Chicago, IL—A new report from Circana LLC, titled The Aging Arc, shows key factors that are redefining the retail landscape. According to the company, the report reveals a significant shift in consumer influence across generations and highlights how unique life stages and watershed moments are. Understanding these dynamics, Circana says, is essential for brands to achieve growth.
Current and future state of generational spending power.
Baby Boomers and Gen X currently dominate retail with a combined 65% share of spend, Circana reports, but a massive transfer of wealth is poised to make Millennials the wealthiest generation in history. Gen Alpha, which is the most digitally savvy generation, already has an economic impact valued at $1 trillion globally.
Looking ahead, Circana projects that by 2030, Gen Z and Millennials will drive 60% of retail sales growth, underscoring the urgency for brands to adapt their strategies now.
“A profound shift in consumer influence is underway, and understanding the ‘why’ behind purchasing decisions is no longer optional—it’s essential for growth,” said Sally Lyons Wyatt, Global Executive Vice President and Chief Adviser for Circana. “Our research provides a clear road map for brands to connect authentically and effectively with each cohort, from Gen Alpha to Baby Boomers, by uncovering their unique values and priorities.”
Circana notes that the report also introduces distinct generational buying personas, identifying what drives purchasing decisions for each group. The findings show:
- Gen Z buys into “identity”
- Millennials buy into into “lifestyle”
- Gen X buys into “functionality”
- Boomers buy into “comfort”
The report identifies top-indexing product categories for each demo, which range from video games and beauty for Gen Z to home improvement and pet care for Boomers.
Read more highlights from the report, and download the full report, here.
