American Consumer Generations: Generation Alpha

Generation Alpha: The New Wave of American Consumers

Generation Alpha is the first generation to be entirely born in the new millennium, and it shows. These young Americans, also known as “iPad kids,” have grown up with technology as a daily staple and demonstrate a natural inclination toward entrepreneurship. Combined with their familiarity with social platforms and online dynamics, today’s children are enterprising, creative, and idea monetizers.

What does this mean for businesses and entrepreneurs operating in the United States? In simple terms, we are facing a generation that already knows how to leverage its skills. The market must prepare for a highly informed clientele, unimpressed by traditional marketing strategies and ready to make purchasing decisions armed with exceptional digital competencies.

How Generation Alpha is Revolutionizing Entrepreneurship in the United States

According to a Visa study, the data is precise:

• 63% of Generation Alpha children have already earned money independently, primarily through technology, particularly social media and online marketplaces.
• 54% consider themselves more creative than their parents, and 25% have learned to earn money through social content, moving away from book-based learning models.

The real revolution lies in the digital revival of the classic lemonade stand. American kids are not just selling beverages—they are curating every detail of the purchasing experience.

The Return of the Lemonade Stand

Lemonade stands have long been a rite of passage for American children. Today’s stands, however, are different because Generation Alpha has turned them into full-fledged business projects where kids learn to manage costs, marketing, and customer service. Digital transactions (via Venmo, PayPal, and other smart payment platforms) are an integral part of the game.

This generation invests in advertising and philanthropy to promote their brand, goes viral on TikTok showcasing their stand, builds websites, designs QR codes, and even applies for government permits to operate in pedestrian areas.

Generation Alpha and the Commercial Implications for Businesses Targeting the U.S. Market

While Generation Alpha cannot do all of this without adult assistance, the difference between yesterday’s children and today’s is striking, requiring businesses selling in the U.S. market to adapt to the social changes brought by these new potential customers.

This means companies must get used to increasingly informed and competent consumers who expect a seamless and immediate digital experience. Video-centric platforms are essential for quickly engaging Generation Alpha. The most popular platforms are YouTube (46%), with 90% of users aged 11 to 14 checking it daily, TikTok (21%), with 89% daily users, followed by Snapchat (14%), Instagram (14%), and Facebook (10%).

Regarding electronic devices, younger consumers primarily use tablets (49%), followed by smartphones (38%) and televisions (30%). These insights are crucial for identifying the right touchpoints and formats to engage with them effectively. For instance, advertising already significantly influences Generation Alpha consumers: 69% of children [source: Numerator] have requested something from their parents after seeing it in an ad, with one in two children making requests before the age of six. Nearly half (47%) of parents surveyed said they allow their children to make purchases independently in stores, compared to 22% online.

Generation Alpha consumers have a direct purchasing power of $28 billion and a massive influence on the U.S. market. It’s time to start thinking about how to capture their demand