Gen Z is set to transform global spending trends. What does this mean for businesses?
Spending trends are shifting across generations, and 2024 is a pivotal year to understand these changes. Generational spending power highlights how age groups like Gen X, Millennials, and the rising Gen Z influence global expenditures.
While Gen X leads current spending, a NielsenIQ report predicts that Gen Z, the largest generation in history, will experience the fastest growth in buying power over the next decade.
This post explores the data to explore which generation dominates and what this means for the future of spending trends.
FAQs
Q1: What are generational spending trends?
A1: Generational spending trends refer to how different age groups allocate their money and influence global expenditures. These trends provide insight into consumer behavior, economic priorities, and market opportunities.
Q2: Why is Gen Z expected to lead future spending trends?
A2: Gen Z’s growing population size and entry into the workforce position them to drive the fastest growth in global spending over the next decade, as highlighted by NielsenIQ’s report.
Q3: How do Millennials and Gen X contribute to current spending trends?
A3: In 2024, Gen X holds the largest share of global expenditures at 23.5%, followed closely by Millennials at 22.5%. Both groups influence spending patterns through their income levels and lifestyle choices.
Q4: What can businesses learn from spending trends by generation?
A4: Understanding generational spending patterns helps businesses tailor their marketing strategies, products, and services to meet the specific needs and preferences of different age groups.
Gen X: The Top Contributor to Global Expenditures
While older generations control the largest share of global spending today, Gen Z is on track to become the fastest-growing force in global expenditures over the next decade.
This graphic shows the share of global population and spending each generation represents in 2024.
Why Gen Z Could Soon Drive Spending Growth
In 2024, Gen X, Boomers, and the Silent Generation all account for larger shares of global spending compared with their shares of the population, with Gen X holding the largest share at 23.5%.
Millennials follow close behind with 22.5% of spending power, while making up 22.9% of the population.
However, a report by NielsenIQ and World Data Lab projects Gen Z will see the fastest growth in spending power over the next 10 years.
That’s primarily because Gen Z — which today accounts for almost a quarter of the world population — is the largest generation to date and will likely be the largest ever.
Generational spending trends offer a fascinating glimpse into how global expenditures are shaped and shared. In 2024, Gen X and Millennials dominate the financial landscape, but Gen Z’s influence is growing rapidly. As businesses and policymakers adapt to these trends, staying ahead of the curve will mean embracing the shifting dynamics of consumer power. Whether it’s targeting Gen Z or understanding the habits of established spenders, navigating spending trends is key to thriving in the global market.
Graphic created by Visual Capitalist; data from NielsenIQ and World Data Lab, 2024
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