How Gen Z Shapes And Responds To Megatrends

They’re the first generation to grow up entirely online. They’re reshaping how we pay, shop, work, and even how we define authenticity. Whether it’s choosing digital wallets over cash, streaming content that aligns with their values, or demanding that brands stand for something bigger than products, Gen Z is leaving its mark everywhere.

What’s striking is that these everyday choices don’t just reflect personal taste—they tie into megatrends, the powerful long-term shifts already transforming economies and societies. And in some cases, Gen Z isn’t just responding to these forces—they may be influencing their pace and evolution.

Table of contents

• The Gen Z effect on daily life
• Digital payments and fintech expectations
• Content, media habits and authenticity
• How investors could think about Gen Z + megatrends
• Note of caution
• Interplay: Gen Z responds and shapes

The Gen Z effect on daily life

Megatrends are long-term, structural shifts—like digitalisation, urban migration, or shifting payment systems—that unfold over decades and reshape industries and behaviour.

Gen Z, as digital natives, interacts with these trends in a more active, expectant, and experimental way than prior generations. Here are key areas where Gen Z both shapes and responds to megatrends:

Digital payments and fintech expectations

One of the clearest fronts is payments. Gen Z tends to lead earlier adoption of new payment methods:

• The EY Gen Z Payments Survey1 finds Gen Z is up to three times more likely than older groups to use alternative payment methods (digital wallets, Buy Now Pay Later, etc.).
• A global report by PYMNTS Intelligence2 says that about 85% of Gen Z prefer digital payments over cash.
• An Indian study by Srivastava et al. (2024)3 found that for Gen Z, performance expectancy, effort expectancy, and customer satisfaction are key drivers of digital payment adoption (Digital Policy, Regulation and Governance).

Read Also: What Is a Megatrend & Why It Matters for Investors

Content, media habits and authenticity

Gen Z lives in a different media world. They often judge brands by how “real” they feel, and demand transparency and values.

• A study in Frontiers in Sociology4 shows how Gen Z connects values with media content to navigate identity and authenticity.
• Gen Z’s scrolling, streaming, and content consumption choices influence platform algorithms and what becomes visible. 5

Because they care about purpose and social impact, Gen Z often supports brands that align with their values. That can nudge industries—from fashion to energy—to adopt more socially conscious practices, or risk losing relevance.

Gen Z tends to prefer experiences over accumulation. They are more likely to buy what they can share, what aligns with social values, or what gives them a story.

Read Also: What Makes a Trend a Megatrend? Key Traits & Examples

How investors could think about Gen Z + megatrends

If Gen Z pushes megatrends forward, that has implications for investment strategies. Here are some potential opportunities

• Thematic funds that lean into fintech, digital payments, commerce platforms, and sustainable sectors
• Diversified funds that cover multiple sectors (tech, consumer, logistics, payments)

Note of caution

• Be mindful of valuation risk: many companies already price in high expectations.
• Remember preferences evolve: what’s popular with Gen Z today may not hold a decade from now.

Read Also: Megatrends in Investing: AI, Climate & Clean Energy

Interplay: Gen Z responds and shapes

It’s not just that Gen Z picks up trends faster—as early and wide adopters, they may also tweak them, push boundaries, and set new norms. They may adopt new tech faster, giving space for experimentation (AR shopping, crypto, wearable payments). Their values—on climate, equity, and inclusion—also act as filters: they may resist trends that clash with their principles. For investors, the lesson is to watch the ripple effects of Gen Z’s behaviour, not just individual products. Still, caution is needed: megatrends could shift, preferences may evolve, and past adoption doesn’t imply future success.

Note: References to any industry/sector are provided for illustrative purposes only. This should not be construed as a research report or a recommendation to buy or sell any security or sector.

Sources

1. How Gen Z’s preference for digital is changing the payments landscape, EY, January 2024
2. Tapping into the future of payments, PYMNTS Intelligence, Jan-Feb 2024
3. Srivastava, S., Mohta, A., & Shunmugasundaram, V. (2024). Adoption of digital payment FinTech service by Gen Y and Gen Z in India. Digital Policy, Regulation and Governance.
4. Generation Z, values, and media: from influencers to BeReal, between visibility and authenticity, Frontiers in Sociology
5. Gen Z: A Generation That Shapes Culture in Real Time Through Streaming & Scrolling (2025), Horowitz Research

At Bajaj Finserv Asset Management Ltd, we aim to harness the power of megatrends by offering investors access to themes shaping the world’s future — from clean energy to technology, innovation, demographic shifts and more. Many of our funds follow a megatrends investment approach to help you participate in these long-term shifts, with a focus on growth potential and diversification. Build your future-focussed portfolio with Bajaj Finserv AMC.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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