In this article, we are going to discuss Gen Z’s 25 favorite brands in 2023. You can skip our detailed analysis of why Gen Z are a digital native generation, the purchasing power of Gen Z, products Gen Z use the most, what Gen Z want from brands, how to market to Gen Z in 2023, and Gen Z product trends for 2023, and go directly to Gen Z’s 10 Favorite Brands in 2023.
Social scientists have studied generations, in theory and more practically, for millennia. More recently, philosophers like Auguste Comte have argued that generational change is the engine behind social change. More specifically, each generation entering into a new life stage at more or less the same time is the pulse that creates the history of our society.
Specific major-scale events can also change the outlook of a generation, and are often reflected in how they’re named. The Greatest Generation is known for the heroic sacrifices they made during World War ll. The Baby Boomers, in turn, had their outlook colored by the Vietnam War and the social upheavals of the ‘60s. More recently, Millennials’ worldviews have been shaped by the events of 9/11 and the proliferation of the internet.
Digital Natives:
Similarly, Gen Z have been born in an age when the internet has achieved widespread use and is a part of our everyday lives, making them the real ‘digital natives’. The ‘Zoomers’ are a super-informed generation who turn to the internet for any kind of information and for work, shopping, dating, entertainment, and making friends online. They have grown up in a time of rapid globalization, when various media and technologies have significantly accelerated social interaction and cultural exchange around the world.
Purchasing Power of Gen Z:
Born between 1996 and 2010, Generation Z are not kids anymore. In fact, they’re the new generation of consumers that big brands, small and medium businesses, and marketers need to think about. With an estimated collective buying power of $463 billion in the U.S. alone, and $853 billion globally, business owners and marketers are starting to pay attention.
Products Gen Z Use the Most:
According to Klarna, the products that Gen Z shoppers spend on the most are clothing and shoes, groceries, beauty products, electronics, entertainment, pharmaceuticals, home and garden accessories, and automobile parts or accessories, among others.
What Gen Z Want From Brands:
We are talking about a generation that cares a lot about social issues and so the Favorite Brands of Gen Z are expected to be drivers of social change, with fair labor practices, inclusivity, and sustainability.
Diversity also came out as a big driver of societal impact for this generation. Gen Z is remarkably more diverse than the generations before it. They’ve already achieved a 50% multicultural total threshold, with approximately half of the entire Gen Zers in the U.S. identifying as non-white. They are also far more likely to identify as LGBTQ+. Gen Z will reward brands for celebrating individuality with diverse representation, and challenging stereotypes.
What’s different from older generations, though, is the unifying power of their differences. If you want to check out which businesses are prioritizing and celebrating diversity in America, please refer to 15 Most Diverse Companies in the U.S.
Gen Z are also a more health-conscious generation and a growing share of them is even turning away from alcohol. In 2022, 38% of Gen Z were buying more non-alcoholic beverages than in the previous year. This has led to the rise of companies like the Athletic Brewing Co. The non-alcoholic beer maker has now become one of the Largest Craft Breweries in the US by Volume.
Authenticity is also highly valued by this generation and Gen Z hates brands that are all talk and no action, and that say things they simply don’t mean.
How to Market to Gen Z in 2023:
Following are the tips that businesses can employ to build their own effective Gen Z marketing strategy:
- Prioritize Social Media: Gen Z spend a significant amount of time on social media and in fact, 8 out of our 25 Favorite Gen Z Brands are social media platforms. So businesses must have a solid social media presence.
- Embrace Diversity, Authenticity and Inclusivity: Businesses should avoid gimmicks like greenwashing etc. and try to be more transparent. They also need to represent diverse identities in their marketing campaigns and give a message of inclusivity.
- Prioritize Mobile Optimization: An estimated 98% of Gen Z own mobile phones, so there should be a sharp focus on efficient and easy-to-use mobile apps. A good example of this is the Nike App by NIKE, Inc. (NYSE:NKE).
- Leverage Influencers: Gen Z rely on social media influencers even for their shopping decisions and habits, so having some influential names on your side could be a game changer.
Gen Z Product Trends for 2023:
Sustainability is at heart of the Gen Z values and they have once again popularized the thrift culture, due to become a $51 billion business by 2025. But at the same time, they also can’t seem to get away from fast fashion. Other than the wide array of choices fast fashion brands like Zara and Shein have to offer, they are also very cost effective, and after all, this generation has grown up in a time of increased global economic uncertainty.
Another trend that Gen Z are bringing back is brick and mortar stores, with almost half of them prioritizing shopping in-store rather than online. These Zoomers see shopping at physical stores as a form of ‘retail therapy’, which allows them to disconnect from the stress of social media and browse shelves and clothing racks in the real world. Brands can take the example of Amazon.com, Inc. (NASDAQ:AMZN), which is continuing to open brick and mortar stores.
Buy Now, Pay Later (BNPL) gives customers more flexibility by breaking up payments over weeks or months, and is also a trend that is now hugely popular with Gen Zers. In an uncertain economic climate, BNPL allows these young customers the flexibility to purchase their daily essentials, instead of going without. A leading example of this is Klarna, a hugely popular Swedish financial services company providing BNPL facilities to its users. Klarna’s obvious appeal for its Gen Z shoppers helped it snag a $45.6 billion valuation in a funding round led by SoftBank in 2021.
Social shopping is another trend that is rapidly catching on in the U.S. Gen Z don’t view social media merely as a source of entertainment, but also depend on their trusted influencers to try out their desired products and give them feedback, upon which they will make their purchasing decisions. A product ad with a famous celebrity pictured on it just isn’t enough for them anymore. In 2021, the U.S. saw approximately 96.9 million social buyers and its popularity is only expected to grow. Social commerce sales in the U.S. were estimated at nearly $51.8 billion in 2022, and are predicted to reach $145.2 billion by 2029, with a CAGR of 15.86% in the forecast period.
With that said, here is a List of Favorite Brands of Gen Z in 2023.
magicinfoto / Shutterstock.com
Methodology:
To collect data for this article, we have referred to several sources, including various subreddits and topics on Reddit, and then websites like YPulse, New York Post, Morning Consult etc., looking for the Favorite Brands of Zoomers in 2023. Then we assigned a score to these brands based on the number of times they appeared in the aforementioned sources and ranked them accordingly (in ascending order of high scores). When two brands had the same score, we ranked them according to their revenue for the year 2022.
Gen Z’s 25 Favorite Brands in 2023
25. Discord
Insider Monkey Score: 4
Often dubbed ‘Slack for Gen Z’, Discord has evolved into the newest tool for brands to build and communicate to their communities and audiences.
65% of Gen Z feel more confident online with community-focused social apps, so Discord letting users create and monitor their own communities really helps. The gamification aspect of Discord additionally facilitates the entertainment interests and behaviors of Gen Zers.
24. Depop
Insider Monkey Score: 4
The next wave of luxury consumers, Gen Z are a fluid generation who crave flexibility and think second hand clothes are cool. Resale apps like Depop are globalizing Gen Z fashion culture through an international, digital shopping experience tailored to identity creation. Depop’s accessibility and endless range of products allow people to buy and sell fashion all over the world like never before. Depop was acquired for $1.62 billion by the e-commerce company Etsy, Inc. (NASDAQ:ETSY) in 2021.
23. Apple Pay
Insider Monkey Score: 4
Gen Z in the U.S. seem to have developed a liking towards the iPhone and Apple Inc. (NASDAQ:AAPL) products in general. A new report by Financial Times indicates that 70% of people aged 18-24 in the U.S. already have an iPhone.
Gen Z have a strong affinity for using digital wallets and with Apple ID, Apple Pay is available to users across multiple devices, making payment easier across multiple channels.
Apple Inc. (NASDAQ:AAPL) has therefore succeeded to tap into the Gen Z demand for products that are easy to use and communicate seamlessly – ensuring that Apple Inc. (NASDAQ:AAPL) products are embedded into the everyday life of youngsters today.
22. Twitch
Insider Monkey Score: 4
Twitch is among Gen Z’s Favorite Brands in 2023 and the company burst onto the scene in 2005 as a real-time platform, where users could broadcast their daily lives. Although there are several other categories available on the platform, gaming remains the core of Twitch. With over 240 million monthly active users, Twitch is the market leader in the live streaming industry, with a 73% market share.
The platform is a gold mine for Gen Z and Twitch’s internal data indicates that Twitch has the highest proportion of Gen Z users to total audience size – 55%. What’s even more interesting is the positive sentiment in the Twitch community for the monetization of channels and running ads, thus creating a massive opportunity for potential advertisers.
21. Gatorade
Insider Monkey Score: 4
According to YPulse’s Cooking and Diet Report, a quarter of Gen Z and Millennials are reaching for energy drinks on a typical day, but they’re also super conscious about what they put in their bodies. Gatorade launched their Fast Twitch drinks in February to reach young consumers who may shy away from energy drinks out of fear of their negative health effects. Fast Twitch includes 200 mgs of caffeine, zero sugar and select vitamins, and is designed as a healthy option for athletes.
Gen Z is tech-savvy, so Gatorade has responded to that with their Gx System product portfolio, including the Gx sweat patch, a mobile app and a ‘smart bottle’.
20. Reddit
Insider Monkey Score: 5
Reddit is all about fostering community by encouraging its users to interact with each other. The platform is a hybrid between a forum and a modern social network – Subreddits are like individual forum sites, but you can participate in everything with one account, like a social network. The other big thing that sets Reddit apart is that instead of using complicated algorithmic tools to rank content, its algorithm runs on votes, simple and effective.
Reddit continues to grow by double digits every year, adding 25% more users in 2020 and 14% in 2021. That growth, combined with 40% of Gen Z searching social media platforms for info instead of Google, makes Reddit a unique opportunity for brands.
19. Fenty Beauty
Insider Monkey Score: 5
Back in 2017, Fenty Beauty, by Rihanna, was created with the promise of inclusion for all women and launched with 40 foundation shades, consistent with their focus on inclusive beauty. They’ve since become the standard in cosmetic equality and representation. A quick look at Fenty’s Instagram feed shows a wide array of skin colors and culturally-diverse models.
With its earth-conscious packaging, supple textures and irresistible scents, Fenty Beauty is not only among the Top Brands for Gen Z but also a favorite brand of millennials everywhere.
18. Twitter
Insider Monkey Score: 5
Twitter is one of the Brands Preferred by Gen Z in 2023 and the platform reaches 70% of 18-25 year olds. Twitter, more than anything, is about what’s happening, and that is one of the main reasons why they come to the platform. For them, Twitter is like a global newspaper that gives them a window to the world. It also gives them a space to be vocal, explore out loud, grow in public, stir things up, and of course, have a bit of a joke.
17. Urban Outfitters, Inc. (NASDAQ:URBN)
Insider Monkey Score: 5
Urban Outfitters, Inc. (NASDAQ:URBN) targets young adults aged 18 to 30 through its unique merchandise mix and compelling store environment. As counterintuitive as it may sound, Gen Z is still very much active with in-store shopping and Urban Outfitters, Inc. (NASDAQ:URBN) is giving them what they want with their brick and mortar in-store experience.
Moreover, the company understands that Gen Z want to stand out from conventional fashion trends, so it has catered to their needs with a long line of edgy and unique products.
16. Playstation
Insider Monkey Score: 5
Research indicates that 95% of millennials and Gen Z play video games, with 80% doing so on video game consoles, and roughly half of these console game players prefer to play on a Playstation.
Gen Z is much more accustomed to a ‘connected’ life and often look for community and a sense of belonging in their hyper-digital lives. Gaming consoles like Playstation give them an opportunity for relaxation and self-expression, and provide them with a huge international online community of fellow gamers that they can interact and bond with.
15. PayPal Holdings, Inc. (NASDAQ:PYPL)
Insider Monkey Score: 5
With a user share of 83%, PayPal Holdings, Inc. (NASDAQ:PYPL) is the most popular online payment service in the U.S. Approximately 21% of PayPal Holdings, Inc. (NASDAQ:PYPL) users are between the ages of 18 and 29 and the popular digital wallet is the favorite brand of Gen Z for online payment solutions.
With multiple preferred payment options, optimized processing, a mobile-friendly flow, BNPL, Venmo, and so much more, Gen Z customers may be attracted to the PayPal checkout experience.
14. Doritos
Insider Monkey Score: 6
Doritos has a clearly defined brand personality that resonates with the Gen Z audience. It is the ultimate party chip and no social event is complete without Doritos chips and salsa. Gen Z doesn’t like branding, so Doritos tried a new approach through their ‘anti-ad’, with the company dropping its logo and brand name from its advertising, social feed and packs to attract the younger, ad-adverse audience.
13. Snapchat
Insider Monkey Score: 6
Snapchat is used by approximately 58% of Gen Z and the brand delivers on the emotions that they seek, and it does so consistently across the platform in areas like Discover, Stories, and the Camera.
Snapchat also launched its $3.99 monthly Snapchat + subscription last year, which enables members to use new features including the ability to boost stories, the ability to see who has rewatched their stories, and many more. When these young consumers are using Snapchat to conduct much of their social lives online, features like these can give subscribers the kind of advantage they crave.
12. H&M
Insider Monkey Score: 6
H&M is one of the favorite brands of Gen Z in 2023. The fast-fashion company, known for its focus on swiftly knocking off trends from the runway and selling them off at basement prices for maximum turnover, has started focusing more on circular fashion models, such as resale in the past few years. The retailer teamed up with Reflaunt to launch its own second-hand fashion platform in Canada, called H&M Rewear. The brand has also launched a range of cruelty-free and vegan beauty basics for Gen Zers recently.
11. Target Corporation (NYSE:TGT)
Insider Monkey Score: 7
Target Corporation (NYSE:TGT) is one of the Favorite Brands of Gen Zers in 2023 and they often turn to the retailer for personal care, household goods, clothing, accessories, and beauty private label items. The defining factor between the retailer and its Gen Z customer base is trust, an attribute that is hard to capture with the least brand loyal demographic. Target Corporation (NYSE:TGT) has taken a number of steps to attract its Gen Z consumers, but there are a few attributes that really set it apart – its omni-channel approach, affordable pricing, product selection, and CSR initiatives.
The Minnesota-based retailer comes in at number 7 for the top 100 retailers by sales in the U.S. in 2022, with $104.62 billion in revenue.
If you want to read about the largest retailers worldwide, please refer to our article 20 Largest Retailers in the World.
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Disclaimer: None. Gen Z’s 25 Favorite Brands in 2023 is originally published on Insider Monkey.