- US Gen Alpha shoppers represent around $28 billion in spending power, according to shopper analytics firm Numerator.
- The younger consumers often have an average weekly allowance of $22, mostly spent on toys and snacks.
- When it comes to brands, their choices tend to be influenced by social trends and digital marketing.
Kids these days are growing up in a remarkably different consumer landscape than prior generations.
The estimated 46 million Generation Alpha shoppers in the US represent around $28 billion in spending power and their influence is already being felt by brands, according to shopper analytics firm Numerator.
Born in 2010 or after, these under-15-year-olds typically have an average weekly allowance of $22, which they largely spend on toys and snacks, Numerator found.
As the new year gets underway, Gen Alpha’s brand preferences tend to be influenced by social trends and digital marketing, leading some products to breakout success.
In particular, Samyang — makers of the Buldak “fire chicken” ramen packs — topped Numerator’s chart of brands to watch, followed by Owala — the makers of the multicolored flip-top insulated steel water bottles.
Cirkul’s hydration system also placed in the top 10 at number seven.
And as kids grow and change, personal care appears to feature more prominently in their discretionary purchases, with three brands in the top 10: Squatch Soap Co., Kitsch, and Hero Cosmetics.
Among kids 6 and older, the top source of product discovery is from their friends, followed by TV commercials and social media influencers.
That stands in contrast to those 5 and under, who often respond to what they see while walking in the store with their parents as well as what they learn about from family members. Interestingly, Numerator found that more than half of six-year-olds have asked for something they saw in an advertisement.
As for categories (rather than brands), about half of kids 10 and under spend their allowance on toys, though Numerator found that share falls off dramatically after they turn 11. Kids of all ages are still spending their money on snacks, however.
Perhaps the least surprising finding was which retailer stands out most among Gen Alpha shoppers: Five Below.
Numerator found that roughly a third of Gen Alpha households shop at the discount chain — a rate that is twice that of the overall US population.
