Estimated read time: 6 minutes

How small businesses and community organizations can build trust with Gen Z consumers in the coming year.

---

A Look Back At Generation Z Behavior in 2025

With approximately 2 billion Gen Zers worldwide, the demographic constitutes about 30% of the global population and are expected to make up 27% of the global workforce this year [Zurich Insurance, Federated Hermes, 2025]. In the United States, there are roughly 69 million Gen Z individuals, comprising over 20% of the U.S. population [U.S. Census, 2024].​

Gen Z’s U.S. annual spending power is estimated to be around $360 billion in 2025, with projections showing their influence on market trends and spending behaviors surpassing previous generations over the next decade [NielsenIQ, McKinsey, 2025]. Their preferences emphasize transparency, diversity, and personalized digital experiences. Unlike Millennials, Gen Z consumers seek brands that not only offer quality products but also align deeply with their personal values and social causes.

Here’s what small business owners need to understand about Generation Z’s values, interests, and preferences when making buying decisions.

1. Gen Z Consumers are Mobile-First and AI-Native

Generation Z seamlessly blends technology into daily life. Approximately 80% of Gen Z shoppers use mobile devices monthly for purchases, often relying on AI-powered tools such as chatbots, personalized recommendation engines, and voice-activated search [Deloitte; GWI]. This generation expects fast, smooth experiences and values immediacy combined with personalization.​

Sales Tips For Connecting with Gen Z Consumers

• Prioritize social content creation on TikTok, Instagram Reels, and YouTube Shorts, the leading platforms where Gen Z discovers new products and brands.
• Design websites primarily for mobile devices, ensuring fast load times and intuitive navigation.
• Embrace AI customer service tools to engage users with tailored help and product recommendations in real time

2. Generation Z Shoppers Value Authenticity and Transparency

Trust in marketing is earned through authenticity with 84% of Gen Z reporting higher trust in brands that showcase genuine customer stories and social proof [Ipsos; Morning Consult]. The ideal content for this demographic is unfiltered, real-life storytelling that conveys brand personality and values without slick marketing jargon.​

Tips For Building Trust with Gen Z Consumers

• Highlight testimonials from diverse, real customers.
• Share behind-the-scenes content showing ethical supply chains, employee stories, and community engagement.
• Avoid generic stock imagery; instead, use photos and videos reflecting community diversity and inclusion efforts.

Focus on being honest and transparent in sales efforts and avoid using misleading or manipulative tactics to gain customers’ trust. Instead, be genuine and show the brand’s personality, values, and beliefs in their communication with customers.  

Gen Z is more likely to engage with content that feels genuine and relatable. Low-effort content that showcases the brand’s personality and values, rather than relying on expensive advertising methods can be competitive against big brands.

3. Gen Z Shoppers Prefer Personalized Shopping with Privacy

Gen Z desires personalized shopping but strictly on their terms—with 71% requiring brands to request explicit consent before using personal dataThe term Data as defined in business. More for targeted marketing [Deloitte].​

DataThe term Data as defined in business. More Protection Tips For Connecting With Gen Z

• Implement opt-in mechanisms for dataThe term Data as defined in business. More collection that are simple and transparent.
• Use collected dataThe term Data as defined in business. More to tailor relevant offers, but provide clear opt-outs and privacy policy explanations.
• Maintain dataThe term Data as defined in business. More security rigor to build trust.

4. Gen Z Values Social and Environmental Action

Environmental and social causes are non-negotiables for Gen Z buyers: 76% of Gen Z prefer brands actively reducing their environmental footprint [NielsenIQ] , and 70% are prepared to pay higher prices for brands demonstrating equity and sustainability commitments [McKinsey]. This generation scrutinizes impact reports, packaging, and corporate ethics.​

Social and Environmental Tips For Connecting With Gen Z

• Publish sustainability goals and progress metrics to maintain transparency.
• Adopt eco-friendly materials and packaging.
• Partner with credible charities and disclose contributions publicly.

5. Generations Z Buyers Value Diversity and Inclusion

Gen Z is the most racially and ethnically diverse generation, with nearly half identifying as non-white [Pew Research Center]. They actively support businesses that demonstrate inclusivity in marketing, products, and corporate culture.​

Diversity and Inclusion Tips For Connecting With Gen Z

• Develop marketing campaigns reflecting diverse race, gender identity, abilities, and socioeconomic backgrounds.
• Cultivate diverse supplier and vendor ecosystems.
• Provide ongoing inclusivity training and create safe, welcoming spaces in physical and digital environments.

---

Gen Z Shopping Trends Going Into 2026

• Selective & Value-Oriented: Gen Z spent cautiously during economic uncertainty in 2025, with many preferring quality over quantity but willing to invest in brands reflecting their values [PwC].​
• Omnichannel Savvy: While 52% primarily shop online, 55% enjoy in-store experiences that offer community connection and product discovery [U.S. Census Bureau].​
• Flexible Financing: Adoption of Buy Now Pay Later is widespread among Gen Z, enabling budget-conscious purchasing.
• Secondhand & Circular Economy: Gen Z is 8% more likely to buy vintage or pre-owned goods on platforms like Depop and Poshmark compared to older consumers [PwC].​

---

A Simple, Actionable Checklist for Gen Z Marketing

• Mobile-optimize platforms and add AI customer service tools.
• Build authentic brand stories with transparent social impact reporting.
• Use consent-based dataThe term Data as defined in business. More personalization strategies for marketing.
• Demonstrate measurable sustainability progress and social responsibility.
• Implement visible diversity and inclusion internally and externally.
• Optimize local SEO focused on Cambridge and Boston Gen Z searches.

About The MTM Network by The MTM Institute

We grow local economies by bringing business owners together for strategic collaboration. All are welcome to come, connect and collaborate locally and online. To remain accessible, we are a free business network hosted by The MTM Institute, a 501(c)3 nonprofit organization registered with the Internal Revenue Service.

The MTM Institute strives to empower vulnerable communities, including low-earners, veterans, and survivors of violence and abuse. Our mission is to create safe and accessible spaces for the growth of local economies.

Fueled completely by the generosity of MTM Network volunteers and donors, we support new and growing entrepreneurs, artists, and organizers with educational programs, business services, and inspiration. Our educational programs teach mindful business management through executive leadership, time management, and money management mentorship.

Connect with us at https://mtminstitute.org/joinfree.