Gen Z to spend £4.3 billion on campus supplies – study

UNiDAYS has released findings from its Back-To-Campus research, revealing insights into Gen Z's spending habits as the new academic year approaches. The research suggests that Gen Z will spend a total of GBP £4.3 billion on back-to-campus supplies, averaging over GBP £1,600 per person.

The report, based on a survey of 8,000 UK students conducted in May, found that the first student loan payments prompt a significant spending period, with Gen Z likely to invest heavily in school supplies, groceries, fashion, beauty products, and technology.

Derek Morrison, MD Retail Marketplace, commented on the findings: "Preparing for the upcoming semester is a significant undertaking. As the first student loan payments arrive, Gen Z will be replenishing their school supplies, groceries, fashion, beauty products, and crucial tech items. This is a pivotal moment for brands to engage with Gen Z, particularly freshers who are projected to spend more than any other year group, with an average expenditure forecast of over GBP £2,500 per student."

The report highlights technology as the top spending category, with anticipated spending totalling GBP £1.5 billion. Specific tech items, such as laptops (GBP £413 million), smartphones (GBP £332 million), PCs and components (GBP £147 million), and headphones (GBP £132 million), are expected to be popular among students.

Fashion is also a major expenditure for Gen Z, with projected spending amounting to GBP £1.5 billion. Items like sneakers/trainers (GBP £308 million), womenswear (GBP £238 million), streetwear (GBP £176 million), and accessories (GBP £174 million) are anticipated to see considerable purchases.

Beauty products follow closely, with expected spending reaching GBP £1.1 billion. Freshers, in particular, are likely to spend more on beauty items, with an average of GBP £1,118 per student compared to GBP £518 for those in subsequent years. Key beauty categories include bodycare (GBP £204 million), makeup (GBP £192 million), haircare (GBP £184 million), and fragrance (GBP £174 million).

The research also indicates a rise in fitness, streaming, and lifestyle subscriptions as students return to campus. Around 70% of students plan to invest in gym or health club memberships, two-thirds will subscribe to music services, and more than half intend to buy TV packages. Freshers are more inclined to opt for clothing, beauty boxes, and language learning subscriptions than their peers in later years.

Morrison added, "When it comes to shopping for new items or signing up for subscriptions, students have made their position clear. Gen Z is willing and able to spend on what they deem most important, but that doesn't mean brands can't give them a helping hand by meeting them at their passion points going into the new academic year. Offering a student discount, for example, would further influence three-quarters of all students to make a back-to-school purchase."

The report emphasises the importance of the back-to-campus period for brands looking to engage with students. "Back to campus is a key period of discovery in terms of daily routines, hobbies, and interests. It's essential that brands align with and enable students to fully embrace and enjoy this exciting time. In the spirit of discovery, appealing to freshers with free trials and exclusive content is a sure way to drive engagement," Morrison concluded.