CONSUMER TRENDS

Gen Z has become the ‘broke generation’, not the ‘hope generation’

By our African Marketing Confederation News Team | 2025

Gen Zedders are not going to be the lucrative market that the world’s marketers expected them to be, says industry commentator.

For marketers worldwide who are assiduously chasing a Gen Z audience, are the wheels about to fall off? Could it be that Gen Zedders are not going to be the lucrative market you expected them to be?

Certainly, that is what well-known New York-based marketing commentator, Noelle Weaver, is predicting – based on a variety of research reports and her own observations.

She believes the generation once hailed as digital-first super-consumers is pulling back not just on big-ticket items, but on everyday spending. Gen Zedders have closed their purses and stuffed their wallets firmly into their back pockets. And it’s not just a phase.

“What’s emerging isn’t just frugality; it’s a redefinition of when, why and how they consume. From skipping nights out in favour of at-home pizza parties, to budgeting drinks, to ghosting traditional luxury items, Gen Z is trading status for savings and choosing to opt out, not buy in,” Weaver writes in a recent LinkedIn post.

Photo by RDNE Stock project from Pexels

“This recalibration of priorities is forcing brands to confront an uncomfortable truth: the youth target they’ve historically invested heavily in, may not be ready or able to invest back.”

She notes that the spending dip isn’t just about preference, it’s also about economic pressures. Among these are fewer well-paying and stable jobs, mounting debt levels and higher living costs.

Weaver cites several key changes that marketers will need to make. Among them:

Brands will need to rethink ROI on Gen Z campaigns

Marketing budgets devoted to pro-spend channels (e.g., luxury launches or impulse buys) could underperform. ROI hinges on re-segmenting audiences by spending behaviour, not just age.

Prioritise value and utility over eyeballs

Brands must pivot to messages that emphasise affordability, durability and real benefits. Promotions and bundled value propositions are more resonant than aspirational branding.

Make Gen Z financial partners, not just vendors

Integrate savings tools, buy now, pay later options, cashback rewards, and educational content. Aligning with Gen Z’s preference for proactive financial tools builds trust and spending confidence.

“As Gen Z rewrites the rules of value and consumption, brands face a critical choice: Double down on outdated assumptions or evolve with a generation that’s reshaping shopping behaviours and preferences from the margins,” Weaver states.

You can read the full LinkedIn post here.

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