Gen Z to hit USD$12 trillion global spending by 2030

A report recently published by NiQ in collaboration with World Data Lab reveals that Generation Z, defined as individuals born between 1997 and 2012, is positioned to become the largest and wealthiest generation in history.

The "Spend Z" report projects that the global spending of Gen Z will reach USD $12 trillion by 2030, eventually surpassing baby boomers in the same year and Generation X by 2040.

According to the report, there are currently two billion members of Gen Z, forming a quarter of the world's population. Wolfgang Fengler, CEO of World Data Lab, emphasised the significance of this demographic shift: "Gen Z is the largest, the richest, and the most global generation ever. Businesses need to know that Gen Z is 2 billion people strong, and meeting their needs is a must."

Tracey Massey, Chief Operating Officer at NiQ, echoed these sentiments, stating, "Gen Z 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 USD $12 trillion growth opportunity they represent." She added that the "Spend Z" report aims to assist companies in comprehending the opportunities for growth with Gen Z, noting how this generation influences others.

The report identifies technology as a primary driver of consumer behaviour among Gen Z. Online reviews from other shoppers play a crucial role, with 53% of the Gen Z population likely to make purchases via social media or live-stream platforms. In Australia specifically, 26% of Gen Z use their phones while shopping to make purchasing decisions, a significant contrast to 16% of both Gen Y and Gen X, and only 3% of Boomers.

NiQ and World Data Lab's comprehensive approach to the "Spend Z" report involved merging household spending data from national statistical agencies with population data from the United Nations and IIASA. This data was augmented with 2,065 surveys covering 160 countries in the NiQ database. Where survey data was unavailable, spending patterns were imputed using statistical techniques that identified similar characteristics in other countries. The results were calibrated against each country's national accounts and were based on economic projections from both the IMF and Shared Socioeconomic Pathways used by the UNFCCC.

The research methodology allows for detailed and reliable forecasts of consumer behaviour across 183 countries from 2016 to 2034, broken down by age, gender, and income class. The report also disaggregated total spending into over 100 different product categories using COICOP classifications.

The insight provided by the "Spend Z" report is intended to be invaluable to thought leaders and decision-makers aiming to steer their companies towards future growth while maintaining their existing businesses. The report offers an expansive look into the comparative brand loyalty and purchasing trends of Gen Z, providing a strategic framework for companies within the consumer packaged goods, technology, and retail industries.