As a young population faced with certain struggles for the first time in their lives, Gen Z are in a position that requires extra guidance and support. On top of the challenges of transitioning into adulthood, Gen Z must also navigate the added uncertainty brought about by the COVID-19 pandemic and extremely high levels of inflation. For brands, this means that plenty of opportunity exists to help this generation take control over their lives as they venture toward independence. To resonate with this generation, brands can focus on helping them build their personal and financial confidence. This is especially important when targeting Gen Z women, as gendered differences still persist in terms of spending responsibilities to how they feel they are represented in advertising.

• Gen Z’s top spending priorities

• Gen Z’s personal priorities for the next five years

• Shifts in Gen Z’s general priorities since the COVID-19 pandemic

• Gen Z’s perceived sense of control over their personal futures

• Gen Z shopping preferences

• Gen Z’s perception of relatability and representation in marketing

Mintel defines Generation Z as the generation born between 1997 and 2010. In 2022, members of Gen Z are between the ages of 12 and 25. For the purposes of this Report, Mintel has further defined Gen Z consumer segments as the following:

• Gen Z teens: those aged 12-17

• Gen Z adults: those aged 18-25

Note: Mintel parameters for defining Generation Z shifted in 2021. Prior to 2021, Mintel defined Generation Z as the generation born between 1995 and 2007.

Consumer markets have faced an unprecedented level of turmoil in recent years. At the start of 2020, COVID-19 caused massive economic disruption, as various stay-at-home orders were introduced and nonessential businesses were closed. Consumer behavior shifted drastically, with much greater demand for at-home products and delivery services straining an already challenged global supply chain.

Business operations resumed in most parts of the country in 2021 as vaccines were administered and social distancing restrictions and capacity limitations were relaxed. However, localized surges in case counts and the rapid spread of the Delta and then Omicron variants caused increased business as well as travel restrictions in and out of the US, exacerbating supply chain shortages in many industries.

Early 2022 has seen a decline in COVID-19 cases in the US, while the conflict in Ukraine continues to escalate and more civilians are displaced. The economic fallout from the conflict and subsequent sanctions will include soaring energy prices, worsened supply chain disruptions and potential shortages of food and other natural resources.

As of March, the Conference Board expects US Real GDP to increase at an annualized rate of 3% for 2022, down from previous estimates of 3.5%. To curb rapidly rising inflation, the central bank is tightening monetary policy and analysts are predicting anywhere from three to seven interest rate hikes this year to limit the supply of money in the economy.

US inflation reached 40-year highs in early 2022, but barring a new, more severe COVID variant or expansion of the conflict outside of Ukraine, those figures should begin to stabilize and eventually fall as we enter the second half of the year. US consumers, however, should expect to see prices remain higher than they have been the past few years, as supply chain disruptions create product and labor shortages. As is often the case, wealthy Americans likely won't see much change to their daily purchasing behaviors. But those consumers unable to withstand price increases will have to choose between cutting back and increasing debt.

Consumer research for this Report was fielded in February 2022, and the analysis was written in June 2022.

Mintel’s economic assumptions are based on forecasts released by the CBO on November 10, 2021. The CBO expects US real GDP to increase at an annualized rate of 5.5% for 2021 (vs the 3.5% negative annual growth for 2020) and growth to continue in 2022 and come in at 3.5% for the year. The forecast is a downgrade from earlier projections because of an expected resurgence in new cases in COVID-19 during the holidays and colder months due to more time spent indoors. Furthermore, the CBO expects the US Federal Reserve will raise interest rates earlier and more frequently than previously anticipated, further hampering growth.