It’s those dermatologist-recommended moisturizers like CeraVe or high-end supplements that shoppers are swapping home care items for in their carts.

According to First Insight’s report, Is Gen Z Still Choosing Your Brand? Here’s What’s Quietly Changing Across CPG, 31% of Gen Z consumers are opting for private label food and beverages to save money so they can splurge on higher-priority categories, with 25% willing to pay a premium for health and wellness products and 22% for skincare and beauty.

This shift is also reshaping how Gen Z engages with brands.

While national brands still lead in purchase preference among Gen Z shoppers, these young consumers are less driven by brand prestige than older generations—highlighting a growing willingness to explore private label, premium and direct-to-consumer alternatives.