Gen Z’s holiday spending power could jump 37%

Here’s the thing:

For advertisers, Gen Z’s love of holiday shopping could be a gift that keeps giving. They are already showing the fastest growth in spending power among all generations, and this holiday season is set to be no different.

According to PwC’s latest Holiday Outlook, as many as 35% of Gen Z consumers are planning to increase their budgets by 37% compared to last year — a further incentive for marketers to focus their efforts on capturing this cohort’s attention.

Data debrief:

The 2024 PwC report surveyed 4,000 U.S. consumers about their priorities for the holiday season and found that — even with inflation dampening their planned spend — holiday shoppers are expected to increase their budgets by at least 7% this year, to an average of $1,638 per person.

While millennials are projected to spend the most this holiday season ($2,222 per person), Gen Zers’ spend is expected to be close on their heels, with a large portion aiming to shell out as much as $1,752 per person. Despite trailing millennials in spend, Gen Zers’ holiday budgets have grown the fastest since 2023 (compare its 37% growth with the 16% increase among millennials).

By contrast, Gen Xers’ projected holiday budgets could fall by 18% compared to last year (to $1,454 per shopper), and baby boomers’ budgets are dropping by 2%, to $1,126 per shopper.

Dig deeper:

Gen Z’s holiday spend isn’t the only thing on the rise. According to studies by SXM Media and Edison Research, Gen Z is also turning to podcasts in greater numbers — with one survey last year revealing a 57% increase in U.S.-based listeners aged 13 to 24 in the previous five years. Crucially, not only do they welcome ads while they listen, but as many as 43% of Gen Z podcast listeners ages 16 or over have purchased a product after hearing an ad.

With Gen Z also driving demand for streaming subscriptions and revealing an openness to watching ads while streaming, marketers who engage with Gen Z via podcasts and streaming could see themselves swaying the cohort’s holiday spend.