Consumers in 2016: Generation 'swipe'

1. Gen Z have significant purchasing power

Generation Z (generally defined as consumers aged under 18) are being given greater financial independence than previous cohorts of children, are maturing into 'grown-up' product categories more quickly, and are influencing a greater share of family purchases. Euromonitor estimates that under-12s in the US alone have a spending power of US$43 billion.

Implication: The changing nature of childhood means that the habits of under-18s are becoming important to a wide range of product categories – fashion and tech, for example.

2. Mobile is central to the Gen Z media experience

This generation has been named the 'swipe generation' with good reason: tablets (from an early age) and smartphones (in teenage years) are core to their media consumption. Data from the UK shows that tablets are important in early years, but mobile becomes key in teenage years. Taco Bell's decision to use emojis to communicate with young consumers is a reflection of their media habits and communication style.