Understanding Gen Alpha: The Future Generation

Did you know that teenagers didn’t exist before the twentieth century? Okay, it’s actually that the concept of an adolescent didn’t exist. That confusing limbo between childhood and adulthood materialized over a century ago when marriage ages increased and mature industrialization required more education. After the Second World War, the term “teenager” became mainstream, along with that demographic’s identity and consumer influence. That’s according to Glenn C. Altschuler’s book, All Shook Up: How Rock ‘n’ Roll Changed America.

How did this new market research demographic happen? It’s relatively simple: Parents who had suffered the Great Depression and the Second World War suddenly found themselves in a very wealthy country—what is known as Eisenhower’s America. They knew real misery and did not want that for their children, so they doted on them with their stuffed wallets. This younger generation, the Silent Generation, wasted no time spending Mom and Dad’s money on cars, clothes, electronics, movie tickets, and plenty of Elvis or Little Richard albums.

That’s the beginning of the consumer teenager, who “all shook up” Western culture and remains a reality today.

Today, we should welcome Gen Alpha, the newest addition to the purchaser base that will affect markets for a long time. Marketers should take heed. Even now, it’s estimated that Gen Alpha possesses approximately $300 billion in spending power annually via parental influence. Once upon a time in the fifties, that expenditure would have resulted in many Elvis records and Ford Thunderbirds. Today, it’s Sephora on TikTok marketplace and Mr. Beast Feastables chocolate bars.

Who is Gen Alpha?

Born between 2010 and 2025, Gen Alpha is the first generation born and raised in the twenty-first century. Their lives and habits are almost entirely digital in some manner or another. Notably, data says that 43 percent of Gen Alphas have a tablet before age six, while 58 percent have a smartphone by age 10. They may not have grown up like the Silent Generation under the shadow of global wars and poverty—but they have endured the Great Recession, constant political turmoil, and a world-stopping pandemic.

Research reveals that an estimated 2.8 million Gen Alphas are born each week worldwide; their total number is projected to exceed 2 billion by 2025. This demographic is predicted to be the largest and most diverse generation yet. There are approximately 45.6 million Gen Alphas in the USA, and they have already surpassed all other generations in diversity.

By 2025, they will outnumber Baby Boomers. Moreover, Gen Alpha is set up to be the most highly-educated generation in history, with 90 percent expected to earn a high school diploma (compared to 80 percent of Gen Z adolescents) and 50 percent to complete their secondary education.

Gen Alpha Spending Habits

Gen Alpha has been tongue-in-cheek dubbed “mini millennials.” Yet, they are unique in many respects. Because of their mastery of technology and growing up in an uncertain world, they tend to be faster and more decisive than Millennials or Gen Z regarding products or services. They have grown up faster, too, than previous generations, as 75 percent of 8-to-10-year-olds state they are already thinking about mental health.

One should not underscore the importance of digital with Gen Alpha:

• Thirty-nine percent spend at least three hours a day looking at screens, while 29 percent are smartphone users at least once monthly.
• Of those using smartphones, 24 percent spend at least seven hours daily on them.
• Just this year, 80% of internet users aged 11 and under will use a tablet at least once per month.

As mentioned, Gen Alpha is quick in decision and assertive, and, despite their eclectic tastes due to short-form media and fleeting attention spans, they tend to be more brand loyal than other generations. Data reveals that almost 50 percent of Gen Alpha claim fidelity to a specific brand—a quarter of Gen Alphas state that influencers are the primary shopping source.

Nearly 49 percent say they trust influencers as much as their family and friends when it comes to products. They love streaming video, with YouTube being their preferred platform, followed by Netflix, Disney+, and Hulu.

Regarding gaming, Gen Alpha breaks away from Gen Z and other generations. They do not see video games as a form of relaxation but as a primary way to express themselves personally and creatively in the world. Thus, it’s no surprise that approximately 2 in 5 Gen Alpha gamers are passionate about world-building, online games, basically free games where socialization and inspiration can occur regardless of lockdowns or bad economics outside in the “real world.” Fifty-eight percent claim to have played Minecraft, and 43 percent report playing Roblox. (It almost makes one wonder that Mark Zuckerberg’s monumental failure, the Metaverse, might have been a solution released a decade too early.)

Marketing to the Psychology of Gen Alpha

A striking 92 percent of Gen Alphas believe it is important to be themselves, reflecting a strong sense of individuality and authenticity. Sixty-five percent of this generation will face jobs that no longer exist today. Like Millennials and GenZ, they believe in being socially conscious and environmentally responsible, with 30 percent claiming they want to make a difference in the world.

Despite their technological dependence, 74 percent spend time outside for mental health and to get a break from devices. If they could choose the perfect consumer world, it would be an equally physical and digital shopping journey with organic trends and upfront, honest brands.

As a young consumer demographic, it’s too early to understand their attitude towards many adult interests like alcoholic beverages, vehicles, and relationships. As I write, GenZ is becoming the most sober generation ever, so it wouldn’t be a surprise if Gen Alpha continues the trend.

The jury is still out on Gen Alpha’s use of social media. Yet 65 percent of children aged 8-10 spend up to four hours a day on social media, while forecasts expect that up to 21 percent of Generation Alpha will engage with social media for more than eight hours a day in the future. It’s no surprise that YouTube and TikTok are their favorite digital platforms.

What takeaways can marketers take from all this data and stay ahead of the proverbial curb?

Be transparent

Gen Alpha will be the savviest group in terms of technology while moving quickly and decisively to embrace brand loyalty. They are not cynical, but they are realistic. They live in a rapidly evolving but unstable world, so they don’t have time for byzantine marketing campaigns. In other words, this group will probably see through a marketing funnel a digital mile away. However, follow the influencers to see what influences Gen Alpha.

Be esoteric

While they know marketing in all its magic, the fact is that Gen Alpha is comfortable in virtual reality environments and enjoys gamification experiences. They like interactivity and video, and thus, interactive video encounters. This means that high-level market research like gamification, virtual focus groups, or eye-tracking may result in solid data for this demographic.

Be a listener

Gen Alpha is more mature for their years yet still optimistic about the future. Like Millennials and GenZ, they are socially conscious and inclusive. They grew up exposed to activism. They know how many societal games are played, but ultimately, they want to understand who they are to maximize their place in society. For marketers, this is a massive opportunity with a demographic that puts all their cards on the table but knows when to walk away when the deal is done (borrowing from Kenny Rogers). Don’t forget the influencers because many more Mr. Beasts are in the future.

Many changes and shifts will happen before Gen Alpha enters the gambling den, today’s workforce, and the wild casino that are relationships in the twenty-first century. In truth and sadly, previous generations have not left a better world for them. But in both physical and digital domains, Gen Alpha seems well poised to make a positive difference as consumers and stewards of the planet.

Rolling the dice on Gen Alpha won’t be a bad bet.