While teens are concerned about the future of the U.S. economy, their spending habits will still leave a substantial footprint on the market, says a recent report from Piper Sandler.
According to a 7,100-respondent survey, teens are expected to spend around $66 billion in 2022 – 10% more than last year. The average teen plans to spend $2,367 in a year, and the median household income in the survey was $69,298. Of the teens surveyed, 38% held part-time employment. The most alluring industries to Gen Z consumers range from athleisure to beauty, video games, and footwear. However, these teen consumers feel uncertain about the future of the economy, given strife in Ukraine, impending climate change, and opinions on racial inequity in the United States. In Spring 2021, 46% of teens felt that the U.S. economy was getting worse – that number skyrocketed to 71% in Spring 2022.
Other than Amazon, which 53% of teens report shopping from in general, the two companies getting the most attention from consumers are Nike and lululemon. Nike is far and away the preferred clothing and shoe brand for teens, as it has been for the past 11 years. Nike is followed by American Eagle, which is second-most popular among teens, and lululemon is third, up one position from last year's report. Teens also spend heavily on beauty products. Skincare was the most popular beauty product among teen consumers, and Piper Sandler found that teens are willing to spend more on skincare products branded with certain words. Almost 88% of teens would spend more on skincare advertised as "clean," and 58% would spend more on "science-backed" skincare.
Over 48% of teens remain uninterested in the metaverse (goods and services sold in virtual reality), and only a tiny fraction of the 26% of teens with virtual reality devices use them daily. While 22% of teens are familiar with non-fungible tokens (NFTs), only 11% have purchased them.