By Claire Moraa
- Gen Zs are redefining luxury based on their willingness to spend on experiences rather than material things
- 63% of Gen Zs say they are more likely to spend on sustainable products rather than luxe items
You’d be surprised, or not if you found out that Gen Zs would rather spend their money on experiences rather than material things. The luxury market shifting was not on anyone’s bingo card but neither was the Covid-19 pandemic which caused the total global luxury market to shrink by 20–22% to and losing approximately $1.15 trillion, returning to levels seen in 2015. And while the market is still recovering, the young generation have their priorities set and would rather spend on real estate, luxury cars, private jets and collectibles.
Why This Matters: The preferences of millennials and Gen Zs for certain luxury goods reflect shifting values, lifestyle choices, and priorities among younger consumers. The desire for specific luxury items may be driven by factors such as sustainability, social responsibility, uniqueness, and experiential elements, signaling a departure from traditional notions of luxury based solely on price and status. It’s been over half a decade since the pandemic but the luxury market is yet to return to its glory.
One of the reasons is that a whopping 63% of this demographic would rather pay for sustainable products rather than follow brand names blindly. As consumer preferences and tastes continually evolve, luxury brands must heed to the call and adjust. Exclusivity is no longer a key selling point and brands must revise their previous strategies to focus on inclusivity, authenticity, and marketing that resonates with younger, values-conscious consumers. Failure to which they may miss out on the steadily growing luxury market that is set to hit highs of $131.6 billion in 2028.
What’s Next: The old model focused on exclusivity, brand logos and status is losing relevance. The good news is that the market isn’t shrinking, it’s evolving. Brands that embrace this shift can unlock deep loyalty and long-term growth. Those that don’t? They may find themselves luxury in name only. If brands cling to outdated notions of prestige, they risk becoming irrelevant.
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