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July 31, 2025
Is Gen X Actually an Overlooked Consumer Cohort?
With headlines concerning the retail sphere — and the broader business world at large — so often referencing “younger Americans,” namely millennials and members of Gen X, one question could find traction: Is Gen X actually an “overlooked” demographic?
That’s the argument put forth by research produced by Nielsen IQ and World Data Lab, as outlined by Retail Touchpoints editor Nicole Silberstein. That research finds that “Generation X — consumers born between 1965 and 1980 — is the most influential and overlooked consumer cohort of the next decade.”
The data points being referenced as the foundation of this claim? Despite being a smaller cohort than the two following generations in number, Gen X would regardless form the second-largest consumer market in 2025 (hypothetically, if all members were grouped together to form a nation). Further, Gen Xers — for the purposes of this research, those aged 45-60 — entered their peak spending years in 2021, and will remain the world’s highest-spending age demographic for nearly a decade from now, until 2033.
Silberstein cited Marta Cyhan-Bowles, chief communications officer and head of global marketing COE at NIQ, on the subject.
“Gen X is at the center of a major economic shift — driving spending across categories while managing the demands of multiple generations,” Cyhan-Bowles said.
“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,” she added.
Gen X Trends Match Broader Consumer Preferences in Some Ways, But Buck the Private Label Movement
In a concise breakdown of the data, Silberstein noted that Gen Xers were set to particularly boost three particular retail categories over the next half-decade: food and non-alcoholic beverages (to the tune of $507 billion), beauty ($80 billion), and alcoholic beverages ($42 billion).
Gen X also shirks common stereotypes surrounding their digital literacy, or lack thereof, as exhibited by the following findings:
- More than one-third (35%) allow smart devices to automatically order new purchases.
- Nearly two-fifths (39%) take product recommendations form an AI assistant of some sort.
- A slightly larger percentage (40%) use AI to automate or expedite daily tasking.
It’s not all on-trend, however. Gen Xers show some signs of bucking the trending movement toward private label product offerings, with almost three-quarters (72%) of Gen Xers surveyed stating a preference for name brands made by familiar national or international manufacturers rather than store-brand equivalents.
Gen X as ‘The Sandwich Generation,’ Capable of Influencing Purchasing Behavior
Finally, Gen Xers are in the command seat of perhaps three generations of spenders, acting as “the sandwich generation” in doing so. Silberstein indicated that Gen X women in particular command 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,” Fengler concluded.
Discussion Questions
Are retailers, generally speaking, missing opportunities by focusing too much on millennial and Gen Z consumers, rather than Gen Xers?
Do you believe the statistic suggesting Gen Xers prefer name-brand products to store-brand products? Why or why not?
Is it an overstatement to suggest that Gen Xers are the most influential generation, currently, when it comes to commanding not only their own purchasing power, but those of both older and younger generations?
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Nicholas Morine
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I absolutely believe that a significant number of Gen Xers prefer Name-Brand products to store-brand products and that they have the largest sing generational share of wallet spending to day on basics which is a area where private label thrives. The Gen Xers grew up with the “Pepsi Challenge” and”even when it isn’t Heinz it has to be Heinz” campaigns as well as title to no social media. Additionally, their buying power strength reduces the chance of switching brands to save a few dollars. They had many fewer brand choices early in life and were much more brand loyal. However the generations that follow are much more open to influence from social media and trying new things as well as often being willing to trust new products. However the following generations are less brand loyal in general and willing to try new brands for a much larger set of reasons.
Interesting hypothesis on the Gen X preferring name-brand products to store brand products. Looking at our just-out supermarket shopper data, we found a solid 80% of Gen X shoppers indicated that the quality of private/store brands compared well to name brand alternatives. Just slightly fewer younger shoppers (78%) agree with this compared to 88% of shoppers older than Gen X. So, at least with supermarket shoppers in the United States, it appears the oldest shoppers give the most credit to the quality component of name-brands.
Whichever generation this article is tryng to talk about – it switches to gen Z in the first paragraph – the idea that, in this age of information overload, some mass of people is going to be “overlooked” is just silly. Different generations are important for different products, and no one is being forgotten; that’s not to say, of course, that every company is necessarily on top of things, but at the individual level the error is self- correcting…it’s called losing market share.
Per Craig, “DIFFERENT GENERATIONS ARE IMPORTANT TO DIFFERENT PRODUCTS!” If your product target ten years ago was 20 to 30 years old. It still should be. They are just new customers.
Make your product for your target audience. Don’t try the square peg/round hole thing.
As a younger Gen-Xer I still have some name brand loyalty but as private label products become higher quality I am more willing to move to them, especially as the overall cost of goods has continued to rise.
Add to that your marketing knowledge!
Are marketers inherently less brand loyal?? (hazard of the profession!)
I think it depends on the marketer. I know some who a very loyal especially if they had worked with a brand in the past.
Gen X is absolutely overlooked. We’re the neglected middle child of cohorts, underrepresented in retail strategies — to brands’ and retailers’ detriment.
Compared to younger generations, Gen X consumers are more likely to be debt-free, daycare-free and mortgage-free, and in the prime of their careers.
As a sandwich generation, many of us also shop for our children and elderly parents, translating into bigger baskets and more frequent shops.
Amazon knows what’s up. The typical Amazon shopper is a Gen X woman who places 72 orders annually (amateurs!). From e-commerce convenience for busy households to nostalgic ‘80s content on Prime Video (Pretty in Pink, Borg vs. McEnroe), Amazon helps Gen X consumers feel seen, valued and ready to spend.
The most compelling aspect of this data is how it challenges the fundamental assumption that younger equals more valuable. Gen X represents the sweet spot of high disposable income, established shopping patterns, and multi-generational influence – yet to marketers, they’re essentially invisible but holding everything together. Even if we introduce the concept of customer lifetime value (CLV) to the discussion, which favors youth, it doesn’t apply well to Gen X. The CLV calculation is flawed due to Gen X’s role as “economic influencers.” Gen X operates as household financial decision-makers with extended influence networks. The logic behind marketing’s structural blindness is a failure to appreciate the power of decision-making across multi-generational networks.
Follow the money.
Gen X is overlooked, often relegated to third or fourth place in conversation around retail and purchasing power. Boomers and Millennials have massive numbers, while Gen Z has influence and is gaining purchasing power.
But from a consumer standpoint, Gen X is uniquely positioned. They grew up as kids and teens under early and then widespread use of computers, video game platforms, and the internet. In the workforce, they went from analog, paper and land lines toward cell phones and digital. They had a front-row seat in the middle of it all. And they now are in their peak financial years with money to spend.
“with money to spend”… yes, the shoppers, gatekeepers & decision makers.
The new direction, however, could be less discretionary. Not only are purchasing & services costs rising, but GenX will become caretakers (monetary, medical, housing) for elder parents. Many of those parents could be losing medical insurance (or insurance cost rising). For the eldest being cared for, their nursing home coverage could be in jeopardy. How much will the parents’ bank accounts cover?
Will the current US govt restructuring/destruction wipe away the inheritance of GenX?(ie spend pulled forward)
First of all, generational cohorts are important, but they should not be the exclusive focus of retailers. People within a generation are not uniform and it’s far more important to focus on features like lifestyle, aspiration, values and so forth – all things that cross generational boundaries. I also think there is a big difference between media and marketing chatter – which does tend to focus predominantly on Millennials and Gen Z – and day-to-day execution. In the latter, there are plenty of brands and retailers that meet the needs of those in Gen X.
Agreed. Also, the falicy that the defining years are clear and hard boundaries. Based on personal experience, it would seem that the older/younger 20% of each cohort can carry just as many tendancies of the neighboring cohort as their own.
As brands seek to court new customers, they will naturally minimize spend on the customers they deem more brand-loyal to the competition and less likely to switch. As older shoppers tend to be less influenced than younger ones via marketing, it only makes sense that Gen X, in comparison to the larger cohorts of Gens Y and Z, would be prioritized lower.
Marketers have always had a bias to youth. It’s natural as they are usually chasing the next new thing in product and service, so fall in the trap of also chasing the next generation, the one seen as the most “cool” at that particular point. The one glaring exception is pharma marketers who seem to believe that every Gen Xer has some malady that can be addressed by a prescription drug.
Pattern? Tube? Taker? Data? Group? Run? Market? Pilot? Sorry, long week…
Gen Z is over one third of global population – but not necessarily one third of the buying power.
It is logical to focus on cohorts with the highest buying-power. At some stage, this is likely to be Gen-Xers who fall into this arena. There have been numerous reports that as Boomers – highlighted as the richest generation in history – pass down their wealth it could soon be GenX who hold the greatest buying power.
Some organisations have focused on Gen Z over the past few years – driven by the number that exist – but it may be that this is short-sighted given the balance of buying power.
Retailers have recently focused their attention on millennials and Gen Z, yet Gen X continues to drive a significant share of spending. They’re in a stable financial phase, often making purchase decisions for both their children and aging parents. Gen X often gets overlooked in retail conversations, yet they hold significant purchasing power and brand loyalty. They value quality over hype, research before buying, and tend to trust brands that have stood the test of time\
Unlike younger generations who shop for discovery, Gen X shops for reliability. They remember life before e-commerce, but have adapted to digital with intent. Their cultural influence is also visible, with Gen Z reviving Gen X fashion trends like bootcut jeans and oversized fits. Still, they’re frequently excluded from how brands communicate, market, and design. These customers aren’t asking to be targeted, they expect to be understood. Brands that recognize their preferences have an opportunity to build lasting trust and long-term loyalty.