Will Gen Z be largest, wealthiest generation in history? Report finds youth poised to overtake Boomers by 2029

Generation Z, more commonly known as Gen Z are positioned to become the largest and wealthiest generation in history, a recent study for manufacturers and brands, conducted by Nielsen IQ (NIQ) and World Data Lab (WDL) has found.

The report titled ‘A Tale of Two Consumers: The polarized mindsets reshaping global consumption Generational spending trends in 2026’, stated that the old consumer playbook is breaking. It pointed brands in the direction to understand generational values, identify opportunities and capture spend.

According to the study, Gen Z will be the largest and wealthiest generation in history. “Though still young, this generation has the fastest-growing spending power and is expected to overtake Boomer spend by 2029—positioning Gen Z as a future growth engine for brands and retailers,” the study added.

It further noted that Gen Z will lead affluent spending growth at double the CAGR of core spending growth of the same generation; and that Gen Z and Gen Alpha will lead core spending growth, at 4.03% and 4.99%, respectively.

“When we look at spend more broadly, Millennials and Gen Z are emerging as the primary long-term growth engines, with strong relevance in premium, quality, and experience-led choices while also showing selective value-seeking,” the report said.

It added that Gen X remains a “dominant spending force”, but growth is increasingly shaped by pragmatic trade-offs between quality, convenience, and value. On boomers, it added that they also “remain important—particularly in high-net-worth and need-based categories”, but added their overall influence is starting to taper.

“When we segment by generation globally, we find that in high-income countries, Boomer and Gen X spend still dominate; in low- and middle-income countries, Millennial spend leads, with Gen Z not far behind,” the report stated.

According to the study, while Gen Z’s current purchase frequency and household-level spend remain lower than those of the generations that precede it, their influence shouldn’t be undervalued. “Gen Z is actively shaping culture, influencing their parents’ household purchases, and dictating new, experience-first shopping behaviors. As the first digitally native generation, Gen Z begins many of its shopping journeys online, relies heavily on product reviews and social media, and has helped define true omnichannel shopping,” the report noted.

It further added that due to their life stage, Gen Z is highly value-sensitive today, with price playing an outsised role in purchasing decisions despite the generation being remarkably values-oriented.