A new report from Nielsen IQ (NIQ) and World Data Lab (WDL) has predicted that that Gen Z's global spending will grow to $12 Trillion USD by 2030, surpassing Boomers in spending by 2030 and Gen X by 2040. By 2034, Gen Z is expected to add more than $9 trillion dollars in spending globally, more than any other generation.

The report, titled 'Spend Z' focuses on the spending power of Generation Z (Gen Z), defined as anyone born between 1997 and 2012. Gen Z, the largest generation in history with 2 billion members, makes up a quarter of the world's population. The 'Spend Z' report is based on data from 2,065 surveys covering 160 countries in the NIQ database.

Key takeaways from the report include Gen Z's demand for authenticity, their unprecedented in-store purchases, their global purchasing power, their focus on health, wellness and sustainability, and the influence of technology on their behaviour. In Australia, Gen Z is more sceptical about information sources, with 37% saying they are more sceptical about which sources of information they can trust.

In the APAC region, Gen Z spent over $3.6 Billion USD in 2024. However, in Australia, Gen X remains the dominant spending generation, set to shift to millennials by 2030.

The report also highlights that 81% of TikTok USD sales are expected to come from health and beauty, showing an outsized impact.

"Gen Z is the largest, the richest, and the most global generation ever,” said CEO of WDL, Wolfgang Fengler. “Businesses need to know that Gen Z is 2 billion people strong, and meeting their needs is a must.”

“Gen Z is here, they are ready to spend, and marketers and advertisers need to know how to pivot to serve them. Understanding what makes this generation different is key to unlocking the greater than $12 Trillion USD growth opportunity they represent,” said NIQ’s Chief Operating Officer, Tracey Massey. “Companies are trying to understand the opportunities for growth with Gen Z, and how they are influencing others. “Spend Z” is just one example of how NIQ helps our clients uniquely achieve their ambitions by anticipating and meeting consumer needs.”

“Gen Z is the most connected, largest and influential generation yet,” said NIQ Chief Communication Officer, Marta Cyhan-Bowles. “Gen Z will have fewer children – later, will have unprecedented spending power, and will continue prioritising certain categories – like health and wellness – to an extent generations before them have not. Our analysis leaves no doubt: investment in Gen Z today will pay off tomorrow.”