UBS Group, a multinational investment bank and financial services company, has highlighted over 50 global companies where analysts identified exposure to the Generation Alpha across multiple industries.
Saranja Sivachelvam, an analyst at UBS, wrote: “Gen Alpha’ are those kids born between 2010 and 2024, who in 10 years will become the spending force of their generation. We think the combined spending power of the Millennial parent [and the] Gen Alpha child combination could represent a material market opportunity to tap into, especially given that circa $83.5T in wealth is expected to be transferred in the next 20–25 years.
“The Gen Alpha demographic is expected to be the largest cohort during its lifetime, with an economic footprint of $5.4T and spending power of $1T that will likely grow to $1.7T as the eldest group of the cohort matures into adulthood.”
Sivachelvam also identified three key areas where the Alpha generation differs from previous generations and where they could have meaningful impact at the household level:
Gamification – Almost 60% of Gen Alpha have (as kids or teenagers) already discovered new brands, and are more likely to buy brands, featured in videogames. Also, half of Gen Alpha interact with games outside the actual playtime through online content, compared with 36% of Millennials.
Wellness – Gen Alpha is more concerned about mental health and physical wellbeing, compared to older generations. Also, parents of Gen Alpha are materially more concerned about their children’s diet than parents of Gen Z (Millennials).
Sustainable living – Gen Alpha could influence parents to make their home more sustainable and volunteering to protect or restore the environment. Gen Alpha is perhaps more aware of environmental concerns, which could gradually lead to more eco-friendly behaviours.”
