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Market Research and Analysis

Teen & Tween Purchasing Power

  • 12-17 year olds spent 112.5 billion in 2003
  • Teen and Tween buying power:39 Billion 2003
  • Tween buying power is 13 billion.?
  • Spending power of tweens will increase faster than teens
  • Projected buying power of 3-12 yr olds = 25.4 billion by 2008

In 2003, teens between the ages of 12-17 spent $112.5 billion and thus are considered an influential force within the U.S market. Approximately 37.2%, which is about 4 out of 10 teens have either a savings or checking account under their own name and 5% have access to credit cards. When referencing the amount of income earned by teens, 16- 17 yr olds spend four times more than that of tweens aged 12-13; average weekly spending consists of $12.20 for tweens 12- 13 yrs of age to $20.10 for teens 16- 17 yrs of age. In a study of teens buying behavior in 2003, clothing ranked the highest of things teens plan to buy with their own money and what teens last bought with their own money. Female teens consume more food and beverages such as candy, soda, snacks, lunch and ice cream than males. According to a research by NOPWorld dated 2003, jewelry was on both lists of what teens plan to buy and last bought with their own money, 16% of female teens plan to buy jewelry with their own money and 15% of females last bought jewelry with their own money (Teen Market Profile Magazine).

A 2003 Roper Youth Report concluded that African-American Black teens spent an average of $428 per month which is 6% more then the average U.S. teen and is increasing more rapidly on items such as clothing, jewelry, computer software, and athletic footwear when compared to the average American Teen (Packaged Facts: 2004).  

The buying power of tweens and young teens totals $39 billion according to packaged facts. Young teen's account for 67% of the market, 33% represents tweens with a purchasing power of $13 billion. The spending power of tweens will increase faster that young teens. The spending amount of 8-11 yr olds is predicted to increase by 2 billion between the years of 2004? 2009.? Moreover, an increase of 7.6% of spending will occur between the ages of 12-14. The estimated amount of purchasing between the ages of 8-14 will increase by a cumulative of 10.2% from 2004-2009. The population of 12-14 yr olds will decrease by 6 million between the years of 2004-2009 (U.S. Teen & Young Tween Market, Packaged Facts 2005).

Packaged Facts estimates that by 2008 children between ages 3-7 will have an average annual buying power of $221 compared to children between ages 8-12 whose annual buying power is $1,015 which contains a difference of $794. Packaged Facts also estimates that by 2008 the aggregate buying power of children between ages 3-12 will be expected to reach $25.4 billion (Packaged Facts: 2004).  

Parents of young children and tweens spend a considerable amount of income on their children.? Family expenditures for 3-7 year olds on items such as clothing, food, entertainment, personal care and reading products are projected to increase from 65.9 billion in 2003 to 78.4 billion in the year 2008.? This represents a 19.1% growth rate.? Families spending on tweens are projected to grow to 14.3% between 2003 and 2008. Total family spending on 3-12 year olds between 2003 and 2008 is projected to total 177.5 billion, representing 16.4% growth (The US Teen and Young Tween Market 2004).