Gen Z to become largest + wealthiest generation in history according to NIQ’s ‘Spend Z’ report

NIQ has collaborated with the experts at World Data Lab to put together a first of its kind, comprehensive generational spending report focused on Gen Z. The research and analysis presented in the “Spend Z” report draws on NIQ’s unrivaled data and depth of insights into consumer spending and habits; it demonstrates our capabilities in this area.

The report highlights there are 2 billion members of Gen Z, defined as anyone born between 1997 and 2012, meaning they’re a quarter of the world’s population, and the largest generation ever. Gen Z is arriving now, they’re the largest generation ever and the first truly global generation, they’re ready to spend, and it’s time for companies to start making the pivot.

Their global spending is expected to grow to $12 Trillion USD by 2030, and they’ll pass Boomers in spending by 2030 and Gen X in 2040. This potentially makes them the wealthiest generation in every region of the world – and that’s a sea change your organisation needs to be ready to navigate.

In fact, by 2034, Gen Z will add more than $9 trillion dollars in spending globally more than any other generation.

“Gen Z is the largest, the richest, and the most global generation ever” said Wolfgang Fengler, CEO, WDL. “Businesses need to know that Gen Z is 2 billion people strong, and meeting their needs is a must.”

“Gen Z is here, they are ready to spend, and marketers and advertisers need to know how to pivot to serve them. Understanding what makes this generation different is key to unlocking the greater than $12 Trillion USD growth opportunity they represent,” said Tracey Massey, NIQ’s Chief Operating Officer. “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.”

Key Gen Z takeaways:

●      They demand 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 that is linked to social causes and activism.  In Australia 37% of Gen Z say they are more skeptical about which sources of information they can trust.

●      Unprecedented foot traffic: 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.

●      Global purchasing power: 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 $3.6 Billion USD 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.

●      Health, wellness  and sustainability matters…to some extent: Overall they are health conscious and sustainability minded. The most dynamic demand growth among the Gen Z consumer class is in the health categories, as well as in alcohol / beverages.
• 81% of TikTok USD sales are expected to come from health and beauty, showing an outsized impact.
• 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,  24% of Gen Z say they  make conscious decisions on the impact their purchasing choices have on the planet and society.
• In Australia, 25% of Gen Z say they snack more often than compared to Gen Y (15%), Gen X (10%) and Boomers (11%).

●      Technology accelerating behavior:
– 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.

With Gen Z prioritising health and the environment, we also expect NIQ ​​Better For – a classification leveraging our 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. Currently, small brands and younger generations drive 62% of the growth in this category.

“Gen Z is the most connected, largest and influential generation yet,” said NIQ Chief Communication Officer Marta Cyhan-Bowles. “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: investment in Gen Z today will pay off tomorrow.”