GENERATION ALPHA, or those born between 2010 and 2024, will make up 27% of the Philippine population in 2030, positioning it to become a major consumer market, Fitch Solutions unit BMI said.
In a report dated Oct. 27, BMI said the Philippines will have the highest population of Gen Alpha consumers in Asia in 2030.
The Philippines’ total population is 112.73 million as of July 1, 2024.
In India and Indonesia, the proportion of Gen Alphas to their population will hit 23% by 2030.
Gen Alphas will account for 21% of the populations of Malaysia and Vietnam in 2030.
In Mainland China, Gen Alphas will account for 16% of the population in 2030.
On the other hand, Japan and South Korea, which are facing low birth rates and aging population, will have the smallest proportion of Gen Alphas with 12% and 11%, respectively, of their population.
“Asia will have the biggest population of Gen Alphas across all years, naturally driven by its already large population. Over 2030, Asia will have a Gen Alpha population of around 935.7 million, making up almost 50% of the global Gen Alpha population,” BMI said.
By 2050, the Gen Alpha population in Asia is projected to dip to 912.2 million as China, South Korea and other major markets continue to see a decline in birth rates, it added.
Gen Alpha refers to the population’s demographic born between 2010 and 2024. In 2026, their ages will range from one to 16 years old.
BMI said Gen Alpha will reach two billion by yearend, constituting nearly a quarter or 24.2% of the 8.3 billion global population.
“Generation Alpha is already a quarter of the world’s total population and as this generation is increasingly integrated into the consumer market, consumer trends will align with the preferences of this population,” it said.
Gen Alphas are pegged as the “digital natives” because they were born in a highly technologically advanced era and were exposed to technology from a young age, BMI said.
“Parents of Gen Alphas are predominantly Millennials and older Gen Zs, whose spending habits and attitudes will set the foundation of how Gen Alphas evolve into the market,” it added.
BMI said that by 2050, Gen Alpha will drop to around 20% of the global population, mainly because of the growing Generation Beta (2025-2039) and Gamma (2040-2054) proportional population.
Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said in a Viber message that the expected Philippine population growth could be the country’s asset “if cared for properly.”
“A continued replenishment for the workforce would mean lower dependency ratio, higher productivity, and faster growth,” he added.
However, Mr. Erece noted that current institutions might struggle to adequately address the needs of the growing population if the government will not improve essential sectors such as healthcare and education.
“Apart from these areas, access to opportunity and income equality remains an issue. These areas must be solved first to turn population growth from risk to strength,” he added. — Katherine K. Chan
