Generation Z What future for the next generation

Generation Z: What future for the next generation? Trajectory Trends Breakfast July 2016

What future for Generation Z?

Why Generation Z? % of UK population in each generational grouping; 2015 - 2030 100% Gen ? 2016 Gen ? Gen ? Gen ? 90% Gen ? Gen Z Gen Z 80% Gen Z By 2029, Gen Z will be the Gen Z Gen 70% Z Gen Z largest generational cohort Gen Z Gen Y 60% Gen Y Gen Y 50% Gen Y Gen Y 2028 2029 2030 Gen X Gen X Gen X Gen X 30% Gen X Baby Boomers 20% Baby Boomers Baby Boomers Baby Boomers Baby. Boomers 10% 40% 0% 2015 2016 2017 2018 2019 2020 2021 Source: Office of National Statistics, 2014 based National Population Projections 2022 2023 2024 2025 2026 2027

2016 UK Demographic Composition Low Hanging Fruit Pre-War: 11% Baby Boomers: 22% Generation X: 20% Generation Y: 20% Generation Z: 19% Source: Sonica Singh, Sapient Nitro; 2013

Why define generations? “In rare cases, downturns are catastrophically deep and enduring, as were the Great Depression of the 1930 s and Japan’s lost decade. Such downturns shape the mind-set of whole cohorts of consumers and have a long -term impact on buying behaviour. ”

Generation Defining Events

Generation Z: The Stereotypes “I call them Generation K, after Katniss Everdeen, the determined heroine of the Hunger Games. Like Katniss, they feel the world they inhabit is one of perpetual struggle – dystopian, unequal and harsh. ” - Noreena Hertz, The Guardian “[I]t’s not money that drives teens today – only 2% see finances as the most important element in life. They’ve learned from the mistakes of their parents’ generation. New values sit higher on the teen agenda and happiness is at the centre” - Coca Cola

Health

A Generation Willing to Pay Source: Nielsen Global Health and Wellness Report; 2015

Smoking in decline Source: HSCIC - Smoking, drinking and drug use among young people in England in 2014

Drinking also in decline Units consumed on heaviest night in previous week; Men and Women, 16 -24 60% 55% 50% 49% 40% Men - None Women - None 30% 21% 20% Men - More than 8 Women - More than 6 16% 10% Gen Z enter 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Health Survey for England, 2015

Gen Z Minds Source: Safer Internet Centre ‘Creating a Better Internet for All’ report 2016

Mental Health Less and Less Stigmatised Fear and exclusion of people with mental illness, 1994 -2013 (% of respondents who agree) 35% 30% 25% 20% 15% "Anyone with a history of mental problems should be excluded from taking public office" 10% Locating mental health facilities in a residential area downgrades the neighbourhood 5% 0% 1994 1995 1996 1997 2000 Source: Attitudes to Mental Illness, 2014 Research Report, Time to Change 2003 2007 2008 2009 2010 2011 Feb 2011 Dec 2012 2013

The Changing Meaning of Gender

The Changing Meaning of Gender UK Under 18 s referred to Gender Identity Development Service; 2009 -2016 (2015 -16 data only for April-December) 1000 900 800 700 600 500 400 300 200 100 0 2009 -10 2010 -11 2011 -12 Source: The Tavistock and Portman NHS Foundation Trust; 2016 2012 -13 2013 -14 2014 -15 2015 -16 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Digital Consumption

Generation Z-oella

Gaming & e. Sports Revenue Growth; ($ millions) $1, 200 $1, 000 $800 $600 [VALUE] Million $400 $200 $0 [VALUE] Million 2014 [VALUE] Million 2015 [VALUE] Million 2016 2019

Education

Accessing Education Source: Simon Crowther, Facebook

The End of the Degree as Proxy? University Sentiments; 800 15 -18 Year Olds Think university is important to get a good job in the future 92% Think university enables them to become more independent 87% 81% Think university is worth the cost in the future Worry about how much university will cost 78% 76% Source: Student Com/Campus Life, 2016 86% 96%

Challenges

Fairness Between Generations The 2015 Intergenerational Fairness Index annual report reveals a 10% deterioration in the prospects of younger generations relative to older generations between 2010 and 2015.

Gen Z – still Generation Rent? 2001 2. 3 million households renting privately 2014 5. 4 million households renting privately 2025 7. 2 million (25% of the UK population) will be renting privately

The Future of Intergenerational Conflict? Leave 65+ Remain 64% 50 -64 36% 60% 25 -49 40% 46% 18 -24 54% 29% 0% Source: You. Gov 10% 71% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Implications Changing meaning of place The end of conventional demographics? Limited social mobility Changing meaning of age

Trajectory 22 Upper Ground, London, SE 1 9 PD + 44 (0)20 8004 4869 trajectorypartnership. com @Trajectory. Tweet