Gen Z consumers are preparing to make significant outlays in the first three months of the new year as a fall in levels of anxiety and nervousness in conjunction with the January student loan payments boosts mood and spending power. That is according to the latest Student Sentiment Report from UNiDAYS, which includes findings from a comprehensive survey of 1,600 UK respondents.
As the report highlights, the spring term is packed with huge moments, from coursework deadlines to exam preparation and holidays, all of which impact the demographic’s shopping behaviours when buying both must-haves and nice-to-haves. The post-Christmas return-to-campus in January is spotlighted as the high point in many categories, including travel, health and fitness, personal finance, food and drink, haircare, and fragrance.
The report further illustrates the ups and downs of student life, explaining that Gen Z remains the most overwhelmed and nervous generation, with around a third reporting such feelings compared to less than a quarter of millennials and Gen X and one in ten baby boomers. Top concerns among the youngest respondents include academic studies, cost of living, personal health and wellbeing, part-time jobs, and career development, underlining the ranging pressures they are dealing with.
“January is the time for a strong academic focus as dissertations, exams, and coursework deadlines loom in the second half of the student calendar,” said Alex Gallagher, chief strategy officer at UNiDAYS. “But that’s not taking all of Gen Z’s attention. The ‘new year, new me’ mindset means they’re also looking at the start of 2025 as an opportunity for growth, personal and professional development, and a time to concentrate on their mental and physical health, but financial pressures mean they need a helping hand from brands.”
The report outlines several key areas for brands to focus on in the first quarter. Price and quality consistently remain in the top three purchase drivers for all generations. However, in contrast to older shoppers, the availability of student discounts is also a prime concern for Gen Z. In terms of discovery, student respondents favour digital, much preferring to hear about offers, deals, and discounts on social media platforms, other apps, and emails than Gen X and baby boomers, underscoring the importance of robust digital marketing strategies. Still, the power of in-person experiences means one in five relies on in-store signage meaning digital shouldn’t come at the expense of physical ads.
Understanding Gen Z category engagement trends in Q1’25
Beauty
In line with the first student loan payment of the calendar year, fragrance purchasing spikes in January.
As the warmer months approach and routines are switched up, skincare engagements rise in February and throughout March.
Haircare, bath and body products see an upswing toward the end of the quarter as gifted holiday supplies run dry and are restocked ahead of Spring Break.
Fashion
Starting strong in January, trainers, athleisure wear, denim, and handbags all slow in February before ramping back up in March, reflecting similar spending patterns across other categories, which aligns with student loan payments.
Food and drink
The return to campus in January and the first loan drop of 2025 drive spending on restaurants, ingredient boxes, and kitchenware.
As engagements with restaurants and ingredient boxes fall between student loan drops, more is spent on groceries.
Health and fitness
Gym memberships, fitness class subscriptions, and protein supplements all surge in line with New Year fitness goals, dropping off slightly in February before picking up again toward the Easter holidays.
Sexual wellness follows a similar U-shaped curve to fitness categories, starting strong, dipping mid-quarter, but picking up again towards the end.
Tech
Following a period of indulgence over the holidays and New Year fitness goals, activity monitor engagements peak in January.
Headphones and music streaming subscriptions also follow this trend, suggesting that these items are bought as accessories for activities like working out and studying.
TV streaming subscriptions remain high throughout the quarter, reaching a pinnacle in March as students settle into the university routine.
Travel and transport
Travel starts strong with January sales, which provides the perfect opportunity for Gen Z to secure cheaper offers on flights and hotels for later in the year.
Domestic travel also spikes in January as students return to university accommodation from family homes and restart daily commutes.
Learner driver engagements see a significant uptick from February, surging toward the end of the quarter.
Wellness, earning and learning
Banking engagements start strong in January and remain so throughout the quarter as financial planning moves to the fore.
Tutoring services crest toward the end of March in anticipation of the Easter Holidays and as exam season nears.
Study tools and online courses follow the same pattern as tutoring services, confirming students are seeking additional resources to help them achieve their goals.
“Understanding and catering to the unique needs, motivations, and habits is crucial for brands looking to engage Gen Z. It’s crucial to stay on top of the student calendar, prevailing sentiments, and key moments. Tapping into the ‘new year, new me’ mindset, for instance, shows you’re supporting students and helping them achieve their goals by relieving pressures when and where they need it most, forging relationships and building lasting loyalty,” added Gallagher.
For more information, you can download your copy of the Student Insight Report by visiting https://corporate.
