Author: Extroverting

As brands court Gen Z, they may be missing out on a significant opportunity — Gen X. New research from NielsenIQ (NIQ) and World Data Lab (WDL) finds that Generation X — consumers born between 1965 and 1980 — is the most influential and overlooked consumer cohort of the next decade. 

Despite being smaller in size than the two generations that follow it — millennials and Gen Z — the report predicts that if it were a country, Gen X would form the world’s second-largest consumer market in 2025, second only to the U.S. and roughly twice the size of China’s total spending.

In fact, Gen Xers (aged 45 to 60) have been in their peak spending years since 2021, and will continue as the world’s highest-spending cohort until 2033. This group of consumers will spend $15.2 trillion in 2025 alone. By 2035, their annual spend will peak at $23 trillion.

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

1. Food and non-alcoholic beverages (+$507 billion);
2. Beauty (+$80B); and
3. Beverage alcohol (+$42B).

“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 NIQ in a statement. “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.”

Of course, like any generation, Gen X’s behaviors and needs are nuanced, highlighting the need for brands and retailers to examine regional and local data to maximize incrementality from this cohort. Here are some things to know about Gen X:

Gen X Prefers Name Brands Over Private Label

Contrary to their younger peers, who have been flocking toward private label in recent years, nearly three-quarters (72%) of Gen X respondents said they usually buy name-brand products from familiar national or international manufacturers rather than store-branded items.

Gen X is (Don’t Look Surprised) Tech-Savvy

While the young often get a good laugh out of older generations’ tech incompetency, Gen X is in fact comprised of tech-savvy decision-makers who embrace omnichannel shopping, even in its newest forms.

The proof: 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.

And while 58% of Gen X respondents did say that they avoid sharing details in virtual interactions because they don’t trust AI data privacy, more than one-third said they are likely to purchase a product or service they have experienced solely through an augmented or virtual reality platform.

Gen X Influences Purchases Across Generations

Often called “the sandwich generation,” Gen Xers influence the purchasing of both their parents and their dependent children. In fact, Gen X women control a whopping 50% of global consumer spend and influence 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 World Data Lab. “Brands and retailers that invest in them today will see measurable growth and long-term return on investment.”

Learn more about the spending habits and preferences of Gen X, including how their behaviors differ in high-income and emerging markets, in the full report from NIQ and WDL — “The X Factor: How Generation X is Quietly Driving Trillions in Consumer Spending.”