The key trends shaping ‘Gen Zalpha’ engagement in 2025

Marketing to today’s youngest consumers means keeping up with a generation in flux. At the Youth Marketing Strategy (YMS) 2025 event in Shoreditch, brands, marketers, and digital leaders gathered to dissect what makes Gen Z and Gen Alpha tick. The insights – supported by Pion’s 2025 report on youth marketing trends – revealed a young audience transforming faster than ever. 

From how they forge identity in a tech-saturated world to the new rules of brand loyalty, here are the most important takeaways from YMS 2025. 

Gen Z and Gen Alpha: at a generational tipping point

It’s no exaggeration to say we’re at a generational tipping point. Gen Z and the rising Gen Alpha (collectively known as “Gen Zalpha”) are ushering in a new wave – they’re coming of age amid economic uncertainty and cultural upheaval and appear to be forging their own rules as a response. As Pion’s research notes, today’s youth is “coming of age in chaos: priced out of home ownership, disillusioned by politics, juggling side hustles, and burning out before 25”. In other words, they’ve grown up with instability – but they’re also resourceful, creative, and actively rewriting the rules of engagement. 

This was a major theme at YMS 2025, with speakers emphasising that the youth of today are digitally fluent, brand-savvy, and socially conscious, with Gen Alpha beginning to make its presence felt. Older Gen Z are now young adults reshaping workplaces and politics, while the eldest of Gen Alpha are the next consumers to watch. 

To put it simply, brands need to understand both groups’ mindsets and how they influence each other.

This isn’t just a slight change in attitude – it’s a generational shift in worldview. Gen Z came of age amid multiple crises and has learned to adapt on the fly. Gen Alpha, meanwhile, are digital natives from birth, entering their teen years with expectations for a world that seamlessly blends online and offline. 

The takeaway for brands is clear: to remain relevant, you must keep a finger on the pulse of these youth marketing trends and be ready to adapt as this next generation defines the new “normal.”

Identity goes digital: avatars, tech and authenticity

One of the most eye-opening trends is how deeply technology is intertwined with youth identity and expression. For Gen Z and Gen Alpha, the digital self is as real as the physical self – sometimes even more so. 

According to Pion’s research, 61% of Gen Zalpha use a virtual avatar when gaming, and over half feel that their avatar is a better representation of who they are than their real-life appearance. In fact, more than a quarter (28%) of Gen Zalphas feel more comfortable socialising as their virtual avatar than as themselves. These aren’t just stats – they signal a fundamental shift in how young people form identity and community.

At YMS, discussions of the “phygital” (physical + digital) world were front and centre. We heard how platforms like Roblox and Fortnite, and other immersive games, serve not just as entertainment, but as social hangouts and creative outlets. “This is where most of your future consumers are… they come to have fun, socialise with friends and self-express,” explained one speaker. In other words, a teen’s Bitmoji, gaming skin, or anime profile pic isn’t just play-acting – it’s an authentic facet of their identity.

What does this mean for brands? Firstly, don’t dismiss digital identity as “unreal” or secondary. As Pion’s Youth Trends Report warns, brands that treat online personas and virtual goods as trivial will be speaking a language that much of this generation “doesn’t recognise as authentic.” Over 55% of Gen Zalphas believe their virtual avatar represents them better than their physical self, and marketing must mirror a world where digital and physical exist seamlessly. 

We’re already seeing forward-thinking brands engage young consumers through virtual fashion, in-game brand experiences, and digital collectables – not to sell products outright, but to let youth wear the brand as part of their identity. For example, beauty brands like Fenty and NYX have created Roblox experiences where young users co-create products or style their avatars with branded items, blending brand DNA with play. These efforts build affinity in a way that feels native to how Gen Zalpha interact today.

Don’t underestimate the draw of in-person experiences

And let’s not forget in-person experiences. Ironically, even as youth live on their screens, they deeply value real-life moments. The concept of the “experience economy” resonated at YMS: young people treasure IRL experiences that create memories and personal growth. Many Gen Zers will splurge on concerts, festivals, and pop-up events – even if money is tight – because those experiences are priceless to them. (In fact, 54% of Gen Z said they’d spend beyond their budget for a once-in-a-lifetime experience, even though 97% are worried about the cost of living.) 

This is a reminder that digital engagement doesn’t replace physical engagement – both matter. Smart brands blend them by creating shareable live events that generate online content. According to one speaker, “Gen Z lives in the moment, but that moment better be Instagrammable.” 

The high-level point: content strategy in 2025 needs to be holistic. Be present where your audience is (which is everywhere), keep content engaging and platform-appropriate, and use digital touchpoints to enrich real-life interactions (and vice versa).

The power of peers: influence through community

If there was one thing to take away from YMS 2025, it was this: peer influence is everything. Over and over, the YMS sessions emphasised that young consumers trust people they know (or feel like they know) far more than faceless brands or celebrities. In practice, that means a recommendation from a friend, a tight-knit community or a relatable micro-influencer can outperform even the slickest ad campaign.

Data from Pion’s research drives this home - when Gen Zalpha teens were asked what influences them to desire a product, the top answers were “it’s a brand I like” (66%) and “my friends have it” (46%). By contrast, seeing an item on their favourite influencer or creator was less impactful (26%), and a celebrity endorsement trailed far behind (15%). In short, friends and personal interests carry far more weight than traditional influencer culture or ad campaigns in driving actual behaviour. Peers are the new power brokers.

The advice for brands was to embed themselves in youth culture more organically. Rather than simply hurling ads at Gen Z and Gen Alpha, smart brands are finding ways to actively involve them. That could mean partnering with a youth community on a cause or creative project, amplifying user-generated content, or even letting young brand fans take the reins in campaigns. One speaker suggested creating a “youth council” for your brand – essentially a focus group of engaged young customers who can offer unfiltered feedback and help co-create marketing ideas. The goal is to build credibility through genuine collaboration, not superficial pandering.

Brands need to start looking further than just targeting individuals, but rather their entire social ecosystems. As Pion’s report put it, “peer-to-peer reigns supreme as the best way to market to Gen Zalpha. Your strategy needs to target not just the individual but their entire social ecosystem.” This could mean encouraging and facilitating word-of-mouth, creating share-worthy moments, and leveraging community leaders (big or small) who already have youths’ ears. 

If you earn genuine fans among a core group, they will do the amplification for you. But to get there, you must approach communities with respect, offer real value or exciting experiences, and be willing to give up a bit of control so that young people can make your brand their own.

Rethinking brand loyalty: from cancel culture to “co-creators”

Given all of the above, it’s no surprise that brand loyalty among Gen Z and Gen Alpha looks very different from previous generations. These young consumers are both more sceptical and more demanding of brands – yet they’re also willing to form deep attachments when a brand aligns with their values and identity. YMS 2025 sessions painted a picture of a generation that is simultaneously idealistic and pragmatic about brands.

On one hand, traditional brand loyalty is eroding. With endless options a click away and social feeds constantly exposing the “next big thing,” young people won’t hesitate to switch to a new brand if it better fits their needs or ethics. One speaker quipped that Gen Z has “the attention span of a goldfish and the BS radar of a detective.” 

They have grown up being bombarded by marketing and can smell inauthenticity a mile off.

Authenticity is key, and it also extends to how brands handle mistakes. The “cancel culture” era of today has been much discussed, but YMS experts suggested that Gen Z is more forgiving than many assume if a brand shows genuine accountability. According to one 2024 survey, 46% of Gen Z said they would “uncancel” a brand if it made real efforts to address a scandal or mistake. 

Essentially, young consumers expect missteps (understanding no brand is perfect), but what they watch closely is the cleanup. Is the brand’s apology sincere? Do they take concrete action to make things right? If so, these consumers can give second chances. What they won’t tolerate is doubling down or ignoring issues – that’s when loyalty truly evaporates.

Finally, loyalty in 2025 is about shared values and community. Gen Z in particular has been called the "purpose-driven generation." They notice which brands align with social and environmental values and which don’t. While a Pion survey of teens found only about 15% would ask for a product just because it's “good for the planet”, don’t misread that as apathy – it’s more that they expect every brand to be doing good as a baseline, not a bonus. Explicitly, diversity and inclusion also matter: Gen Z and Gen Alpha expect to see themselves (in all their variety) represented in marketing. If a brand consistently makes them feel seen and works with their communities, it can foster fierce loyalty. If not, well, there’s always another option just a swipe away.

While it might seem like a lot to take in, there’s a huge upside to this. When a brand truly “gets it right,” the rewards aren’t just short-term sales – they’re cultural relevance. As Pion’s report put it, “The brands that get this right aren’t just winning market share, they’re shaping culture.” 

We saw hints of this in case studies at YMS: brands like Nike, Netflix, and even fast-food names like Taco Bell have found success by tapping into youth culture, empowering young voices, and sometimes even poking fun at themselves. They meet young people where they are, speak their language (while still staying true to themselves), and contribute something positive to the conversation. Those are the brands that Gen Z and Gen Alpha invite into their lives – and when they do, they essentially become the marketing engine, through TikTok shout-outs or Instagram posts, word-of-mouth and beyond.

What YMS 2025 showed is that engaging the next generation isn’t about chasing every new gimmick or buzzword – it’s about understanding the undercurrents of youth culture: the desire for genuine connection (on their terms), the blending of digital and real life, the influence of peers and communities, and the expectation that brands contribute positively to their world. The youth of today are actively reshaping consumer culture. If brands and innovators listen and adapt, they won’t just win their business – they'll earn their respect and maybe even a place in their rapidly evolving story. 

And that is a win-win worth striving for.