Businesses Risk Neglecting Gen X's Economic Influence at Their Peril

Businesses Risk Neglecting Gen X's Economic Influence at Their Peril

Generation X, born between 1965 and 1980, is set to continue shaping the future of the global consumer economy for years to come, according to a consumer intelligence company NIQ and World Data Lab's report, "The X Factor."

This influential consumer cohort, projected to spend trillions through the next decade, notably in food, beauty, and beverage alcohol categories, exhibits distinct consumer behaviors and preferences.

Food Spending and Preferences:

Gen X consumers prefer name brands over private labels, with about 72% favoring well-known national or international brands instead of store brands. They shop increasingly at large discount retailers such as Walmart and Aldi rather than traditional supermarkets, which have declined sharply as shopping destinations for this group. Post-pandemic, Gen X shows a strong interest in health-conscious and functional foods featuring natural, clean-label, and plant-based ingredients.

Beauty Spending and Preferences:

In the beauty sector, Gen X controls a significant portion of consumer spending ($80 billion projected 2025–2030) and tends to influence purchasing decisions for multiple generations in their household. Their tech-savviness implies openness to digitally personalized beauty solutions, with 39% accepting AI-driven recommendations.

Beverage Alcohol Spending and Preferences:

In the beverage alcohol market, Gen X is expected to contribute $42 billion over 2025–2030, reflecting considerable influence in this category. The trend towards innovative alcohol products extends into categories like alcohol-infused ice cream, appealing to Gen X’s penchant for novel, premium flavors and experiences.

Additional Key Behaviors:

Gen X consumers, often referred to as the "sandwich generation," manage finances and purchasing for themselves, their aging parents, and their children, positioning them as key decision-makers and influencers across multiple generations. They are tech-savvy shoppers, with about 35% using smart devices to auto-order products, but 58% remain cautious about data privacy in virtual interactions. Gen X women specifically control 50% of global consumer spend and influence 70%-80% of household purchasing decisions.

By 2035, Gen X's annual spend will peak at $23 trillion. Supermarkets have dropped significantly in popularity among Millennials and Gen X, falling from the second-most shopped channel in 2024 to near the bottom this year. Brands and retailers investing in Gen X today will see measurable growth and long-term return on investment, according to World Data Lab's co-founder and CEO, Wolfgang Fengler.

[1] The X Factor report by NIQ and World Data Lab [2] Progressive Grocer [3] The Feedback Group’s research [4] Circana's report [5] Marta Cyhan-Bowles, chief communications officer and head of global marketing COE at Chicago-based NIQ

1. Gen X consumers, control a substantial portion of the retail market, especially in the food, beauty, and beverage alcohol categories, with projected spending of trillions through the next decade.
2. Despite the shift towards large discount retailers, Gen X consumers still prefer established name brands over private labels in the food industry.
3. In the fashion-and-beauty and personal-finance sectors, Gen X consumers exhibit tech-savvy behaviors, embracing digital solutions and using smart devices for automated shopping.
4. Gen X consumers, known as the "sandwich generation," wield significant influence across multiple generations due to their role in managing finances and purchases for their parents and children.
5. By 2035, annual Gen X consumer spending is expected to peak at $23 trillion, making them an attractive demographic for businesses looking for long-term, measurable growth.

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