Gen X has always been that quiet generation, but because of its demographic position, members exert a strong influence on the marketplace, prizing functionality above the comfort craved by baby boomers and lifestyle sought by tech-driven millennials.
“Retailers should prioritize Gen X not solely because of their spending power, but because in essence they represent ‘multi-generation’ consumers with many years of potential purchase loyalty,” Chip West, retail and consumer behavior expert at RR Donnelley, told The Food Institute.
“Gen X tends to seek value and convenience to help them balance responsibilities and spending priorities, and as a result, they tend to know what they want, be more brand loyal, and open to paying a premium.”
Rob Wilson of L.E.K Consulting, noted by 2030, Gen X will account for 23% of all consumer spending.
And, since members of Gen X prize seamless omnichannel shopping, manufacturers would be wise to pay attention to household size and package goods accordingly.
Caretakers with Cash
Gen Xers were born between 1965 and 1980, arriving in the tumultuous late ‘60s and ‘70s but maturing in the self-absorbed ‘80s and ‘90s, amid the exhaustion that followed as rebellious boomers slipped into their adult lives.
Gen X often is dubbed the “forgotten generation,” hit hard by the Great Recession and the financial setbacks that imposed. A Circana report, The Aging Arc, notes boomers and Gen Xers are responsible for 65% of consumer spending and maybe because of their early setbacks, Gen Xers are more focused on functionality than their elders or younger generations.
Individuals ages 45-60 are poised to inherit an estimated $1.4 trillion annually, the largest inheritance in U.S. history, according to an analysis by Cerulli Associates. In the next quarter century, Gen X is expected to inherit $39 trillion; younger Americans, $45.6 trillion.
As the current caretaker generation in their peak earning and spending years, Gen X consumers reward brands that prove reliable and offer clear value. They tend to research products rather than rely on hype. Since they’re balancing the needs of parents and growing families, they focus spending on elder and dependent care, educational services, home care management and improvement, and pet care, Circana found.
Gen X Is Leaning into Longevity
Increasingly, Gen X is showing interest in health and wellness options like low-calorie or functional drinks, as well as products that promote healthy aging.
“We’re already seeing a shift toward healthier food in our vending machines, and this is primarily driven by Gen X spending,” Elyas Coutts, CEO at Connect Vending, told FI. “Traditional snacks
such as chips, chocolate bars and biscuits are gradually being replaced with low-sodium, low-fat and high-protein snacks.
“Manufacturers can start to adapt by showing the benefits of the actual packaging – whether it’s gut friendly, energy boosting or mind boosting. Don’t be shy about promoting it.”
In the grocery aisles, however, Gen X spending is declining, said Matthew Pavich, senior director for strategy and innovation at Revionics, citing data from FMI. As a result, Pavich said retailers should not target any one generation.
“Although Gen X may be surpassing boomers in spending power, their average spend on weekly groceries has declined since 2024 — this while Gen Z has surpassed millennials as the generation with the highest average weekly grocery spend per household,” Pavich said.
“Grocers and food and beverage retailers should definitely cater deals and offers to all generations, but it is imperative that they focus on the raw spending power and lifetime value of the younger generations to remain relevant today and in the future.”
Food for Thought Leadership
Is the future of flavor increasingly borderless? Valda Coryat, vice president of marketing for condiments and sauces at McCormick, reveals how curiosity powers McCormick’s flavor foresight, why segmentation by “flavor personality” matters, and how flavors are becoming more culturally driven.
