United States Gen Z Demographic Patterns and Spending Trends 2018: Gen Z Young Adults Generate an Aggregate Income of $463 Billion, While Older Teens have an Aggregate Income of $17 Billion

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Aug 29, 2018, 10:00 ET

DUBLIN, Aug. 29, 2018 /PRNewswire/ --

The "Looking Ahead to Gen Z: Demographic Patterns and Spending Trends" report has been added to ResearchAndMarkets.com's offering.

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 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.

Despite being glued to their screens and living full lives on social media, 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. Gen Z consumers are more likely both to use banking apps and to make frequent visits to their local bank branch. They are more likely both to download entertainment at home and to go out to the movies often.

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.

Not only is Gen Z different from the Millennial generation that came before it, but it includes divergent demographic and psychographic segments that pose challenges to marketers. For example, when it comes to 18- to 24-year-olds paying attention to advertising or consuming traditional media, there are substantial differences across the lines of race and Hispanic origin. Non-Hispanic whites are far less likely than African American and Hispanic young adults to express positive attitudes about advertising and African Americans are much more likely to depend on traditional media.

Key Topics Covered:

1. 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

2. 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

3. Demographic Profile

Population Trends

Population of 13- to 24-Year-Olds Reaches 52 Million
Gen Z Is Far More Diverse Than Other Generations
One-Third of 13- to 24-Year-Olds Live in Just Four States

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
Political Profile of Gen Z Varies Across Race and Hispanic Origin
Young Women Are More Likely to Be Political Activists
Today's 18- to 24-Year-Olds Are More Environmentally Conscious

Living Arrangements of Gen Z

Most Gen Z Teens Still Live in Family Households
18- to 24-Year-Olds Are Now Much Less Likely to Live Independently
Cohabitation Far More Common

Social Indicators

Gen Z Teens Are Better Off Than Millennial Counterparts in a Number of Ways

4. Economic Profile

Educational Achievement

School Defines the Lives of Most Gen Z Teens and Younger Adults
Educational Achievement Is on the Upswing

Employment Trends

Teen Employment Trends Downward
Summer Jobs Have Become Less Common
School Gets Priority Over Work
Older Teens Much More Likely to Work
Working Becomes Part of Life When Teen Years End
Young Adult Men More Likely to Work Full-Time
Employment Patterns Vary Widely by Race and Hispanic Origin
A Substantial Percentage of Young Adults Have Managerial or Professional Jobs

Income Levels

Level of Personal Income of Gen Z Reflects Earning Capacity
Gen Z Is Much More Likely to Depend on Earnings From Self-Employment
Earnings Gender Gap Still Holds Among Young Adults in Gen Z

5. Overview of Shopping Habits and Spending Patterns

Shopping Habits

Brick-and-Mortar Shopping Still Appeals to Gen Z
Gen Z Young Adults Have Positive Thoughts About Brick-and-Mortar Shopping
New Stores and Specialty 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

Spending Patterns of Gen Z Teens

15- to 17-Year-Olds Generate Significant Personal Income
Parents Remain a Significant Source of Teen Spending Power
Parents Spend $25 Billion on Clothing and Miscellaneous Items for Teens
Food and Clothing Dominate Teen Spending Priorities

Spending Power of Gen Z Young Adults

Aggregate Income of 18- to 24-Year-Olds Totals $463 Billion
College Education Leads to Higher Incomes for Gen Z Young Adults

Overview of Gen Z Consumer Units

Gen Z Consumer Units Defined
Profile of Gen Z Consumer Units
Expenditures of Gen Z Consumer Units Total $260 Billion
Spending Priorities of Gen Z Consumer Units Differ

6. Highlights of Consumer Spending

Apparel

Gen Z Young Adults Place High Priority on Buying Apparel
Gen Z Young Adult Males Especially Drawn to Spending on Clothing
Gen Z Women Outpace Apparel Expenditures of Older Women
Under-25 Consumer Units Spend $9.8 Billion on Apparel

Consumer Electronics and Entertainment

Gen Z Allocate Below-Average Ratio of Expenditures to Entertainment
In-Home Soaks Up Biggest Share of Gen Z Entertainment Expenditures
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

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

Food

Gen Z Moves Toward Healthier Food
Gen Z Is More Willing to Experiment With New Foods
Eating Habits of Young Adults Have Changed Over the Past Decade
Gen Z Young Adults Far More Likely to Eat Out

7. 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

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
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

8. 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

Marketing to Gen Z College Students

Population of 18- to 24-Year-Old College Students Exceeds 12 Million
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
College Students Favor Twitter or Instagram
Old-Fashioned Direct Marketing Still Gets Results on College Campuses

Multicultural Marketing Perspectives

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
African American Young Adults Most Likely to Turn to Traditional Media

Companies Mentioned

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For more information about this report visit https://www.researchandmarkets.com/research/9lhpxp/united_states_gen?w=5

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