We launch our "The World in 2035" global thematic series with Generation Alpha (born between 2010 and 2024), which is likely to be the largest cohort during its lifetime. The combined spending power of the Millennial parent-Gen Alpha child combination could represent a significant market opportunity, especially given that approximately USD 83.5 trillion in wealth is expected to be transferred in the next 20-25 years. Our initial research suggests that there could be three key areas where Gen Alpha differs from previous generations or could make a meaningful impact at the household level: gamification, wellness, and sustainable living.
Gamification: More games and less social media for Gen Alpha vs previous Gens
The market opportunity is that almost 60% of Gen Alpha have discovered new brands and are more likely to buy from brands featured in a game. Video games have been around for a long time, but Gen Alpha engages with them in entirely new ways, with over 50% interacting with games outside of actual playtime through online content, for example, compared with 36% of Millennials. Games could, therefore, be a popular channel for engagement with up-and-coming Gen Alpha.
Wellness: Spend could become less discretionary and more necessity over time
Social media have had an effect, with Gen Alpha children engaging with beauty products 4-5 years ahead of Gen Z, with the Covid-19 pandemic accelerating awareness of holistic wellness as a concept. Our research shows that Gen Alpha is concerned about its mental and physical wellbeing, with parents of Gen Alpha materially more concerned about their children's diet than parents of Gen Z. This is both an opportunity and concern for the industry. Of the wellness values we have identified as most important for Gen Alpha, three are aligned with the wellness industry's key drivers (healthy eating, beauty, physical activity).
Sustainable living: Gradual shift towards ecofriendly behaviours and purchases
Gen Alpha could change habits in the household by influencing parents to make their home more sustainable and volunteering to protect or restore the environment. Gen Alpha is perhaps more aware of environmental concerns, which could gradually lead to more ecofriendly behaviours. However, the alignment between values and purchase decisions is debatable, given the attractiveness of instant gratification and low price points.
