Introduction
Gen Z – the generation of people born in the late 1990s and early 2000s - is a powerful consumer group today, and they will continue to be influential in the future.
According to Euromonitor, this demographic constitutes one-fifth of the current population, and they are expected to have “more than a twofold income surge by 2040.”
Gen Z’s motivations can often conflict, with opposing priorities impacting their behavior. They value social and environmental responsibility but may not want to pay a premium for these attributes. They appreciate technology while being skeptical of its adverse effects on emotional wellbeing and personal privacy. They often want to splurge on small moments of happiness but are also cautious spenders. Understanding the complexities of the Gen Z consumer is critical in creating products and packaging that appeal to them.
Here are some strategies to consider when marketing to Gen Z.
Authentically Empower Change
Gen Zers want to make a difference and feel they are impacting change. These consumers want to support brands that align with their values and beliefs and are willing to boycott those that don’t. They appreciate companies that “take a stand” or raise awareness about issues they care about, including diversity, inclusion, and mental health advocacy. Brands can support these issues – and others like sustainability, social justice, and gender equality - but they must do it in an authentic way. Choose a topic or cause that is meaningful for your brand and its consumers and demonstrate clear messaging or action related to that issue.
53.6% of Gen Z feel they can make a difference through their choices and actions. (Euromonitor)
Gen Zers are often cynical about big companies and hold them accountable, so it’s important to be transparent and trustworthy. If your brand prioritizes sustainability, ensure you aren’t greenwashing or making misleading claims. Berlin Packaging’s global sustainability team helps brands find effective and impactful sustainable packaging solutions. We conduct lifecycle analyses (LCAs) to quantify a product’s environmental impact over the course of its entire lifecycle, and our team also helps with messaging to ensure you’re connecting with consumers honestly and authentically.
Allow for Expression & Individuality
Self-expression and individual identity are highly important to Gen Z. According to GlobalData, “Gen Z consumers also desire products and services to be personalized to their individual needs. They do not want to be generic consumers whereby thousands of others have identical products.” Customizable products and personalized labels can meet this generation’s desire for individuality and uniqueness. Nike by You allows customers to design their sneakers by selecting colors and materials that match their style.
45.2% of Gen Z respondents said they liked to be distinct from others. (Euromonitor)
Gen Zers also value creativity and creation. In a recent Euromonitor survey, 45% of Gen Z respondents said they want to engage with brands to influence product innovation. New beauty brand Kiki World involves consumers in the creative process by letting them vote on products and product features before launching. This type of co-creation develops meaningful connections with consumers and drives brand loyalty.
Create Community & Connectivity
Gen Z are digital natives who grew up with technology and heavily rely on it in their day-to-day lives. Social media sites like TikTok and Instagram have gained popularity, with Forbes finding that almost half of Gen Zers primarily use social media to get their information. Gen Zers use these online platforms to connect with people and engage with communities that share common interests. Brands should consider ways to create online communities for Gen Zers to connect with brand ambassadors, influencers, product experts, and like-minded consumers. Starbucks Odyssey is a gated community on Discord where loyal app users can engage with each other and share their experiences.
“Gen Z, often seen as the loneliest generation, seeks inclusion and connection through new social media and online communities, countering the belief that technology divides rather than unites.” (Euromonitor)
GlobalData found that almost half of North American Gen Zers find it essential or nice to have a recommendation from social media when making purchase decisions. Generating video-centric content on social media platforms is one way to connect with Gen Z. Berlin Packaging has expertise in creating buzz-worthy influencer kits that encourage influencers to post videos about the packaging & products on social media.
Offer Affordable Indulgence
Low incomes, higher prices, and economic uncertainty are causing Gen Z to be more cautious with their spending. However, this generation also appreciates small indulgences that bring them joy. They are pragmatic and balance budgetary concerns with their desire to treat themselves. According to Euromonitor, “buying fewer but higher quality” and “finding bargains” top the list of Gen Z shopping preferences. Brands can achieve both by offering rational indulgences, like smaller sizes of impulse items or trendy versions of staple items. Walmart is targeting Gen Z with its new bettergoods brand of quality, trend-forward, culinary products.
“The economic downturn has instilled a pragmatic and more defensive spending mindset among Gen Z consumers, with 43% expecting to cut back on non-essential spending.” (Mintel)
Gen Z tends to be less loyal to brands than older generations, so creating improved experiences can differentiate from the competition and drive loyalty. Superior packaging solutions can reinforce quality and create an elevated and indulgent user experience. This can include fun graphics, unique structures, and unexpected secondary packaging. Berlin Packaging creates award-winning custom packaging solutions that appeal to Gen Z consumers. Our team developed one-of-a-kind packaging for Ariana Grande’s Thank You Next and Cloud fragrances.
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The brands mentioned in this report are trademarks of their respective owners. Inclusion of these brands in this report is not meant to imply an association with or endorsement from the respective trademark owners.