Survey finds Gen Z purchasing power to grow $12 trillion by 2030
This potentially makes them the wealthiest generation in every region of the world and is set to be the youngest generation to overtake Boomer spending by then.
KUALA LUMPUR - The first of its kind comprehensive generational spending report on Gen Z which makes up 25 per cent (two billion) of the world’s population, revealed that their global spending power is projected to reach US$12 trillion by 2030. (US$1=RM4.70)
This potentially makes them the wealthiest generation in every region of the world and is set to be the youngest generation to overtake Boomer spending by then, and expected to contribute over US$9 trillion in global spending by 2034, more than any other generation.
According to a statement, the "Spend Z” report uncovers precisely what companies seeking to secure pathways to growth need to urgently and intimately understand about Gen Z, including their preferences, spending habits, values, priorities, as well as how and where they shop.
Among the takeaways from the report also unveiled that Gen Z demand authenticity as they are more interested in authentic relationships with influencers and brands. "Being true to yourself” is the number one ranked description of success for the generation globally.
In addition, their in-store purchases make up almost 50 per cent 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.
Gen Z will become the highest consumer spending class in many regions, and 30 per cent of the global workforce in 2030, whereby North America, Europe and Asia Pacific (APAC) will continue to dominate the majority of spending with APAC becoming increasingly important.
Additionally, the report finds that overall Gen Z are health conscious and sustainability minded, and responding to that, NIQ also expects NIQ Better For, a classification leveraging the company’s 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 in which currently, small brands and younger generations drive 62 per cent of the growth in this category.
Purely focused on Gen Z, the "Spend Z” report was issued by NIQ in collaboration with World Data Lab (WDL). The research and analysis presented in the report highlights NIQ’s commitment to delivering actionable market insights. - BERNAMA
