According to this insightful read by Jeannette Neumann and Julia Fanzeres at Bloomberg, Generation Z’s spending patterns are increasingly shaped by their social media behavior. This behavior is changing the economics of retail and consumer engagement.

Here’s why: For GenZ, purchases don’t just meet a need, they help broadcast identity. Neumann and Fanzeres report that younger consumers are spending roughly 20% more on non-essential items like clothing, beauty products and home décor compared to a year ago, even while the broader economy remains tight. What’s striking is what they choose to spend on.

GenZ is leaning in to products that look good online and enhance their personal brand, while everyday purchases are deprioritized if they don’t translate into compelling social content.

This shift reflects a broader change in consumer motivation. Rather than defining value purely through utility or price, many GenZers view spending as a form of self-expression and social positioning. Their social feeds are not just places to share updates, they’re platforms where identity, belonging and esteem are visibly negotiated. This means that retail categories tied to image, lifestyle and digital presentation are seeing disproportionate growth.

For brands and researchers, understanding GenZ requires moving beyond traditional notions of needs and into behavior driven by social context and status signaling. Products that align with personal branding and social visibility are not just consumed — they’re curated.

In today’s experience economy, social media is not just a channel; it’s a behavioral force that shapes what gets bought, why it’s bought, and how value is perceived. Neumann and Fanzeres deliver this insight well. Read their full article on Bloomberg.com.