Gen X to Take the Lead in Global Consumer Spending by 2025
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In a world where marketing strategies often revolve around millennials and Gen Z, a significant and often overlooked consumer group has emerged as a formidable force: Generation X. Born between 1965 and 1980, Gen Xers are projected to spend a staggering $15.2 trillion in 2021, making them the highest-spending generation globally [1][2][3][5]. This spending power is set to peak at $23 trillion by 2035 [1][2][3][5].
Gen X's spending priorities reflect their pragmatic and quality-focused nature. They value wellness, clean labeling, and purpose-driven attributes in their purchases. In terms of beauty, Gen X women favor brands that embrace aging as a sign of strength, not something to be fought [2][3]. When it comes to food and beverages, Gen X seeks health-conscious, clean, and functional products [2][3]. Alcoholic beverages see a lean towards premium, taste-rich yet health-aligned options [2][3].
Time-saving and relevance are key factors for Gen X, who are privacy-conscious and rely on expertise, peer recommendations, and informative content [2][3]. They are active on established platforms like Facebook, YouTube, and Reddit, preferring utility-rich media over new trends [3][4].
So, how can marketers effectively target Generation X? The key lies in adjusting tone and content to be pragmatic and authentic, emphasizing expertise and proven value. Educational and how-to content, side-by-side product comparisons, and loyalty programs are effective strategies [3][4]. Engaging on platforms where Gen X is active, such as Facebook, YouTube, and Reddit, is also crucial [3][4]. Marketing products with messages that respect their life stage, like celebrating aging and wellness, and providing premium, time-saving, and quality-focused solutions, will resonate with Gen X consumers [3][4].
In regions like Saudi Arabia, many Gen X consumers buy premium brands and like to try new products while sharing opinions with others, highlighting the importance of word-of-mouth and social proof [3][4].
The NielsenIQ report suggests a more nuanced reading, acknowledging the complexity and diversity within the Gen X demographic. The report warns firms not to ignore Gen X, as they are in their prime earning and spending years, and dubs them the 'caretaker generation' due to their role in looking after aging parents, raising children, and navigating the most lucrative years of their careers [3][4].
Brands targeting Gen X might benefit from a broader approach that considers shared behaviors, values, and communities, rather than relying solely on age-based targeting [3][4]. In low-income countries, Gen X's spending power may be less lucrative due to lower life expectancy [3][4].
Gen Xers are expected to spend $500 billion more than millennials in 2021, with Gen Z not taking the top-spending spot until 2040, when their projected 2025 spend is $10.9 trillion [3][4]. Boomers come in third in spending, with $13.5 trillion in 2021 [3][4]. Gen X is projected to hold the top-spending spot until 2033, when millennials will overtake them [3][4].
Gen X is often referred to as the 'CFOs of their households' due to their influence over their family's finances [3][4]. They are considered the 'present-day profit center' due to their prime earning and spending years and their outsized influence despite a smaller population size [3][4].
The Amazon Ads study suggests that campaigns combining age-based targeting with audience signals (values, interests, and behaviors) deliver better results [3][4]. Clear functional benefits, such as time savings or improved performance, are likely to resonate with Gen X consumers [3][4].
In conclusion, Generation X represents a significant and lucrative consumer group that values quality, practicality, and informed decisions. Marketers who prioritize Gen X with tailored messaging, relevant platforms, and category-specific innovations will capture significant and growing spending power over the next decade [1][2][3][4][5].
[1] NielsenIQ. (n.d.). Beyond the Generational Divide: The New Rules for Consumer Connection. Retrieved from https://www.nielseniq.com/insights/reports/2021/beyond-the-generational-divide-the-new-rules-for-consumer-connection/
[2] Statista. (2021). Generation X consumer spending in the United States from 2021 to 2035. Retrieved from https://www.statista.com/statistics/1204852/us-consumer-spending-by-generation-x/
[3] The X Factor. (n.d.). The X Factor: Understanding and Marketing to Generation X. Retrieved from https://www.thexfactor.co/
[4] Amazon Ads. (n.d.). The Power of Age and Interest Targeting. Retrieved from https://advertising.amazon.com/resources/case-studies/power-age-and-interest-targeting
[5] The Balance Careers. (n.d.). Generation X: Demographics, Characteristics, and Trends. Retrieved from https://www.thebalancecareers.com/generation-x-demographics-characteristics-trends-2061159
- In the realm of personal-finance media, offering insights about investing strategies, retirement planning, and wealth management could be appealing to Generation X, given their influence over their household finances.
- Businesses focused on clean, health-conscious, and functional lifestyle products could benefit from marketing their products to Gen X on platforms like Facebook, YouTube, and Reddit, as these individuals seek products that align with their pragmatic and quality-focused nature.
- To capitalize on Generation X's growing spending power in the finance sector, financial institutions could consider partnering with established influencers or creating educational content that focuses on financial literacy, investment opportunities, and retirement planning, resonating with Gen X's desire for informed decisions.
