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.