GEN Z BEHIND THE RISE OF THE NEW ECONOMY

Written by Danielle Long

This article was originally published in The Australian: The Growth Agenda on the 18th of August 2025

Gen Z are helping to power the rise of brand experiences as their search for authentic activities helps grow a global "experience economy" estimated to be worth $12 trillion this year, according to the World Experience Organisation.

The experience economy, which includes entertainment, sport, hospitality, tourism and retail events, is earmarked for further growth as more businesses invest in events to grow their brands and products.

WXO founding member and the head of brand experience at Designteam, Adam Mortimer, said the growth was propelled by Gen Z, with 78 per cent valuing experiences over things. "Today's consumer is more focused on doing and storytelling. They prioritise memorable and personalised experiences over the acquisition of tangible goods and services," he said.

It's not just Gen Z, consumers who engage with a brand experience are more likely to purchase from the brand (85 per cent), 70 per cent will become repeat customers and 91 per cent feel more positive about a brand after attending an experience or branded event. Almost half (48 per cent) of businesses report a return on investment of between 3:1 or 5:1 from brand experiences.

The WXO reports a surge in investment at "unseen levels", which is expected to continue in the lead up to the Olympic Games in Brisbane. The sponsorship industry alone is predicted to reach $170bn.

"We see attendance records consistently being exceeded at sporting, arts, entertainment, and cultural events- across Fl, Australian Open and Vivid Festival. Audiences are telling us they are actively seeking experiences over things so it's back to brands, brand leaders and experience designers to deliver meaningfully for those experiential terms of exchange: truly valuing someone's time in return for knowledge, escapism, entertainment, belonging, reward or benefit," Mr Mortimer said. "With more choice becoming available across live and brand-led entertainment, the opportunity exists for brands to not only participate in significant moments in people's lives, but to add layers of meaning."