In the next decade, Generation Z’s worldwide income will surpass Millennials’. Already, Gen Z makes up 40% of the US consumer base. They spend $143 billion of their own money every year and influence another $127 billion in family spending. On top of their impressive spending power, Gen Z is also the most diverse generation in America. 48% of Gen Z is non-white and 20% identify as a member of the LGBTQ+ community. They are also on track to be the best educated generation in the country.
Why do these details matter? Gen Z’s identity influences their spending decisions. Younger consumers want to buy from companies inclusive of their identities. Inclusivity goes beyond advertising; policy changes from clothing companies include gender-neutral search options and non-binary gender options on online forms. Gen Z wants to buy from brands they think have good values, and they’ll avoid companies with a discriminatory reputation. Other values they hold dear include sustainability and ethical business practices.
To market to Gen Z, a company needs to emphasize the good it’s doing for humans and the planet. Once a company has messaging ready, it should market through mobile apps, where Gen Z spends most of their time.