The past five years have seen substantial swings in generational spending share, according to market researcher Numerator, with Millennials and adult GenZers driving the gains and now commanding 32% of market spend, an eight-point increase from 2020.
In contrast, Baby Boomers and older consumers have seen a nearly 10-point drop in the same timeframe. As the generational mix of spending evolves, expectations that shape how and where consumers engage changes. For example, Gen X and Boomers lead the way in consumer packaged goods, general merchandise and quick-service restaurant (QSR) spending, according to Numerator. Gen X household spending in the United States has been the most of any generation, accounting for 34.1% of U.S. CPG, general merchandise and QSR spend through June. Boomers, the largest generation in terms of households, held 33.7% share of total spend and Millennials held 26.1% share, Numerator reported.
Walmart, Amazon and Costco are the top retailers based on U.S. share of spend, according to Numerator. When it comes to Gen Z, Target the third favorite retailer, although Target doesn’t make the top 10 list for Boomers.
Numerator pointed out that 44% of Gen Z shoppers made purchases the past month on social media platforms such as TikTok, Instagram, Pinterest, YouTube or Facebook. Gen Zers are 82% more likely than the average consumer to say social media and digital advertising influence their purchasing decisions.
Some 48% of Millennials have children under 18 living in their homes, and they are almost twice as likely to purchase children and baby brands as the U.S. average. Late bloomers because of pressures associated with the Great Recession, 46% of Millennials feel behind on traditional life milestones compared with their peers, and 45% don’t yet own a home.
Gen X is moving into a new stage of life, as 69% no longer have children at home. Household size reflects this shift, with the largest share being two-person households at 29%. Compared to their counterparts still raising families, Gen X households without children spend more on pet care, plus 15%, and less on household products, minus 12%, groceries, minus 16%, and health & beauty items, minus 20%.
Baby Boomers are focusing on wellness, with 80% saying that clean living is important, the highest proportion of any generation. These days, 53% of Boomers review nutrition labels, 51% review product labels, 43% avoid specific ingredients and 25% avoid buying aerosol products. These are all at significantly higher rates than the other generations.
