Research: What Drives Gen Z Brand Loyalty in 2026?

Marketers have spent years being told that Gen Z is impossible to hold onto. That they're fickle, brand-agnostic, and ready to bail the moment something cheaper or newer shows up.

It's a tidy story. New research from our team at Rival Technologies also shows that it's also mostly wrong.

Using our conversational market research platform, we surveyed 903 Gen Z consumers across Canada and the US in July and August 2026 to understand how this generation actually thinks about brands. The picture is more interesting and nuanced.

In this article, we share some of our key findings. You can also check out the full report to learn more. 

First, the myth: Gen Z can absolutely be loyal

Here's the good news for us marketers: Gen Z brand loyalty is not dead. 

When we asked Gen Z how often they stick with a brand they like instead of switching to a cheaper or newer option, 64% said they stay loyal "always" or "most of the time." Only a small fraction said they rarely or never stick around.

So despite all the options available to Gen Z, the capacity for loyalty is clearly there. This raises an important question: why are brands having a hard time earning the loyalty of this generation? 

The single biggest driver of Gen Z brand loyalty

Do you really get your Gen Z customers? 

Based on our research, the answer is most likely not. Only 11% of Gen Z say brands understand them "really well." That's a sad number, but looking deeper provides a glimpse of hope. Among Gen Z who feel a brand gets them "really well," 45% are loyal "always." Among those who feel brands miss the mark, just 5% are.

That's roughly a nine-times difference. Feeling understood is the strongest signal of loyalty we found, stronger than any single product feature or perk.

A word of caution on that number: it's based on a smaller subgroup (the 11% who feel truly understood), so treat the exact ratio as directional rather than precise. It also shows an association, not proof of cause. Still, the direction is unmistakable. Loyalty isn't won by shouting louder. It's won by making people feel like you actually get them.

What actually earns Gen Z brand loyalty

One stereotype about Gen Z is that they pick brands that have values that align with theirs. Previous research has shows, for instance, that Gen Z care about social activism or sustainability.

Our research shows that this might be shifting a bit. Perhaps due to inflation or the job market, but it seems like what Gen Z is looking for these days are a bit more practical. 

When we asked Gen Z directly what keeps them coming back to a brand, the answers were refreshingly unglamorous. The fundamentals dominate:

• Price and value — 82%
• Product quality — 80%
• Rewards or perks — 41%
• Alignment with my values — 36%
• Customer service — 33%
• Recommendation from friends or family — 28%
• Recommendation from influencers — 9%

Price, value, and quality tower over everything else. The more fashionable loyalty levers—purpose, values-alignment, and influencer endorsements—trail far behind. Values-alignment matters to about a third of Gen Z, but as a tiebreaker on top of a good product, not a substitute for one.

And influencer marketing, which takes up to 25% of marketing budgets now, ranked dead last with only 9% of Gen Z saying it influences their loyalty. 

This need for practicality is reflected how Gen Z describe the brands they're loyal to. One example: 

"Adidas always has strong sales. It's a brand of great quality. Their rewards program is better than their competitors." — He/him, US, 25–29

Another example: 

"I recommend Anker because it's reliable, never breaks, charges fast, and they actually honor warranties." — He/him, US, 25–29

Even the values-driven answers are anchored to a product that delivers first:

"I'm loyal to DUER for pants. They're uniquely made, look professional, and are as comfortable as sweatpants. The company cares about sustainability, is Canadian-founded, and offers great value." — He/him, Canada, 25–29

Values are a multiplier on a good product, never a rescue for a mediocre one.

Of course, this might change as macroeconomic forces evolve or as Gen Z move to a different lifestage. It's a reminder that companies need to engage Gen Z continuously (through insight communities and other similar programs) to understand where they are today and how their attitudes and behaviors may change in the future. 

Gen Z loyalty is not one-size-fits-all

If your company is building your Gen Z marketing strategy now, our research suggests that you need to be more specific in your targeting. Different Gen Z groups have different needs and expectations.  

US vs Canada Gen Z markets

Interestingly, our research shows that American Gen Z are nearly three times more likely than Canadians to say brands get them "really well" (17% versus 6%), and about twice as likely to be unconditionally loyal.

Canadian Gen Z are more skeptical and harder to win. The same campaign will tend to land warmer in the US and flatter in Canada, so a credibility-first, prove-it approach works better north of the border.

A single North American Gen Z marketing is unlikely to do well given these differences in perspectives. 

Gen Z loyalty drivers shift with age

The youngest cohort (18–20) leans more on discovery and peer influence, while older Gen Z (25–29) increasingly rewards reliability and service. Customer service climbs steadily as a loyalty driver with age, from 22% among the youngest to 38% among the oldest.

These findings are a reminder that "Gen Z" is not a monolithic group. Really there are 3 Gen Z age groups to consider. In this case, age is not just a number — it's a reflection of their lifestage and their different needs. A teenager living at home has a very different need from a mid-20-something moving in with a partner for the first time. 

Recommendation for marketers

Hopefully our research shows that Gen Z loyalty isn't a mystery, and it isn't out of reach. But brands need to earn that loyalty. Here are three key recommendations from our research: 

Get the fundamentals right first. Price, value, and quality are the price of entry. No amount of purpose messaging compensates for a product that doesn't deliver.

Make them feel understood. This is the real differentiator and the strongest predictor of loyalty. Invest in relevance and personalization. Make sure you're using real Gen Z customer insights to inform your strategy. 

Use values as a multiplier, not a lead. Values-alignment deepens loyalty for a meaningful slice of Gen Z, but only when the product already earns their trust.

The generation everyone calls disloyal is, in fact, ready to commit. Most brands just haven't given them a reason.

Overall, our study reiterates that to earn the heart and minds of Gen Z, brands must invest in getting to know these young consumers deeply. Whether it's through insight communities, a syndicated program like Rival's Emerging Consumer Index, or doing custom studies with top Gen Z market research companies, the brands that prove to young consumers that they really get them will win.