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Generation Z – those born between 1997 and 2012 – are already a strong consumer group, and their significance will continue to grow in the coming years. So what should retailers know about their preferences, spending habits, values, priorities, shopping methods and locations, what Generation Z buys, and how they influence the shopping patterns of other generations?
The answers to these questions are provided in the report “Spend Z” from NielsenIQ and World Data Lab, which states that Generation Z’s spending is expected to surpass that of the baby boomer generation by 2030, and by 2034, this young generation will spend more than $9 trillion globally.
“Generation Z is here and ready to spend. Companies must understand how to adapt and target them. Understanding what makes this generation different is key to unlocking the growth opportunity worth more than $12 trillion,” says Tracey Massey, COO of NielsenIQ.
Key Insights
Generation Z demands authenticity – Members of Generation Z are more interested in authentic relationships with influencers and brands. “Being yourself” is the highest-rated description of success for this generation worldwide.
Unprecedented store visits: Their in-store shopping accounts for nearly 50% of their share of sales, which is higher than any previous generation, even though Generation Z starts their shopping journey online and considers online reviews from other shoppers as one of the most important factors when shopping. They are heavily influenced by social media.
Global purchasing power: Generation Z is set to become the highest-spending consumer class in many regions and by 2030 will make up 30% of the global workforce. North America, Europe, and Asia-Pacific will continue to dominate most spending, with Asia-Pacific becoming increasingly important.
Health and wellness are important… to a degree: Overall, they are health-conscious and mindful of sustainability. The most dynamic growth in demand among Generation Z consumers is in health-related categories, as well as in alcohol/beverages.
- It is expected that 81% of TikTok’s revenue in the USA will come from health and beauty, showing its significant influence.
- More than 50% of Generation Z uses a fitness or similar app, and 17% use a fitness tracker to monitor health information.
Technology accelerating behavior:
- Online reviews from other shoppers are essential when shopping, with 53% of Generation Z likely to shop on social media.
- When shopping in a physical store, 26% of Generation Z uses their phone to help make decisions. In comparison, 23% of Generation Y, 18% of Generation X, and 12% of baby boomers do the same.
“Generation Z is the largest, most numerous, wealthiest, and most global generation in history,” said Wolfgang Fengler, CEO of World Data Lab. “Companies must realize that Generation Z consists of 2 billion people, and meeting their needs is a necessity.”
Source of the illustrative photo: Shopassociation.org, PeopleImages/iStock.com
Translated using AI
