A new McKinsey report reveals that digital tools, AI, and evolving priorities are significantly shifting how consumers discover and choose products, with generational differences and a stronger focus on experience and value influencing purchasing decisions.
McKinsey says shoppers are entering a new phase in which artificial intelligence, social platforms and tighter household budgets are reshaping how people discover products and decide what to buy. The consultancy’s latest consumer analysis points to four broad shifts: more digital tools in the path to purchase, stronger demand for personalised health solutions, a preference for experiences over possessions and a more disciplined focus on value.
The most striking change is generational. McKinsey found that 28% of Generation Z consumers already use generative AI tools when shopping, compared with 16% of baby boomers. It also said 60% of younger consumers now rely on AI-generated summaries when searching online, versus 29% of older age groups. Social media remains influential too: 23% of Generation Z said they discover new brands there, while 34% said these platforms help determine the final purchase. Even so, trust remains higher in family recommendations and expert advice than in social channels.
McKinsey’s data also suggests that brands are losing some control over discovery. The consultancy found that brand websites account for only 1% to 2% of sources cited by language models in consumer goods queries, with forums, media outlets and comparison sites appearing more often. That matters because shoppers are increasingly using AI as a filter before they ever reach a retailer’s site. In practice, visibility in search results, reviews and model-generated answers may matter as much as traditional advertising.
Health tracking is another area where digital behaviour is deepening. McKinsey said 75% of Generation Z and 73% of millennials use smartwatches or dedicated apps to monitor sleep, gut health and stress, compared with 55% of Generation X and 32% of baby boomers. The report also found that 22% of consumers overall, rising to 26% of Generation Z, have turned to language models for health-related explanations.
At the same time, spending patterns are tilting towards leisure. McKinsey said the experiences sector grew 2.6% globally between 2023 and 2025, while travel and accommodation increased 4.4%, ahead of the 0.8% rise in non-essential goods. When asked how they would spend an extra $200, 27% of respondents chose a holiday and 14% chose eating out. That indicates that even under cost pressure, consumers continue to prioritise moments over objects.
Frugality, however, is no longer just a reaction to inflation. McKinsey said more than three-quarters of consumers are now maintaining deliberate money-saving habits. Its survey found that 82% keep products longer before replacing them, 69% repair items and 68% actively try to reduce waste. Second-hand clothing also remains mainstream, with 30% of shoppers buying used apparel, while half of Generation Z said they look up online repair guides or do it themselves.
For companies, the message is clear. Product quality still matters, but so does proof of durability, flexibility and value over time. McKinsey’s findings suggest that brands must now compete not only on shelf appeal but also on whether they can be found, summarised and recommended inside AI-driven discovery systems.
Disclaimer: This content is intended for informational purposes only. Readers are advised to exercise their own judgement, conduct due diligence, or consult a qualified expert before acting on any information provided.
