While the Millennials represent the largest group of consumers and the Baby Boomers have the largest buying power, Gen Z's spending power is on the rise. According to a Bloomberg report from last year, the young students and professionals command $360 billion in disposable income.
As Baby Boomers retire, Millennials and Generation Z have quickly become the largest consumer group in America. With over 137 million people, this audience segment makes up more than two-thirds of the U.S. population.
Millennials are actually the largest customer group, while Baby Boomers have the most spending power.
In 2022, The individuals aged 25-34 years presented the highest rate of individuals (61 %) with purchases from national sellers. The individuals aged 35-44 years followed with 60 %, while those aged 55-74 years were lowest with a rate of 39 % of e-shoppers in 2022.
They make up 40% of the global consumer population
No wonder Gen Z's spending power has reached $360 billion. They already account for 40% of global consumers and are expected to make up over 41 million of U.S. digital buyers by the end of 2022.
As a demographic cohort, Generation Z is smaller than the Baby Boomers and their children, the Millennials. According to the U.S. Census Bureau, Generation Z makes up about one quarter of the U.S. population, as of 2015.
Millennials were the first generation who had internet access. Therefore, they were considered the first global generation. But as more of the world comes online, Gen Z will become more global in their thinking, interactions, and relatability.
According to Pew Research Center, those in the Millennial generation were born between 1981 and 1996, while those in Gen Z were born between 1997 and 2012. In 2023, millennials are between 27 and 42 years old, and Gen-Zers are between 11 and 26.
Age segmentation means focusing on the age range most valuable to your product or service. Marketing demographic age brackets are usually 18-24, 25-34, 35-44, 45-54, 55-64, and 65 and older.
CE household data classified by age of the reference person show that annual expenditures and pretax income are “hump” shaped over the lifecycle, lowest for the under 25 years group, then increasing to their highest levels for the 45-54 age group and then declining for the remaining groups (See chart 1 below and tables ...
Millennials were the largest generation group in the U.S. in 2022, with an estimated population of 72.24 million.
What percentage of consumers are Gen Z? Generation Z has become about one-third of the global population. So, out of about 7.4 billion people in the world, 2.56 billion belong to Generation Z. In the US, NPD data shows that this age group accounts for a staggering 40% of the nation's consumers.
U.S. population by sex and age 2021
The estimated population of the U.S. was approximately 331.89 million in 2021, and the largest age group was adults aged 30 to 34.
The last member of the silent generation will likely have left us by 2067. The last boomer, by 2088. The last Gen Xer, by 2108, and the last millennial by 2132 — assuming the most generous definitions of those generations.
And, the answer to the question, what age group spends the most money, may surprise you. The answer is that Gen Xers are the biggest spenders, with more money going out than either millennials or baby boomers.
They are also more likely to have time on their hands, as they are often retired or semi-retired. This means that they are more likely to have the time to enjoy leisure activities, such as travel and dining out. The over 50s are also more likely to be active and engaged than other age groups.
Gen Z marketing requires more than simply selling a product. Born between 1996 and 2010, this generation is value-conscious and drawn to brands that “keep it real.” They're creative, bold, and the creators of many trends on TikTok, Instagram Reels, and other platforms.
The standard definition of Millennials groups them as those born between 1982 – 1995. If we use broader definitions, Millennials can be any age between 13 and 41 years, and that range can cover a lot of different life-stages!
The group consists of people born between 1981 and 1996, or roughly 25% of the U.S. population.
What Is Generation Alpha? Generation Alpha includes anyone born between 2010 and now, including up to the year 2024. This means that the oldest members of Gen Alpha are 13 years old. This youngest generation is defined by the digital world.
They are constantly connected, always on the go, and extremely tech-savvy. As a result, Gen Z is often lauded for being entrepreneurial, innovative, and open-minded. It's important to recognize the strengths of Gen Z because this generation is quickly becoming the largest demographic in the workforce.
It is estimated that by 2030, Generation Z (born between 1997 and 2012) will surpass Millennials (born between 1981 to 1995) and represent the largest group of real estate renters on the market.
Author Neil Howe, co-creator of the Strauss–Howe generational theory, defines millennials as being born from 1982 to 2004. The cohorts born during the cusp years before and after millennials have been identified as "microgenerations" with characteristics of both generations.