New research from global market intelligence expert Mintel shows that living through years of uncertainty for most of their lives has made Gen Z focus on the future, become more financially savvy and more discerning about how they spend.
Mintel specifically surveyed a group of more than 500 Gen Zs in Thailand, to gain the intel. While the results may not reflect a global sampling of the Gen Z population, the research still paints a picture that companies should note, especially tea businesses that want to reach this demographic.
Insights from the New Gen Z Research
Following the COVID-19 pandemic, the economic downturn, inflation and the ongoing climate crisis, Gen Z consumers under 25 are less willing to part with their cash, with three quarters (75 percent) choosing to save for the future rather than spend on material things.
When the youngest generation does spend, they do so with consideration; more than four in five (86 percent) read product reviews before making a purchase. They are also more willing to spend on products that offer health benefits (53 percent), are certified by credible sources (39 percent), and are eco-friendly (36 percent).
Whilst two-thirds (60 percent) of Gen Z express contentment with their overall life in the past year through June 2022, Mintel research shows that young consumers are stressed and lonely, with holistic health and wellbeing becoming a critical factor in purchase decision-making.
Gen Zs seek high-value and affordable health solutions, but over two-thirds (38 percent) will only be swayed when they can verify a product’s authenticity and credibility. This is especially true for food and beverage products, which Thai Gen Zs prioritize most of their spending (65 percent).
Despite the many challenges Gen Z has experienced, their commitment to sustainability and social purpose remains unchanged, and they expect to see their values reflected in their chosen brands. More than three-quarters (76 percent) of Gen Z in Thailand agree that they put more effort into their routine to sustain the environment, and 25 percent think that it’s worth paying more for sustainable products.
Online channels are still most frequently used by younger Thais, with more than three in five (65 percent) saying they would rather shop online than offline, and a similar percentage (64 percent) stating they browse social media as a way to relax.
Wilasinee (Kaimook) Siriboonpipattana, PhD, senior lifestyle research analyst, Mintel Reports Thailand, said, “18-25-year-olds make up a fifth of Thailand’s consumers, and they represent the future, so it’s essential for brands to understand how to reach this group and build brand loyalty early on. However, this is not without challenges – not only are the majority more likely to spend than save, but many still rely on their parents for financial support, so they may not have complete freedom to make all their purchasing decisions.”
Siriboonpipattana added: “Where brands can win is by using digital channels to demonstrate authenticity, transparency and alignment to the causes Gen Zs care most about. There’s also an opportunity for brands that can help alleviate financial anxiety by giving young consumers more value for their purchases and enabling them to put more money away for the future.”
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