GEN Z Report: how is Generation Z shaping the FMCG market?

This article is available for reading in Trade magazin 2025/5.

Young people are less receptive to traditional advertising, preferring instead authentic, short, entertaining or informative content

Family background

Family background has a big influence on the financial security of Generation Z. For instance 77% of university students still live with their parents. This means their spending isn’t dominated by everyday expenses, but by having fun and quality experiences. 53% of young people receive pocket money regularly. The average Gen Z consumer spends 4.6 hours online a day and is typically most active in the evening. According to the research, the most popular platforms include Facebook (72%), Instagram (71%), YouTube (67%) and TikTok (61%). Young people are less receptive to traditional advertising and they prefer credible, short, entertaining or informative content.

Savvy shoppers

Although Generation Z values ethical and sustainable brands, value for money remains a key factor in their decisions. 37% of those surveyed reject brands that engage in unethical business practices, while higher prices deter many of them from buying eco-friendly products. Young people will research a product carefully before buying. More than half use Google to find information, 35% watch video tutorials and 33% visit price comparison websites. This means that brands need to provide detailed, credible and easily accessible information about their products, especially on social media platforms.

Brand loyalty

While members of Generation Z recognise established brands, they are also open to new possibilities. Impulse buying is less characteristic of them and conscious and targeted decision-making dominates. According to the study, young people are willing to pay more for a brand if it represents authentic values, offers innovative solutions and provides them with a real experience. Quality is a key driver of Generation Z’s purchasing decisions, with 73% willing to abandon a brand if its products don’t meet their quality expectations. However, they are also ready to choose non-branded or private label products if their quality is good.

Brands should deliver authentic messages that young people can emotionally identify with

Online shopping

For Generation Z online isn’t only an option, but often the main shopping channel. Foreign online stores, especially TEMU and SHEIN, are gaining ground among young Hungarians. This is primarily the result of low prices and a large product selection, which give them a competitive edge over traditional shops. Research reveals that young people are looking for simplicity and speed when shopping. Therefore, companies need to provide a seamless online shopping experience that minimises complex steps and maximises transparency. 78% of Generation Z still regularly shop in physical stores and this fact may be particularly important for FMCG brands. //