The Gen X population is about to overtake baby boomers as the leading global spending power, but despite their burgeoning consumer influence, the generation born between 1965 and 1980 are frequently overlooked as a segment
If you’re aged between 45 and 60, I’ve got great news for you: you’re about to hit your peak. Well, at least in terms of your value as a consumer to the free market.
That’s right, the 1.4 billion-stong Gen X population is about to overtake Baby Boomers as the leading global spending power, surpassing $20trn by 2033.
Despite their burgeoning consumer influence, the generation born between 1965 and 1980 are frequently overlooked as a segment, or bundled in with millennials or boomers. Thanks to data from NielsenIQ, we can lift the lid on this misunderstood demographic.
Most dominant generation per country (2025 v 2030)
In terms of absolute consumer spending
As described by NielsenIQ analysts: “In their youth, Gen X witnessed the rise of MTV, grunge culture, and personal computing. Most incomprehensibly for members of Gen Z and younger generations, most Gen Xers didn’t have a cell phone until college – or later. Instead, their early social lives depended on a landline phone attached to a wall.”
Small but mighty
But witnessing the tech leaps has made Gen X great digital adopters who, according to the data, trust reviews, engage in omnichannel shopping and consider themselves “digital pioneers”.
Nielsen says: “Gen X is smaller in population than Generation Alpha, Millennials, and Gen Z, but it currently has more consolidated wealth, especially in developed markets like Canada, Germany, Japan, the UK, and the US. This generation also has incredible influence over technology, media, the workplace, and the political landscape because its members hold leadership positions in these areas.”
“Though Gen X currently makes up just 17% of the global population, in developed nations like the US, it’s currently leading almost one-third of all households. This gives Gen X an outsized influence, their spending power is even more impressive because its wage growth over the past few years has been slower, when compared with younger generations.”
Beauty market growth projection to 2040
One of the categories that this generation is set to influence the most is beauty. Gen X are big spenders when it comes to beauty products and services, making up one quarter of the total global spend in the category – and that’s set to grow.
According to the data, retailers can expect to see the Gen X beauty market grow 1.3 times its current size within the next five years alone, representing an additional $80bn flowing through the category. Within beauty, the segments expected to benefit the most from Gen X are cosmetics, haircare and nailcare.
Nielsen says: “In the near term, the beauty industry shines as a global success story, experiencing a value growth of +7.3% year over year. While regions like Latin America (+19.1%) and the Middle East & Africa (+27.1%) are experiencing explosive growth, mature markets such as North America and Western Europe still show strong performances at +7.8% and +7.7%, respectively. This robust global expansion is heavily driven by inflation, but there are also leading optimistic indicators with rising incomes and new consumers entering the market.”
So how do you best capture the spending power of this demographic? According to the analysts, these shoppers are approaching their next phase of life with an open mind, and they hope their older years will feel lighter, but they are searching for support from retailers and brands to get through this more stressful time in their lives which is filled with ballooning responsibilities and stretched schedules.
“Gen Xers are middle-aged adults who sit at the centre of both their family and economic lives,” says Nielsen. “They’re well-educated global leaders at the peak of their careers, helping to usher in a new kind of technology revolution with the proliferation of new digital touchpoints like omnichannel shopping and AI-driven personalisation.”
“At the same time, they’re in their ‘double-dependent stage’ caring for their children and their aging parents.”
In depth… with NielsenIQ
What happens to these spending patterns as Gen X moves into retirement? How long does this peak last?
Gen X will remain the top global spending engine through 2035, climbing from $15.2T in 2025 to a $23T peak. After that, spending will shift toward healthcare, travel, and aging-in-place services. Because they often manage finances for kids and parents, their influence will extend well beyond their personal peak.
How do Gen X’s children (Millennials/Gen Z) influence their purchasing decisions? Where do they lead vs. follow?
As the “CFO” of multiple households, Gen X drives purchases in housing, education, tech, and travel. They lead in household goods, pet care, floral, and beauty wellness, while Millennials/Gen Z drive trends in fashion, streaming, and emerging tech. Kids’ preferences often push Gen X toward smaller, trend-driven brands.
Which brands/retailers are capturing Gen X loyalty and what are they doing differently?
Winning brands deliver value, convenience, and premium quality. Gen X is 51% more likely than Millennials to prefer small brands, embrace time-saving tech like smart device reorders, and gravitate to multi-generational retailers like Costco, Target, and Amazon. Travel, beauty, and home brands offering quality experiences earn repeat business.
The ability to save shoppers’ mental energy is also going to become more critical, and part of the reason we’ve seen an uptick in the likes of click-and-forget subscription services – particularly within beauty, bodycare and the meal kit delivery segments.
This segment is also highly practical, so although they do try out new brands, they tend to stick with brands that consistently deliver and save them time, money or stress. As a result, the brands set to capture the most spend from this group are the ones who invest in convenience, quality and clarity, as well as keeping an eye on their prices.
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