Meet Gen X: The Retail Underdogs with Outsized Spending Power
Gen X represents roughly 20% of the U.S. population but commands over 30% of U.S. household spending, according to NIQ data. They are the most financially stable generation, often at peak earning years, and they make many of the day-to-day purchasing decisions for multigenerational households. With many juggling roles as parents, caregivers, and professionals, Gen X shoppers value quality, convenience, and reliability, and they’re willing to pay for it.
Some key U.S. insights on Gen X include:
- 90% of Gen X households are primary grocery decision-makers, more than any other generation.
- They over-index in both online and in-store shopping, with a strong presence in mass, club, and specialty channels.
- Gen X has the highest brand loyalty rates of any generation, particularly in food, beverage, personal care, and household categories.
But, despite their purchasing power, Gen X is rarely the center of marketing strategies. This is a missed opportunity and a strategic blind spot.
What Makes Gen X the X Factor?
$15.2T
will be spent by Gen X alone in 2025 and will only keep climbing.
While Millennials crave novelty and Gen Z drives social virality, Gen X values consistency, elevated experience, and smart spending. They’re not impulse-driven, but once you win them over, they stick. That’s the real X Factor: long-term value.
Here’s how Gen X behaviors are shaping retail strategy in the U.S.:
- They drive the rise of premiumization: Gen X is fueling growth in categories like craft coffee, specialty condiments, and better-for-you indulgences. They’re willing to pay more—but expect quality in return.
- They’re omnichannel power shoppers: Gen X shops across digital and physical formats, often starting online but finishing in-store. They value efficiency and consistency in product availability.
- They discover differently: Forget TikTok challenges; Gen X relies on recommendations, reviews, email, and retailer loyalty programs. A well-placed feature in Costco or a strong Amazon rating carries weight.
- They seek functional and emotional ROI: Gen X wants products that work, but also resonate. Storytelling, heritage, and utility all matter. Sustainability is a plus—but only if the performance holds up.
The X Factor
Generation X has entered its peak spending years. Our new report with World Data Lab can help manufacturers and retailers win their loyalty and wallets.
Categories Where Gen X Reigns
While there are fewer Gen X shoppers than other generations, they are big spenders on a per-household basis.
Based on NIQ’s U.S. omnichannel data, Gen X is driving momentum in several high-growth product areas:
- Snacking and meal solutions: Gen X shoppers look for convenient, high-quality options for themselves and their families.
- Wellness and functional beverages: From hydration to energy, they’re embracing performance-led products—especially those with clean labels.
- Home and personal care: This group is highly loyal to brands that deliver dependable quality at a fair price.
- Pet care: As many are now pet-empty nesters, spending per pet is rising dramatically among this cohort.
Gen X is also fueling growth in private label, especially when value and performance align.
Rethinking Innovation: Winning with Gen X in Mind
To win Gen X, brands must move beyond age-based stereotypes. This is a digitally savvy, high-expectation, financially empowered generation, and they want to feel seen.
Here’s how to meet them:
- Reclaim quality as a point of differentiation: Gen X is less influenced by hype. Lead with benefits, not buzzwords. Position your brand around trust, performance, and practical indulgence.
- Invest in repeatability, not just discovery: Gen X trial leads to loyalty—if the product delivers. Prioritize high-quality ingredients, useful innovation, and clear value propositions.
- Balance analog and digital activation: This generation bridges online and offline worlds. Consider direct mail, email personalization, retail media, and endcap displays equally valuable touchpoints.
- Feature real stories, not gimmicks: Gen X appreciates storytelling rooted in authenticity—especially if it reflects family, community, or quality craftsmanship.
Gen X attitudes toward aging
Source: GfK Consumer Life Global 2023, E1/J1/M1 (global = 18 countries): *based on a list of 43 attitudinal statements
Why Gen X Deserves a Bigger Share of Your Brand Strategy
The current marketing spotlight is often skewed toward emerging generations. But in 2025, Gen X offers something increasingly rare: stable, multi-category, loyal shoppers who consistently convert.
And here’s the kicker: They’re not just shopping for themselves. Many Gen X consumers influence the purchasing habits of both older Boomers and younger Millennials/Gen Zs. Their cross-generational role means winning Gen X could unlock influence across the household.
In other words, Gen X may be your most crucial growth multiplier—your real X Factor.
Activate the Power of Gen X
Whether you’re launching a new wellness beverage, rebranding a legacy household product, or expanding in the snacking space, Gen X deserves a seat at your strategy table.
NIQ’s innovation, segmentation, and behavior analytics can help you target, test, and optimize for this critical cohort—across omnichannel retail.
Ready to learn more about how to build your brand’s Gen X strategy?
