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Understanding Your Future Consumer: Gen Z in the Year 2025

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February 2016

Gen Z in the Year 2025: Understanding Your Future Consumer

Introduction

Gen Z – the population born from 1995 to present – is currently the second largest segment of the US population. By 2025, Gen Z will grow significantly, becoming the largest generation and totaling 29% of the population. (US Census Bureau 2015)

A brand’s ability to anticipate where Gen Z is going and identify opportunities to reach them will help ensure its relevance and business success.

Fuse’s Analysis

In addition to Fuse’s on-going Gen Z research studies, throughout 2015 Fuse reviewed reliable research and articles to create a “poll of polls.” This model identified the most common findings and trends.

While the information below is predictive in nature, it is representative of current trends. We believe the 2025 outcomes are extremely likely to occur unless some unforeseen events greatly change the trajectory of these trends.

Demographic Shifts

 

  • The modern household will continue to evolve to include multiple generations; the number of multi-generational households has doubled since 1980 (Pew Research Center 2014) and could make up a quarter of all households by 2025

 

 

  • Marriage as an institution is in the midst of a major revolution, if not decline; less than 20% of Gen Z (18+ years old) will be married – by comparison, 42% of Baby Boomers were married in their 20’s (whitehouse.gov 2014)

 

 

  • Most of Gen Z will live in cities, as for the first time since 1920’s, population growth in cities is outpacing growth outside cities (Nielsen 2014)

 

 

Multi-race population growth is three times that of the general population.

Lifestyle Changes

 

 

  • Likely in response to watching Millennials struggle with unemployment and debt, Gen Z is saving money at a higher rate than young Millennials did

 

Graduation
 

  • 50% of Gen Z plan to go to college and will surpass Millennials as the most educated generation in history

 

Open
 

  • Nearly 50% of Gen Z say they want to start their own business compared to about 30% of the US population that is actually self-employed today (Pew Research Center 2015)

 

Value Transformations

 

Acheive
  • Just when many of you thought we’d be giving out trophies to everyone forever, achievement is back; Gen Z is beginning to value achievement above even happiness
Humankind
  • Multi-race population growth is three times that of the general population (US Census Bureau 2015); experts believe this growth will accelerate over the next ten years
  • Young people’s willingness to sharing private information – and the tracking and following that has resulted – will have reached a tipping point by 2025; what Gen Z will value online in 2025 is privacy