Gen Z's $140B Spending Power Reshapes Industries
Generation Z, born between 1997 and 2012, now makes up around 30% of the global population and wields significant influence on various sectors. Known for their digital prowess, Gen Z's spending habits, entertainment choices, and investment preferences are reshaping industries.
In the US, over 62 million Gen Z individuals account for approximately 40% of consumer spending, totalling over 140 billion USD annually. Their purchasing decisions are heavily influenced by social media, with influencers acting as opinion leaders. Meanwhile, around 90% of male Gen Z members engage in gaming, further shaping marketing strategies.
Gen Z's digital native status is evident in their banking habits. They primarily conduct banking activities online and show a high affinity for cryptocurrencies. Moreover, many of their relationships originate online, with around 40% of Tinder users being Gen Z. This generation has grown up with the internet, smartphones, and tablets, being constantly connected.
When it comes to entertainment, Gen Z prefers online or streaming platforms like Netflix or Amazon Prime over linear television. In Germany, while there are no specific investment funds or ETFs tailored for Generation Z, they tend to favor broad, globally diversified ETFs aligned with their long-term investment strategies and values, prioritizing security over high returns.
With their significant spending power and unique preferences, Generation Z is driving changes in various sectors. Their digital-first mindset and affinity for online platforms are reshaping industries from retail and entertainment to finance and gaming. As they continue to grow and gain more economic influence, understanding and catering to Gen Z's preferences will be crucial for businesses worldwide.
