With 2 billion inhabitants, Generation Alpha (born between 2010 and 2024) is expected to be the largest generation in history. And even though its oldest members are only 14 years old, Gen Alpha is already an economic force to be reckoned with.
“They are spending money, and significant amounts of money. Additionally, they significantly influence parents’ purchasing decisions,” says social analyst and demographer Mark McCrindle. “We estimate that Generation Alpha’s global direct and influence spending already stands at $5.5 trillion, representing a pretty phenomenal economic footprint to go along with their unmatched demographic footprint. »
Its youngest members will appear this year, but the oldest Alphas were born the same year the iPad was released.
As the first entire generation born into the world of smartphones and other connected devices, Alphas became consumers much earlier than previous generations. This is due, in part, to online payment methods tied to parental credit cards or other digital currencies. And they use this money to buy games and digital accessories.
“They buy virtual items using virtual currency,” says McCrindle. “So there are whole new ways to spend and new ways to spend for this generation, which is really leading to this increased commercialization.”
McCrindle says one market that is not virtual but feels the purchasing power of Generation Alpha is the cosmetics industry.
For example, visits to Sephora cosmetics stores for the 10-14 age group increased by more than 22% between February 2023 and March 2024, compared to the previous period, according to the retail analyst pass_by.
And what attracts buyers in this age group?
“The sustainability drive may appeal to this demographic, although we can’t say so conclusively with our data,” James Ewen, pass_by’s vice president of marketing, told VOA via email.
Born into a digital world, Generation Alpha is likely to have excellent technical skills. But what about developing other skills like playing, exploring, collecting, and having adventures that help children learn to understand the world around them?
“The world has shrunk into the big five areas for children, which used to be playgrounds, sports, outdoors, nature and neighborhood,” says McCrindle. “They’re all compressed into a virtual environment.”
Being constantly connected virtually to others can diminish a child’s sense of agency, according to licensed professional counselor Shelly Melia.
“One of the things about being away from your parents and someone who can instantly solve your problems at any time is that it makes you sit with things. This causes you to sit with discomfort. It causes you to struggle. And that’s how you grow,” says Melia, who is also a professor in the areas of children and family ministry at Dallas Baptist University.
“That’s how you develop the sense of action that says, when a problem arises, ‘Oh, I can solve it.’ Our kids rely too much on what they can do with this phone to solve their problems, rather than what they can do internally to solve those problems,” says Melia.
In addition to being the largest generation in history, Generation Alpha is expected to live longer and be more culturally diverse. They will also be more educated, live at home longer, and work longer than any generation before them, probably into their 70s. Two-thirds of Alphas will work in jobs that don’t yet exist, according to the World Economic Forum.
“They are going to be lifelong learners. So I think building a strong educational foundation to further invest in is a good thing,” McCrindle says. “It can delay adulthood. If they stay at home longer, we risk ending up with “kidults”, adults who are still dependent on their parents.”
As adults, Generation Alpha could also face mental health issues, Melia says, because they are likely to be raised by distracted parents, who operate in a world with boundaries between work and home are increasingly unclear, especially for those who work remotely.
“Belonging is a real issue for our kids, and it’s hard to feel that sense of belonging virtually. So we are dependent on something that cannot give us what we actually need,” Melia explains of Gen Alpha and technology.
“They need to feel seen. They need to feel known. And they need to feel loved. And they need eye contact. They need a face-to-face conversation. They need uninterrupted family dinners, those kinds of things, where they learn those soft skills or those social and emotional skills,” she adds.
Generation Alpha will be defined by technology, “almost like the air they breathe,” a sense of empowerment and the ability to drive trends from a young age, and to be truly boundaryless, according to McCrindle.
“It’s about this global influence from East to West, not just West to East, and I think with their global connection…and the emergence of the developing world in its influence and innovation, it makes truly the flat world and their borderless experience,” says McCrindle, who is credited with naming this generation.
Alpha is the first letter of the Greek alphabet, which he says is fitting for a generation marking the “beginning of a whole new reality.”
Some thought this generation should be called “Covidians,” but McCrindle says the global pandemic that kept so many Gen Alphas out of school for months will be a footnote in this generation’s lives.
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