximize engagement. The strategic use of social media involves targeting micro-communities with personalized messages, thereby prioritizing quality interactions over sheer volume. This nuanced approach helps brands better connect with their audience in an era where organic reach is declining.

  • Furthermore, the insights suggest that maintaining a robust presence on social media requires brands to integrate their social efforts with owned channels, creating seamless consumer experiences that resonate on multiple levels.

  • 3-2. Livestreaming commerce and short-form video impact

  • The rise of livestreaming commerce has reshaped how brands engage with consumers, particularly among younger demographics. As reported on June 23, 2025, this form of commerce has seen significant growth, where entrepreneurs, especially from the post-1995 generation, utilize short-video platforms to sell products directly to consumers. For example, one young entrepreneur reported selling nearly 100 metric tons of locally grown garlic each day through livestreaming, demonstrating how this format can dramatically enhance sales and support local economies.

  • Industry experts project continued growth in livestreaming commerce, which could reach a gross merchandise value of 5.8 trillion yuan with a compound annual growth rate of 18% from 2024 to 2026. This trend underscores the importance of immediate engagement strategies where live interactions foster trust and rapport with consumers. As retailers and brands evolve in this sphere, they are encouraged to leverage data analytics to understand shopping behaviors better, creating more impactful livestreaming experiences tailored to consumer preferences.

  • Additionally, this emerging channel is creating new employment opportunities, contributing to economic dynamism by facilitating job creation across various roles linked to livestreaming operations.

  • 3-3. Emergence of embedded retail in daily digital life

  • The concept of embedded retail has gained momentum in mid-2025, where shopping experiences are increasingly integrated within daily digital interactions. This transformation is propelled by advances in AI and strategic partnerships, leading to innovative retail models that connect content consumption to shopping behavior. For instance, Walmart’s initiatives to turn television content into shoppable moments exemplify how the line between digital engagement and retail transactions is blurring.

  • As this landscape evolves, major retailers are experimenting with new forms of commerce that encompass various consumer touchpoints—both online and offline. The goal is to create environments where purchasing is as seamless as the digital experiences consumers regularly engage with, thus embedding retail into everyday activities. This could include smart home integrations, in-app purchases while engaging in digital content, or interactive advertising that prompts immediate transactions.

  • Such strategies highlight a substantial shift in consumer behavior as expectations for convenience and immediacy rise, prompting brands to design holistic experiences that meet the demands for integrated shopping pathways, ultimately reshaping the retail ecosystem as we know it.

4. Value-Driven and Ethical Consumption

  • 4-1. Sustainability paradox: ideals vs. shopping habits

  • The concept of the sustainability paradox reflects a significant and ongoing challenge faced by Gen Z consumers. Despite their established identity as advocates for eco-conscious living, many Gen Z individuals encounter difficulties in translating these ideals into actual shopping behaviors. This discrepancy, often referred to as the 'attitude-behavior gap, ' highlights a defining characteristic of Gen Z consumerism. The desire for sustainable consumption is overshadowed by the allure of fast, affordable, and trend-driven options, which are abundant in today's marketplace. As the summer shopping season of 2025 progresses, insights indicate that while over 75% of Gen Z consumers prioritize sustainability over brand names, a substantial number remain susceptible to the temptations presented by fast fashion. The popularity of affordable brands such as Shein serves as a critical case study; its app garnered more than 54 million downloads in just the first 19 weeks of 2025. Such figures illustrate the market's overwhelming tendency towards immediate gratification and low-cost shopping, frequently at the expense of ethical considerations. In navigating this paradox, businesses are encouraged to adopt transparent practices, innovate sustainable alternatives, and educate consumers about the environmental costs associated with their purchases, thereby helping to bridge the gap between ideals and behaviors.

  • 4-2. Preference for conscious and slow-fashion

  • In the context of ongoing fashion dynamics, Gen Z's growing preference for conscious consumption has prompted a significant shift towards slow fashion. This movement promotes ethical production practices, sustainable materials, and a mindful approach to purchasing. Gen Z, having been raised during an era characterized by climate awareness and corporate responsibility, seeks brands that align with their ethical values. Research shows that a staggering 81% of Gen Z consumers are willing to pay premium prices for eco-friendly products. The prominence of second-hand shopping and curated resale platforms highlights this trend, as Gen Z actively supports businesses that advocate for sustainability and transparency. With the global second-hand market projected to reach $329 billion by 2029, brands that successfully tap into this conscious consumerism can foster loyalty and trust while contributing positively to the environment. Furthermore, as Gen Z increasingly utilizes social media to research and promote sustainable brands, businesses must harness this digital engagement effectively. By providing transparency regarding sourcing and labor conditions, companies can establish strong connections with a demographic keen on making ethical purchasing decisions.

  • 4-3. Community-led and local-support purchasing

  • Another dimension of value-driven consumption among the MZ generation is the emphasis on community-led and local-support purchasing. This trend underscores a collective longing for connection and authenticity, with Gen Z consumers actively seeking to support local businesses and invest in their communities. By prioritizing local brands, consumers not only enhance their shopping experience but also contribute to their local economies. The desire for community support resonates with broader generational values of inclusivity and social accountability. Local businesses often embody principles like sustainable sourcing and ethical practices, further attracting a consumer base passionate about making a difference within their own neighborhoods. As this movement continues to gain traction, brands must position themselves as community-focused entities while leveraging storytelling to showcase their impact. Illustrative of this connection, initiatives like farmers' markets, local artisan showcases, and pop-up events provide platforms for building relationships between consumers and local entrepreneurs. By authentically engaging with communities and aligning products with local values, brands can harness the power of conscious consumerism to strengthen their market presence and foster long-term loyalty.

5. Price Sensitivity and Loyalty Dynamics

  • 5-1. Gen Z’s tilt toward price loyalty vs. Millennials’ brand loyalty

  • As of mid-2025, distinct consumer behaviors have emerged among the MZ generation, particularly concerning loyalty models. Research indicates that Gen Z displays a pronounced preference for price loyalty, prioritizing cost-effectiveness and budget-conscious choices over traditional brand loyalty that characterized the Millennial cohort. The trend reflects a broader shift influenced by economic uncertainties, where value-for-money propositions hold more sway over the younger demographic's purchasing behaviors. This contrasts with Millennials, who, although also sensitive to pricing, tend to exhibit stronger connections to brands based on emotional resonance, identity alignment, and customer service experiences.

  • The marketing implications of these attitudes are profound. Brands targeting Gen Z must develop strategies that emphasize competitive pricing and attractive promotions, while ensuring that product quality remains uncompromised. For brands that have historically relied on fostering emotional connections, pivoting to a more rational appeal without entirely relinquishing values of quality and engagement will be crucial.

  • 5-2. Impact of economic uncertainty on purchase decisions

  • Recent studies have highlighted that ongoing economic fluctuations have amplified price sensitivity among consumers. As inflation continues to challenge disposable incomes, both generations are reassessing their purchasing behaviors. Data collected through consumer surveys indicate that economic anxiety is leading to changes in spending patterns, with an increasing number of individuals prioritizing essentials and budget-friendly options. This environment has further entrenched price loyalty behaviors within Gen Z, who not only seek deals but also correlate lower prices with trustworthiness.

  • Brands are urged to navigate this landscape delicately. Crafting transparent communication about pricing strategies can enhance consumer trust. Additionally, implementing loyalty programs tailored to price-sensitive consumers can foster retention, helping brands maintain market share in an uncertain economic climate.

  • 5-3. Tailoring loyalty programs for mixed generational segments

  • In light of the cultural and behavioral diversity within the MZ generation, brands are now recognizing the importance of customizing loyalty programs that cater to both price and brand loyalty preferences. While Gen Z consumers may respond favorably to discounts and reward structures that emphasize savings, Millennials might prefer experiences that deepen their connection to a brand.

  • To effectively engage both groups, brands should consider hybrid loyalty structures that offer a mix of monetary rewards alongside experiential benefits such as exclusive access to events or personalized customer service. This dual approach can appeal to the unique motivations of each demographic, fostering deeper engagement and enhancing customer retention across generational lines. The strategic personalization of these loyalty programs can ultimately play a pivotal role in cultivating brand loyalty in a fragmented market.

6. Strategic Implications for Brands

  • 6-1. Integrating traditional and digital marketing for personalization

  • In today's highly competitive marketplace, brands face the challenge of standing out amid a plethora of options. Integrating traditional marketing channels with digital strategies is no longer a choice but a necessity. This integration allows brands to deliver a more personalized buyer experience, which resonates deeply with the MZ generation. For instance, leveraging intent data intelligence facilitates the transformation of conventional outreach methods into insightful, data-driven conversations that cater to potential customers' needs.

  • By combining both traditional and digital marketing methods, companies can evoke a richer brand presence. Traditional channels like print media and billboards can serve to create initial awareness and interest, while digital strategies, such as social media and email campaigns, facilitate engagement and nurture relationships. For example, personalized print materials that utilize QR codes can bridge the gap between offline and online interactions, guiding consumers toward tailored digital experiences. This multi-channel approach is crucial for enhancing brand recall and fostering trust, ensuring higher conversion rates and customer loyalty.

  • 6-2. Optimizing omnichannel customer communications

  • As the MZ generation’s behaviors continue to evolve toward digital-first engagement, optimizing omnichannel customer communications has become imperative for brands. An effective customer communications management (CCM) strategy incorporates various platforms, including emails, social media, and direct interactions to create a seamless and personalized communication experience. Studies indicate that consumers expect consistency across all channels, and brands that deliver on this expectation witness higher customer satisfaction and loyalty.

  • To achieve success, marketers must employ data analytics to refine their communications. By analyzing customer data, businesses can tailor messages to fit individual preferences and behaviors. Furthermore, integrating automation tools within the CCM framework enhances efficiency, allowing for timely and targeted engagement that can adapt to shifting consumer expectations in real-time. This not only strengthens customer relationships but also promotes brand loyalty among an audience that prioritizes personalized experiences.

  • 6-3. Leveraging data and AI to predict and influence MZ preferences

  • The role of data and artificial intelligence (AI) has become increasingly crucial in understanding and catering to the preferences of the MZ generation. As purchasing behaviors grow more complex, brands that successfully harness data-driven insights can anticipate consumer trends and make informed marketing decisions. AI-driven tools can identify patterns in purchasing habits, social media interactions, and engagement metrics, enabling brands to tailor their offerings effectively.

  • Moreover, generative AI offers the ability to create highly personalized marketing content at scale, enhancing engagement and connection with consumers. By implementing predictive analytics, brands can move beyond traditional demographic marketing to develop hyper-targeted campaigns that align with the evolving preferences of Millennials and Gen Z. As these generations continue to shape market dynamics, leveraging data not only boosts immediate sales potential but also establishes a foundation for sustained growth and brand relevance in a rapidly changing digital landscape.

Conclusion

  • As of June 23, 2025, the MZ generation's increasing purchasing power presents both challenges and opportunities for brands seeking to create lasting relationships within this influential cohort. To thrive in this dynamic environment, brands are urged to adopt a comprehensive, analytical approach that prioritizes data-driven insights while intertwining ethical positioning and personalization. The continuing evolution of digital-first platforms, such as social media and livestreaming, plays a crucial role in shaping consumer engagement, necessitating that brands adapt their strategies to remain relevant and impactful.

  • Amid heightened economic uncertainty, brands must also pay close attention to rising price sensitivity among consumers. Adopting transparent pricing strategies and loyalty programs that cater to both price sensitivity and brand allegiance will be crucial in retaining customers across generational lines. Looking ahead, brands can leverage the increasing reliance on data analytics to refine their understanding of MZ preferences, ensuring they stay ahead of emerging trends while fostering deeper connections with consumers.

  • Additionally, the promising potential of co-creating with MZ consumers on product development and marketing initiatives can engrain a sense of ownership and loyalty among this generation. By institutionalizing sustainable practices and emphasizing community involvement, brands can not only meet the ethical expectations of Millennials and Gen Z but also build a resilient brand image that resonates in the long term. Future strategies should capitalize on real-time analytics, continuous engagement, and a commitment to social values to secure a competitive edge in an ever-evolving marketplace.

Glossary

  • MZ Generation: The MZ Generation refers to the demographic cohort that includes both Millennials (born 1981-1996) and Generation Z (born 1997-2012). As of mid-2025, this group is distinguished by their strong digital engagement and unique consumer habits driven by shared values such as sustainability and social responsibility.
  • Sustainability Paradox: The sustainability paradox highlights the contradiction faced by many Gen Z consumers who advocate for eco-friendly practices yet often succumb to the lure of fast fashion and low-cost shopping options. This contradiction underscores the challenge of aligning purchasing behavior with sustainability ideals, as of June 2025.
  • Price Loyalty: Price loyalty is the tendency of consumers, particularly Gen Z as of mid-2025, to prioritize cost-effectiveness in their purchasing decisions over brand loyalty. This preference is a result of ongoing economic uncertainty and influences brands to adopt pricing strategies that appeal to budget-conscious shoppers.
  • Digital Transformation: Digital transformation refers to the broad changes organizations undergo to leverage digital technologies and data to enhance customer experiences and operational efficiency. In the context of the MZ generation, it is critical for brands to engage through digital-first platforms like social media and livestreaming.
  • Livestreaming Commerce: Livestreaming commerce involves selling products to consumers directly through live video broadcasts. As of mid-2025, this approach has gained traction, particularly among younger demographics, facilitating immediate engagement and transactional convenience while transforming how brands connect with consumers.
  • Omnichannel: Omnichannel refers to a comprehensive approach to marketing that integrates multiple channels of communication, both online and offline, to create a seamless customer experience. By mid-2025, brands must optimize omnichannel strategies tailored to the preferences of the MZ Generation, enhancing engagement and loyalty.
  • Attitude-Behavior Gap: The attitude-behavior gap describes the disparity between consumers' expressed values—such as sustainability—and their actual purchasing behaviors. This gap, significant among Gen Z consumers as of June 2025, underscores the complexities brands face in encouraging ethical consumption.
  • Community-Led Purchasing: Community-led purchasing focuses on supporting local businesses and engaging in ethical consumerism. This trend reflects the MZ generation’s values, emphasizing inclusivity and social accountability, driving consumers to seek products that foster community and sustainability.
  • AI in Marketing: Artificial Intelligence (AI) in marketing leverages data analytics and automation to personalize customer interactions and optimize marketing strategies. By mid-2025, AI has become essential for understanding the preferences of the MZ Generation, allowing brands to deliver targeted campaigns and engage effectively.
  • Short-Form Video Content: Short-form video content refers to brief video clips, often used for marketing and brand engagement on platforms like TikTok and Instagram. As of June 2025, this format is critical for capturing the attention of the MZ Generation and facilitating direct interactions with brands.
  • Fast Fashion: Fast fashion is a retail approach that rapidly produces affordable clothing to meet current trends. Despite its appeal among younger consumers, including Gen Z, the practice is often criticized for its negative environmental impact, highlighting the ongoing tension with sustainability ideals.

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