Zoomers could become the richest generation, McKinsey expects. Who's going to make money on this?

Zoomers will change the rules of consumption - and businesses will have to adjust to them. McKinsey's latest report State of the Consumer 2025 devotes a separate section to this generation. Generation Z is setting new standards, from expectations for convenience and speed to payment methods. McKinsey concludes that companies that are able to adapt to the demands of young consumers will be in an advantageous position.

The generation of Zoomers - young people born between 1996 and 2010 - is becoming the new driving force of the global economy. Generation Z is expected to become not only the largest but also the wealthiest in history, according to a McKinsey report. The company estimates that by 2035, the Zoomers will add $8.9 trillion to global GDP.

Zoomers' incomes are growing faster than previous generations. Today, the average 25-year-old American consumer earns $40,000. That's 50% more than his or her peers earned 25 years ago - adjusted for taxes, inflation and government payments. At the same time, zoomers spend almost twice as fast as young consumers of previous generations, McKinsey writes;

As a result, many of them have no savings: half of American Zoomers admit that they will be able to live on their savings for no more than a month. In the US, UK and Germany, about 40% of respondents are worried about their financial future, while only 31% of older generations have such concerns. At the same time, this figure is much lower among Chinese Zoomers - only 11%; the authors of the report believe that this may be due to a different culture of handling money.

Despite the financial instability, zoomers are not ready to give up their desired purchases. More than 25% of them use "buy now - pay later" deferred payment schemes for this purpose. This is particularly popular in China (40%), India (38%), UAE (36%) and Australia (35%). In addition, 34% of Zoomers are willing to take out loans - 13 percentage points higher than other age groups.

It's critical for brands - primarily retailers and consumer goods manufacturers - to understand what motivates Generation Z, McKinsey experts write. Here is what they believe companies need to consider to ensure their long-term prospects. 

- Despite having almost no financial safety cushion, zoomers are more willing than other generations surveyed to buy unnecessary items and go into debt, the report says. This can benefit the producers of such products and services, for which zoomers will be willing to spend beyond their budget. Typically, such products end up trending on social networks or being discussed by peers among themselves, McKinsey writes. Its surveys show that zoomers most often make such impulse purchases in the clothing and beauty categories;

- Zoomers are willing to overpay for convenience - like grocery and prepared food delivery. In the future, consumers of this generation will set the tone for broader consumer expectations. Companies that best understand what Generation Z is willing to spend money on first will be in the best position. And to better understand the values of Generation Z, it is important for companies to invest in artificial intelligence and machine learning tools, McKinsey concludes.

The McKinsey study involved more than 12,000 people in 10 countries, including the US, UK, Germany, China, India, UAE and Australia. Participants were asked questions about income, savings, purchases, attitudes toward money and life priorities. Additionally, behavior in the digital environment was analyzed: how purchases are made via smartphone, what services are used,   what patterns are repeated.

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