The data points: Gen Alpha is currently worth over $28 billion in direct spending, and drives billions more in indirect spending, per a new Numerator report.

• 53% of Gen Alpha members receive some type of allowance throughout the year, which they’re using to purchase consumables such as snacks and beverages and durables like toys and apparel.
• While toys and snacks make up the majority of younger Gen Alpha members’ spending, older members of the generation focus their spending on food, services, and durables.

Why it matters: Now is the time for brands to build relationships with Gen Alpha given that consumers build strong associations with the products they had as children.

• Moreover, their spending power (and influence over their parent’s or guardian’s spending) will only increase in the coming years.
• That’s why brands should lean into marketing and advertising to build awareness and affinity. Nearly 7 in 10 (69%) of Gen Alpha children have requested a product or item they saw in an advertisement, including 50% of Gen Alpha before they turned 6.
• The tactics that work vary by age; the older Gen Alpha members are, the more likely they are to be influenced by friends, influencers, and social media ads.

The big takeaway: Although Gen Alpha are far from their peak spending power, they’re a big influence on products ranging from snacks and beauty products to entertainment. Brands should follow the lead of companies like Stanley and lululemon to experiment with which marketing tactics resonate with the generation.