The growing demand for online services by Generation Z for coaching, mentoring, skill-building, and mental health therapy is paving the way for a new industry. Gen Z is digital-savvy and comfortable seeking advice online, not afraid to express their needs. They are looking for authentic brands and experts they can trust, creating opportunities for thoughtful entrepreneurs. The industry of online services for Gen Z is rapidly expanding, with Gen Z more likely to report mental health concerns than any other generation.
According to the American Psychology Association, Gen Z is significantly more likely than other generations to report their mental health as fair or poor. McKinsey & Company reports that one in four Gen Z respondents reported feeling emotionally distressed, almost double the levels reported by millennials and Gen Xers. Despite this, Gen Z is turning to online platforms for help, with some even paying TikTok creators for career coaching. Startups are catering to this demand, with one recently receiving $72 million in funding to match therapists with patients.
Coaching and therapy are not the same, as therapists focus on diagnosing and creating treatment plans, while coaches focus on behavior changes and goal-setting. Online platform solutions are empowering Gen Z to take control of their mental health in familiar environments. Markets for online coaching and therapy services are growing rapidly, with projections showing significant growth in the coming years, presenting entrepreneurs with opportunities, but they must first understand Gen Z’s needs and preferences.
For Gen Z, complete health includes both physical and emotional well-being, requiring a blend of digital technology and human interaction in self-help platforms. These platforms may offer a variety of services related to advice, career, skill-building, and goal-setting. Despite starting with non-human interaction, Gen Z will eventually need human interaction, especially for therapy services. Trust in the brand/platform will be based on these interactions, making the design of this part critical for success in serving Gen Z’s needs.
