6 ways rich Gen Zers are splashing out and redefining luxury for themselves

Gen Zers are either dictating their wealthy parents' travel itineraries or splurging on lavish trips for themselves.

Those who are still traveling with mom and dad are calling the shots on vacation, suggesting activities and destinations based on what's trending on social media.

Julia Carter, the founder of the luxury travel agency Craft Travel, previously told BI that Gen Zers care the most about accommodation.

"You can go to London or Paris," Carter said, "But unless you get these money shots, as they say, how do you show that you really did it in style? The hotel is the proof."

Gen Zers also have a penchant for luxury all-inclusive trips, BI previously reported.

"With social media being so big and being an integral part of their lives, many people are motivated by sharing highly curated content and ultra-luxury resorts," said Malley Goodwin, a luxury travel advisor at Embark Beyond.

Rich Gen Zers are less inclined to be materialistic with their spending.

When it comes to travel, a press representative of Black Tomato, a UK-founded luxury tour operator offering curated private trips to places such as Mustique and Seychelles, said the company is finding that younger clients want "authentic, hands-on travel experiences" focusing on "sustainability, wellness, and cultural immersion."

Gen Z's value-led spending trend is picking up globally and across other spending categories, such as retail. In China, home to a large population of ultra-high-net-worth individuals, younger generations are eschewing flashy logo-heavy brands to splurge on items and experiences representing their values for bettering the environment and themselves.

Jien Goh, a trend forecaster at WGSN, previously told BI: "At the heart of this trend lies a desire for mindful, slower-paced living and a newly emerging mindset that sees wellness and longevity as the ultimate marker of luxury."

Gen Z prefers the flashiest items in their wardrobe to be pre-loved.

Claudia D'Arpizio, senior partner and global head of Fashion and Luxury at Bain, told BI that, instead of purchasing designer goods new, most Gen Zers are sourcing them secondhand via resale platforms like The Real Real.

Their sustainable values are likely part of the equation. However, D'Arpizio said these platforms are a hit with Gen Zers because they're using them to buy vintage finds and sell them to generate extra cash.

"There is an element of gamification and entertainment that is also interesting for this generation," she said.

American Gen Zers are outpacing previous generations when it comes to home ownership, per a 2023 Redfin study that found 30% of 25-year-olds owned their home in 2022, compared to 28% of millennials and 27% of Gen X at that age.

At home, the pantry and what it's stocked with have become markers of social status. A McKinsey survey published in December found that groceries, tied with beauty and personal care, are one of the top three categories Gen Z consumers plan to treat themselves to, behind restaurants and apparel.

Gen Zers are stocking up on expensive snacks, beverages, and condiments, and some are flaunting their pricey grocery store hauls from hot spots like Erewhon, a celebrity favorite in Los Angeles, on social media.

It comes as Elizabeth Tan, a senior culture strategist for WGSN Insight, said food and dining have become a way for younger consumers to express "their values and cultural identity."

A spritz of the right perfume has become a tell-tale sign of wealth and status among Gen Z.

While the luxury goods industry has suffered this past year, particularly from dwindling demand in China, Bain's D'Arpizio said fragrance was one of the few resilient categories.

Fragrances weathered the luxury downturn partly because the category is popular with younger generations, who have continued indulging themselves in smaller, more affordable luxuries while holding back on bigger purchases like handbags or coats.

Perfumes and colognes have also evolved into a medium for Gen Z to carve out their personal brand, as BI previously reported.

The generation is using certain fragrances to identify themselves with popular aesthetics. For example, Upton Clark reports that a Gen Zer hoping to exude a "Clean Girl" vibe might opt for Maison Margiela's Replica Bubble Bath, while one aspiring to give off an air of "Quiet Luxury" might don Maison Francis Kurkdjian's Baccarat Rouge 540.

The oldest Gen Zers aren't yet 30. While that might be relatively young, they're just as concerned (if not more so) about aging.

In an article on the rise of "Collagen banking," a noninvasive skincare treatment that seeks to boost collagen production, Vogue Business reported that market research firm Circana found 70% of Gen Zers use antiaging serums daily.

As BI previously reported, Gen Z's skincare obsession might be linked to how they are the first generation to grow up with a wide array of social-media platforms and filters, fueling the rise of "prejuvenation" — a trend of mixing skincare with cosmetic treatments to stave off the effects of aging.

The younger generations' desire to maintain their youthful appearances is also changing the cosmetics industry, as Circana reports half of US consumers now look for makeup products that double as skincare, aligning with the attitude of over 60% of Gen Z and millennials.