Gen Z says 'we've never had it so good' as £3.6bn awaits

Rishi Sunak and his Tories might be trying to paint a picture of higher taxes and lower spending power under a predicted Labour Government, but according to Gen Z consumers, they have never had it so good, and are brimming with excitement as we head into Q4, with brands anticipating a £3.6bn spending bonanza.

With the highest levels of anticipation and a significant surge in positive emotions, Gen Z is eagerly awaiting family time, gift-giving, and the holiday season. This is not a fleeting trend but a significant shift in mood and behaviour, as revealed by the latest Student Insight Report, which presents findings from a comprehensive survey of 8,000 UK students in May by Unidays, the network that enables students and graduates to discover savings.

The report further reveals that, in a true reflection of the rollercoaster that is student life, Gen Z happiness scores are on the rise, and feelings of anxiety are falling compared to the last two quarters.

Still, students remain the most overwhelmed and nervous generation, with around a third reporting such feelings compared to less than a quarter of Millennials, Gen X, and one in ten Baby Boomers.

Unidays managing director of Retail Marketplace Derek Morrison said: “Gen Z has a lot going on in the coming months. From the back-to-school rush, pre-sales bargain-hunting, the gift-giving holiday, and looming January exams, they’ve got a lot on their plate.

“But, this unique and vibrant demographic is savvy when it comes to tracking down and capitalising on the best deals. Brands must meet them at their passion points by making the activities, products and services that fuel the hobbies and interests they love more accessible.”

The Student Insight Report highlights several key areas for brands to focus on in the final quarter. Technology, a perennial favourite and crucial aspect of Gen Z’s lifestyle, will see a category split from October to December. As priorities shift, music subscriptions drop from the highs seen in the back-to-campus rush, where exclusive student discounts drive uptake, while TV streaming subscriptions remain high.

Responses also indicate that gaming will peak earlier in Q4 as students dip into their first loan payment to make bigger purchases. Meanwhile, laptops and mobile engagements are expected to surge around Black Friday and Cyber Monday, as almost half of Gen Z users say they are planning to buy big-ticket items during the event.

Analysis further suggests that domestic travel will see a significant boost in the coming months compared to the summer as commuting between accommodation, university, part-time jobs, and social events intensifies. The timing of the October loan drop also means healthy bank balances, explaining why four in ten are looking to secure travel plans and confirm bookings.

Food and drink, fashion, and beauty retailers can also expect a strong engagement surge, with Gen Z set to buy more than £3.6bn worth of goods and services across the categories in the year’s final three months. Students additionally report an intention to spend more in the run-up to the gift-giving season so they can surprise friends and family with more expensive, luxury items.

Morrison concluded: “Gen Z has different needs and motivations compared to previous generations. That’s why Black Friday and Cyber Monday are so important. Eighty-five per cent of students say they’re waiting until the event to ensure they get the most out of their budget. Supporting them now during these crucial moments is a surefire way for brands to seize the opportunity to increase engagement, build awareness, and nurture Gen Z’s loyalty.”