Consumption trends of Generation Z in Taiwan: Paying equal attention to budgeting and self-expression

With rising prices and limited income growth, how will Generation Z spend their money? NIQ Nielsen AGCO Taiwan has released the latest consumer trend insights for the first time. As many as 85% of Generation Z regard "increasing prices" as the main life pressure, and another 75% believe that income growth is limited. However, Generation Z does not reduce consumption across the board, but more clearly distinguishes between "this province" and "willing to spend" items.

Judging from actual purchasing behavior, Generation Z shows a high degree of cost consciousness in necessities for people's livelihood. NIQ Omnishopper data shows that the average prices paid by Generation Z for eggs and rice are 21% and 45% lower than the overall market average respectively, indicating that this group of consumers is more inclined to choose mid-to-low-priced products for their daily basic needs.

However, the money saved does not mean that there is no consumption at all. When the products involve appearance, self-expression and personal life experience, Generation Z shows different spending attitudes, including cosmetics, functional beverages, hair care products and other categories. The overall consumption amount of Generation Z is significantly higher than the broader market.

This model of "paying careful attention to basic needs and being willing to spend more on things that matter" also extends to leisure life. The survey shows that if they had extra disposable income, 40% of Generation Z would invest in travel and leisure, and 35% would invest in food. In the past year, nearly a quarter of Generation Z consumers did not reduce spending in any category.

There are also significant changes in the way brands reach young consumers. NIQ data shows that 50% of Generation Z will discover new brands and new products through social media; for brands, the consumption behavior of Generation Z is not simply to pursue low prices, but to make clearer budget choices among different categories under the pressure of living costs.