globainsight Research Finds Gen Z Brand Loyalty Hits Historic Low, With 71% Switching Brands in the Last Year

New research from globainsight reveals a crisis in brand loyalty among Gen Z consumers: 71% of respondents aged 18–27 reported switching their primary brand in at least one category in the past twelve months, compared to 43% of Millennials and 28% of Gen X consumers. The study, based on 35,000 interviews across 22 markets, is the largest Gen Z brand loyalty study conducted to date.

The research identifies three primary drivers of Gen Z brand switching: perceived inauthenticity (cited by 48% of switchers), better value from challenger brands (41%), and negative social or environmental impact of the incumbent brand (36%). Traditional loyalty programme mechanics — points, tiers, discounts — ranked as the least influential factor in brand retention among Gen Z respondents.

'Gen Z isn't disloyal — they're loyal to different things,' said Dr. Anika Reyes, Director of Consumer Research at globainsight. 'They're loyal to brands that demonstrate consistent values, transparent practices, and genuine community engagement. The transactional loyalty model — buy ten, get one free — is fundamentally misaligned with what this generation wants from brand relationships.'

The study also found that 62% of Gen Z consumers have discovered at least one new brand through social media in the past six months, and 44% made a purchase based on a creator or influencer recommendation — significantly higher than older cohorts. 'The discovery-to-purchase pipeline on social media is compressed to minutes, not weeks,' Reyes added. 'Brands that can't participate authentically in that ecosystem are invisible to Gen Z.'