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Economic uncertainty and permanent stress have young people reluctant to fork out cash on purchases they don’t need, at least according to the latest research. What’s causing this hesitation to spend?
Are brands and marketers facing a potential crisis in 2026?
New research by The Robin Report has described Gen Z as ‘checked out,’ claiming that they’re ‘spending less and expecting more from retailers.’ The data suggests that young consumers are demanding, seeking out affordability from upscale-style companies to ‘express their values’ in a way that best suits them.
This latest batch of marketing data is backed up by other research, too. A major analysis of consumer transactions last year by PwC found that there was a 13% decline in Gen Z spending in the first quarter of 2025, particularly on apparel, accessories, and electronics. Similarly, in September, Reuters reported that Gen Z were reducing their holiday budgets by 23%, the biggest of any generation.
It seems likely that companies will have a hard time attracting new Gen Z customers this year, as more of us reassess our salaries and habits and consider cutting back on things we don’t need. Marketing headaches aside (sorry for the gloomy news, advertisers), what’s causing young adults to be so conservative with their cash?
The Robin Report notes several key factors. For one, the current, hostile economic climate is making it hard to justify luxury purchasing. Unemployment is sky-high, with UK numbers climbing up to 5.2% in the last financial quarter, a five-year record. Things aren’t too much rosier in the US, either, reaching a four-year high in November. Talk about a tough crowd – or job market, for that matter.
Young people are finishing university with a mountain of debt and are entering a workforce that seems less than eager to employ them. We’ve written before about the emergence of AI within creative industries and the impact this could have on wider job opportunities. It seems like we’re beginning to feel these effects already, as entry jobs feel fewer and further between compared to only a decade ago; even then, it wasn’t exactly plain sailing.
Another decider in Gen Z’s shopping habits could also be their strong attachment to individual, personal beliefs.
Despite the recent abandonment of diversity and inclusivity by many corporations in the US, Gen Z remains a mostly progressive, open-minded cohort that champions positive values. The Robin Report highlights how fashion trends have begun to move back toward skinny, unattainable ideals, with brands abandoning their consumer base in order to appease a social media-ready aesthetic. This is just one example of marketers overlooking the importance of genuine corporate morals; Gen Z still want to associate themselves with uplifting and forward-focused brands, and no amount of Ozempic or political grifting will change that.
We’ve also seen a shift in Gen Z’s ambitions and ideals over the past few years. As the reality of adulthood sets in for many twentysomethings, there is a feeling that sensible saving and smart budgeting is the way forward, rather than endlessly chasing trends that prioritise short-term gratification. Instead of parting with their own money, many young consumers are now living vicariously through lavish influencers on #RichTok, a phenomenon we explored a few weeks ago.
Brands will struggle to meet these savvy consumers in the middle if they don’t acknowledge the scope and breadth of the challenges facing Gen Z this year. All of the financial stresses currently plaguing young adults have made them cautiously selective and, while impulse buying and doom spending are certainly real, they’re not the generational standard…at least right now.
You can read The Robin Report research in full here. We’re not sponsored, a quick disclaimer! Make sure to keep up with all Gen Z news and trends with us. We’ll see you next week.
See also:
- Selling love to Gen Z in the ‘sex recession’ era
- Living offline has become Gen Z’s quiet luxury
- Gen Z are turning thirty…do they look it?
