What McKinsey’s State of the Consumer 2026 Report Really Tells Us

McKinsey released its latest State of the Consumer 2026 report on June 22, and it paints a clear picture: consumers are changing faster than many brands realize.

Two big forces - rapid technology growth & ongoing cost pressure - are colliding and reshaping how people discover products, make decisions, and spend their money.

Here are the four biggest shifts from the report, explained simply with the key numbers:

1. Technology is rewriting how people shop.

Younger consumers are no longer just scrolling on social media - they’re using AI to help them buy and discover brands.

• 28% of Gen Z already use generative AI tools for shopping (compared to only 16% of baby boomers).

• 60% of Gen Z regularly check AI-generated summaries when searching online (vs 29% of boomers).

• 23% of Gen Z discover new brands through social media (compared to only 7% of baby boomers).

• Social media has become a major discovery channel for Gen Z across the entire buying journey.

What this means: Traditional websites and search engines are losing importance. If brands don’t optimize for AI answers (called Generative Engine Optimization or GEO), they risk disappearing from the customer’s view.

2. Health has become a bigger priority than ever

Health is no longer just about going to the gym. People are tracking everything from sleep to stress using technology.

• 75% of Gen Z and 73% of millennials now use wearables or fitness trackers.

• In households using GLP-1 medications (such as Ozempic), grocery spending decreased by approximately 6% in the first six months.

This shift is creating new demand for functional foods, supplements, and products that support overall well-being.

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3. Experiences are beating physical products

Even with tight budgets, people are still willing to spend on meaningful experiences.

• Between 2023 and 2025, the global experience economy grew by 2.6%.

• Non-essential physical goods only grew by 0.8% during the same period.

Whether it’s travel, dining out, or at-home entertainment, consumers are choosing memories and moments over just buying more stuff.

4. Consumers are getting smarter with their money

The “buy now, replace later” mindset is fading. People are becoming more resourceful.

• 82% of consumers now use products longer before replacing them.

• 69% prefer to repair items instead of buying new ones.

• Many are also buying secondhand or doing more things themselves (DIY).

This isn’t just happening among lower-income groups - even higher-income consumers are proudly optimizing and extending the life of what they own.

Key Takeaways for Brands

• The old way of marketing (heavy advertising and pushing products) is losing power.

• Brands need to show up where consumers actually make decisions - including AI tools and social platforms.

• Health, experiences, and value-for-money are becoming more important than just having a good product.

• Designing products that last longer, can be repaired, or have resale value will become a competitive advantage.

• Companies that treat these four trends separately will fall behind. The winners will connect them (for example, using AI to help people find healthier or more durable options).

The consumer of 2026 is more informed, more selective, and more demanding than before. Brands that adapt quickly to these changes will have a real advantage.

Full report: McKinsey State of the Consumer 2026