Gen Alpha, those born between 2013 and 2025, is the largest generation globally, representing 24 per cent of the population. While most of Gen Alpha is still in primary school, they already have a strong hold on retail markets. In fact, by 2028 their collective spending power will exceed the trillion-euro mark, according to Colliers.
This rapid growth in influence is already shaping how companies design products, build marketing strategies, and approach long-term consumer engagement.
Retailers and brands increasingly recognise that this generation will soon dominate consumer markets. Even though their direct purchasing power is often controlled by parents, their influence over household spending decisions is significant. Children frequently guide choices related to toys, entertainment, technology, clothing, and even family activities. As a result, businesses are paying close attention to their preferences, behaviours, and digital habits.
Digital natives and changing spending habits
As the first generation born into a completely digital age, their spending habits differ drastically from past generations, playing with expensive devices over cheap toys. Tablets, gaming consoles, smart devices, and connected toys have become a central part of their daily lives. For many children in Gen Alpha, technology is not a novelty but a normal part of learning, entertainment, and social interaction.
This constant exposure to technology also shapes how they discover brands and products. Because of this, companies increasingly integrate digital experiences into their marketing strategies to capture the attention of young consumers.
Data collection and the creation of consumer profiles
While children are using these electronic devices, tech companies collect their data, creating a consumer profile to better target advertisements. Gen Alpha’s consumer profile will follow them from childhood to adulthood. This long-term data tracking allows companies to refine advertising strategies and personalise marketing messages over time.
The growing use of data analytics means that brands can predict future preferences and behaviours with increasing accuracy. However, it also raises concerns about privacy, digital ethics, and the long-term implications of collecting data from such a young age.
Brand loyalty and early marketing strategies
Brands now consider Gen Alpha their current customer base, and specifically market their products to this demographic. They create a loyalty that will pay off when the young shoppers become adults with their own money to spend. Early brand exposure often leads to lasting consumer relationships, making Gen Alpha a valuable long-term target for companies across industries.
The future of in-person shopping
Data also reveals Gen Alpha prefer to have agency in what they buy, or what is being bought for them. Three-quarters of Gen Alpha prefer to shop in store, touching and trying products rather than simply online shopping meaning they will play a crucial role in killing or resuscitating physical retail commerce.