As brands look ahead to their next generation of consumers, understanding Gen Alpha is key. DKC Analytics’ new report, A Guide to Gen Alpha: Insights on the Gateway Generation, highlights the spending power and influence of the 29 million 8-14-year-olds in the United States. Catch the takeaways below and read the full report here. 

Geopolitical tensions. Inflation. Uncertainty. In a world full of question marks, one thing is certain: brands that want to stay relevant and profitable can’t afford to overlook Generation Alpha.

America's youngest consumers are driving nearly half of all household spending decisions while commanding over $101 billion in direct purchasing power, according to explosive new research from DKC Analytics – A Guide to Gen Alpha: Insights on the Gateway Generation. As 58% of parents report their Gen Alpha children ages 8-14 have been impacted by tariffs, inflation, and economic uncertainty, this tech-savvy “Gateway Generation” – 29 million strong in the United States – is building spending habits, brand loyalties, and financial influence that's reshaping how American families spend money.  For brand marketers, reaching them isn’t just smart, it’s essential.

Highlights from the report:

Gen Alpha’s Annual Spending Power is Staggering:

• $101 billion - Total annual spending power of Gen Alpha children, equivalent to Bulgaria's entire market capitalization.

Impact on Family Shopping Behavior: 

• 42% - Proportion of ALL household purchases influenced by Gen Alpha opinions. In high-income households ($100K+), that jumps to 49%.

Economic Headwinds Don’t Deter Them: 

• Despite 56% of parents saying “no” to money requests or cutting their allowances, Gen Alpha's financial power continues to grow.

Entrepreneurship is Exploding: 

• 91% are actively earning money through side hustles including payment for chores, payment for good grades or behavior, doing odd jobs outside of the house, and online selling/reselling.

Shopping Behaviors are Shifting: 

• Their parents are using more try-on tech and special filters, accessing experiential live shopping events, and more.
  • Due to the Influence of their Gen Alpha Children:
    • 34% of their parents say they now buy during “drops”
    • 61% of their parents are making more purchases online
    • 46% of their parents are using virtual try-on technology or special filters
    • 44% of their parents engage in more micro-transactions
    • 44% of their parents now more reliant on digital money
    • 40% of their parents are attending experiential shopping events
    • 66% supermajority of their parents say their Gen Alpha children will eventually depend on AI to shop, an increase of 11% (up from 55%) since last year
    • 42% of their parents have used AI to inform a purchase