Global spending of Gen Z is expected to grow to US$12 trillion by 2030 – set to surpass Boomers by 2030 and Gen X in 2040 – potentially making them the wealthiest generation in every region of the world, according to a first of its kind generational spending report released by NIQ, in collaboration with World Data Lab (WDL).
The report highlights that there are two billion members of Gen Z – anyone born between 1997 and 2012 – meaning make up one-quarter of the world’s population and are the largest generation ever. They’re ready to spend and it’s time for companies to start making the pivot.
In fact, by 2034, Gen Z will add more than $9 trillion in spending globally more than any other generation.
WDL CEO, Wolfgang Fengler said, “Gen Z is the largest, the richest, and the most global generation ever. Businesses need to know that Gen Z is two billion people strong, and meeting their needs is a must.”
NIQ chief operating officer, Tracey Massey added, “Gen Z is here, they are ready to spend, and retailers need to know how to pivot to serve them.Understanding what makes this generation different is key to unlocking the greater than US$12 trillion growth opportunity they represent.
“Companies are trying to understand the opportunities for growth with Gen Z, and how they are influencing others. ‘Spend Z’ is just one example of how NIQ helps our clients uniquely achieve their ambitions by anticipating and meeting consumer needs.”
Gen Zdemands 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 Gen Z globally. Belonging and self-esteem are two other top values, along with a strong sense of identity linked to social causes and activism. In Australia, more than one-third (37%) of Gen Z say they are more skeptical about which sources of information they can trust.
Their in-store purchases make up almost 50% 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% of the global workforce in 2030. North America, Europe and APAC will continue to dominate the majority of spending with APAC becoming increasingly important.
In the APAC region alone, Gen Z spent over US$3.6 billion in 2024. However, the shift in Australia is a little slower than the rest of APAC, with data showing in 2024, Gen X remains the dominant spending generation, set to shift to millennials by 2030.
Overall, Gen Z is health conscious and sustainability minded. The most dynamic demand growth among them is in the health categories, as well as in alcohol/beverages. Over 50% of Gen Z has used a fitness or exercise app, and 17% have used a fitness band to track health and fitness information. In Australia, around one-quarter (24%) of Gen Z say they make conscious decisions on the impact their purchasing choices have on the planet and society.
Online reviews from other shoppers are paramount when shopping with 53% of Gen Z population likely to make purchases on social media or live stream platforms. In Australia, 26% of Gen Z use their phones while shopping to make purchasing decisions compared to 16% of Gen Y, 16% for Gen X and 3% of Boomers.
NIQ chief communication officer, Marta Cyhan-Bowles commented, “Gen Z is the most connected, largest and influential generation yet. Gen Z will have fewer children – later, will have unprecedented spending power, and will continue prioritising certain categories – like health and wellness – to an extent generations before them have not. Our analysis leaves no doubt for retailers: investment in Gen Z today will pay off tomorrow.”