UBS Global Research Pod Hub
The World in 2035: Gen Alpha
Mar 21, 2025
Generation Alpha is emerging as a major economic force with a projected $5.4 trillion impact. They are digital natives whose unique needs are redefining market dynamics. Key trends like gamification and a focus on wellness and sustainability are shaping their preferences. This generation's buying behavior is influenced by their millennial parents, creating a complex landscape of brand loyalty and consumption. Brands must adapt to engage effectively with these new consumers, balancing sustainability with demand for fast fashion.
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Quick takeaways
- Generation Alpha's economic impact is formidable, with a projected spending power of $1.7 trillion by 2029, necessitating brand adaptation.
- Despite their sustainability awareness, Generation Alpha paradoxically drives demand for fast fashion, highlighting a conflict between values and consumer behavior.
Deep dives
Generation Alpha's Economic Impact
Generation Alpha, born between 2010 and 2024, is projected to have an economic footprint of $5.4 trillion by the end of this year, with anticipated spending power of $1.7 trillion by 2029. This generation, being digital natives, is already influencing nearly half of household spending, surpassing any previous generation at their age. Their distinct characteristics, such as being savvy shoppers with specific preferences, suggest that their combined economic impact with millennial parents could create significant market opportunities. Industries including consumer goods, technology, and healthcare are particularly positioned to benefit from their unique drivers like gamification, wellness, and sustainable living.
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