Monday, July 22, 2024

Gen Z to overtake Boomers in spending by 2030

Gen Z is expected to become the largest – and wealthiest – generation in history, according to a report from NielsenIQ (NIQ) in collaboration with World Data Lab (WDL).

‘Spend Z’, a comprehensive report on spending trends of those born between 1997 and 2012, reveals their global spending power is projected to grow to $12 Trillion USD by 2030. The youngest generation is set to overtake Boomer spending by then. By 2034, Gen Z will add more than $9 trillion dollars in spending globally more than any other generation.

“Gen Z is here, they are ready to spend, and companies need to know how to pivot to serve them,” said Tracey Massey, NIQ’s Chief Operating Officer.

“Understanding what makes this generation different is key to unlocking the greater than $12 Trillion USD growth opportunity they represent.”

Key Gen Z Takeaways:

They demand authenticity: They are more interested in authentic relationships with influencers and brands. “Being true to yourself” is the number one ranked description of success for Gen Z globally. Belonging and self-esteem are two other top values, along with a strong sense of identity that is linked to social causes and activism.

Unprecedented foot traffic: Their in-store purchases make up almost 50% of their share of dollars and is higher than every other generation before them, even though Gen Z begins their shopping journey online, ranks online reviews from other shoppers as the most important factor when shopping and is heavily influenced by social media.

Global purchasing power: Gen Z will become the highest consumer spending class in many regions, and 30% of the global workforce in 2030.

Health and wellness matters…to some extent: The most dynamic demand growth among the Gen Z consumer class is in the health categories, as well as in alcohol / beverages. Over 50% of Gen Z has used a fitness or exercise app, and 17% have used a fitness band to track health and fitness information.

Technology accelerating behaviour: 53% of Gen Z population likely to make purchases on social media or live stream platforms and 26% of Gen Z use their phones while shopping physically in store to make decisions.

“Gen Z is the most connected, largest and influential generation yet,” said NIQ Chief Communication Officer Marta Cyhan-Bowles. “Gen Z will have fewer children – later, will have unprecedented spending power, and will continue prioritising certain categories – like health and wellness – to an extent generations before them have not. Our analysis leaves no doubt: investment in Gen Z today will pay off tomorrow.”

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