Gen Z spending is looking up

Gen Z is spending like it’s...2021.

Zoomers are a major force in driving post-vax spending, American Express CEO Steve Squeri said at an investor conference last week.

• Gen Z (and millennials) are shelling out 125% more dollars compared to 2019.
• That boosted AmEx card spending, Bloomberg noted, though it’s still lower than pre-pandemic levels.

Pocket money: Zoomers’ purchasing power still remains relatively low compared to Boomers—most are still under 20 (Pew Research Center defines Gen Z as those born after 1996).

Teen spending clocked in at $2,165 per capita each year, according to Piper Sandler’s semi-annual survey for Spring 2021. That was up 1% from an all-time low of $2,150 in Fall 2020.

• Food is where the cash is going, with a 23% share, up from 21% from last fall.
• Chick-fil-A, Starbucks, and Chipotle ranked as favorites.

But looking ahead...Gen Z will rule the global economy in a decade, according to a November Bank of America Research report. Zoomer income will reach $33 trillion by the end of the decade, it estimates, and overtake millennials a year later. Winning Gen Z loyalty now bodes well for retailers in the future.—KM