Generation Z (Gen Z) has long been associated with a shift away from traditional brand loyalty. Unlike previous generations, they are seen as more pragmatic, price-sensitive, and driven by values such as sustainability and authenticity rather than big-brand prestige. However, recent studies suggest that when it comes to healthcare and pharmaceuticals, Gen Z bucks this trend. A growing body of evidence reveals that a high percentage of Gen Z consumers prefer brand-name medications over their generic counterparts, despite the higher cost. This paradox—reduced brand loyalty in most categories but a strong preference for brand-name pharmaceuticals—offers valuable insights into Gen Z’s consumer psychology and the evolving landscape of healthcare marketing.
Gen Z’s Preference for Brand-Name Medications: What the Data Says
A recent survey (www.fortune.com) found that 35% of Gen Z consumers prefer brand-name medications, even though these are, on average, 79% more expensive than generics. This contrasts sharply with Millennials and Gen X, who are more likely to opt for generics when given a choice. The primary drivers behind this trend include:
Trust in Quality and Safety (62%) – Many Gen Z consumers perceive brand-name drugs as being more rigorously tested or safer.
Perceived Efficacy (57%) – Branded medications are often seen as more effective, even though generics contain the same active ingredients.
Familiarity (54%) – Gen Z is more likely to trust brands they have grown up with or seen recommended by healthcare professionals.
Despite being one of the most cost-conscious generations, Gen Z’s willingness to pay a premium for brand-name medications suggests that their approach to healthcare spending differs significantly from other categories like fashion, technology, or food, where they often prioritise price and sustainability over brand recognition.
The Health-Conscious Generation: A New Lens on Brand Preference
To understand why Gen Z makes these choices, we must consider their broader approach to health and wellness. This is one of the most health-conscious generations in history, prioritising:
Clean eating and ingredient scrutiny – Gen Z is more likely to read labels, avoid processed foods, and favour organic or natural products.
A proactive approach to wellness – Unlike previous generations, which often approached healthcare reactively, Gen Z focuses on prevention through fitness, mental health, and holistic wellness practices.
Digital health literacy – With access to vast amounts of health-related information online, they tend to research and validate product claims before making a purchase.
This careful consideration extends to pharmaceuticals. For Gen Z, choosing a medication is not just about treating symptoms, it is an extension of their broader lifestyle choices. They associate brand-name medications with higher quality control, better ingredients, and a greater level of transparency, much like how they approach food and skincare products. This perspective helps explain why their brand preferences in medicine diverge from their general shopping behaviour.
Brand Loyalty vs. Brand Trust: A More Nuanced Perspective
While Gen Z is often described as “brand-agnostic,” this is not entirely accurate. Instead of traditional brand loyalty, where consumers stick with a brand simply because of habit or marketing exposure, Gen Z engages in “value-driven brand trust.” This means they will repeatedly purchase from brands that align with their values, demonstrate transparency, and consistently deliver quality.
This behaviour is evident in their approach to pharmaceuticals:
Brand affinity is earned, not inherited – Unlike older generations, who may have strong emotional attachments to long-established brands, Gen Z requires proof of value before committing to a product.
Social proof is critical – Peer recommendations, online reviews, and influencer endorsements significantly influence their decisions.
They expect brands to be open and honest – Pharmaceutical companies that provide clear, accessible information about their products are more likely to win Gen Z’s trust.
For generic drug manufacturers, this presents both a challenge and an opportunity. Simply being the more affordable option is not enough. Gen Z must be convinced that generics offer the same quality, safety, and efficacy as their branded counterparts.
Implications for Healthcare and Pharmaceutical Companies
As Gen Z continues to gain purchasing power, their influence over healthcare markets will grow. Pharmaceutical companies, both branded and generic, must adapt to this generation’s expectations by focusing on:
Transparency and education – Gen Z is highly informed and expects brands to be upfront about their manufacturing processes, quality control, and ingredient sourcing. Pharmaceutical companies should invest in educational campaigns that clearly communicate the equivalency of generics and the rigorous standards they meet.
Personalisation and digital engagement – With Gen Z heavily relying on digital health tools, telemedicine, and online communities for medical advice, companies must leverage these platforms to reach their audience. Interactive content, expert-led discussions, and AI-driven personalised health recommendations can all play a role.
Ethical and sustainability considerations – Given Gen Z’s preference for companies that align with their values, pharmaceutical brands can benefit from demonstrating sustainable practices, reducing waste, and ensuring ethical sourcing of ingredients.
Beyond pharmaceuticals, this shift may signal broader changes in healthcare marketing. If Gen Z continues to prioritise brand trust in medicine, we could see an increased willingness to pay for premium healthcare services, preventative medicine, and even personalised treatment plans tailored to their health goals.
Conclusion: Rethinking Brand Perception in Healthcare
Gen Z’s paradoxical behaviour, rejecting traditional brand loyalty in most industries but gravitating towards brand-name medications, highlights the complex nature of modern consumer preferences. This generation does not blindly follow brands but carefully selects those they trust, particularly in areas related to personal health and wellness.
For pharmaceutical companies, the takeaway is clear: winning over Gen Z is not about brand legacy or mass marketing. It requires genuine transparency, social proof, and alignment with their health-first values. As this generation continues to redefine consumer expectations, healthcare brands that adapt to their unique mindset will be the ones that thrive in the years to come.
