How Gen Z is reshaping consumer culture

Generation Z (born between the mid‑1990s and early 2010s) are emerging as a defining force in UK consumer markets. Their purchasing behaviours are reshaping retail, fashion, technology, and lifestyle sectors. Unlike previous cohorts, Gen Z are digital natives, values-driven, and deliberative in how they allocate their resources.

This article examines the key cultural, social, and digital drivers influencing Gen Z’s shopping choices in the UK. By exploring these dynamics, it frames how this generation is redefining consumption - and what this indicates for the broader consumer landscape.

Wellness over wants

Wellbeing is now central to Gen Z’s spending priorities. According to research by The Gym Group, 44 % of UK consumers aged 16 28 rank fitness as a top spending priority, surpassing streaming services (19.2 %) and dining out (17.5 %). The average monthly spend on fitness-related items, including gym memberships and equipment, rose by 17 % year-on-year to £48.81.

Additional analysis by L&G confirms that Gen Z are increasingly reprioritising sober, health promoting lifestyles - only 13 % of 18–24-year-olds identify as regular drinkers, compared to 27 % of Baby Boomers - a sign of the “sober curious” movement.

Subscriptions as a lifestyle

Gen Z are the key drivers of the subscription economy, with 93% subscribing to at least one service and an average spend of £305 per month - three times more than Gen X (£91) and Baby Boomers (£108).

These subscriptions span conventional services like streaming, but also increasingly niche offerings such as AI-powered skincare, artisan oat milk, wellness foods, and curated houseplants, indicating a shift towards highly personalised, values-driven consumption patterns.

Despite strong uptake, Gen Z report friction with payment systems: 75 % experienced issues such as unexpected charges or cancellation difficulties, with one in five opting out of subscriptions due to these problems.

The rise of second-hand and sustainable shopping

Thrifting has become mainstream among Gen Z in the UK. Consumer spending on pre-loved clothing and footwear reached £2.4 billion in 2023, with the resale market projected to grow a further 67.5 % by 2026. 

Surveys reveal that 39 % of Gen Z shoppers aged 18–27 believe that by 2027, at least 75 % of their purchases will be second-hand. Many also estimate that around 31 % of what they currently own is pre-loved. 

A broader survey shows that 72 % of Gen Z have purchased pre-loved clothing items, compared to 47 % of adults overall, and that second-hand shopping is expanding into categories like electronics (18 %) and homewares (14 %).

Shopping begins on social platforms

Discovery increasingly fuels Gen Z’s buying journey. Platforms like TikTok, Instagram, and Pinterest blend content, community, and commerce in ways that resonate strongly with this demographic. Reports suggest visual social tools like Pinterest are now doubling as inspiration providers, search engines, and marketplaces.

Gen Z’s approach to spending can be understood as constructing a “spending identity” - curating purchases that align with personal brand, ethics, and social alignment.

Fashion that values comfort and inclusivity

Gen Z’s style choices skew towards comfort, functionality, and gender neutrality. Nostalgic aesthetics like 1980s-inspired ‘boom boom’ style and baggy cuts outpace trend-driven silhouettes.

These choices reflect a broader preference towards self-expression and inclusivity.

Authenticity over irony

This generation is increasingly drawn to sincerity. Research by Mintel suggests UK Gen Z consumers are prioritising health, self care, and personal growth over traditional milestones like homeownership. They also demand transparency and authenticity in brand relationships.

Amid economic challenges and financial pressures, Gen Z balances thrift with splurging and save first strategies. 69% use budgeting techniques; they allocate spending towards wellness, subscriptions, and experiences, but also maintain robust savings for emergencies and retirement.

Implications for businesses

Together, these trends reveal a generation that:

• Invests in wellbeing and self-care as strategic spending.
• Embraces personalisation, convenience, and subscription models aligned with values.
• Infuses sustainability and second-hand into everyday buying.
• Explores and discovers via social ecosystems rather than traditional retail.
• Chooses fashion that emphasizes comfort and inclusivity.
• Values authenticity and transparency in brand communication.

For businesses, success with Gen Z hinges on alignment, not doubling down on sales, and a more natural style of integration. Meeting them requires transparent, flexible, and value-aligned experiences - from payment innovations to community-building and curated offerings.

Key takeaways

Gen Z’s shopping behaviours reflect a broader shift toward wellness, sustainability, digital discovery, and authenticity. As they continue to grow in influence within the UK market, organisations that engage them with clear, values-aligned, and authentic strategies lead the way in next-generation retail.

At Novuna Consumer Finance, we work with retailers to deliver flexible finance solutions that align with evolving customer expectations - discover how we can support your business.