Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Definition
Executive Summary
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- Top takeaways
- Market overview
- One in 10 Canadian adults are Gen Z
- COVID-19 has shaken up their financial foundation
- Greater diversity means less alignment with the notion of ‘mainstream’ Canada
- Impact of COVID-19 on Gen Z
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- Figure 1: Short-, medium- and longer-term impact of COVID-19 on Gen Z, June 2020
- Opportunities and challenges
- Re-emergence
- Recovery
The Market – What You Need to Know
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- One in 10 Canadian adults are Gen Z
- Gen Z is the most ethnically diverse generation to date
- COVID-19 has shaken up their financial foundation
Market Factors
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- By the numbers: one in 10 Canadian adults are a Gen Z
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- Figure 2: Canadian population, by age group, 2019
- Inclusivity and diversity are personal to Gen Z
- Immigration is literally changing the face of the nation
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- Figure 3: Distribution of foreign-born population in Canada, by region of birth, 1871 to 2036
- Gen Zs are the most ethnically diverse population to date
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- Figure 4: Self-identification of ethnicity, by generation, June 2020
- This impacts how they feel about fitting into ‘mainstream’ Canada
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- Figure 5: I am part of mainstream Canada (% agree), by generation, January 2018
- Gen Z employment hit hard by COVID-19
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- Figure 6: Canadian unemployment rate, monthly, unadjusted for seasonality, February-June 2020
- Gen Z will need more active support from companies on multiple levels
Key Players – What You Need to Know
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- Gen Z is kneading away the stress from the pandemic
- Being more connected has mental health consequences for Gen Z women
- Gen Z expectations are driving companies to push the envelope
- Gaming will be the hub for social interactions
What’s Happening Now?
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- Figure 7: Mintel Trends Drivers
- What’s happening now through the lens of the Wellbeing Trend Driver
- Bread baking rises as consumers knead the stress of the pandemic away
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- Figure 8: Google search featuring terms related to bread baking (worldwide), interest over time, January-May 2020
- The emotional benefits are real – particularly for Gen Z
- The functional benefits are broader for Gen Z
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- Figure 9: Full Proof Baking Instagram post, April 2020
- Self-care is comforting for Gen Z women
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- Figure 10: Impact ‘beauty products’ have on my mental wellbeing, Gen Z women vs overall, March 2020
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- Figure 11: Lush Instagram post, February 2020
- Figure 12: Lush Instagram post, March 2020
- Figure 13: Lush Instagram post, March 2020
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What’s A Challenge?
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- What’s a challenge through the lens of the Technology Trend Driver
- Gen Z women are more connected yet feeling more isolated
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- Figure 14: Impact ‘social media’ has on my mental wellbeing, Gen Z women vs Gen Z men, March 2020
- Fostering a sense of togetherness is an important way to support Gen Z women
What’s Next?
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- What’s next through the lenses of the Surroundings and Rights Trend Drivers
- Gen Z are already expecting things to be done differently
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- Figure 15: Top five most important values Canadians should have, Gen Z vs Millennials and older generations, June 2020
- Gen Z expectations are driving companies to push the envelope
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- Figure 16: Converse Instagram post, January 2020
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- Figure 17: [FUTURECRAFT.LOOP] – Made to Be Remade, April 2019
- Figure 18: [FUTURECRAFT.LOOP] – Long Documentary, April 2019
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- Figure 19: Adidas Instagram post, November 2019
- What’s next through the lens of the Technology Trend Driver
- Gaming will become a primary point of social interactions
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- Figure 20: Fortnight Instagram post, June 2020
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- Figure 21: Fortnight Instagram post, June 2020
The Consumer – What You Need to Know
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- Purchase power is influenced by their lifestage
- Hobbies and interests define who they are
- Gen Z turn to friends for emotional support and to manage stress
- Digital channels are preferred for communicating – most of the time
- Uncertainty about the future looms large
- Helping them get a ‘grip’ with more mental health resources is necessary
Getting to Know the Gen Z Lifestage
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- The younger age bracket restrict Gen Z purchasing power
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- Figure 22: Student status, Gen Z vs overall, March 2020
- Less affluence means smaller splurges
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- Figure 23: Household income, Gen Z vs overall, March 2020
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- Figure 24: How extra money is spent, Gen Z vs overall, February 2020
- For the time being, few are likely primary household shoppers
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- Figure 25: Living arrangements, Gen Z vs overall, March 2020
- Fewer responsibilities at home suggests help needed to build basic ‘adulting’ skills
- Positioning education as an experience will win over Gen Z
Factors that Define their Personal Identities
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- Personal identities more likely to be defined by hobbies and interests over role in family
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- Figure 26: Top three factors that have the greatest influence on personal identity (any rank), Gen Z vs overall, March 2020
- Participation in hobbies/interest are informed by values, which are unique for Gen Z
- Gen Z values are unique – they’re hungry for change
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- Figure 27: Top five most important values Canadians should have, Gen Z vs Millennials vs older generations, June 2020
- Values influence the activities they attend to
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- Figure 28: TIME Instagram post, December 2019
- Create avenues for Gen Z to contribute to causes they care about through activities they enjoy
- Gen Z see brands as symbolizing who they are and the values they hold
- Younger generations see identity as more fluid
- Gen Z are a visual generation and symbolic cues like branding matter
- Logos represent who they are, so brand actions matter
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- Figure 29: Kiehls Instagram post, June 2020
- Take action from within as Gen Z are paying attention to treatment of employees
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- Figure 30: Adidas Instagram post, June 2020
Connecting with Others
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- Unlike older generations, close friends are the key source of emotional support
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- Figure 31: Top three most important sources of emotional support (any rank), Gen Z vs overall, March 2020
- Digital connections are preferred
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- Figure 32: Preference between talking on the phone or texting/messaging to communicate with friends, by generation, March 2020
- Not all conversations are equal: determining when to talk vs text – in their words
- Take a cue from how they approach conversations to determine how best to provide support
- Consider going digital even when they’re physically in-stores
- Virtual relationships can be meaningful
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- Figure 33: Views on forming friendships with people met online, by generation, March 2020
- Brands will gain by creating communities that support Gen Z interests
Outlook on Life
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- Financial worry and uncertainty about the future looms large
- Gen Zs were anxious before the outbreak
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- Figure 34: Current outlook on life, Gen Z vs Millennials and older generations, March 2020
- Unsurprisingly, uncertainty is amplified by the pandemic – in their words
- When Gen Z assesses the damage, they see a grim picture
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- Figure 35: Very concerned about financial issues, Gen Z vs Millennials vs older generations, June 2020
- There is a very real need for a ‘break’ when purchasing goods
- Consider leveraging private label
- Rewards for behaviours outside of spending will appeal
- Consider rewards for environmentally friendly behaviours: spotlight on Kiehl’s
- Give them tools to be ‘heroes’ in addressing food waste while also saving money
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- Figure 36: How to Flashfood LIKE A MOTHER, September 2019
- Consider empowering Gen Z though choice
- Current circumstances leave little room for feeling in control
- Customization plays a bigger role than meets the eye
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- Figure 37: Ikumi Mama Instagram post, May 2020
- Figure 38: Ikumi Mama Instagram post, May 2020
- Financial institutions will win by helping Gen Z gain control of their budgets
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- Figure 39: Wealthsimple Instagram post, November 2017
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- Figure 40: Wealthsimple Instagram post, November 2017
- Gen Z women will need more support to address literal and figurative financial woes
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- Figure 41: Impact ‘my finances’ have on my mental wellbeing, Gen Z women vs overall, March 2020
- Go mobile to support Gen Z women
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- Figure 42: Money Talks Story #1 – Sophia + Imran, December 2018
- Figure 43: Money Talks Story #2 – Alyssa + Keith, December 2018
Approach to Living Life
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- Gen Zs are focused on being present and developing healthy habits
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- Figure 44: Preference for planning ahead vs living in the moment, by generation, March 2020
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- Figure 45: Belief that healthy habits vs occasional indulgences is the key to living a good life, by generation, March 2020
- Set them up for success by helping create helpful habits they can take into adulthood
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- Figure 46: Nespresso Facebook post, June 2020
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- Figure 47: Impossible Foods Instagram post, May 2020
Managing Stress
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- Connecting with others is an important way for Gen Z to manage stress
- Gen Z men and women require different avenues when managing stress
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- Figure 48: Types of activities used to manage stress, Gen Z men vs Gen Z women, March 2020
- Video games can be an effective channel to support the mental health of Gen Z men
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- Figure 49: Netflix Instagram post, April 2020
- Traditional tactile activities will be effective in helping Gen Z women address stress
- Familiarity matters in uncertain times
- Enhance the comfort of food and personal care products with functionality to connect with Gen Z women
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- Figure 50: Sheepworld Schoko-Wochenkalender (Germany), October 2019
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- Figure 51: Yocha Earl Grey & Lavender Stress Away Kombucha (Singapore), March 2020
- Figure 52: Kuzala Organics Lavender Coconut Macaroons (US), September 2019
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- Figure 53: Aveeno Stress Relief Crema Corporal (Canada), June 2020
- Helping Gen Z safely engage in old-fashioned in-person gatherings will matter
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- Figure 54: Dos Equis Instagram post, June 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations
- Terms
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