Gen Z is coming into its own in society and the workplace. As the spending power of this demographic increases, their purchasing tendencies will not just influence the retail market but will also change the consumption dynamics. Soul App, a leading social networking platform, with a sizeable Gen Z user base, wanted to understand what is motivating youngsters to buy and how they are spending their money.
So, a partnership was forged between the Shanghai Youth Research Center and Soul App’s in-house research team, which led to an insightful study meant to analyze the consumption patterns of Gen Z. The findings of this study were published as the 2025 Gen Z Emotional Consumption Report.
To lay the foundation for analyzing the burgeoning trend of emotional consumption, researchers started by discussing emotional value with the young respondents. Surprisingly, they observed that Gen Z has already reached a consensus when it comes to the definition/description of emotional value and its effects on the happiness quotient of life.
Nearly 90% of the participants stated that they recognize emotional values and actively seek spiritual and emotional anchors. Furthermore, nearly half of the individuals who were a part of Soul App’s study stated that emotional value is effective against stress and anxiety, while almost 33% stated that it serves as a survival and life motivation tool.
The premium that this demographic has placed on emotional value explains their willingness to seek out products and services under this driver. For instance, almost 60% of Soul App’s survey participants admitted that they are willing to spend specifically for emotional satisfaction.
This indicates that consumer decisions are no longer made primarily on rational calculations of need and cost. On the contrary, buying decisions are now based on whether a purchase fulfills deeper psychological and emotional needs. In fact, such is the driving force of this need that more than half of the survey respondents said that they already identify as “happy consumers” who primarily purchase for emotional value or interest.
For decades, consumption revolved around functionality, durability, and affordability. Emotional resonance was just a secondary thought, often used in marketing slogans rather than embedded in the product itself. But the emergence of emotional consumption has shifted this balance dramatically.
In fact, this evolution has created a demand for goods and services that may not have existed in the past; case in point: AI companions, collectible designer toys like Labubu, and immersive event experiences. This is not to say that traditional consumer categories, such as food, fashion, and others, are no longer in demand. But, to make a splash with youngsters, these now have to be infused with the ability to emotionally connect with young customers.
Soul App’s researchers observed that the meteoric rise of emotional consumption has also transformed the concept of value for Gen Z consumers. Traditionally, value was centered on the “price-to-performance ratio”. However, for Zoomers, the metric is shifting toward what might be termed “price-to-emotion ratio.”
A classic example of this would be products with minimal functional differences that still end up commanding premium prices simply because they bring emotional resonance into the deal. For instance, a regular tote bag, even one from a well-known brand, would fail to score when pitched against an almost similar bag featuring a popular digital character or tied to a cultural identity.
The latter often commands several times the price of the regular tote simply because the emotional layer adds a premium to the product. In other words, Soul App’s report suggests that to get a competitive edge, businesses can no longer rely just on lower costs. Sellers and service providers will have to cultivate emotional narratives, cultural ties, and aesthetic appeals to draw in young consumers.
Analysts from Soul App also observed that the demand for emotional consumption is fuelling the experience-based industry. From concerts to wellness retreats, and from themed cafés to digital events, these and other experience-based services are witnessing explosive growth. Their popularity is owed to the fact that they offer more than just the primary or core service; they deliver memories and emotions.
This point was driven home by the fact that Soul App’s users displayed surging interest in topics such as healing, concerts, park walks, AI companions, and Labubu in the last 6 months. And the popularity of the experience economy isn’t China-specific. According to McKinsey, the world over, spending on experiences is projected to outpace spending on material goods in the coming years, with the experience economy pegged to surpass $8 trillion worldwide by 2030.
Technology is, of course, amplifying this phenomenon by encouraging discussions around emotional value and ways to achieve it. This brings forth the question: what is nudging Zoomers towards emotional consumption?
Soul App’s team observed that spending on emotional value products and services is helping youngsters not just to cope with professional and academic stressors but also to fill the emotional gaps left by traditional social structures. Plus, emotional consumption is allowing these youngsters to create emotional and spiritual anchor points that help them to maintain some semblance of stability in an increasingly uncertain and chaotic world.
So, what appears as extravagance at first glance is in fact a form of coping mechanism that provides much-needed emotional respite to today’s young. And this is the factor that has got Gen Z hooked on emotional consumption. In addition to survey participants admitting as much, data pertaining to the correlation between average earnings and emotional spending also proves this point.
For example, Soul App’s researchers found that junior engineers, students, freelancers, young professionals, and ordinary workers showed the greatest inclination for making emotionally uplifting purchases, as do individuals with a discretionary average income of 5,000 RMB or less. But those with higher incomes were not that into emotional consumption.
Similarly, demand for emotional consumption soars during late nights and long commutes when youngsters are haunted by anxiety, stress, and boredom. Again, this clearly points to the connection between such purchases and the need for emotional soothing.
In a nutshell, Soul App’s report highlights that emotional consumption is a significant force in today’s economy. This trend adds richness and depth to our lives by allowing us to engage more deeply with experiences and products that resonate with our personal values and aspirations. As Gen Z embraces this trend, they are leading the way towards a more emotionally fulfilling world.
