Younger Generations to Become Biggest Spenders in Africa, Asia
by Katharina Buchholz,
Oct 22, 2024
In the year 2030, Millennials or even Gen Z members are expected to be contributing the largest share of consumer spending in many countries in Africa, Asia and also some in Latin America. This is according to a report by World Data lab, Nielsen and GfK. By 2030, Gen Z will be the biggest-spending generation in much of Sub-Saharan Africa, India and Pakistan as well as Indonesia, the Philippines, Mexico and Peru, among others. Millennials meanwhile will be the largest spenders, for example, in China, Russia, much of North Africa and the Middle East as well as South Africa, Australia, New Zealand and Chile.
Six years down the line, Gen X will continue to contribute the largest part of consumer class spending in much of Europe, in the United States and Canada as well as in Brazil, Colombia, Thailand, South Korea and more. France and Japan are among the few countries where the generation of Baby Boomers will hold on to the biggest share of consumer spending.
The report projects that Gen Z will be the largest, wealthiest and highest-spending generation ever as subsequent cohorts will be diminished by population decline. Especially in developing countries that have kept up population growth, Gen Z is already a force to be reckoned with in the marketplace. Additionally, the report concludes that contrary to some popular beliefs, Millennials and Gen Z are on average not worse off than their parents. The progress from one generation to the next in terms of wealth and spending power has, however, slowed, the report states.
In 2024, Gen Z's spending was equal to that of Millennials in Sub-Saharan Africa (around 30 percent each), while reaching 23 percent already in North Africa and the Middle East and 20.6 percent in Latin America and the Caribbean. Asia Pacific Gen Z spending is lagging behind that with currently 19.3 percent, but the world map further breaks down the demographically diverse region that encompasses many different nations from the world's oldest to some of its youngest countries.
Gen Z is expected to start spending more on education, alcohol, clothes and transportation in the coming 10 years, while health spending will not yet be a big factor for them.
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