Gen Z Wealth to Reach $12 Trillion by 2030, Report Finds

NIQ, in collaboration with World Data Lab experts, has released a groundbreaking generational spending report focused on Gen Z. The “Spend Z” report leverages NIQ’s extensive data and insights into consumer spending, showcasing their expertise in this domain.

The report identifies Gen Z as the largest generation, comprising 2 billion individuals born between 1997 and 2012, which accounts for a quarter of the global population. As the first truly global generation, Gen Z is poised to make a significant economic impact, with their global spending projected to reach $12 trillion USD by 2030, surpassing Boomers’ spending by that year and Gen X by 2040. This shift positions them as the wealthiest generation worldwide, necessitating a strategic pivot by businesses.

By 2034, Gen Z is expected to contribute an additional $9 trillion in global spending, more than any other generation. Wolfgang Fengler, CEO of World Data Lab, emphasized that Gen Z’s size, wealth, and global presence make them a crucial demographic for businesses to understand and cater to.

Tracey Massey, NIQ’s Chief Operating Officer, underscored the importance for marketers and advertisers to adapt their strategies to serve Gen Z, noting that understanding this generation’s unique characteristics is vital to tapping into the $12 trillion USD growth opportunity they present. Massey highlighted that the “Spend Z” report exemplifies how NIQ assists clients in achieving their goals by anticipating and meeting consumer needs.

Gen Z values authenticity in their relationships with influencers and brands, with “being true to yourself” ranked as their top description of success globally. They prioritize belonging, self-esteem, and a strong identity linked to social causes and activism.

Despite beginning their shopping journey online, Gen Z makes nearly 50% of their purchases in-store, a higher percentage than previous generations. Online reviews and social media significantly influence their purchasing decisions.

By 2030, Gen Z is expected to dominate consumer spending in many regions and constitute 30% of the global workforce. North America, Europe, and APAC will continue to be key spending regions, with APAC gaining importance. In 2024, Gen Z in the APAC region alone spent over $3.6 billion USD.

Gen Z shows dynamic demand growth in health categories and alcohol/beverages, with 81% of TikTok USD sales anticipated from health and beauty products. Over 50% of Gen Z use fitness apps, and 17% use fitness bands to track health information. In Australia, 24% of Gen Z consider the environmental and societal impact of their purchases, and 25% snack more frequently compared to other generations.

Online reviews play a crucial role, with 53% of Gen Z likely to purchase via social media or live stream platforms. In Australia, 26% of Gen Z use their phones for purchasing decisions while shopping, compared to 16% of Gen Y and Gen X, and 3% of Boomers. With Gen Z’s focus on health and the environment, NIQ expects growth in the “Better For” category, which includes products beneficial to consumers, the environment, and society. Small brands and younger generations currently drive 62% of this category’s growth.

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