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Why Businesses Can't Afford to Ignore Gen X

While many brands are focusing on Gen Z, they're missing out on the Forgotten Generation's substantial buying power
Marian Zboraj, Progressive Grocer
gen x
Gen X households in the United Staes spend more per household than Boomers or Millennials in most CPG categories.

Attention retailers and CPGers: Generation X is driving spending across multiple categories.

In fact, those born between 1965 and 1980 are the most influential and overlooked consumer cohort of the next decade, according to consumer intelligence company NIQ and World Data Lab’s new report, “The X Factor: How Generation X is quietly driving trillions in consumer spending.” 

The global analysis points out that while many brands have pivoted to courting Gen Z, they’ve been missing out on significant opportunities with Gen X consumers. Gen Xers have been in their peak spending years since 2021 — and will continue as the world’s highest-spending cohort until 2033. They will spend $15.2 trillion in 2025 alone, and by 2035, their annual spend will peak at $23 trillion.

[RELATED: 76th Consumer Expenditures Study - Meet the 2025 Shopper]

In the next five years, Gen X is projected to increase spending across three specific key categories:

  • Food and Nonalcoholic Beverages (+$507 billion)
  • Beauty (+$80 billion)
  • Beverage Alcohol (+$42 billion)

“Gen X is at the center of a major economic shift — driving spending across categories while managing the demands of multiple generations,” said Marta Cyhan-Bowles, chief communications officer and head of global marketing COE at Chicago-based NIQ. “The data is clear — Gen X’s influence is profound and far too frequently overlooked by brands. This cohort will continue to shape the future of the global consumer economy for years to come.”

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According to the “The X Factor,” Gen X shopping behaviors include:

  • A preference of “name brands” over private labels: When buying well-known, large brands, nearly three-quarters (72%) of Gen X respondents said that they usually buy “name brands” made by a big national or international manufacturer rather than store-branded private label products.
  • Being tech-savvy: 35% of Gen X respondents allow smart devices to automatically order new products, 39% accept product recommendations from an AI assistant, and 40% leverage AI to automate and speed up daily tasks; however, 58% of Gen X respondents said that they avoid sharing details in virtual interactions because they don’t trust AI data privacy.
  • Influencing the purchasing decisions of their parents and their dependent children: Gen X women control 50% of global consumer spend, influencing 70%-80% of household purchasing decisions.

“Gen Xers are the gatekeepers of trillions in spending, effectively serving as the CFOs of three generations — their own, their children’s and their parents’,” said Wolfgang Fengler, co-founder and CEO of Vienna-based World Data Lab. “Brands and retailers that invest in them today will see measurable growth and long-term return on investment.”

In other demographic trends, The Feedback Group, a provider of actionable consumer insights to the food retail industry, recently released its own research related to grocery retail. According to “U.S. Food Shopper Research 2025: The Supermarket Experience,” Silent Generation and Boomer consumers chose supermarkets as their top destination. Meanwhile, Gen Z, Millennials and Gen X prefer such other formats as Walmart, ALDI, dollar stores and club stores. Notably, supermarkets plummeted from the second-most shopped channel among Millennials and Gen X in 2024 to near the bottom this year.

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