How Gen Z Is Changing What Companies Buy for Branding

 For years, promotional products followed a familiar formula: finding something inexpensive, adding a logo, and handing it out to as many people as possible.

That approach worked when the goal was simple brand exposure.

But Gen Z is changing the equation.

As this generation becomes a larger part of the workforce and increasingly influences purchasing decisions—they're raising expectations for what branded merchandise should be. They're not looking for more stuff. They're looking for products that feel useful, authentic, and aligned with the values a brand claims to represent.

Utility Comes Before Novelty

One of the biggest shifts is that Gen Z expects branded merchandise to have a purpose beyond carrying a logo. According to PPAI's consumer research, apparel remains the most desired promotional product category among Gen Z, followed closely by fashion accessories, drinkware, bags, and personal care products. Traditional desk accessories like pens rank much lower because they're less relevant to everyday life.

A high-quality hoodie becomes part of someone's wardrobe. A durable water bottle gets tossed into a backpack every morning. A tote bag travels from work to the grocery store to the weekend farmer's market. The branding becomes part of the experience instead of interrupting it.

For marketers, this means asking a different question during product selection:

"Will someone choose to use this tomorrow?"

If the answer is yes, the branding has a much longer lifespan.

 

Sustainability Has Moved From "Nice to Have" to Expected

Sustainability is now part of how Gen Z evaluates a brand's value as an addition to their lives. Research shows that nearly 9 in 10 Gen Z consumers consider sustainability an essential factor when choosing branded merchandise. But they also expect companies to prove their claims, not just print "eco-friendly" on a product description.

That doesn't mean every promotional campaign needs to revolve around recycled materials. It means buyers should prioritize products with credible certifications, transparent sourcing, longer product life, or meaningful environmental impact.

Choosing one premium item that lasts for years often creates a stronger impression than giving away several inexpensive products destined for the trash. Quality has become part of sustainability.

Authenticity Doesn't Stop at Marketing

Gen Z has grown up with constant advertising and social media. They can usually tell when a company is chasing a trend instead of living its values. That expectation carries over into promotional products.

If a company promotes wellness, the merchandise should support that message. If sustainability is part of the brand story, the products should reflect it. If innovation is a core value, the merchandise shouldn't feel outdated.

Promotional products have become another touchpoint where companies either reinforce, or undermine, their brand promise.

 

Merchandise Is Becoming Part of Personal Identity

Previous generations often viewed branded merchandise as a free giveaway. Gen Z is more selective.

The products they keep often become part of their everyday identity. That's why apparel, bags, hats, drinkware, and lifestyle accessories continue to outperform generic promotional items. They're visible, practical, and fit naturally into daily routines. When someone voluntarily wears a branded sweatshirt or carries a branded tote, they're making a small endorsement of that company.

 

Experience Matters Just as Much as the Product

How merchandise is received is becoming almost as important as what it is.

PPAI research found that Gen Z prefers branded merchandise as part of a purchase, through online giveaways, at events, or within subscription experiences rather than simply collecting random freebies.

That highlights an important shift! Instead of using promotional products to create clutter, companies should use them to create memorable moments.

• A thoughtful onboarding kit.
• A meaningful event giveaway that commemorates the experience.
• A thank-you gift after a purchase.
• A welcome package for new employees.

When the merchandise marks an experience, it becomes more memorable.

What This Means for Brand Buyers

If your promotional strategy still focuses primarily on finding the lowest-cost item available, you may be optimizing for distribution instead of impact. Gen Z is encouraging companies to think differently.

Before placing your next order, consider asking:

• Is this something people will actually use?
• Does this product reflect our brand values?
• Is the quality high enough to keep?
• Would someone choose this even without the logo?
• Does receiving this item create a positive experience?

If the answer is yes, you're already moving in the direction Gen Z expects.

As Gen Z continues influencing workplace culture and purchasing decisions, companies that embrace these shifts will be the ones building stronger, longer lasting connections with the people receiving them.