US Gen Z embraces TikTok as their Favorite Shop This Holiday Season?

More than half of Gen Z shoppers in the U.S. (54%) plan to hit TikTok Shop this holiday season, guided by trending items, influencer picks, and even AI-generated gift ideas. With 43% of Gen Z expecting to spend more on holiday gifts this year—outpacing the 37% of millennials who say the same—brands are taking notice and stepping up their game on digital platforms.

Gen Z’s Holiday Wishlist Goes Digital

This generation’s holiday gift search is playing out largely on social media. Globally, TikTok Shop is leading the charge (34%), closely followed by influencers (25%) and even AI-based searches (14%). What’s trending online for Gen Z isn’t just a suggestion; it’s a major driver in deciding what gifts to buy. Almost a quarter (24%) of U.S. Gen Zers admit that recommendations from their favorite online personalities heavily influence their gift choices.

Retailers Are Doubling Down on Social Media

Knowing where their audience is, retailers are putting their money where their ads are—57% of U.S. retailers are all-in on social media campaigns. Worldwide, brands are also investing in influencer partnerships (35%), email marketing (33%), and improving product pages (29%) to capture the attention of these digitally-savvy shoppers. And as competition heats up, nearly 70% of businesses are tapping into AI, aiming to keep up with the big players and better connect with younger shoppers this holiday season.

What This Means for Holiday Shopping Trends

Retailers aren’t just betting on TikTok; they follow Gen Z wherever they scroll. According to eMarketer, 42% of Gen Z shoppers are likely to buy gifts straight from social media this year, more than any other age group. Instagram and Facebook are still popular holiday deals, but TikTok is making waves in the shopping scene.

TikTok Shop and Instagram Hustle to Stay Ahead

TikTok Shop has been moving to become a go-to shopping destination, rolling out discount events with big names like NYX Professional Makeup and L’Oréal Paris. They’ve even expanded into selling pre-owned luxury items and authentic handbags in the U.S. and U.K. Meanwhile, Instagram is trying to keep pace by boosting its shopping features to attract this trend-conscious crowd.

Deals Matter Most to Gen Z Shoppers

With inflation on everyone’s mind, 80% of businesses are offering discounts this year, a big jump from 55% last year. It turns out Gen Z loves a good bargain—42% say they’re on the lookout for great deals, followed by free shipping (32%) and quality products (30%).

The Bottom Line: Gen Z Is Changing the Game

Gen Z is driving a new wave of social commerce, and brands are racing to keep up. With a mix of influencer-led shopping, AI-driven personalization, and a keen eye on the best deals, this generation is shaping to be a powerful force in the holiday retail landscape. Retailers are not just adjusting their strategies but fully embracing the digital shift to win over these trendsetters.