UNDERSTANDING GENERATION ALPHA
generationalpha.com UNDERSTANDING GENERATION ALPHA
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© McCrindle 2020. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the publisher. If organisations want to not only exist in a decade’s time, INTRO but thrive and flourish, then understanding Generation There is a generation that comprises It is important to understand the more than 1 in 7 people, who are traits of Generation Alpha because Alpha is imperative. influencing the purchasing power they represent the future and of their household and are key to provide a lens through which to the future, yet few people have look at the next decade and beyond. heard of them. Within the next four While Generation Alpha are currently years they will outnumber the Baby our primary school students, by Boomers, and many of them will live the end of the 2020s the oldest Mark McCrindle to see the 22nd century. will be moving into adulthood, the workforce and household formation, Mark McCrindle is a demographer and social We’re talking about Generation ready or not. If organisations want researcher, best-selling author, TEDx speaker and Alpha, the current generation of to not only exist in a decade’s Principal of McCrindle Research. He is the author children who began being born in time, but thrive and flourish, then of three books on emerging trends and social the year 2010. They are the children understanding Generation Alpha and change. He coined the label: Generation Alpha, of the Millennials, and often the the future they will be shaped in and and is regarded as an international authority on younger siblings of Generation contribute to, is imperative. Generation Alpha. Z. There are 3 million of them in Australia and more than 2.8 million This paper is authored by Mark are born globally every week. When McCrindle and Ashley Fell, two they have all been born (2025) they social researchers who are leading will number more than 2 billion – the authorities on Generation Alpha Ashley Fell largest generation in the history of and the emerging generations. the world. We believe this complimentary Ashley Fell is a social researcher, TEDx speaker and whitepaper will be invaluable for you Director of Communications at the internationally While they are currently the in navigating and leading through recognised McCrindle. As a trends analyst she youngest generation, they have times of change. understands the need to communicate with them. brand influence and purchasing She is co-author of the book Generation Alpha power beyond their years. They and regarded as a leading expert and media shape the social media landscape, commentator on Generation Alpha. are the popular culture influencers and the emerging consumers.
3 1 2 3 4 Context Changing They are the children of the Millennials global order They will be parents to Generation Gamma
Top countries 2.8M 2.2 Billion of birth: Number of Globally in 2025 • India weekly births • China • Indonesia Millennials - b. 1980-1994 • Generation Gamma - b. 2040-2054
5 6 7 The top names Other Labels Why they are named Alpha
Generation Glass Generation Alpha represent a whole new Upagers generation, entirely born in a new century. Boy Girl The Alphas Going back to the beginning didn’t feel Global Gen • Noah • Olivia right for this next generation, so we’ve Multi-modals • Oliver • Ava moved to the Greek alphabet. • William • Amelia
8 Tech Tech 9 Why 10 they began Millennials X Alpha IN OUT in 2010 Discman iPhone
Generation Alpha began being born in the Fortnite (on Nintendo64 year 2010, at the start of the digital era any device) Joy Of Fear Of Nokia 1100 where devices dominated. They began in Siri Missing Out Missing Out Apple the same year the first-generation iPad was AirPods Landline Broadcast Streaming Watch released and Instagram launched. With phone Pager the typical generation length spanning 15 MSN Messenger Snapchat years, the last of the Generation Alpha’s Artificial 5G Gangnam Style Baby Shark Intelligence DVD CD will finish being born in 2024. WHY WE NAMED THEM GEN ALPHA
Just over a decade ago, it became first time, the Greek alphabet apparent that a new generation was used, starting with hurricane was about to commence and alpha an, hurricane beta etc. there was no name for them. That’s how the nomenclature naming in science works. As a research agency with a keen interest in generational analysis, So in keeping with this scientific we decided to test a few names naming of using the Greek out with a survey of Australians. alphabet in lieu of the Latin, When we asked people what and having worked our way Alpha – not a they thought the next generation through Generations X, Y and Z, should be called, many people we settled on the next cohort return to the suggested Generation A, having being Generation Alpha – not a come to the end of the alphabet return to the old, but the start of A label like Generation X, old, but the start with Generation Z. But Generation something new. Generation Z or Generation Alpha Alpha represent a whole new provides a blank canvas on which of something generation, entirely born in a We have also found from our a generation can create their new century. Going back to the generational research that own identity rather than have a new. beginning didn’t feel right for this generic labels rather than descriptive label, relevant for just next generation. descriptive ones are likely to last. a segment of the cohort or for a Names like the Baby Boomers, period of time pinned on them. Additionally, this was all taking which describe a unique It’s a whole new generation and a place just after the Atlantic demographic phenomenon at whole new millennium, in a whole hurricane season of 2005, when the birth of a generation, based new era. Hence Generation Alpha. there were so many storms that on the timing when the leading the normal alphabetic names edge were coming of age, are a had been used up and so for the departure from the norm.
5 Generation Alpha began being born in the year 2010, the same year the first iPad was released, and was Instagram launched. With the typical generation length spanning 15 years, the last of the Generation Alphas will finish being born in 2024.
HOW WE TWEEN TOWN KNOW SO We can also look at the current 8 to 12-year-old market segment. We call MUCH ABOUT them tweens, those aged 8 to 12, who are “in-between” childhood and THEM? adolescence. Current tweens, a mix of Generation Alpha and Generation We can predict a fair bit about Z (the children of Generation Generation Alpha by analysing the X), have emerged as their own demographics surrounding them, demographic, and are now seen which give some forward forecasts: as brand influencers, a consumer age of parents (older), cultural mix segment, and a target market. (more diverse), socioeconomics (slightly wealthier), family size Social media has been integral to (smaller), life expectancy (longer). the development of tween identity. Many tweens are actively engaging Then there is the research on on sites, uploading their own their parents, the Millennials YouTube videos and connecting (or Generation Y) which gives with friends on Facebook. Many us a sense of how they will be websites are targeted specifically THE WHO, WHAT, raised; more frequently moving at this demographic. Tweens can and changing careers, materially create virtual pets, play dress-up, endowed, technologically supplied and interact online with other people and outsourcing aspects of their age. WHEN, WHERE parenting such as childcare. The relatively new world of Finally, there is the analysis of ‘tweendom’ is evidence of the Generation Alpha themselves in ‘upageing’ (growing up faster and at AND HOW OF their formative years, and we can a younger age) of today’s emerging learn a lot from this too; app-based generations. These young people play, increased screen time, shorter have access to more technology, GEN ALPHA attention spans and digital literacy information, and external influences but less social formation. than any generation before them.
6 WHY THEY MATTER
Generation Alpha represent the future and provide a lens through which we can look to the next decade and beyond. While they currently populate our primary schools, over the next decade the oldest will move through the teen years to reach adulthood. But even still, these youngsters are influencing their millennial family purchasing and are early adopters of technology, having been born entirely in the 21st century. Not only that, they will be the largest generation ever, emerging while the world is experiencing a shift to the Asian century. When the youngest Generation Alphas hit adulthood (in more culturally diverse compared While adolescence begins earlier, the mid 2030s), the largest middle- to the former generations. Their it also extends later. The adult life class component will be from Asia. technology makes them the most stage, once measured by marriage, globally connected generation ever. children, mortgage and career is They are deemed social, global and being pushed back. This generation mobile as they will work, study and will stay in education longer, start travel between different countries their earning years later and so stay HOW THEY and multiple careers. at home with their parents for longer than was previously the case. COMPARE Generation Alpha are ‘upagers’ in many ways: physical maturity is The role of parents therefore spans a TO OTHER on setting earlier so adolescence wider age range, still caring at home for them will begin earlier—but for their adult kids even into their GENERATIONS beyond the physical, social and late 20s. Generation Alpha will no psychological, educational and doubt prolong this trend. In Australia Generation Alpha will be the largest even commercial sophistication we’ve labelled the stay at home generation as we have a greater also begin earlier, which can 20-somethings the KIPPERS, which population than ever before. They have negative as well as positive stands for Kids In Parents’ Pockets will live for longer and will be consequences. Eroding Retirement Savings!
7 SHAPED BY TECHNOLOGY
Generation Alpha is defined by technological devices like smartphones and tablets, video games, driverless trains, autonomous cars and smart speakers that speak back to you. This technology has only been developed within their generation and it is all they have ever known. It is also being taken up quicker than ever before. While radio took 38 years to reach 50 million users, the television took 13, the iPod just four, the internet three, Facebook Generation Alpha been raised as just one and the Pokémon Go “screenagers” to a greater extent WHO COMES phenomenon took just 19 days! than the fixed screens of the past could facilitate. For this reason, AFTER? Coming of age in unprecedented we also call them Generation times of change and rapid Glass. It is almost impossible to Generational definitions are most technological advancement, pry Generation Alpha away from useful when they span a set age Generation Alpha is part of an their devices, which have been range and thus allow meaningful unintentional global experiment prominent in their lives from comparisons across generations. where screens are placed in front the day they were born. Their That is why the generations of them from the youngest age exposure to technology during today each span 15 years with as pacifiers, entertainers and their formative years will have a Generation Y (Millennials) born educational aids. This great screen great impact on their lives. They from 1980 to 1994; Generation Z age which we are all living in has have been using these devices from 1995 to 2009 and Generation bigger impacts on the generation from before they could talk, so we Alpha from 2010 to 2024. So it exposed to such screen saturation are yet to see the impacts of their follows that Generation Beta will during their formative years. interaction with screens. There will be born from 2025 to 2039. From shorter attention spans to certainly be some positives, but the gamification of education, like any other generation would, it If the nomenclature sticks, then from increased digital literacy to will provide Generation Alpha with we will afterwards have Generation impaired social formation, these some unique challenges. Gamma (the children of Generation times impact us all but transform Alpha) and Generation Delta, but those in their formative years. we won’t be getting there until the second half of the 21st century!
8 ENGAGEMENT GEN Z GEN ALPHA GEN BETA ACROSS THE EDUCATION OUTCOMES
GENERATIONS Employable Adaptable Entrepreneurial
SCHOOL FOCUS
Exam results Learning skills Life skills
MARKETING
Peers Influencers Artificial intelligence
WORK STYLE
Participative Collaborative Co-creators
IDEAL LEADER
Coordinator Empowerer Enlarger
PAYMENTS
Credit card Digital Virtual
TECHNOLOGY
Touchscreen Voice-recognition Gesture control
CONSUMER TRENDS
Customised Personalised Predictive
ADVICE
Professional credentials Social validation Peer influence
BUSINESS CONTEXT
Changing trends Frequent disruption Continuous volatility
9 THE FUTURE CONSUMERS
Generation Alpha are the most materially While Generation Alpha are yet to hit their endowed and empowered generation teens, they have brand influence and ever. They have been shaped in an era of purchasing power beyond their years, individualisation and customisation where engaging with brands, toys and products they can get their name printed into the that speak to the future needs of this storyline of books, embroidered onto their generation. shirts or put on a jar of Nutella.
Because of rapid advances in technology IS THE FUTURE there are many things Generation Alpha will not be accustomed to using. Just like OF SUCCESSFUL record players, VHS and pagers haven’t been part of our day-to-day lives for a BRANDS JUST number of years, the use of traditional dictionaries, street directories or DVD TECH-ENABLED players have similarly made their exit over the last decade. Looking ahead, it is very TOYS? likely that Generation Alpha will never use a wallet, single-use plastics, listen to the Parents are increasingly aware of the radio as a device, participate in a written negative consequences of too much exam or set an analogue alarm clock. technology time – the isolationism and anti-social impacts. However, there is a halo-effect for tech-toys which increase connectivity, facilitate community and develop social and global skills.
10 WHAT KIND OF WHAT ARE THE ‘PLAY’ IS MOST DRIVERS THAT USEFUL FOR ARE IMPACTING BRANDS TO HOW TOY DEPLOY NOW, BRANDS IN THE DIGITAL ENGAGE AGE? WITH THEIR Parents are becoming aware of the CONSUMERS? life-skills deficit evident amongst the next generation. They are more Educational toys – the future of toys is formally educated, yet less proficient not just in the home but the classroom in practical skills, assessing (and and the childcare centre. Education when appropriate confidently is beginning earlier with 3 and 4 year approaching) risk, setting and olds spending more time in childcare achieving goals (whether sporting or – and in facilities that have a focus on otherwise), and developing hands- education and development. Therefore on competencies. Fun toys which toys, of educational benefit, are an develop specific skills such as STEM essential part of the focus. (Science, Technology, Engineering, Maths), social competencies, Free toys – another change we are entrepreneurial skills, strength and seeing is that sponsored educational They are more formally coordination, financial literacy, materials – once anathema to innovation and resourcefulness educational institutions, are becoming educated, yet less proficient in will be favoured by parents and more acceptable as the barriers educators. between education, business, and practical skills, assessing risk, community blur. With education (and household) budgets under strain, setting and achieving goals, corporations for altruistic and well as commercial motives, will increasingly and developing hands-on be part of the education, community and child-rearing domains – with comptencies. branded toys a means by which this support is delivered.
11 THE FUTURE
Generation Alpha may never see Because their parents will indulge a camera that requires film, and them in more formal education they’ll never have to wait for their and at an earlier age, Generation photos to be developed. The only Alpha will have access to more phones they’ve ever seen also take information than any other photos, record videos, access the generation gone before. Their internet and play games—this is a formal education has never far cry from landline telephones been equalled in the history of that could be taken ‘off the hook’! the world, with a predicted 1 in 2 Generation Alphas to obtain a As such, a shift in educational university degree. engagement is occurring for Generation Alpha, with schools Generation Alpha will switching from structural and surpass even the praised and Generation Alpha will have auditory learning to engaging, sophisticated Zeds in terms visual, multimodal and hands- of education, with 90 per cent access to more information on methods of educating this predicted to complete high school, emerging generation. compared to 80 per cent today, than any other generation and with the majority going on to further study in some form. gone before. OF EDUCATION
12 GREATER JOB NEW MOBILITY GENERATION, Work will remain a key feature NEW of life in the future, as it is now. Almost two in three employed DECADE, Australians work full time, and of these, more than half are putting NEW CAREER in 40 or more hours per week. However, the average length of OPTIONS time workers stay in their role has shortened to just under three As the emerging generations years. begin to consider their career options, there are jobs available If this tenure continues through in entirely new industries such the working life of today’s school as nanotechnology, block-chain, leavers, then they will have on cyber security, autonomous average 18 different jobs over 6 transport and virtual reality. distinct careers. Many of these future jobs don’t currently exist, The jobs of the future will come with 65% of those entering not only from technological primary school today predicted change but also demographic to end up working in entirely new change. The ageing population is job types that don’t yet exist.2 creating new opportunities, not While technology is replacing just in the aged care sector but jobs, it is also creating many other related industries. Record new ones, such is the fourth birth rates and more affluent industrial revolution we are now parents are creating new childcare in. When today’s senior school services and carer roles. From students were at primary school, cultural diversity to changing there were still people employed family structures, population as toll collectors on motorways! shifts create new demands and Now many of these students industries. are learning skills in robotics, coding, social media marketing, app development and big data analytics.
13 More than one in four (27 per cent) have TODAY’S STUDENTS ARE SKILLS NEEDED significantly or somewhat increased their expectations. EQUIPPED WITH SKILLS TO THRIVE IN AND CURIOSITY The parents of Generation Alpha, % of parents who believe students are extremely/very equipped THE DECADE (Millennials; also known as Generation Y) are driving this expectation inflation with AHEAD three in ten (31 per cent) significantly or somewhat increasing their expectations COMPETENCIES The anticipated rise of automation has of schools compared to one in four led to a focus on developing 21st century Generation X parents (23 per cent). Problem Digital skills skills for lifelong learning in students. solving Within this context, parents believe As student wellbeing challenges rises in 60% 48% students are most equipped with digital prominence, it is important for schools skills and creativity (60 per cent and 57 to understand parent expectations and Presentation Creativity per cent, respectively). There is work the school’s role in the wellbeing journey. skills to do, however, in the area of critical Almost all of parents (97 per cent) 57% 47% thinking, the lowest ranked competency believe schools should have a holistic by parents with just 43 per cent focus and play some role in the Critical Team work believing students are extremely or management of wellbeing, the question thinking 52% 43% very equipped. As the world of work is to what extent. More than two in five changes, it is the character qualities parents (46 per cent) believe schools as well as competencies that will should provide individualised support for Communication futureproof Generation Alpha. Parents wellbeing but refer on to other experts. skills believe students are equipped with 52% curiosity (60 per cent) and adaptability Generation Y teachers agree, seeing (50 per cent), yet there is room to themselves as the first line of defence improve in leadership skills (42 per cent). and will then refer on to other experts. The challenge for schools, however, is that almost a quarter of parents (24 per CHARACTER QUALITIES THE WELLBEING cent) believe schools should provide extensive individualised support for all Curiosity Persistence FOCUS wellbeing issues. 60% 48% The trend of wellbeing has been steadily Generation Y parents seem to be driving increasing over the last few years, this viewpoint, being more likely than Adaptability Initiative particularly in schools and in the Generation X parents to believe schools workplace. In the last five years, almost should provide extensive individualised 50% 47% half of parents (48 per cent) have support for all wellbeing issues (28 per increased their expectations of their cent cf. 21 per cent).3 Social/cultural Leadership child’s school to support wellbeing. awareness 49% 42%
14 THE FUTURE OF WORK
Massive changes are happening to the workforce, as some jobs disappear, and new jobs emerge. Generation Alphas will have careers in emerging fields such as cyber-security, app development and cryptocurrency. They will be lifelong learners, holding multiple jobs across multiple careers. They will also need to be adaptive, constantly upskilling and retraining to remain relevant to the changes anticipated as they move through their working life.
15 the agenda. Even over the last few years GENERATION it is clear that the topic of wellbeing is one that has resonated very strongly as a ALPHA WILL rapidly rising issue. LIVE LONGER Our worker survey showed wellbeing to be the number one workplace issue, AND WORK with 72 per cent of workers saying it is extremely or very important to them, LATER ranked above sixteen other workplace components.4 Among the emerging Generation Alpha will be students for generations, there is an expectation longer. They will stay longer in education that all aspects of their life will provide and start their earning years later, the opportunity to thrive, and therefore which will put them behind financially. less tolerance for workplaces and By pushing back their working years to organisations that hinder wellbeing. invest more in education, this means they will stay at home for longer. Corporations are now employing wellbeing managers and many city Advancements in medicine and buildings have office concierges. More technology result in an ageing recently, devices and apps are focussing population, so Generation Alpha will live on furthering human wellbeing and longer. Their adult life stage of work, flourishing, and this will be even more the marriage and having children will occur case for Generation Alpha, translating to later. They will also be wealthier as they their expectations of the workplace. will work longer before retiring. After a decade of digital disruption For Generation Alpha, retirement will and increasing velocity of change, the not mean stopping work. Rather it will 2020s will mark a decade of seeking mean downsizing and downshifting, simplicity and personalisation of the Generation Alpha will allowing them to stay active later services we engage with. In a world of in life, as working into their 60s screen saturation, 24/7 expectations be emerging into the and 70s will become the norm. and always-on technologies, the decade ahead will see people not so much turn workforce at a time technology off, but to turning on apps when wellbeing will be WORK and solutions to make life function more efficiently and enhance their wellbeing. at the top of the agenda. WELLBEING More than just an extension of the outsourcing trend, consumers will pay a As when, where and how we work shifts premium for simplicity and services that over the next decade, Generation Alpha are customised to their unique priorities will be emerging into the workforce at a and preferences. time when wellbeing will be at the top of
16 PARENTING AND LEADING
Generation Alpha are the first generation of For 21st century parents, the input of children to be shaped in an era of portable their own parents and the sage advice digital devices, and for many, their pacifiers of grandparents have never been more have not been a rattle or a set of keys but a important. The role of grandparents has smartphone or tablet device. Those aged 8-12 significantly stepped up in our society as year in the United States (tweens) consume they play important roles in the lives of on average 4 hours and 44 minutes of screen Generation Alphas. Baby Boomers have a time per day for entertainment purposes. depth of life experience and knowledge they This increases to an average of 7 hours 22 can instil in their grandkids to stay connected minutes for those aged 13 to 18.5 Such is in their lives. Grandparents now also take their multi-screening behaviour that this is on a larger caring role as Generation Alphas expected to increase for Generation Alpha parents, the Generation Ys, are working more. who have been born into a world of iPhones, YouTube and Instagram. Generation Alpha are looking to parents and leaders for guidance. Parents need to give The new challenges for parents of Generation Generation Alpha confidence, as many young Alpha centre on watching out for screen people face insecurities and mental health addiction, cyberbullying and the management issues about an uncertain future that is of child-friendly content. While parents have constantly being painted for them. some unique challenges, it is encouraging to remember the Millennial parents of Parents should encourage Generation Alpha Generation Alpha have themselves been to invest in the future. By investing in training shaped in the digital world, so are better and education in both life skills and people equipped to manage these complexities. It is skills, Generation Alpha can remain relevant also important for parents to remember that and have the confidence to move forward. despite seemingly overt differences, some basic dynamics between parents and children are timeless.
17 A POSITIVE OUTLOOK FOR THE ALPHAS
The outlook for Generation Alpha is positive, even amidst so much change. We are talking about a generation that will live longer, work later, will be more formally educated, materially endowed and globally, will be the wealthiest generation to date.
Every generation is a reaction to the one that came before it. The Baby Boomers were the protest generation; radical, We are talking about a generation started careers young and climbed the ladder early. Millennials were quite the opposite; conservative in some ways and more that will live longer, work later, risk averse. While the Baby Boomers were the free-range kid approach, the Millennials were very structured and planned. will be more formally educated, materially endowed and globally, will be the wealthiest generation to date.
18 When we compare Millennials to Alphas, With sustainability and climate change we predict that the Alphas will have on the radar of their older Generation children earlier than their parents, with a Z siblings, Generation Alpha will grow biological limit to the rising age of first up with these political issues at the birth of parents, will we see a higher forefront of the agenda. fertility rate for the Alphas, meaning a younger age of parents. We can also The youngest Generation Alpha’s won’t expect Generation Alpha to seek out both need a car or possible even a license a family and a career, even more than when they hit adulthood, with public their Millennial parents have. transport, Uber and driverless cars making these parts of modern life today Generation Alpha may never have heard obsolete. They may never sit a written of pay and gender equality issues, road exam, vote in a traditional polling booth infringements will not be an issue, they or own much, with the view that life (like will be ‘rentvesters’ who will prioritise Netflix) is a service. lifestyle and view accommodation as a service. While Generation Alpha will encounter a lot of change, it is important to The future of health will be more remember that some timeless human advanced for Generation Alpha than any needs do not change. Amidst all the other. They will experience a shift from change, Generation Alpha will still crave private health insurance to a user pay acceptance, community and belonging. system or health savings fund. More These timeless human needs, while concerned about calorie intake and expressed differently over time, will be portion size, they will drink less alcohol the key drivers for Generation Alpha and and soft drinks, be used to a sugar tax, are important for leaders, organisations, and engage with a rise in plant-based parents and community groups to proteins. keep in mind as they lead Generation Alpha through the next decade and into Generation Alpha will also see different adulthood. mainstream approaches to alternate eating choices like non-diary options, with more health food options available to them, as well as the regularity of devices that can monitor their movements and commodities, health and exercise. Amidst all the change, Generation Alpha will still crave acceptance, community and belonging. 19 A FINAL WORD
As we look to the future and the decade ahead, to best serve this next generation it’s important to take the time to understand and engage them. We’ve got to connect and communicate in ways that speak their language. What worked for Generation Y may not work for Generation Alpha, and what was effective in a leadership style in the 20th century may be less effective in the 21st. We have to engage with where this next generation are at.
Generation Alpha need to be equipped with the skills and the competencies that will enable them to thrive in this era of change. How we equip this generation will be different to how it has been done in the past. Generation Alpha don’t need the same authority structures, hierarchies, or traditional power approaches, because we’re in more collaborative times. Being the most digitally savvy generation ever, and as we move to a world with more Additional References robotics, interpersonal skills will become more important than ever for Generation Alpha. ¹ AHRI Turnover and Retention Research Report, 2018 Imperative to leading this next generation well is entrusting 2 World Economic Forum, The Future of Jobs and Skills, 2016 them with opportunities to grow. Allowing them to experiment and fail is key to building the resilience in this 3 McCrindle, Education Future Report, 2019 next generation, for them to thrive in the years of change ahead. Not everything will work successfully the first time, 4 McCrindle, Survey of 1,160 Australian workers, 2019 but that’s how we all grow. By engaging, equipping and entrusting Generation Alpha, we can set them up well for � Common Sense Media, The Common Sense Census: the years to come. Media Use by Tweens and Teens Report, 2019
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