Generation Z has been dubbed the most disruptive generation, as the impact and effect that people in this age group have on all facets of our society is becoming increasingly significant. Studies show that by 2031, Gen Z’s income will increase by 5x, surpassing millennial income, reaching over a quarter of global income, and growing to over $2 trillion in global earnings. Members of Generation Z currently have $143 billion in annual spending power, plus nearly $130 billion that is spent on their behalf by family members each year. Because of this large buying power, popular brands among Gen Z like Netflix, Google, and Youtube all reap the benefits of their usage.
Generation Z is also known as the diversity generation, as 48% of members are non-white, more than any other generation to date. Further, 22% of Gen Zers have at least one immigrant parent, 9 in 10 live in emerging markets, 20% identify as LGBTQ+, and reports show that members are on track to be the best-educated generation.
The bottom line of Gen Z shopping habits is that members buy based on values. In 2020, Gen Zers trust in major corporations dropped from 56% to 46%, as social media influence and news outlets allow members to become more educated on the beliefs of the companies they are supporting. Generation Z wants to buy from brands that they can trust, valuing initiatives like sustainable practices, affordability, ethicality and inclusivity the most.
In the United States, nearly half of teens are online almost constantly, spending more than 10 hours a day on a mobile device. Mobile first marketing has become a large platform for members of Gen Z to indulge in, as social media platforms such as TikTok, Instagram, and Snapchat, to name a few, have become breeding grounds for marketing schemes aimed at this younger generation. Relatability in marketing is the new X Factor, and marketers need to look no further than Generation Z to know what is popular and what will grab a consumer’s attention.
