Gen Zs are not spending their last $20 on lipstick. They are spending it on matcha and sneakers. This generation has redefined what counts as a “treat.” For them, luxury isn't about glamour or showing off. It is about feeling good, looking smart, and staying true to their lifestyle.
The old-school “lipstick effect” made sense in its time. When money was tight, people skipped big splurges and grabbed a fancy lipstick instead. It was a tiny way to feel rich, even when the economy said otherwise. That made sense for Millennials and the generations before them.
But Gen Z doesn’t see lipstick as a pick-me-up. They have been through the pandemic, inflation, and a housing crisis. Their idea of comfort is very different.
Gen Z grew up with chaos in the background. Economic uncertainty is their new normal.
Pixabay / Pexels / Instead of chasing designer bags or red lipstick, they are investing in smaller things that reflect their values, like wellness, identity, and quiet status.
They want luxuries that work hard. That fits into their daily life. That says something about who they are. And they want them now, not someday. Two things capture this vibe perfectly: Matcha and sneakers.
The $7 Matcha Is More Than a Drink
Gen Z’s favorite green drink isn't just about caffeine. A matcha latte is an experience. It is walking into a minimalist café with soft lighting and neutral tones. It is ordering a drink that feels like self-care. Plus, it is taking a photo that fits your feed.
But it is also practical. Matcha is seen as a smarter way to get energy. It’s smoother than coffee and packed with antioxidants. When Gen Z spends on a matcha, they are not just treating themselves. They are choosing a better, cleaner kind of fuel. It feels good and looks good. That is the kind of purchase that makes sense in a tight economy.
Sneakers Are the New Status Symbol
The second half of Gen Z’s new luxury duo? Sneakers. Not just any pair, either. Think crisp New Balances, cool Salomons, or minimalist Vejas. These aren’t for the gym. They are for brunch, errands, date night, and everything.
Craytive / Pexels / What makes sneakers the new luxury item is how versatile they are. One good pair can go with almost every outfit. That kind of wearability matters when money is tight.
But beyond that, sneakers have become a quiet way to show taste. Not flashy logos. Not rare drops. Just solid, stylish picks that people who know will notice.
For Gen Z, a $150 sneaker feels more logical than a $500 bag. It works harder, lasts longer, and still gives that same feeling of treating yourself. It is a reward, but a smart one.
Why Gen Z Isn’t Saving for “Someday”?
Older generations saved for big-ticket dreams. A house, a car, or a life they saw in magazines. Gen Z doesn’t buy into that. Not because they don’t want to, but because they don’t see it happening anytime soon.
So, they spend differently. They don’t blow money recklessly, but they do spend on what brings value now. A matcha today. A great pair of sneakers for the season. These are things that bring them joy, calm, or confidence without costing a fortune.
In this vibe-focused economy, what you wear and what you sip says a lot. But not in a loud, flashy way. Gen Z likes luxury that is earned, not screamed. That is why a $7 drink or a clean sneaker matters more to them than a logo handbag.
