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7 Generation Z Trends & Predictions for 2020 – A Look Into What’s Next

Category: B2B News

As everyone gets older, each picks up insights and lessons enough to arm and guide them in life decisions. They also pick up consumption behavior. The latest Generation Z trends show that members of this age group are quickly gaining ground and making their presence felt in today’s economy.

They’re taking over Millenials, whose technology-driven behavior transformed industries, entire economies, cultures, as well as our environment.

Researchers spent years decoding Millenial behavior. Now, it’s time for the spotlight to shine on the newest stars. What are the characteristics of the Gen Z that you must take into account when crafting your business campaigns and strategies? In this article, we’ll show you the latest Gen Z trends that can help you get to know your newest target market better.

gen z trends main web

To eliminate confusion, let us first define Gen Z. Generation Z is the generation after the Millenials. Specifically, they were those born from 1995 to 2015. Such categorization came from most researchers, who also classified generational breakdowns into separate groups: the Baby Boomers, born from 1944 to 1964; Generation X, born from 1965 to 1979; Generation Y, also known as Millenials and born from 1980 to 1994; and then comes the Generation Z.

US population by generation

Generation Z


Generation X

Baby Boomers

Silent Generation7.47

The Greatest Generation

Source: Statista 2018

Designed by

Now, you must be asking what Gen Z means to your business and why you, as a business owner, should care how these people choose to live their lives. The answer lies in this forecast: by 2020—that’s next year, as the young ones would have put it—Gen Z will already account for 40% of all US consumers. In other words, Gen Z means business, and they are the next batch of customers you’ll be serving for a long while.

Understanding Gen Z’s consumer habits can be vital to the success of your brand. After all, the oldest members of Gen Z are 24 years old this year, capable enough to consume products of various kinds. Gen Z already holds a whopping $44 billion of buying power as of last year. This figure demands attention and can catapult revenues to new heights. That being said, let’s take a more detailed look into the latest trends among the Gen Z-ers.

1. Gender-fluid concepts

Over the past years, we’ve seen how more and more businesses are opening up to gender-neutral products, and for a good reason: the Gen Z reports being a generation more accepting of non-binary products. The Gen Z’s power extends in allowing a new wave of acceptance that’s not restricted to any gender at all. With this, various brands like Sephora and Telfar took the major steps to a more accommodating and gender-neutral industry.

As shown in several studies, binary-gendered options are a thing of the past. Back in 2015, Facebook, apart from the male and female options, started adding a third one: the custom option, where users can select from 58 different identities, such as androgyne, trans-male, trans-person, and more, prompting other brands and companies from various industries to do the same. Milk Makeup, a cosmetics brand, followed in 2016 by launching a makeup campaign that includes everyone, starting from trans models to cis straight men wearing makeup.

This shift to gender-neutral products opened new doors for businesses to expand their brand. This also allowed them to relate more to Gen Zers and retain them as loyal customers. The strategy improves customer experience for Gen Zers. Instead of products “made for men” or “made for women,” brands are using product categories instead and getting rid of stereotypical gender roles. Such a trend is expected to continue in the coming years as businesses prepare to cater to the demands of the new generation.

Source: Pew Research Center

Key Takeaways

  • More and more businesses are being more accommodating with gender-neutral products.
  • Gen Zers are more open to gender-neutral concepts.
  • Gender-fluid concepts will continue to expand in the coming years.

2. Gen Z’s food preferences

Gen Z’s preferences on food are defining the future of the food industry. A study revealed that Gen Zers are extremely health conscious in their food choices, with 67% of them considering the nutritional content of their food. They are also more likely to consume plant-based products, in contrast to their Millenial predecessors, which means they are more open to becoming vegetarians.

In 2016 alone, reports say that Gen Zers already spent $78 billion in restaurants, and not many of them are of legal drinking age yet. Restaurant owners find Gen Zers are more open to authentic tastes and also more willing to try out new and out-of the box cuisines, which allows businesses in the food industry to be more creative and trendy with their food menu.

Additionally, a study by Packaged Facts finds that Gen Zers prefer eating snacks throughout the day instead of following the traditional three-course meal. This snack trend will continue in the coming years, thanks to 23% of Gen Z, who say that they prefer appetizers and snacks as opposed to regular meals. Thus, businesses in the food industry, apart from utilizing technological tools like restaurant management software, now have menus that offer smaller portions of their food to attract more Gen Z customers.

Average annual dollars spent on restaurants by each generation

Gen Z


Gen X



Source: Epsilon (2019)

Designed by

Gen Z’s food preferences trends highlights

  • Gen Zers spent $78 billion in restaurants in 2016.
  • They are more willing to try out-of-the-box dishes.
  • The snacking trend continues to become popular among Gen Zers.

3. The power of reviews

As a generation heavily influenced by the Internet, online product reviews matter a lot to Gen Z consumers. According to Social Media Link, 96% of Gen Zers often take time to read reviews or recommendations for products they are considering to buy. Aside from using the most popular social media sites, online reviews are popular among the Gen Zers, too, with nearly 8 out of 10 reading them before closing a transaction.

This trend emphasizes the importance of consumer reviews. Gen Z or not, positive reviews always lead to better profitability of your business, and thus, investing in reputation management software solutions can pay off in the end. Here are some examples of feedback and reputation management software.

Key takeaways

  • Online product reviews are essential factors in the purchasing decisions of Gen Z.
  • About 96% of Gen Zers take the time to read reviews before buying a product.

4. Concerns on mental health

Today’s current headlining issues, from immigration, sexual assaults, mass shootings, to environmental decline, are affecting the whole world, and it can be too much for anyone. With these issues plus other internal and sociological factors, Gen Z becomes the generation feeling the impact more as compared to their predecessors. After that, they are the ones most likely to report mental health concerns. And the Gen Z, being a big part of today’s workforce, consider mental health as a factor that affects their work environment.

Nearly 9 in 10 Gen Z adults report having at least one or more emotional or physical symptoms because of various stressors in their lives, according to a study by the American Psychological Association. About 58% reports being depressed or sad, and 55% experience a lack of interest, motivation, or energy. This leads to companies encouraging workplace wellness programs in an attempt to take care of the mental health of their employees. As a result, employers can minimize health care costs allotted to their businesses and workers.

Common stressors for Gen Z adults



Health-related concerns


Source: APA (2018)

Designed by

Key takeaways

  • About 9 in 10 Gen Z adults are likely to report having one or more physical or emotional symptoms because of stress.
  • Companies encourage workplace wellness programs to take care of the mental health of their employees.

5. Diversity as an asset

Political shifts, changes in education, and other social changes drove Gen Zers to become the most ethnically and racially diverse generation in the history of the United States. A study by the Pew Research Center reveals that 48% of Gen Zers are nonwhite. In the next 10 years, Gen Zers will grow more in population and can make the majority of the population racially diverse.

With the Gen Z considering diversity as a positive asset, businesses are prompted to develop a more inclusive and diverse brand, extending even farther beyond advertising and products. Emarketer’s study results show that about 6 in 10 Gen Zers say they prefer seeing ads that have diverse families in it. They are also more likely to support brands that are proactive in tackling racial issues.

This only goes to show that Gen Zers are pickier when it comes to choosing companies to work for and brands to support. As a racially diverse generation, they need assurance from brands that discrimination won’t be tolerated. When doing business with Gen Zers, it’s crucial to take into consideration not only the market’s similarities but also their differences, leading to a more expansive product line.

diversity as an asset

Key takeaways

  • Gen Z is the most ethnically and racially diverse generation.
  • Diversity is a positive asset of Gen Z.
  • Being in a racially diverse society, Gen Zers are less likely to tolerate racial discrimination.

6. Sustainability as a factor

Sustainability is another thing to consider when dealing with Gen Zers. Along with Millenials, Gen Zers are pushing for a more sustainable and eco-friendly market in various industries. For younger generations, a product’s ecological footprint is very important. They seek high-quality and long-lasting products as opposed to disposable items. At the same time, sustainable materials find their way to this environmentally conscious generation.

One example is the clothing line Tentree. They successfully gained a massive social media following worldwide right after launching products that use only sustainable materials. The brand also associated with supply chain partners who are socially responsible. This led to an influx of traffic on their website due to an increase in international web visitors.

The Gen Z respects such brands that are highly conscious of the marks they leave on the environment. In a study by Statista, about 29% of Gen Zers are willing to pay more for environmentally-friendly products. Meanwhile, about 24% of Baby Boomers and 23% of the Millenials and Gen X would act the same way.

Shoppers who would pay an extra 1 to 5 percent for sustainable products in the United States

Gen Z


Gen X



Source: Statista Research Department (2019)

Designed by

Key takeaways

  • Gen Z pushes for a more sustainable and eco-friendly industry.
  • There is more support from Gen Z when it comes to products that use sustainable materials.

7. Consumption as an ethical concern

Today, Gen Z consumers expect more from brands and companies. One such expectation includes taking a stand on ethical issues. Before purchasing an item or supporting a brand, the Gen Z first needs to know who made the product. Where the product is from and the process from which it was created are also their concerns. Consumption for them is of ethical concern, and they tend to stay away from brands that either have ethical issues or are ignoring them.

It takes only minutes to search for someone’s background on the Internet. Hence, companies and brands need to be careful in maintaining a good image. That also includes a satisfactory level of handling ethical issues. According to a study by McKinsey, about 70 percent of respondents say that they purchase products from ethical companies. Meanwhile, about 80% say they remember at least one scandal or controversy that involves a company. On a related note, approximately 65% make efforts to learn about the origins of the things that they purchase.

These figures lead companies to meet the ethical demands of Gen Z consumers. Marketing and work ethics are suddenly converged into one. Therefore, organizations need to be more careful in choosing which issues they should engage in. They should also ensure that they select the right persons to represent their brand.

consumption as ethical concern

Key takeaways

  • Gen Z takes into consideration the ethical stands of companies when they are purchasing from them.
  • Companies or brands that take the proper stand in ethical issues are more likely to gain the support of Gen Z members.

Keeping Track of the Gen Z Trends

Generation shifts play a vital role in setting up consumer behavior. Each generation’s views can affect a broader population. Gen Zers, however, are the first generation of digital natives. This means their views and behavior are heavily influenced by technological innovation. And as such, it speeds up technological trends, affecting the market of various industries.

As Gen Zers overtake the previous generations, they bring with them new trends and behavioral patterns. These are what you’ll need to keep in mind as Gen Zers becomes future employees or potential customers. But if you’re looking for ways to serve your general customers even better, you can take a look at some of the best customer service tips we have compiled.

By Nestor Gilbert

Senior writer for FinancesOnline. If he is not writing about the booming SaaS and B2B industry, with special focus on developments in CRM and business intelligence software spaces, he is editing manuscripts for aspiring and veteran authors. He has compiled years of experience editing book titles and writing for popular marketing and technical publications.

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