The Grey Space: How Gen Z brands win by ditching category labels

For years, brand strategy has been built around clear lanes: premium or discount, aspiration or utility, lifestyle or necessity.

But our PION100 UK report reveals a surprising truth: the brands winning with 16–24 year olds today are doing something far more effective. They’re creating their own categories in the “grey space” between those extremes.

This shift is key to navigating the conflict between maintaining a premium brand image and driving sales up through young persons offers and discounts.

You may be thinking..

“Discounting cheapens my brand!”

“Offers only attract bargain hunters.”

But the data says otherwise.

What Is “The Grey Space” in Gen Z Marketing?

The “grey space” is where brands stop trying to fit into existing categories and instead define a new role in young people’s lives.

According to the PION100 study, Gen Z don’t shop “premium vs budget.” They shop strategically and mix high-love brands with high-utility brands daily.

What does this mean?

• Premium when it matters
• Affordable when it doesn’t
• Zero brand shame in either choice

This is the strategy that brands who made the top 10 of UK 16–24 year olds’ most-loved brands are following.

“UK 16-24 year olds have proved to be remarkably pragmatic, rewarding brands that deliver affordability, cultural relevance, and real value over those selling aspirational lifestyles they canʼt afford.”

–Richard Jackson, Head of Content at Pion

Greggs: Gen Z’s go-to for… everything

How did Greggs, a familiar British food-on-the-go brand, beat global names to the number one spot?

It’s simple.

Greggs consistently delivers quality, value, and choice, wrapped in genuine cultural relevance. From the iconic Sausage Roll to Vegan options, Greggs meets young people where they are, never pretending to be something it’s not.

‍

Rather than chasing every fleeting trend, Greggs chooses activity that feels authentic and aligned with its brand and audience. Its marketing partnerships, social presence, and cultural moments are selective and grounded, and recognizable. Ensuring relevance without feeling forced or opportunistic.

‍

In staying in its lane, Greggs has actually broadened its reach.

‍

Young people view the brand as:

‍

• A reliable food-on-the-go option: Gen Z knows they can easily find a Greggs on every high street, near campuses, online and across multiple food delivery platforms… With efficient service designed for busy moments.
• Unmatched value: An entire meal for less than a fiver? And a free Sausage Roll available for students with every cold sandwich deal? Gen Z says, “sign me up!”
• A staple of British culture: The Greggs Sausage Roll has become an essential part of UK student life. Something British youths take pride in, something they make their younger siblings or their international friends try.

How Greggs created its own category

1. Rejecting aspiration marketing
Greggs never pretends to be premium. That honesty builds trust with a generation allergic to posturing.

2. Making affordability culturally acceptable
Eating Greggs isn’t a compromise – it’s a shared reference point in youth culture.

3. Using student offers as relationship builders
Student offers aren’t hidden or apologetic. They’re a signal of understanding real financial pressure.

4. Showing up consistently
From Vegan Sausage Rolls to meme-able launches, Greggs stays visible without chasing trends.

Greggs isn’t competing with cafés or restaurants or fast-food chains. It’s become its own category. And that’s why it ranks #1 for Gen Z brand love.

Other brands owning the Grey Space

Sports Direct: The accessibility layer

Is it sportswear? Is it fashion? Is it a place for British youths to meet up, browse and hang out?

Sports Direct’s strength is that it is all the above. The brand makes aspirational brands achievable and fun.

Young people get to shop Nike, adidas, and The North Face, but without the full price barrier.

No pretence of curation or exclusivity. Young consumers feel smart, and cool, for shopping there.

PayPal: Invisible infrastructure

Finance is one of the least “exciting” categories, right?

Yet, PayPal ranks #11 overall.

By removing friction, reducing risk and making spending decisions more “fun” with their unusual Wrapped-style “Year in Review” feature, the brand haS won over Gen Z hearts. It’s more than a finance app, it’s a place where consumer behavior is documented and shared with friends.

PayPal isn’t loved despite being boring, it’s actually loved because it works flawlessly.

IKEA: Affordable adulthood

IKEA wins by solving a very specific youth problem: how to live like an adult on a non-adult budget.

From modular furniture for small space to unique-tasting meatballs, the brand truly covers it all for Gen Z. And within their budget.

Social media marketing and Gen Z-tailored advertising amounts to little if the products and services a brand offers aren’t meeting Gen Z’s utility and consistency demands.

The takeaways: How to find your Grey Space

Stop asking “Are We Premium or Discount?”

Ask instead:

• What role do we play in their daily lives?
• What problem do we remove friction from?

Reframe student offers as positioning

Smart brands integrate exclusive offers to speak to their audience. Student offers signal:

• Awareness
• Empathy
• Cultural relevance

Own your role unapologetically

Our report identifies the three winning grey-space roles:

• Accessibility layer (Greggs)
• Reliable infrastructure (PayPal)
• Affordable premium (IKEA, Sports Direct)

Measure loyalty, not just margin

The brands winning today are building habits that last beyond student years. Exclusive value is an unmatchable entry point to Gen Z loyalty in 2026.

The 2026 strategy: From categories to roles

The success of brands in “the grey space” emphasizes a key Gen Z consumer characteristic: This generation rewards brands for usefulness, honesty, and consistency.

Stop chasing trends or apologizing for affordability. It’s time to own the grey space and redefine what value looks like.

“The most loved brands donʼt just sell products, they provide cultural symbols that help young people express their identity.”

–Ash Waters, Head of Advertising at Pion

Read the full PION100 UK report to discover:

• The four Gen Z spending personas
• Sector-specific insights
• Why student programs drive long-term revenue, not margin erosion

CTA: Download the report