"Lost" trillions: who will make money on generation X

Luxury brands can no longer ignore Generation X shoppers, WWD wrote Nov. 19, citing survey data from research firm OpinionWay for Publicis Luxe. For a long time, those who are now 45-60 years old have been in the shadow of baby boomers and millennials in terms of consumption. Brands paid less attention to them. Perhaps for nothing.

The latest NielsenIQ report suggests that Generation X - those born between 1965 and 1980 - peaked as early as 2021 and will hold the title of the world's largest consumer group until 2033. And in high-income markets such as Germany, Japan, the UK and the US, their spending dominance will continue until 2036.

In 2025 alone, they will spend $15.2 trillion, and by 2035, their annual spending will peak at $23 trillion. By comparison, Zoomers, according to the same NielsenIQ forecast, will see their purchasing power grow from nearly $10 trillion in 2024 to $12.6 trillion by 2030.

Companies and retailers that invest today in attracting this generation will realize tangible growth and high long-term return on investment, Wolfgang Fengler, head of World Data Lab, which worked with NielsenIQ to produce the report, told Investment News.

Members of Generation X have lived through eight recessions in their lifetime and have seen their education, health care and housing costs skyrocket. Many now have to deal with large mortgage payments, auto and student loans, and increased family responsibilities, according to CNBC.

In the 1980s, when many boomers were just over 30, global stock markets quadrupled, and in the 2000s, when Generation X hoped to make money, markets plummeted. This period, especially for U.S. stocks, was the "lost" decade that came after the dot-com bubble and culminated in the financial crisis, The Economist writes.

A recent Ipsos survey across 30 countries found that 31% of Generation X say they are "not very happy" or "not at all happy" - more than any other generation. 51% feel stressed about finances quite often or very often, a recent US survey found.

The Economist's author Callum Williams says that "in the generational war" these people have been the losers, "it is as if they have been erased from the mass consciousness": Generation X is much less popular in popular culture than the others, there are fewer memes about it and little literature. According to a Google search, there is half as much interest in it in the world as in the Millennials, the Zoomers or the baby boomers, writes The Economist.

"Common nicknames for Generation X - 'the sandwich generation' and 'the forgotten generation' - speak of it as an underappreciated group sandwiched between baby boomers and millennials," said Tom McGee, head of analytics at ICSC. - But our new data suggests otherwise: they are the driving force behind today's retail economy."

Generation X women account for 70-80% of all consumer spending.

ICSC research in the US shows that Generation X has the highest revenue per shopper in almost all categories. It accounts for 31% of spending in offline and online shopping, while making up only 19% of the US population.

The thesis that this generation has been unfairly ignored by companies is supported by more data from UBS and Boston-based Cerulli Associates. According to the latter's forecast, members of Generation X will receive about a third ($39 trillion) of the $124trillion in assets in the U.S. alone in the next quarter century. Only Millennials will get more - $45.6 trillion. All this will be "the largest transfer of wealth" in history, Fortune writes.

In the 2025 forecast, UBS estimated the total transfer at $83 trillion over the next 20-25 years. The largest part of it will be in the United States - more than $29 trillion, followed by Brazil with almost $9 trillion, then comes mainland China with more than $5.6 trillion. UBS pays special attention to women. According to the investment bank, they will be able to receive assets from both parents and deceased spouses because of their longer life expectancy.

The timing, taxes and distribution methods of this capital will determine how much heirs will receive and, as a result, how these funds will affect their personal financial strategies, the economy, investment markets, real estate prices and retirement security, Investopedia points out. So everyone should be prepared, the publication adds.

Generation X will continue to spend heavily on categories related to "quality of life" for the foreseeable future: alcohol, the beauty sector, travel, health and education.

Multigenerational care is reflected in their spending: care for seniors and dependents is one of the fastest growing categories. In 2025, members of Generation X will spend $82 billion on elder care, and this amount will grow 8.2% per year through 2030, according to NielsenIQ, with optional spending on themselves and on "expensive" toys (gadgets, appliances, motorcycles) declining.

According to market research, Generation X spends disproportionately much (compared to other age cohorts) on everyday goods, says Valery Emelyanov, an analyst at Movshan's Group, an investment management company, in an interview with Oninvest. In other words, he says, all major retail chains and e-commerce can be written down as companies that will be able to capitalize on Generation X: Walmart and Amazon first of all, as well as Costco and Kroger, he adds.

In addition, Generation X's children are now grown up and their consumption basket is changing. They now eat out more often and have more pets. Therefore, restaurant companies such as McDonald's, RBI (Burger King, Tim Hortons, Popeyes and Firehouse Subs), Yum! Brands (KFC, Pizza Hut and others), Chipotle Mexican Grill will also benefit from working with Generation X. He names Chewy, Petco, Zoetis among publicly traded pet product companies that could also capitalize on the Xers.

Brandwatch says in the study that a holistic approach to health and longevity is also important for this generation. Brandwatch analysts analyzed millions of mentions in the accounts of Generation X users on the X social networks and Reddit from January 1, 2024 to March 31, 2025 and recorded an increase in mentions of sugar cessation, moderate alcohol consumption, weight loss and detox.

Emelyanov believes that there are no specific industries that work exclusively for Generation X in the health sector. But for pharmaceutical companies - Johnson & Johnson, Pfizer, Merck, AbbVie, Amgen, Eli Lilly, Novo Nordisk - these are key consumers. This also includes medical device manufacturers(Medtronic, Abbott Laboratories, Boston Scientific), health insurance company UnitedHealth and CVS Health, which operates a network of pharmacies and clinics.

"It's easier to say that the entire sector is focused primarily on the older generations - X's and boomers," says Emelyanov.

In the travel industry, people born between 1965 and 1980 are likely to be interested in eco-tourism, medical tourism, turnkey wellness tours, and quality concierge service, says Alex Poltavsky, a partner in CTL's multifamily office. Generation X as a whole significantly impacts the business of air carriers(Delta, Southwest), cruise companies(Royal Caribbean) and hoteliers(Marriott, Hilton), adds Emelyanov.

Alexey Poltavsky tells Oninvest that representatives of Generation X are inclined to conservative strategies in investments and prefer mainly real estate investments, while they are wary of venture investments. "It is important for them to create a stable platform for a secure old age - commercial real estate for rent, traditional businesses (infrastructure and logistics), bank deposits, with a minimum part of assets in securities. They maintain this approach even in the 'new wondrous' world of geopolitical surprises," he said.

According to Emelyanov, "virtually every major company" in the financial sector - from JPMorgan, BofA, Wells Fargo, and Citigroup to BlackRock, Charles Schwab, and Fidelity - now keeps clients aged 45-60 as a priority.

This article was AI-translated and verified by a human editor