What Gen Z Spends On in 2025

While Gen Z might not have hit peak earning potential yet, their influence is already shaping the way brands operate — and those who aren’t paying attention risk becoming irrelevant. As the first generation raised entirely in the era of social media, Gen Z is more connected to brands than any generation before them. But this isn’t just about scrolling — social media is Gen Z’s go-to search engine for discovering new products and forming opinions about brands.

The Influence of Social Media on Gen Z Spending

Nearly all Gen Z shoppers (a staggering 97%) say their purchases are inspired by social media. From YouTube reviews to influencer recommendations, their buying journey often starts online. More than half (55%) have bought a product after seeing it on TikTok, and 68% won’t hit “buy” without reading or watching at least three reviews.

‍Where Gen Z Is Spending in 2025

Fashion tops the list. According to UK POS, 75% of Gen Z’s recent purchases were in clothing — a higher percentage than Millennials (65%), showing how dominant Gen Z is in this space. But their wallets don’t stop there:

• Food & Drink (in-store): 51% of Gen Z say they regularly spend in this category.
• Tech: 52% prioritise buying the latest gadgets.
• Pets: According to AAHA, Gen Z spends an average of £1,413.61 annually on their pets — more than any other generation.
• Entertainment: With an average of £117.73 per month spent on music, streaming, gaming and more, that adds up to around £1,413 a year.

‍Impulsive — But Informed

While 47% of Gen Z admit to making impulse purchases, that doesn’t mean they’re careless. They’re more likely to weigh brand values — ethical practices, sustainability, and customer service — than focus solely on price. A mobile-friendly shopping experience and responsive customer support matter just as much as the product itself.

Thrift, Secondhand, and In-Store Discoveries

Despite their digital fluency, Gen Z is surprisingly thrifty and tactile. Nearly half (48%) shop at discount retailers, and a massive 80% are open to secondhand shopping. Even with the rise of e-commerce, 73% still enjoy discovering new products in-store.

‍What This Means for Brands

Gen Z might be tagged as more consumerist, but the reality is more nuanced. They do their homework, look for transparency, and value brands that align with their ethics. For businesses, that means staying visible on social platforms, being authentic, and proving your values — not just posting about them.

In 2025 and beyond, understanding Gen Z’s spending behaviour isn’t optional — it’s essential.