The Rise of the Teenage Consumer Market
The concept of the “teenager” as a distinct social and economic demographic is a relatively modern development, gaining widespread usage only in the 1940s, when shifting social and economic conditions redefined the experience of adolescence. Throughout most of the 19th century, individuals at the age of 14-years-old were regarded as "inexperienced adults" (Hine 1999), expected to contribute to the workforce and family economy. Adolescence was not recognized as a distinct stage of life. Instead, young people transitioned directly from dependence to labour, sustaining their families through agriculture, factory work, or apprenticeships. Though, with the economic and educational reforms of the early 20th century, the role of teenagers began to shift, redefining their responsibilities and place within society.
With the onset of the Great Depression, job opportunities for young people diminished, leading many to remain in high school instead of entering the workforce. In 1920s Canada, the country underwent industrial growth and urbanization–high school enrollment was steadily increasing. As a result, over half of Canadian boys aged 10–19 (501,520), were enrolled in school (Statistics Canada, 1927). Thus, Canadian teenagers in this era started to form more distinct social identities, laying the groundwork for emerging youth cultures separate from adult influence. This expansion of secondary education further reinforced peer-oriented social structures, allowing teenagers to develop their own distinct subcultures and identities, increasingly separate from adult influence.
The earliest known recorded use of the term “teenager” appeared in Popular Science magazine in 1941 (Hine 1999), marking the emergence of a new and highly lucrative consumer demographic. While Canadian statistics were not easily traceable, in the United States, by 1944, American teenagers had a spending capacity of $750 million (approximately $16 billion today) (Savage 2007), contrasting the $63 billion annual spending power of teenagers in 2023 (Lexington Law 2023). In response, companies quickly capitalized, and advertisers began tailoring products to appeal directly to their youth-driven interests which solidified teenagers as a powerful force in the consumer market.
By the 1960s and 1970s, teenagers had established themselves as financially independent consumers (Herman 1970, 21), driven by post-WWII economic prosperity, which led to greater affluence and increased disposable income. Many benefited from allowances and part-time jobs, giving them the ability to spend discretionary income on leisure and entertainment (O’Connor and Goodwin 2015). Because of this, teenagers faced fewer financial obligations, and were less likely to contribute their wages to household expenses. More permissive parenting styles granted teenagers greater financial autonomy (Herman 1970, 20), enabling them to freely allocate their disposable income toward discretionary goods, such as record players and vinyl collections. This allowed them to spend more of their earnings toward personal interests, like music consumption. Additionally, growing exposure to youth-oriented media heightened awareness of emerging trends, further solidifying music as an essential cultural and social marker.