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Meet Gen Z
Gen Z’s spending power is expected to grow to $12T by 2030. Consequently, this generation will have a significant influence on the products manufacturers and retailers sell in the near future. It’s already emerging as a critical and largely untapped lever of growth.
Spend Z: A Global Report, a first-of-its-kind deep dive, is designed to help retailers and manufacturers in the consumer packaged goods (CPG) and Tech and Durables (T&D) industries build, foster, and maintain loyalty from Gen Z. Tap into their spending potential today, tomorrow, and in the future, starting with these key report findings:
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They will be the richest generation
Gen Z spends more per capita than any other generation at the same age. Over the next six years, their per capita expenditure will grow the fastest, but from a low base. When they reach age 25, their mean and median spending per capita in the U.S will outpace prior generations. And by 2030, Gen Z will contribute more wealthy people to every region in the world – dispelling the often-asserted myth of Gen Z being the “most broke generation ever.”
They will have the highest spending growth
Gen Z’s spend is growing fast—to the tune of $2.7 trillion USD in growth over the next few years. Manufacturers and retailers should look at allocating investments for the generation based on the anticipated share of growth for Gen Z in their category and region of the world.
They will expand categories and drive growth
When we look at product categories, our data predicts that through 2030, the most dynamic demand growth among the consumer class will be in the alcohol and health categories. Gen Z will be a part of this growth as they reach the legal drinking age. We see no signs of their ‘health conscious’-value system slowing down in either the mid- or long-term, presenting another key growth area for manufacturers and retailers.
Research shows that when purchasing beauty products, this generation is most looking for products that are clean, have natural fragrances, and are cruelty-free. In the food space, Gen Z wants products free from artificial ingredients, low in sugar, natural, and high in protein.
The most multicultural generation
Another key generational differentiator for Gen Z is their regional, racial, and ethnic diversity. Almost half of the generation is nonwhite. Their diversity also comes through in Gen Zers' social and cultural values. Compared with Millennials, 7.7 percent more Gen Zers identify with the LGBTQ+ community, and they are less likely to affiliate with established religions.
Source: NIQ/World Data Lab, Generations Analysis
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Gen Z is the generation to track today!
Though appealing to Gen Z comes with challenges, it also comes with great rewards. This generation will eventually overtake the spending power of previous generations, and brands who want to capitalize on that in the future should get started today.
Check out the Spend Z global report to learn more.
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