The Death of Brand Loyalty: How Gen Z is Redefining Consumer Behavior

📅January 3, 2026 at 1:00 AM

📚What You Will Learn

Why Gen Z loyalty is declining and what drives their choices.
How private labels are becoming Gen Z's go-to over legacy brands.
Strategies brands can use to rebuild loyalty with values and personalization.
The role of social media and experiences in Gen Z shopping habits.

📝Summary

Gen Z is shaking up traditional brand loyalty, prioritizing values, affordability, and experiences over lifelong commitment to big names. With loyalty rates at just 66%, they're flocking to private labels and deals while demanding brands align with their ethics.

This shift challenges marketers to rethink strategies for a generation that's brand-agnostic until proven worthy.

ℹ️Quick Facts

Gen Z loyalty rate: 66%, lowest among generations (Millennials 73%, Gen X & Boomers 68%).
By mid-2026, Gen Z will spend more on private labels (18.4%) than any other group.
59% of Gen Z will ditch brands misaligned with their values.
79% of Gen Z wait for sales, blending frugality with high expectations.

💡Key Takeaways

Gen Z favors value-driven loyalty over blind allegiance, boosting private labels and ethical brands.
Brands must offer personalization, social impact, and seamless experiences to win Gen Z.
Discounts and deals deepen engagement rather than cheapen brands for budget-savvy youth.
Omnichannel paths—from social discovery to in-store buys—are key to capturing Gen Z spend.

Gen Z shows the lowest brand loyalty at 66%, trailing Millennials (73%) and Gen X/Boomers (68%). Overall consumer loyalty dropped from 77% in 2022 to 69% in 2024, signaling a broader shift. This generation isn't disloyal by nature—they're selective, ditching brands (59%) that don't match their values.

By mid-2026, Gen Z will lead private label spending at 18.4%, edging out Boomers (18.3%). Brands like Trader Joe's and Costco's Kirkland are hits for their trendiness and quality. Once skeptical, Gen Z now views store brands as premium and value-packed amid inflation.

This isn't just about savings—it's about smart choices reflecting purpose and innovation. Retailers like Ulta and Kohl's are capitalizing with trendy private lines.

Gen Z is value-conscious, waiting for sales (79%) but splurging on emotional or social wins. They prefer known brands (59%) but switch to private labels (41%) for affordability. Consistency across channels is crucial—42% crave unified experiences.

Missteps like price hikes make them bolt: 34% switched for better options. Brands in the 'Zero Hate Club' win by being reliable, not flashy.

Gen Z discovers 61% of products in-store despite digital roots, blending paths fluidly. Social media drives 43% of gift research, but purchases span apps and shelves. Trendy buys? 43% grab what's buzzing online.

Loyalty programs boost spending—81% of Millennials (Gen Z similar) spend more with rewards. Personalized perks make members 4.3x bigger spenders.

To win Gen Z, focus on practical excellence: discounts deepen ties (83% love brands but budget carefully). Offer gated deals via apps (51% use them) without devaluing.

Tailor by generation—Gen Z wants ethics, customization, and impact. Private label collabs and limited drops deliver novelty on a budget. The future? Brands that feel intentional will thrive.

⚠️Things to Note

Gen Z sees private labels as innovative and trendy, not just cheap alternatives.
Only 36% of consumers feel brands truly value their loyalty, eroding traditional bonds.
Gen Z blends digital discovery with physical store preferences (61% discover in-store).
Economic pressures like inflation accelerate Gen Z's shift to store brands.

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