Generation X may not be the loudest generation, but they play a vital role in the market. With their unique perspective, they favor practicality over the comfort that Baby Boomers desire and the lifestyle focus of Millennials. Chip West, a consumer behavior expert, emphasizes that Gen X should be a priority for retailers. They bring not just spending power, but also years of loyalty.
“Gen X is all about value and convenience. They know what they want and are often willing to pay more for trusted brands,” he explains. By 2030, Gen X is set to account for 23% of consumer spending, according to Rob Wilson from L.E.K Consulting.
Members of Gen X, born between 1965 and 1980, grew up during turbulent times. This backdrop often makes them the “forgotten generation,” facing significant challenges like the Great Recession. As a result, they’re practical, focusing on the functionality of products. A report reveals that Baby Boomers and Gen Xers make up 65% of consumer spending. Inheritance also plays a role; Gen Xers are expected to inherit about $39 trillion over the next 25 years.
As caregivers in their prime earning years, Gen Xers prioritize spending on elder care, education, and home improvements, reflecting their balance of supporting both parents and children.
This generation is also shifting towards healthier choices. Elyas Coutts, CEO of Connect Vending, notes a move away from traditional snacks in vending machines, replaced by healthier options. “We’re seeing more low-sodium and high-protein snacks,” he says. Retailers should highlight the health benefits of their products to appeal to this growing demand for wellness.
However, recent data indicates that while Gen X may have significant spending power, their grocery expenditures have dropped. Matthew Pavich, a strategy director at Revionics, reveals that Gen Z has now overtaken Millennials in grocery spending. This shift means that retailers need to cater to all generations to stay relevant.
Consumers today want transparency and value. As Gen X leads the way in health and practicality, their preferences could shape the market for years to come. Understanding and addressing these desires is essential for businesses aiming to thrive in this evolving landscape.
For those interested in consumer trends and how flavor preferences are shifting, Valda Coryat from McCormick notes the importance of cultural influences on flavor choices. Brands that embrace diversity in their offerings will resonate most with consumers.
For more in-depth research on generational spending, see sources like the Cerulli Associates report.
