Trying to understand slang or habits is not just a fun storyline for a TV show, but plays a bigger role for brands as younger generations come of age and have a bigger impact on the consumer packaged goods (CPG) market. Generation Z unleased “cheugy” while Generation Alpha has embraced the phrase “sus.” These are just a few of the phrases that brands need to understand as they look to connect with these younger generations ― and make sure they are using them correctly.

Depending on the research Gen Z typically is identified by those born between 1998 and 2012, while Gen Alpha are those born between 2013 and 2024 ― 2025 marks the beginning of the newest generation: Generation Beta.

With Gen Z including cohorts in professional career ranges, this demographic already is having a massive influence on the market. In fact, a July 2024 analysis from NielsenIQ titled “How Gen Z Consumer Behavior is Reshaping Retail,” the market research firm notes that the generation’s spending power is projected to grow to an estimated $12 trillion by 2030.

Among Generation Z’s key characteristics, NielsenIQ’s analysis describes the demographic as digital natives, value driven and show a preference for personalization.

“Gen Z consumers prioritize authenticity, sustainability and social impact, making these factors essential considerations for any brand hoping to connect with them,” the analysis states. “Additionally, their proficiency with technology and preference for seamless, omnichannel experiences set them apart from older generations, necessitating innovative approaches in both product offerings and marketing strategies.”

That omnichannel experience has become more valuable particularly with advancements from technology. NielsenIQ’s analysis notes that Gen Z’s value for convenience and flexibility has had an impact on online and offline shopping operations.

“Click-and-collect services, where customers can order online and pick up in-store, have become increasingly popular among Gen Z shoppers,” the analysis states. “Additionally, retailers are investing in technologies that allow for a more cohesive shopping experience, such as mobile apps that enable in-store navigation, product scanning, and easy access to online reviews and inventory checks.”

An August 2024 article from McKinsey & Co. titled “What is Gen Z?” echoes similar sentiments, noting that mobile pay, app-based services and simple online transaction are important to Gen Z and has resulted in success for brands.

“Many Gen Zers throughout Asia see the internet as the first place to go when researching new products to purchase; in the United States, 40% of Gen Zers admit to being influenced online, often by the brands featured in the videos they watch,” the article states. “Members of Gen Z filter a lot of information, from influencers, family and friends, to decide where and how they want to spend.”

NielsenIQ’s analysis explains that implementing a social commerce strategy ― the amalgamation of social media and eCommerce ― is vital for brands wanting to engage with Gen Z consumers.

“One interesting insight is that although Gen Z consumers often begin their shopping journey online and are heavily influenced by social media, their share of in-store mass merchandise dollars surpasses that of any previous generation. In fact, their combined in-store mass merchandise and grocery purchases account for nearly 50% of their total spending,” NielsenIQ states, citing omnishopper data for the 52 weeks ending Jan. 27, 2024. “This highlights the continued importance of brick-and-mortar shopping and positions Gen Z as the most authentic ‘omni’ shopping generation to date.”

Gen Z’s balance of brick-and-mortar and digital, however, also seems to exemplify the generation’s interest in traditional shopping and habits. In a GWI 2023 trends piece titled “How are Gen Z and millennial driving nostalgia?,” Stephanie Harlow wrote that Gen Z was the most nostalgic of the generations with 15% noting they would prefer to think about the past rather than the future.

Harlow’s trends article noted nostalgia interest from Gen Z can be found in a host of items including movies, clothing, music, books and more.

This past holiday season, Peet’s Coffee, inspired by Gen Z's embrace of nostalgic pastimes, revived the art of the handwritten note with its “Postcards from Peet’s.” The coffee bar outlet hosted an event for consumers to receive a complimentary mocktail from the holiday Bar Menu ― Sparkling Tiger's Eye, The Bestie, or The Derby ― and receive a limited-edition holiday postcard designed by artist Lisa Congdon. Each postmarked card encouraged consumers to send a heartfelt, handwritten message to loved ones. The postcard also included a $10 discount to Peets.com.

“Partnering with Peet’s Coffee this holiday season on ‘Postcards from Peet's’ has been such a joy,” stated Congdon, at the time of the announcement. “For me, both art and coffee are about bringing people together ― even when they’re miles apart. So this warm and cheerful postcard is the perfect opportunity to take a pause in the holiday hustle and turn a regular coffee break into a small celebration of heartfelt connection.”

Beyond how they are shopping, research shows that Gen Z also is interested in how products are made.

McKinsey’s article notes that Gen Z’s path to purchase also is weighted on purpose and green practices.

“In one McKinsey study, 73% of Gen Z reported trying to purchase from companies they consider ethical, and nine out of 10 believe that companies have a responsibility to address environmental and social issues,” the article says. “However, they can tell when a brand is just paying lip service and isn’t backing up diversity or sustainability claims with real change.”

Still, some research suggests that Gen Z’s ties to environmental issues is not intrinsic to their personalities. In a Mintel article titled “The Future of Consumer Behavior in the Age of Gen Z,” which was updated in November 2024, it notes that few view climate issues as a defining characteristic, yet still see it important to hold brands accountable with the Chicago-based market research firm noting that 34% agree that brands should be boycotted if they do not act on social and environmental issues.

What does define Gen Z though is their “super-snacking” habits. According to Mintel’s research a quarter of Gen Z snack more than once a day, which could offer brands an opportunity to appeal to different dayparts, it notes.

“Nightfood Sleep Friendly Cold Brew Decaf Ice Cream, for instance, targets Gen Z’s ‘nighttime cravings’ and is advertised as an emotional pick me up,” the article states. “Contrary to widespread assumptions, Gen Z isn’t the generation that craves healthy eating. Instead, they have adventurous palates and embrace food that stimulates their senses, partly driven by their early exposure to international flavors. Gen Z’s love of discovering new flavors is tapped into by the monthly subscription service by Universal Yams by delivering a selection of snacks from different countries.”

Mintel also touches upon the most common of the Gen Z beverage trends noted: low- and non-alcohol beverages.

“Compared to other generations, Gen Z has the highest usage of low- and non-alcoholic drinks peaking at 64% for 18-24-year-olds,” the article states. “There is ample opportunity for the main players to create non-alcoholic products that can be consumed at various occasions such as relaxing evenings in, ‘high-tempo’ nights out and mealtime accompaniments.”

Yet, the market research firm cautions not to overly categorize the generation as it notes that many still do drink and could be drawn to alcohol beverages that feature exciting innovations, including glitter or color changing aspects.

Ready for Gen Alpha?

With so much interest on Generation Z, it would be remiss to forget that Gen Alpha also is having quite the influence on the CPG market.

In a report from Numerator titled “Anticipating Generation Alpha,” the market research firm estimates that this coming-of-age generation already accounts for $28 billion in direct spending and billions more in indirect spending.

Through a survey of households with a child under the age of 15 the research looked at consumer purchase data for the 12 months ending Jan. 31, 2024.

Citing U.S. Census data through eMarketer, the report estimates there are 46 million Generation Alpha children. Based on the Numerator survey, it estimates 53% earn some sort of an allowance, with the average weekly allowance given totaling $22.

With access to their own money, this gives Gen Alpha the ability to exercise direct spending on consumables and durables. The following are the Top 3 categories:

• Toys – 48%
• Snacks – 42%
• Beverages -31%

When breaking it down by age brackets, beverages’ importance to Gen Alpha varies. For those aged one to five, beverages came in at No. 4 overall. For those aged six to 10 it was even lower at No. 6 overall. However, those aged 11-15 saw beverages jump to No. 2 overall, behind only snacks.

When it comes to indirect spending, Gen Alpha also is having an impact. When asked how often they let their child independently choose products, 41% of respondents noted they usually or always do when it comes to beverages, with 29% indicating about half of the time. Thirty percent responded rarely or never.

Numerator’s report concludes that brand owners should not wait on Generation Alpha as they look to engage with this generation.

“Brand leaders must prioritize understanding the direct and indirect spending among parents with Gen Alpha children and find ways to incorporate their brand across all life stages,” it notes. “Use panel insights and sentiment data to understand core drivers among Gen Alpha parents and their households. Additionally, retailers and manufacturers should collaborate to discover the right shopper marketing activations to reach these parents. Brands like Stanley and Lululemon have already made an impact by resonating with Gen Alpha.”

Paragraph: Johnson explains that the alcohol category is seeing four major trends influence the market: health and wellness, premiumization, ready-to-drink (RTD) beverages, and changing consumer demographics and media consumption.

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