Generation Z: The Newest Addition to the Economy
Gen Z is made up of more than 2 billion young people! Gen Zers all fall between the ages of 10 and 22, meaning the vast majority of them are starting to make and spend their own money and are thinking about the products and brands they want to support. With such a large group entering the economy, Gen Z has the ability to totally change the market and the ways that companies sell their products.
It is predicted that Gen Z is going to surpass Millennials’ income by 2031. They are expected to reach over one quarter of global income and grow to over $2 trillion in global earnings in that time! With such a large amount of spending influence, brands are trying to change the way they market products in order to stay relevant to the new generation.
One way brands are changing their marketing strategies is by placing more effort on social media advertisements. Members of Generation Z spend more time on social media than any other generation, and they are more likely than others to buy products directly from ads they see on platforms like Tiktok or Snapchat. Brands that are able to utilize this strategy have a higher chance of staying relevant and benefiting from this new generation.
Generation Z is entering the market and are already making big waves with the new way they choose which brands to support and how they buy their products. With their estimated earnings predicted to grow significantly over the next few years, it is easy to see how Gen Z is going to be affecting the economy in a positive way.