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Gen Z shoppers are aggressively trading down on everyday staples like food and household goods to free up money for premium wellness and beauty purchases.
Key Takeaways
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Trading down to trade up: A majority of Gen Z consumers report cutting spend on basics and turning to private label for categories like food, beverages and household goods, while paying premiums in health, wellness, skincare and beauty to match their priorities.
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National brands’ grip is loosening: Gen Z is less likely than baby boomers to say national brands “stand out first” on the shelf, often viewing them similarly to private label and challengers, even though they still rank national brands as their top purchase choice when options are forced.
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Challengers, subscriptions gain momentum: Younger consumers show higher engagement with dollar-channel food purchases and product subscription services than older cohorts, suggesting that value-driven experimentation and convenience could accelerate a generational shift away from legacy brands over time.
