As inflation rises, American shoppers, particularly those from Generation Z, are being compelled to give up their preferred products.
Throughout 2026, the inflationary pressures have intensified, impacting consumers across the country, especially evident at fuel stations and supermarkets. This economic strain is prompting both Gen Z and millennials to reconsider which brands are worth their hard-earned money.
A Doss study reveals that 61% of Gen Z and millennials have severed ties with brands they once favored due to price hikes this year.
Younger consumers are increasingly gravitating towards budget-friendly grocery stores, with 44% of millennials and 43% of Gen Z frequenting discount venues more than they did a year prior.
In contrast, the shift to more affordable retailers is less pronounced among older generations, with only 35% of Gen X and 34% of baby boomers making the change.
Some grocery essentials experiencing the steepest price surges include ground coffee, beef and veal, soda, aluminum foil, deodorant, and laundry detergent. As a result, many are opting for less expensive alternatives to maintain their consumption of these products.
For many analysts, the Gen Z shift towards cost-cutting isn’t surprising.
Business coach Brad Sugars told the Daily Mail that Gen Z and millennials began building brand loyalty in an era of online shopping, so comparing prices feels ‘instinctive’ instead of ‘effortful.’
Because of rising prices, 61 percent of Gen Z and millennials have dropped a brand they previously loved, as opposed to 58 percent of baby boomers and 57 percent of Gen X
Neil Saunders is the Managing Director of GlobalData Retail
‘They were never conditioned by scarcity of options – Boomers built loyalty when switching meant real inconvenience, like finding a new store, learning a new product or losing a relationship with a salesperson,’ Sugars told us.
He added that loyalty became part of ‘an older customer’s identity.’
Meanwhile, for younger shoppers, brand affinity is ‘performance-based,’ meaning if a brand fails to serve its purpose, they’re more likely to kick it to the curb.
‘Inflation didn’t change their values,’ Sugars said, ‘it just gave them permission to act on them.’
Retail analyst Neil Saunders agreed, saying, younger consumers are naturally more ‘experimental’ with their shopping.
‘They also use a lot more digital tools to do things like price and product comparison which can impact loyalty rates,’ he told the Daily Mail.
With Gen Z customers, many prioritize finding value over seeking out brand names, especially with the rise of ‘dupes,’ or less expensive versions of name brand products.
Grocery chain Trader Joe’s has carved out a niche with skincare products that feature near-identical formulas to luxe beauty brands. For example, Trader Joe’s has a silicone-based sunscreen with an ‘invisible’ clear gel that customers compared to Supergoop’s Unseen Sunscreen.
Trader Joe’s and Supergoop have similar facial sunscreen formulas, even if the Trader Joe’s version is significantly cheaper
The ingredients aren’t an exact match: Supergoop’s Unseen Sunscreen contains isododecane as the solvent, instead of the water used in the generic product.
The biggest difference is the price point: Trader Joe’s Daily Facial Sunscreen costs $8.99, which is about $27 less than the Supergoop version.
When it first debuted, the product disappeared from shelves, with some millennial and Gen Z shoppers sharing their reviews on social media.
Other companies found their stride by listening to and acting on feedback. Burger King especially is seeing an increase in sales after updating their store’s technology, improving ingredient quality and responding to customer complaints.
But even that might not be enough to keep Gen Z customers coming back.
Wealth manager Scott Martin told the Daily Mail that for a lot of younger consumers, ‘loyalty only goes as far as the next price increase.’
‘If they can get something similar for less money, they’re willing to switch,’ said Martin. Consumers right now are becoming ‘more practical’ when it comes to their grocery lists, according to Martin.
‘People are buying store brands, waiting for sales, using rewards programs, and cutting back on impulse purchases,’ he added. ‘They’re still spending money, but they’re thinking harder about where it goes.’
Brad Sugars says consumers are ‘auditing’ their spending in order to save money in places where it counts
Experts say that trend is becoming more common as inflation shapes spending habits across nearly every industry – especially at the grocery store.
Business strategist Donald Thompson told the Daily Mail that with today’s inflation rate, brand loyalty doesn’t come ‘automatic’ anymore.
‘Gen Z and millennials are more willing to switch brands because they’re thinking carefully about every dollar, he said.
‘Many are carrying real uncertainty about the future financially, so brands have to prove their value at every purchase.’
Cost-conscious buyers are now expecting brands to offer not only competitive pricing, but also product quality, packaging and experience.
As a result, even legacy companies are being forced to rethink how they market products to younger buyers.
‘The brands that will hold up best during inflation are the ones that consistently deliver value while also making customers feel seen,’ Thompson added.
Brad Sugars noted that consumers aren’t panic-buying or cutting products at random – they’re auditing their spending by category and deciding where ‘good enough’ is acceptable.
‘Groceries, household staples and personal care are prime trade-down categories,’ he said, with some shoppers opting for lower-costing retailers like Costco over ritzy grocery options.
‘Subscriptions are being cancelled and re-evaluated quarterly,’ Sugars added. ‘Private label has shed its stigma. The new consumer behavior is ruthless prioritization not deprivation.’
