USA | NielsenIQ (“NIQ”) collaborated with World Data Lab ( WDL) to issue the first of its kind, comprehensive generational spending report purely focused on GenZ. Global spending power of GenZ puts them in the SpendZ category. The research and analysis presented in the “SpendZ” report highlights NIQ’s commitment to delivering actionable market insights.
“GenZ is the most connected, largest and influential generation yet."
The report uncovers precisely what companies seeking to secure pathways to growth need to urgently and intimately understand about Gen Z, the largest and first truly global generation ever, including their preferences, spending habits, values, priorities, how and where they shop, what they purchase, and how they influence the purchasing patterns of other generations.
The report found that Gen Z, defined as anyone born between 1997 and 2012, makes up 25 percent (2 billion) of the world’s population, and their global spending power is projected to grow to $12 Trillion USD by 2030, potentially making them the wealthiest generation in every region of the world. The youngest generation is set to overtake Boomer spending by then. By 2034, GenZ will add more than $9 trillion dollars in spending globally more than any other generation.
“GenZ is here, they are ready to spend, and companies need to know how to pivot to serve them.Understanding what makes this generation different is key to unlocking the greater than $12 Trillion USD growth opportunity they represent,” said Tracey Massey, NIQ’s Chief Operating Officer.
“Companies are trying to understand the opportunities for growth with Gen Z, and how they are influencing others. “SpendZ” is just one example of how NIQ helps our clients uniquely achieve their ambitions by anticipating and meeting consumer needs.”
Key GenZ 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 GenZ 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 percent 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: GenZ will become the highest consumer spending class in many regions, and 30 percent of the global workforce in 2030. North America, Europe and APAC will continue to dominate the majority of spending with APAC becoming increasingly important. They currently have a more significant share of consumption in regions including Sub-Saharan Africa, Middle East & North Africa, and LATAM & Caribbean, where they make up a more substantial portion of the population.
- Health and wellness matters…to some extent: Overall they are health conscious and sustainability minded. The most dynamic demand growth among the GenZ consumer class is in the health categories, as well as in alcohol/beverages.
- 81 percent of TikTok USD sales are expected to come from health and beauty, showing an outsized impact.
- Over 50 percent of Gen Z has used a fitness or exercise app, and 17 percent have used a fitness band to track health and fitness information.
- Technology accelerating behavior:
- Online reviews from other shoppers are paramount when shopping with 53 percent of Gen Z population likely to make purchases on social media or live stream platforms.
- 26 percent of Gen Z use their phones while shopping physically in store to make decisions compared to 23 percent of Gen Y, 18 percent for Gen X and 12 percent for Boomers.
With GenZ prioritising health and the environment, we also expect NIQ Better For™ - a classification leveraging our proprietary algorithm to identify brands through product characteristics, positioning, sales and distribution - products to continue to grow faster than conventional products. This category includes products that are “better for” the consumer, the environment, and society. Currently, small brands and younger generations drive 62 percent of the growth in this category.
“GenZ is the most connected, largest and influential generation yet,” said NIQ Chief Communication Officer Marta Cyhan-Bowles.
“GenZ will have fewer children – later, will have unprecedented spending power, and will continue prioritizing 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.”
"GenZ is the largest, the richest, and the most global generation ever” said Wolfgang Fengler, CEO, WDL.
“Businesses need to know that GenZ is 2 billion people strong, and meeting their needs is a must.”
About Spend Z
SpendZ considers GenZ over the short, mid, and long terms, with generational comparative brand loyalty analyses and a deep dive into what it means for companies in the CPG, tech/durables, and retail industries. The report is mission critical for thought leaders and decision makers looking to steer their companies toward the next frontier of successful growth - while protecting their successful existing businesses.
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