Looking Ahead to Gen Z: Demographic Patterns and Spending Trends Market Research, Market Share, Market Leaders, Market Opportunities, Industry Trends, Industry Analysis, Consumer Insights
Published: 07/05/2018 Pages: 161 Full Study Price: US$ 2,395
The 31 million 18- to 24-year-olds in the vanguard of Gen Z and the 21 million 13- to 17-year-olds growing up behind them are making a profound impact on the American consumer economy. Gen Z young adults generate an aggregate income of $463 billion, while older teens (15- to 17-year-olds) have an aggregate income of $17 billion and have parents who spend $25 billion on their clothing and categories such as entertainment and personal care items.
This Packaged Facts report provides an in-depth look at how members of Gen Z view the world and analyzes what drives their behavior as consumers. One overriding conclusion of the report is that today’s teens and young adults display a wide range of complicated and contradictory characteristics that create an unparalleled challenge for marketers.
What is the Gen Z demographic searching for?
To begin with, these Gen Z digital natives continue to seek out consumer experiences in the brick-and-mortar world. Compared to adults on average, Gen Z young adults are less likely to buy online and are more likely to make visits to the mall.
What are the defining characteristics of the Gen Z demographic, and how does it affect businesses?
Another defining characteristic of Gen Z is their unprecedented comfort with the idea of gender fluidity and their broad view of sexuality. As a result, marketers have begun to respond to Gen Z consumers by launching gender-neutral marketing campaigns and rolling out gender-neutral products that have traditionally been geared exclusively toward either males or females.
Read on if you want to know more about key trends shaping the Gen Z consumer market.
Table Of Contents
- Executive Summary
- Overview
- Scope and Methodology
- Demographic Profile
- Population of 13- to 24-Year-Olds Reaches 52 Million
- Gen Z Is Far More Diverse Than Other Generations
- Gender Fluidity Is a Marker of Gen Z
- Religious Institutions Lose Influence Among Gen Z Teens
- Gen Z Young Adults Are More Politically Engaged
- 18- to 24-Year-Olds Are Now Much Less Likely to Live Independently
- Cohabitation Far More Common
- Teen Marriages and Births Have Declined Precipitously
- Economic Profile
- School Defines the Lives of Most Gen Z Teens and Younger Adults
- Educational Achievement Is on the Upswing
- Teen Employment Trends Downward
- Summer Jobs Have Become Less Common
- Older Teens Much More Likely to Work
- Working Becomes Part of Life When Teen Years End
- Employment Patterns Vary Widely by Race and Hispanic Origin
- A Substantial Percentage of Young Adults Have Managerial or Professional Jobs
- Level of Personal Income of Gen Z Reflects Earning Capacity
- Gen Z Is Much More Likely to Depend on Earnings From Self-Employment
- Overview of Shopping Habits and Spending Patterns
- Brick-and-Mortar Shopping Still Appeals to Gen Z
- New Stores More Likely to Appeal to 18- to 24-Year-Olds
- Gen Z Young Adults Less Likely Than Millennials to Buy Online
- Gen Z Young Adults Are More Likely to Be Sole Purchase Decision-Maker
- Parents Are a Major Source of Teen Spending Power
- Food and Clothing Dominate Teen Spending Priorities
- Aggregate Income of 18- to 24-Year-Olds Totals $463 Billion
- Expenditures of Gen Z Consumer Units Total $260 Billion
- Highlights of Consumer Spending
- Gen Z Young Adult Males Especially Drawn to Spending on Clothing
- Under-25 Consumer Units Spend $9.8 Billion on Apparel
- In-Home Entertainment Soaks Up Biggest Share of Gen Z Entertainment Expenditures
- Gen Z Is Attached To Cellphones
- Entertainment Choices Stand Out
- Gen Z Likely to Continue America's Love Affair with Cars
- Used Cars Favored by Gen Z
- Gen Z Young Adults Far More Likely to Eat Out
- Use of Financial Services
- Gen Z Young Adults More Likely Than Their Millennial Predecessors to Have Bank Accounts
- Gen Z Most Likely to Use Mobile Banking Apps but Brick-and-Mortar Branches Still Appeal
- Many Teens Are Super Savers
- 67% of Teens Have Access to Bank Accounts
- Multicultural Young Adults Drive Growth in Ownership of Bank Accounts
- Multicultural Young Adults Are a Growing Force in Ownership of Credit and Debit Cards
- 19% of Teens Have Access to a Credit Card, 40% Have a Debit Card
- Digital and Mobile Payments Preferred by Gen Z
- Marketing to Gen Z
- Instagram and Snapchat Win Out Over Facebook
- Conventional Celebrities Lose Out to Social Media Stars
- Brands Ramp Up Influencer Marketing Campaigns to Reach Gen Z
- Traditional Promotional Strategies Are Less Likely to Influence Gen Z
- Advertising in Traditional Media Still Attracts Attention from Gen Z Young Adults
- College Market Represents a Multi-Billion Dollar Target for Brands
- College Students Favor Twitter or Instagram
- Old-Fashioned Direct Marketing Still Gets Results on College Campuses
- Most Hispanic Young Adults Stay Connected to Their Heritage
- Many Gen Z Latino Young Adults See Spanish-Language Advertising as Mark of Respect
- African American Young Adults More Receptive to Advertising
- Overview
- Insights and Opportunities
- Overview of Gen Z
- Gen Z Makes an Impact
- A Paradoxical Generation
- Plotting a Different Course
- A Generation of Savers and Strivers
- Far From Monolithic
- "A Tough Nut to Crack" for Marketers
- Marketing Opportunities
- Gen Z Offers a Big Payoff for Brick-and-Mortar Retailers
- Omnichannel In-Store Systems Required to Engage Gen Z Shoppers
- Retailers Reach Out to Gen Z With a Heightened Store Experience
- Clothes Matter to Gen Z
- Abercrombie & Fitch Reinvents Itself With Inclusive Gen Z Strategy
- Brick-and-Mortar World of Gen Z Consumers Extends Beyond Retail Stores
- Gender Fluidity of Gen Z Opens New Terrain for Marketers
- Gen Z Represents Significant Market Segment for Consumer Electronics
- Target Aims at Gen Z With New Consumer Electronics Brand
- Video Games Offer Unique Marketing Platform
- Gen Z Represents a Key Market for Restaurant Industry
- Gen Z Young Adults Can Offer High ROI for Marketers
- Gen Z Is Highly Receptive to Financial Services
- Financial Education Seen as Key Tool in Establishing Relationships with Gen Z
- Multicultural Young Adults Spark Growth in Banking Services
- Members of Gen Z Remain Strong Prospects for Auto Industry
- Overview of Gen Z
- Demographic Profile
- Population Trends
- Population of 13- to 24-Year-Olds Reaches 52 Million
- Table U.S. Population by Age Group/Generation, 2016 (in thousands)
- Gen Z Is Far More Diverse Than Other Generations
- Table U.S. Population by Age Group/Generation and Race and Hispanic Origin, 2016 (in thousands)
- One-Third of 13- to 24-Year-Olds Live in Just Four States
- Table States with Largest Populations of 13- to 24-Year-Olds, 2016 (in thousands)
- Population of 13- to 24-Year-Olds Reaches 52 Million
- Social and Political Views
- Gender Fluidity Is a Marker of Gen Z
- When It Comes to Gen Z's Views of Diversity, It's Complicated
- Religious Institutions Lose Influence Among Gen Z Teens
- Gen Z Young Adults Are More Politically Engaged
- Table Partisan Affiliation and Political Orientation of 18- to 24-Year-Olds, 2007 vs. 2017
- Political Profile of Gen Z Varies Across Race and Hispanic Origin
- Table Political Orientation of 18- to 24-Year-Olds by Race and Hispanic Origin, 2017 (in thousands)
- Young Women Are More Likely to Be Political Activists
- Today's 18- to 24-Year-Olds Are More Environmentally Conscious
- Table Attitudes of 18- to 24-Year-Olds Toward Recycling, 2007 vs. 2017
- Living Arrangements of Gen Z
- Most Gen Z Teens Still Live in Family Households
- Table Living Arrangements of 15- to 19-Year-Olds by Race and Hispanic Origin, 2017
- 18- to 24-Year-Olds Are Now Much Less Likely to Live Independently
- Table Percent of 18- to 24-Year-Olds Living in Own Household vs. Households of Others, 1970 vs. 2017
- Cohabitation Far More Common
- Table Spouses and Cohabiting Partners as Percent of 18- to 24-Year-Olds Living with a Partner by Gender, Selected Years 1970-2016
- Table Characteristics of Couples in Households Headed by 15- to 24-Year-Olds (in thousands)
- Most Gen Z Teens Still Live in Family Households
- Social Indicators
- Gen Z Teens Are Better Off Than Millennial Counterparts in a Number of Ways
- Table Changes in School Enrollment and Labor Force Participation for 15- to 19-Year-Olds by Race and Hispanic Origin, 2007 vs. 2016
- Table Living Arrangements of 15- to 19-Year-Olds by Race and Hispanic Origin, 2007 vs. 2016
- Teen Marriages and Births Have Declined Precipitously
- Table Changes in Marital Status for 15- to 19-Year-Old Males and Females by Race and Hispanic Origin, 2007 vs. 2016
- Gen Z Teens Are Better Off Than Millennial Counterparts in a Number of Ways
- Population Trends
- Economic Profile
- Educational Achievement
- School Defines the Lives of Most Gen Z Teens and Younger Adults
- Table Percent of 15- to 24-Year-Olds Enrolled in Educational Institutions by Age Group and Type of Institution, 2016
- Educational Achievement Is on the Upswing
- Table Educational Attainment of 18- to 24-Year-Olds, 2007 vs. 2017
- School Defines the Lives of Most Gen Z Teens and Younger Adults
- Employment Trends
- Teen Employment Trends Downward
- Summer Jobs Have Become Less Common
- School Gets Priority Over Work
- Older Teens Much More Likely to Work
- Table Employment Status of 16- to 19-Year-Olds by Age Group, 2017
- Working Becomes Part of Life When Teen Years End
- Table Employment Status of 16- to 24-Year-Olds by Age Group, 2017
- Table Work Experience of 15- to 24-Year-Olds by Age Group, 2016
- Young Adult Men More Likely to Work Full-Time
- Table Work Experience of 18- to 24-Year-Olds by Gender, 2016
- Employment Patterns Vary Widely by Race and Hispanic Origin
- Table Work Experience of 15- to 24-Year-Olds by Race and Hispanic Origin, 2016
- A Substantial Percentage of Young Adults Have Managerial or Professional Jobs
- Table Leading Occupations of Employed 20- to 24-Year-Olds, 2017
- Income Levels
- Level of Personal Income of Gen Z Reflects Earning Capacity
- Table Income of 15- to 24-Year-Olds by Age Group, 2016
- Gen Z Is Much More Likely to Depend on Earnings From Self-Employment
- Earnings Gender Gap Still Holds Among Young Adults in Gen Z
- Table Earnings of 18- to 24-Year-Olds with Associate's Degree or More by Gender, 2016
- Level of Personal Income of Gen Z Reflects Earning Capacity
- Educational Achievement
- Overview of Shopping Habits and Spending Patterns
- Shopping Habits
- Brick-and-Mortar Shopping Still Appeals to Gen Z
- Table Percent Shopping at Brick-and-Mortar Stores in Last Three Months by Category of Store and by Age Group, 2017
- Gen Z Young Adults Have Positive Thoughts About Brick-and-Mortar Shopping
- Table Attitudes Toward Shopping, 18- to 24-Year-Olds vs. All Adults, 2017
- New Stores and Specialty Stores More Likely to Appeal to 18- to 24-Year-Olds
- Table Importance of New Stores and Specialty Stores, 18- to 24-Year-Olds vs. All Adults, 2017
- Gen Z Young Adults Less Likely Than Millennials to Buy Online
- Gen Z Young Adults Are More Likely to Be Sole Purchase Decision-Maker
- Table Percent of Those Making Purchase in Last 12 Months by Category of Item Purchased, 18- to 24-Year-Olds vs. All Adults, 2017
- Brick-and-Mortar Shopping Still Appeals to Gen Z
- Spending Patterns of Gen Z Teens
- 15- to 17-Year-Olds Generate Significant Personal Income
- Table Aggregate Income of 15- to 17-Year-Olds, 2016
- Parents Remain a Significant Source of Teen Spending Power
- Parents Spend $25 Billion on Clothing and Miscellaneous Items for Teens
- Table Aggregate Family Spending on 15- to 17-Year-Olds for Clothing and Miscellaneous Items Including Personal Care Items, Entertainment, and Reading Materials, 2016
- Food and Clothing Dominate Teen Spending Priorities
- 15- to 17-Year-Olds Generate Significant Personal Income
- Spending Power of Gen Z Young Adults
- Aggregate Income of 18- to 24-Year-Olds Totals $463 Billion
- Table Aggregate Income of 18- to 24-Year-Olds, 2016
- College Education Leads to Higher Incomes for Gen Z Young Adults
- Table Earnings of 18- to 24-Year-Olds with Associate's Degree or More, 2016
- Table Earnings of 18- to 24-Year-Olds with Associate's Degree or More by Gender, 2016
- Aggregate Income of 18- to 24-Year-Olds Totals $463 Billion
- Overview of Gen Z Consumer Units
- Gen Z Consumer Units Defined
- Profile of Gen Z Consumer Units
- Table Characteristics of Consumer Units, Under-25 vs. All Consumer Units, July 2016-June 2017
- Table Characteristics of Consumer Units With Reference Person Under 25 Years of Age by Size of Consumer Unit, 2015-2016
- Expenditures of Gen Z Consumer Units Total $260 Billion
- Table Mean Income and Aggregate Consumer Expenditures of Consumer Units With Reference Person Under 25 Years of Age, July 2016-June 2017
- Table Aggregate Income and Consumer Expenditures of Consumer Units With Reference Person Under 25 Years of Age by Size of Consumer Unit, 2015-2016
- Spending Priorities of Gen Z Consumer Units Differ
- Table Key Differences in Spending Priorities, Under-25 vs. All Households, July 2016-June 2017
- Shopping Habits
- Highlights of Consumer Spending
- Apparel
- Gen Z Young Adults Place High Priority on Buying Apparel
- Table Attitudes Toward Buying Clothes by Gender and Age Group, 2017
- Gen Z Young Adult Males Especially Drawn to Spending on Clothing
- Table Percent of Total Consumer Expenditures by Single Men and Women for Men's and Women's Clothing by Age Group, 2015-2016
- Gen Z Women Outpace Apparel Expenditures of Older Women
- Under-25 Consumer Units Spend $9.8 Billion on Apparel
- Table Aggregate Expenditures by Under-25 Consumer Units for Apparel and Related Services, July 2016-June 2017 (in million $)
- Gen Z Young Adults Place High Priority on Buying Apparel
- Consumer Electronics and Entertainment
- Gen Z Allocate Below-Average Ratio of Expenditures to Entertainment
- Table Percent of Total Consumer Expenditures Allocated to Entertainment, Under-25 vs. All Consumer Units, July 2016-June 2017
- In-Home Soaks Up Biggest Share of Gen Z Entertainment Expenditures
- Table Aggregate Expenditures by Under-25 Consumer Units for Entertainment, July 2016-June 2017 (in million $)
- Gen Z Is Glued to Cellphones
- Cellphones Are a Major Expense for Gen Z
- Gen Z Lags in Ownership of PCs and Tablets
- Gen Z Most Likely to Download Entertainment
- Video Games Most Popular Among Gen Z
- Movies and Live Entertainment Events Are Still Important to Gen Z
- Table Attendance at Live Entertainment Events in Last 12 Months by Age Group, 2017
- Gen Z Allocate Below-Average Ratio of Expenditures to Entertainment
- Automotive
- Gen Z Likely to Continue America's Love Affair with Cars
- Automakers Hedge Bets to Accommodate Gen Z City Dwellers
- Used Cars Favored by Gen Z
- Table Percent of Total Consumer Expenditures Allocated to Vehicle Purchases and Related Items by Category, Under-25 vs. All Consumer Units, July 2016-June 2017
- Table Aggregate Expenditures by Under-25 Households for Vehicle Purchases and Related Items, July 2016-June 2017 (in million $)
- Food
- Gen Z Moves Toward Healthier Food
- Gen Z Is More Willing to Experiment With New Foods
- Table Attitudes of 18- to 24-Year-Olds Toward Trying Out New Foods, 2007 vs. 2017
- Eating Habits of Young Adults Have Changed Over the Past Decade
- Table Percent of At-Home Food Expenditures Allocated to Miscellaneous Foods, Under-25 vs. All Consumer Units, 2015-2016
- Table Percent of Households with 18- to 24-Year-Old Household Head Eating Packaged or Frozen Meals, 2017
- Gen Z Young Adults Far More Likely to Eat Out
- Apparel
- Use of Financial Services
- Banking Services
- Gen Z Adults More Likely Than Millennial Predecessors to Have Bank Accounts
- Gen Z Most Likely to Use Mobile Banking Apps, but Brick-and-Mortar Still Appeals
- Many Teens Are Super Savers
- 67% of Teens Have Access to Bank Accounts
- Most Gen Z Teens Are Comfortable With Traditional Banking Institutions
- Multicultural Young Adults Drive Growth in Ownership of Bank Accounts
- Table Ownership of Bank Accounts by Non-Hispanic White and Multicultural 18- to 24-Year-Olds, 2007 vs. 2017 (in thousands)
- Ownership and Use of Credit and Debit Cards
- Gen Z Moves Toward Increased Ownership of Debit/ATM Cards
- Multicultural Young Adults Are Growing Force in Credit and Debit Cards
- Table Ownership and Use of Credit and Debit/ATM Cards by Non-Hispanic White and Multicultural 18- to 24-Year-Olds, 2007 vs. 2017 (in thousands)
- 19% of Teens Have Access to a Credit Card, 40% Have a Debit Card
- New Credit Cards Launched to Meet Needs of Gen Z
- Other Financial Services Trends
- Gen Z Teens Favor Cash and Peer-to-Peer Payment Services
- Digital and Mobile Payments Preferred by Older Members of Gen Z
- 18- to 24-Year-Olds More Likely to Use Cash to Pay Bills
- Table Methods and Forms of Bill Paying Used by Those Paying Their Own Bills by Age Group, 2017
- Banking Services
- Marketing to Gen Z
- Overview
- Brands Most Likely to Find Gen Z on Social Media
- Instagram and Snapchat Win Out Over Facebook
- Gen Z Consumes Vast Quantity of Videos on Social Media
- Conventional Celebrities Lose Out to Social Media Stars
- Brands Ramp Up Influencer Marketing Campaigns to Reach Gen Z
- Gen Z Sets a High Bar for Brands
- Traditional Promotional Strategies Are Less Likely to Influence Gen Z
- Advertising in Traditional Media Still Attracts Attention from Gen Z Young Adults
- Table Attitudes Toward Advertising by Age Group, 2017
- Marketing to Gen Z College Students
- Population of 18- to 24-Year-Old College Students Exceeds 12 Million
- Table Number and Percent of 18- to 24-Year-Year-Olds Enrolled in Undergraduate and Graduate Institutions, October 2016 (in thousands)
- Table Number and Percent of 18- to 24-Year-Year-Olds Enrolled Part-Time and Full-Time in Undergraduate and Graduate Institution, October 2016 (in thousands)
- Gender Gap Remains Wide on College Campuses
- Gen Z College Students Are Far More Diverse Than Their Millennial Predecessors
- College Market Represents a Multi-Billion Dollar Target for Brands
- Gen Z College Students More Likely to Use Financial Services
- Table Use of Financial Services by 18- to 24-Year-Olds, College vs. Non-College Students, 2017
- College Students Favor Twitter or Instagram
- Old-Fashioned Direct Marketing Still Gets Results on College Campuses
- Population of 18- to 24-Year-Old College Students Exceeds 12 Million
- Multicultural Marketing Perspectives
- Most Hispanic Young Adults Stay Connected to Their Heritage
- Table Place of Birth and Language Preferences of Hispanics by Age Group, 2017
- Table Attitudes of Hispanics Toward Hispanic Heritage by Age Group, 2017
- Many Gen Z Latino Young Adults See Spanish-Language Advertising as Mark of Respect
- Table Attitudes of Hispanics Toward Spanish-Language Advertising by Age Group, 2017
- African American Young Adults More Receptive to Advertising
- Table Attitudes of 18- to 24-Year-Olds Toward Advertising by Race and Hispanic Origin, 2017
- African American Young Adults Most Likely to Turn to Traditional Media
- Table Attitudes of 18- to 24-Year-Olds Toward Traditional Media by Race and Hispanic Origin, 2017
- Most Hispanic Young Adults Stay Connected to Their Heritage
- Overview