Gen Z’s “Self-Care” Obsession
Research shows that Gen Z is outspending older consumers in all things wellness, and 56% of Gen Z consumers view fitness as a very high priority. Several factors point to this increase, such as more exposure to health and fitness content (FitTok), COVID-19’s emphasis on health standards, as well as the search for a third place – a concept that’s disappearing within modern society. With these factors in mind, here are five trends shaping 2024 spending in a $1.8 trillion wellness market:
1. Health at Home
With things like at-home testing and telemedicine growing massively during the pandemic, consumers are more comfortable with the idea of taking the initiative when it comes to their health. The barriers to access are lower, more convenient, and can be done frequently.
2. Wearables, everywhere
Wearable devices are quite literally everywhere. 492 million wearables were shipped in 2022, and another 150 million were shipped in Q3 2023 alone, showing how accessible these devices, mainly smartwatches, have gotten over the past several years. With health being such a big focus for Gen Z, these devices excel at providing health-based data for goal and/or tracking purposes. 75% of surveyed consumers shared a willingness to use wearable devices in the future, and 33% said they used their wearables more often than the previous year (McKinsey).
3. Personalization via AI
The data from wearables and the recent explosion of Artificial Intelligence create a perfect storm for the implementation of personalized AI for consumers. Gen Z prioritizes customized experiences, and the idea of something learning from their data and creating personalized recommendations and workouts is immensely appealing.
4. Cite Your Sources
The conversation of younger generations being socially conscious about the products they buy and the companies they buy from isn’t a new one and certainly applies to the healthcare space. Consumers want to purchase supplements, vitamins, and other personal-care products with ingredients that are clinically proven and effective and aren’t as hung up on the use of clean or natural ingredients.
5. Thanks, Doc
Influencer marketing has had both positive and negative implications on consumer decisions. In the case of personal-care products, younger generations are wary of credibility, which has given rise to the importance of healthcare provider recommendations. Consumers are also more likely to listen to recommendations from family and friends before trusting the advice of influencers.
For more information on these trends, check out McKinsey’s article here.