Assessing the SA Market: From Gen Alpha to Baby Boomers and Everyone in Between

Insight Summary

• There are over 12.1 million Gen Alphas residing in South Africa, and businesses should focus on appealing to these children's guardians to drive purchases for products/services

• Business ideas that cater to the Gen Alpha market in South Africa include creating educational subscription boxes and more.

• Gen Zs are gaining significance in the global market due to their increasing purchasing power and entry into the workforce. There are more than 18.7 million Gen Zs in South Africa, representing 31% of the population.

• Millennials, comprising 29-43-year-olds, form the second-largest generational segment in South Africa, making up 26% of the population (approximately 15.7 million people).

Diving into the SA Market

Marketers and entrepreneurs spend a lot of time trying to determine not only the needs of different market segments but also how big different segments are to formulate marketing strategies. In this article, I assess the size of different market segments by age using estimates based on Stats SA population data to save you time.

The first thing we realise is how young the South African Market is: approximately 51% of the market is 28 years old or younger (Gen Alpha & Gen Z). A myth is that this market segment does not have significant spending power. This could not be further from the truth. What Gen Alpha lack in personal income they make up with significant influence: parents, guardians, and grandparents work so that they can ensure this segment's future. The same could be said for the Gen Z market. Let’s take a deeper look into the different market segments and explore potential business opportunities.

Gen Alpha (2013-)

We estimate there are over 12.1 million (12,120,998) Gen Alphas (2013-) residing in South Africa. Purchases are mainly funded through these children’s guardians therefore businesses must ensure their products/services are viewed as ‘best for my little ones’ in the eyes of these buyers. Here are a few business ideas for aspiring entrepreneurs that want to cater to this market.

• Educational Subscription Box: Create a monthly subscription box that delivers educational and engaging activities, books, puzzles, and toys to children. Each box could be tailored to different age groups, providing age-appropriate content that fosters learning and creativity. According to Stats SA, only 28.5% of children between 0-4 years old go to Grade R, pre-school, nursery, creche or edu-care centres while the rest stay at home with guardians/parents. Therefore creating a solution to deliver educational content to these households could be a beneficial solution for caregivers who want to ensure their children are as prepared as possible when they start primary school in the future. For kids between 5-10 years old, this type of business also ensures that learning goes beyond the 4 walls of schools.

• Customizable Children's Clothing: You could launch a business that specializes in customizable and personalized clothing for children. Offer a range of designs, colours, and patterns, allowing parents and children to create unique outfits that reflect their individuality. Although the fashion industry is very mature & competitive, there’s always room for new innovative businesses in the market.

• Children's Book Publishing: Maybe you could start a publishing company that specializes in producing high-quality children's books with captivating stories and vibrant illustrations. Partner with talented authors and illustrators to create a diverse range of books that appeal to different age groups and interests.

• Indoor Play Centres: Establish indoor play centres that feature interactive and imaginative play spaces designed for young children. Include elements like climbing structures, ball pits, sensory activities, and mini obstacle courses to promote physical activity and socialization.

Gen Z (1995-2012)

Gen Zs (1995-2012), or Born-frees as they are affectionately known in South Africa, are grabbing the attention of marketers all over the world as they begin to enter the workforce and increase their purchasing power. We estimate there are approximately more than 18.7 million Gen Zs in South Africa. They are the largest generation in South Africa accounting for 31% of the population. As with any generation, different age groups are going through different phases. Here are a few businesses aspiring entrepreneurs can start to cater to this market.

1. Age Group: 11-13 Years

   • Online Tutoring Platform: Develop an online tutoring platform that connects students in this age group with qualified tutors in various subjects. Offer flexible scheduling, interactive learning tools, and personalized support to help them excel academically.

   • Digital Gaming Tournaments/e-Sports: Organize online gaming tournaments or leagues focused on popular video games among this age group. Create an engaging competitive environment and offer rewards or prizes to attract participants.

2. Age Group: 13-18 Years

   • Social Media Management Services: Gen Zs spend a lot of time on their phones (more than 4 hours per day according to GWI). Furthermore, 73% of Gen Zs use their phones to search for products. If social media marketing is your specialty you could offer social media management services to help individuals and small businesses optimize their online presence. Provide content creation, scheduling, engagement strategies, and analytics to help clients reach their target audience effectively.

3. Age Group: 19-21 Years

   • Fitness and Wellness Apps: Develop mobile applications that offer personalized workout routines, nutrition plans, mindfulness exercises, and mental health resources specifically tailored to young adults in this age range.

   • Skill-Based Online Courses: Offer online courses or certifications in practical skills that are relevant to the job market, such as digital marketing, coding, graphic design, or entrepreneurship. Provide flexible learning options and practical hands-on projects to enhance career prospects.

4. Age Group: 22-28 Years

   • Co-Working Spaces: Create co-working spaces tailored for young professionals and freelancers. Provide well-equipped workstations, meeting rooms, networking events, and additional amenities to support productivity and collaboration. Given the rise in remote work and load-shedding, this type of business won’t take long before it becomes more profitable.

   • Personal Finance Apps: Develop mobile applications that provide financial management tools, budgeting assistance, investment guidance, and expense tracking to help young adults manage their finances effectively.

Millennials (1980-1994)

Millennials (29-43-year-olds) are the second-largest generational segment in South Africa with more than 15.7 million people (26% of the population). As they continue to establish themselves, advance in their career or raise children of their own, here are a few business ideas that can add value to them.

• Remote Work Solutions: Develop products or services that support the remote work lifestyle of Millennials, such as ergonomic home office furniture, noise-cancelling headphones, productivity apps, virtual meeting platforms, and remote team collaboration tools.

• Personalized Digital Learning Platforms: Create an online learning platform that offers personalized courses and resources catering to the professional development needs of Millennials. Focus on career advancement, skill-building, and personal growth topics like leadership, entrepreneurship, digital marketing, and financial literacy.

• Mental Health and Wellness Services: Start a business that offers mental health and wellness services, such as therapy, counselling, meditation apps, stress management programs, and online support communities. Focus on destigmatizing mental health and providing accessible resources for Millennials.

Gen X (1965-1979)

We estimate there are more than 8.4 million Gen Xs in South Africa (14% of the population). Some of these people are starting to plan for life after work as they approach retirement age while some are just reaching the pinnacle of their careers. However, according to Stats SA, 12.2% of people between 40-59 years old have no formal education or haven’t completed grade 7. Here are ways aspiring entrepreneurs can position their brands for this segment.

• Travel Experiences for Empty Nesters: Develop travel packages and experiences tailored for Generation X empty nesters who have more flexibility to travel. Curate trips that cater to their interests, such as cultural tours, culinary experiences, adventure travel, and luxury getaways.

• Financial Planning and Retirement Services: Establish a financial planning firm that offers comprehensive retirement planning, investment advice, and wealth management services. Focus on helping Generation X individuals secure their financial future and make informed decisions about retirement savings, estate planning, and asset protection

• Midlife Career Coaching: Launch a career coaching service specifically tailored for Generation X professionals who are seeking career transitions, advancement, or entrepreneurship opportunities. Provide guidance on skills upgrading, networking, personal branding, and career development strategies. As technology rapidly advances, Gen Xs will need help navigating the forthcoming changes.

Baby Boomers (1946-1964) & Silent Generation (1925-1945)

Baby Boomers and the Silent Generation are the smallest segments with approximately over 4.8 million (8% of the population) & 600,000 (1% of the population) people respectively. Although relatively small, there are still a few businesses aspiring entrepreneurs could launch to cater to these generations

• Senior Care and Assistance: Start a business that offers senior care and assistance services, such as in-home care, companion services, medication management, and transportation assistance. Focus on providing compassionate and reliable support for the unique needs of older adults.

• Retirement Community Development: Develop retirement communities or senior living complexes that provide a range of amenities and services for active and independent older adults. Create a welcoming environment that promotes social interaction, wellness activities, and a sense of community.

• Personal Styling and Image Consulting: Provide personal styling and image consulting services tailored to older adults. Offer wardrobe consultations, style makeovers, and assistance in selecting age-appropriate clothing that boosts confidence and enhances personal image

• Hobby and Leisure Clubs: Establish hobby and leisure clubs that bring together older adults with similar interests, such as book clubs, gardening groups, art classes, or photography clubs. Foster social connections, learning opportunities, and enjoyable activities.

• Personalized Health and Wellness Services: Offer personalized health and wellness services tailored for older adults, such as fitness programs, nutritional counselling, physical therapy, and mental health support. Focus on maintaining and enhancing the overall well-being of this age group.

There are a wealth of business opportunities for entrepreneurs targeting these specific generations and it is so important that entrepreneurs, in a flurry to cater to younger generations, do not neglect creating solutions for older generations as well. If you want to get a better understanding of the youth market, purchase our State of The Youth Report. 

Brief Methodology

What generational categories did I use?

I segmented the market based on the generational categories used by Caregivers of America found here

How did I estimate the population sizes?

I used data from Stats SA. I added the population figures based on the age groups derived from the categories above. Bear in mind that these were 2022 mid-year estimates.

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