Generational buying habits reflect how different age groups approach spending – basically, what they are influenced by and what they prioritise in the products and brands they consume.
A greater understanding of generational behaviours can help you to target your marketing to specific generational personas, for deeper impact and more meaningful campaigns.
Gen Alpha, born between 2010 and 2024, are brand-aware, often shopping in stores such as Lululemon and Sephora – like their millennial parents. This demographic’s economic footprint is expected to reach £4.2tn by 2029, more than Gen Z and Millennials combined, with an additional £237.5bn in spending power through parental influence.
Gen Alpha’s favourite brands include Amazon, Apple, Nintendo and Target in the US and Smyth’s Toys, Sports Direct and Tesco in the UK – proving to brands that audiences can no longer be defined by narrow demographics. Razorfish reports that Gen Alpha and Gen Z share all but two of the same top favourite brands – and millennials are likely to share the same Stanley tumbler as their kids.
98% of UK adults aged 16-24 and half of all 9-year-olds now own a smart phone – so it’s no surprise that Gen Alpha have more mature brand tastes. Because of easy access to Instagram, TikTok and other social media apps, Gen Alpha is enjoying the same content as older generations – and picking up on the marketing.
Gen Alpha is increasingly turning to YouTube as their platform of choice. According to research by Razorfish, 51% of Gen Alpha's initial brand exposure comes through YouTube videos. Additionally, nearly 60% of parents report that their children engage with shopping-related content, such as hauls, unboxings and shopping vlogs, on the platform.
Sources: Gen Alpha are ready to spend – and they want to be treated like adults - BBC Worklife
UK Mobile Phone Statistics 2024 - Stats Report - Uswitch
Exploring Generation Alpha - Razorfish
Although Gen Alpha are immersed in the digital marketing across social media, they still want somewhere to hang out. While physical retail has seen a decline, with many shopping centre and high street stores closing their doors for good, shopping in person has become popular with Gen A and Gen Z.
For Gen Alpha, big stores like Target and Tesco offer a ‘retail playground’ for a generation who have very few physical spaces to hang out with their friends and gain a sense of independence.
Source: Gen Alpha are ready to spend – and they want to be treated like adults - BBC Worklife
There’s lots of great examples of skincare brands that target their marketing towards a younger audience. Byoma, a skincare brand stocked at Boots, Cult Beauty, Sephora and Amazon, keeps prices low and packaging bright and colourful. UK skincare brand Bubble follows a similar strategy, tapping into the Gen Alpha market with fun packaging that provides the perfect TikTok aesthetic.
Source: Gen Alpha are ready to spend – and they want to be treated like adults - BBC Worklife
Generation Z, born between 1997 and 2012, are estimated to have £353bn in spending power across the world. With most of Gen Z on entry level wages, stretching pay checks during inflation and a high cost-of-living, money is a daily concern – which impacts Gen Z’s buying habits. This generation thinks deliberately about what they spend their money on, and quality is critical when choosing what to splurge.
Source: The picky buying habits of Gen Z consumers - BBC Worklife
There’s lots of factors that affect Gen Z’s purchases. 62% prefer to buy from sustainable brands and 72% are likely to make purchases based on personal, social and environmental factors.
Small-feel good purchases are common – Gen Z increased their health and beauty spending by 17.5% in 2024. This could be down to the fact that Gen Z will be paying 2x as much for mortgage repayments compared to older generations, leading to a rise in ‘doom spending’ – the act of making impulse purchases to soothe anxieties about socio-economic issues.
Food and dining-out are also popular with Gen Z – their share of spending on eating and drinking is almost twice that of the overall population.
Source: Karen Johnson on Gen Z spending trends | UK economy | Barclays
Although they are twice as likely to discover products on social media than other generations, Gen Z is also most likely to use physical stores to purchase new brands or products. Gen Z will account for 30% of the workforce by 2030 – making it a huge opportunity for the retail industry to seize.
Another reason for the interest in in-person spending may be that over two-thirds of Gen Zs prefer to buy second-hand rather than new. This generation is attracted to pre-loved goods because they find them more fashionable (30%) and are more likely to find unique items that their peers don’t have (31%).
When it comes to Gen Z’s go-to channels, it’s no surprise that social media is at the top of the list. In fact, there’s been a 25% drop in the use of Google for searches, with Gen Z turning to platforms like TikTok instead. It’s part of a bigger trend where they’re using social media to find information.
When they’re looking for new products, especially in categories like beauty, food and drink, or even OTC health products, social media is usually their first stop. TikTok leads the way here, with 35% of Gen Z discovering new products through the app. What’s even more interesting is that they trust TikTok the most when it comes to keeping their privacy safe. Instagram comes in second for product discovery, so it’s still very influential in their shopping habits.
Sources: Karen Johnson on Gen Z spending trends | UK economy | Barclays
Is social media the new Google? Gen Z turn to Google 25% less - Forbes
The beauty brand REFY is a great example of Gen Z marketing that focuses on trust, quality and experiences. With vegan, cruelty and fragrance-free products that are developed for a range of skin tones and types, they hit a lot of key considerations for the Gen Z market. They also put a huge focus on community – with brand events for consumers and strong engagement on their social channels.
Born between 1981 and 1996, millennials are an increasingly powerful force in the economy. Both Gen Z and millennials account for 25% of the UK’s total retail spend.
Unlike Gen Z and Gen Alpha, millennials tend to shop online, with 59% of millennials reporting that they shop for clothing and shoes on digital platforms. This marked preference for online shopping could have something to do with cheaper prices, as 43% of millennials report that they are looking for less expensive items than what they can find in-store.
This tendency for online buying means that buy now, pay later services are used frequently by millennial shoppers. In 2024, one in five millennials said they planned to use these services while shopping – so for brands looking to tap into the millennial market, it would be beneficial to have buy now, pay later available on their online stores.
Source: Millennials' Online Shopping Statistics [Jul 2023 Update]
Fashion dominates spending using Clearpay, accounting for 65% of millennial spend – and home and recreation spending is the fastest-growing category, accounting for 9% of millennial spending and growing 300% year-on-year.
In January 2025, 27% of 18-34-year-olds splurged on clothing. Some of this could be traced back to influencer marketing, with two-thirds of millennial social media users following influencers. The surge of micro-influencer partnerships has shaped a more targeted approach, with 47% of UK consumers making purchases based on creator recommendations.
As for preferred channels Around 86% of Millennials use Instagram with 87% using Facebook, and 73% use TikTok, making these platforms crucial for brands aiming to capture this demographic’s attention.
Sources: Inside the latest Clearpay report on Millennial & Gen Z shopping trends
UK Gen Z & millennials: consumer goods and shopping behavior - statistics & facts | Statista
UK Influencer Marketing 2024: what you should know
Fashion brand TALA, founded by influencer Grave Beverly, is a great example of a millennial-focused brand. The activewear clothing is made from recycled and natural materials, tapping into the sustainable market – and the brand is heavily promoted by Beverly on her social channels, giving consumers behind-the-scenes access to founding and running a business.
Born between 1965 and 1980, Generation X has huge spending power. 64% of generation X households do not have children living at home and have two main income ranges: 44% have a middle-range income and 39% have high income.
Source: Gen X Spending Power: Trends Shaping Their Shopping Habits
Generation X consumers buy items both online and instore, depending on the product. 3 in 10 Gen X consumers buy beauty products and electronics online, while 90% buy groceries and 62% buy pharmaceutical products offline.
This generation are also motivated by value, over price tags. They are often influenced by friends and family (16%), information from comparison sites (14%) and trustworthiness of the supplier (9%). Appealing to the Gen X market often means building trust over offering the lowest price.
Source: Generation X Lifestyle and Buying Habits [Updated Jul 2023]
7 Gen X Characteristics To Know In 2024 | GWI
Gen X spend the most out of any generation, making on average over 480 shopping trips a year.
When they’re not opting for convenience, Gen X like to spend their money on eating out. Gen X are 14% more likely than other generations to get food on the go, making them the base consumer group for fast food restaurants. They are also more likely to eat out in general – with 1 in 10 Gen X households reporting that they eat out four or more times per week.
Source: Gen X Spending Power: Trends Shaping Their Shopping Habits
As a generation that wants to see product value before they make a purchase, it’s important for brands to show reciprocal loyalty.
A great example is loyalty programmes with benefits like discounts, cashback and free products. Brands like Aldi, Lidl and ASDA are great examples as they offer loyalty programmes and offer convenient shopping experiences at affordable prices. Aldi (79%), Lidl (77%) and ASDA (74%) were Gen X’s top three favourite supermarket chains in 2024.
Source: Who Are Gen X and How Can You Tap Into Them for Your Business? | BIMA
Boomers, born between 1946 and 1964, make up a considerable portion of the population. In 2022, there were over 13 million Boomers in the UK – making them a great market for brands to tap in to.
Source: How to Market to Baby Boomers in the UK | Adobe Express
Unlike other generations, Boomer spending habit revolve around recreation, culture and fun activities. ONS consumer trends data shows that consumers aged 75 and above and 50 to 64 spent more on alcoholic drinks and tobacco than the under-30s.
The average household spends £56.10 a week on recreation and culture while the top earning 65- to 74-year-olds spent £88.87 – this includes trips to the cinema, theatregoing, garden tools, newspapers, books and package holidays.
Baby boomers have a bit of a different approach when it comes to discovering new brands. Unlike younger generations, they’re more likely to find brands through more traditional methods, like ads in newspapers, articles, or even emails and letters from brands. And let’s not forget TV ads – they still play a big role with 45% of baby boomers say they discover new brands through ads seen on TV, making this a vital brand discovery channel. They’re also 39% more likely than the average person to discover a brand this way.
For Boomers, it’s all about fun. Saga, the business that caters for the over-50s, found that 15.8 million travellers took on average 3.3 trips a year, or 52 million holidays in 2022. Condor found that 83% of boomers planned to take between one and five trips ‘for fun’ in 2022 alone.
And it’s not just holidays. In 2019, there were almost 13.5 million rounds of golf played in the UK. GolfNow reports that the over-55s age ground accounts for 32.2% of memberships to its BRS gold tee booking site.
Baby boomers’ spending habits in 2025 - GWI
74% of baby Boomers in the UK use travel company websites to find information about new travel destinations and to book holidays. With Boomers increasingly wanting personalised trips, package holiday sites for the over 50s, such as Saga, Intrepid and On-the-Go Tours, are all great examples of brands that cater to this market – offering door to door travel, organised trips and a travel community.
Sources: Baby boomer tourism market potential | CBI
Entering the European market for baby boomer tourism | CBI
Understanding generational buying habits can help you implement generational marketing for your brand. This strategy segments audiences based on age groups, allowing you to tailor your marketing messages and campaigns.
From Gen Alpha to Boomers, focusing on personalisation caters to the individual preferences and needs of each generation – giving your brand an edge in the market.
At STM AGENCY, we’re dedicated to understanding your brand, and your target audience. For more support with tailoring your campaigns to specific audiences, speak to STM REACH and STM CREATE – we’re here to help you create and execute campaigns that deliver. Get in touch today.