The Supply Side: Boomer generation concedes spending power to young consumers

The baby boomer generation is about 73 million consumers between the ages of 60 and 79 and makes up about 33.7% of total U.S. sales annually, according to a report from Numerator.

Five years ago, the boomer generation generated a whopping 44% of the U.S. retail spending dollars. But boomers are conceding some of that spending power to younger consumers.

Numerator reports that boomer households spend an average of $21,048 annually on general merchandise, consumer packaged goods (CPG) and quick-serve restaurants, making an average of 733 shopping trips a year. The average ticket per trip is $29.

The report examined verified purchases and survey data across multiple generations to better understand behavior shifts among consumers. Boomers are big fans of Walmart, where 17% of the budget is spent. They also frequent Amazon, which accounts for 9% of their annual spend. Costco garners 5%, Kroger gets 4% and Home Depot gets 3%, according to the survey data.

Another behavior inherent to the boomer generation is their brand loyalty, and this group is loyal to Bayer products, Van Camp’s, Pennington, Fixodent and Polident, compared to younger generations. Numerator reports 26% of boomers rarely or never consider new brands.

This generation has smaller households, with 92% no longer having children at home, and 83% of them live in households of two or less. Income levels typically come down as consumers retire. About 21% earn more than $125,000 annually, and 51% fall in the middle-income range between $40,000 and $125,000. There are 28% who fall below $40,000. This generation is also more likely to live in urban centers where pay is greater. One-third of boomers live in rural areas, 41% live in suburban areas and 28% live in large urban metros.

The report found 80% of boomers find clean living to be important, the highest of any generation. A majority of 53% review nutrition labels, 51% review product labels and 43% avoid products that contain certain ingredients such as palm oil. Also, 25% avoid buying aerosol products, which is significantly higher than other generations.

GEN X
Generation X consumers born between 1965 and 1980 are the smallest generation by size at 65 million, making up about 25% of the U.S. population. This group is the biggest spender among the four generational cohorts in the study. Gen X’s share of consumer spending remains at 34.1%, steady over the past five years.

On average, Gen X households spend $25,500 annually across CPG, general merchandise and quick-serve restaurants, which is more than any other generation. They shop often, making 824 trips per year and spending about $31 per trip.

When it comes to retailers, Gen X’s top spend is going to Walmart, Amazon and Costco. Their brand choices, however, highlight a distinct generational difference. Gen X is loyal to treats like Whatchamacallit, Combos and Munchos, as well as beverages and lifestyle brands including Malibu, Crown Royal and Don Julio. This blend of comfort-driven snacking and premium alcohol suggests a generation balancing familiarity with moments of indulgence, the report noted.

Gen X consumers are transitioning into a new stage of life, with 7 in 10 households no longer having children at home and more households becoming empty nesters for the first time. Their incomes skew a bit higher, with 45% of households earning more than $125,000, signaling strong spending power for this generation.

Gen X had the lowest private-label share across CPG and general merchandise among all generations at 17.1% in 2025. Although 32% of Gen X consumers report that their favorite retailers can influence their brand choice, they still often reach for the national brands they trust.

GENERATIONAL BEHAVIOR
While the older generations together make up 67.8% of the total annual retail spend, the two younger generations are also growing their share. Millennials (born between 1981 and 1996) and adult Generation Z (born since 1997) now command 32% of spend, an 8% increase since 2020.

Gen Z’s share has more than doubled — from 2.6% in 2020 to 6.1% in 2025 — while millennials have steadily climbed to 26.1%, representing over 1 in 4 spending dollars.
As the generational mix of spending power evolves, so do the expectations that shape how and where consumers engage. Brands that adapt with precise, generation-specific strategies, grounded in what drives each group’s choices, will be positioned to win today’s dollars and tomorrow’s loyalty, Numerator reports.

Generational behavior is reshaping where consumers shop but not always in expected ways. While Gen Z is digitally native, their food spending still leans toward in-store purchases, especially toward value-driven formats like club and convenience stores. The club segment saw the strongest share of growth across generations, led by Gen Z and boomers.

Traditional mass retail and drugstore formats declined across most age groups, suggesting a broader trend. Online growth in CPG was modest and mostly millennial-led, with small gains in mass retail and digital stores like Chewy and Amazon. In contrast, general merchandise tells a more digital story: The online segment gained across all generations, with Gen Z and boomers each up 1.2% challenging assumptions that e-commerce growth is driven only by the young.

MILLENNIALS, GEN Z
Millennial consumers make up 26% of U.S. households and spend about $22,298 annually on food and general merchandise. That equates to 683 trips, averaging $33 per trip. As they enter family-focused life stages, millennial shopping behavior reflects a focus on value and convenience. Walmart remains the top retailer, but millennials also spend a greater share at Amazon, Costco and Target compared to the U.S. overall, the report notes.

This generation is loyal to baby and family brands like Zarbee’s, The Honest Company and Munchkin, as well as lifestyle brands like Zak Designs. Family and income are central to the millennial household. Nearly 1 in 2 millennials have children under 18 living at home, and 44% are middle-income earners with annual household incomes between $40,000 and $125,000. Another 37% fall into higher-income brackets, signaling increased purchasing power as millennials move further into their peak earning years.

Numerator said Gen Z is a generation to watch as they are becoming a force in U.S. shopping behavior. They represent just 8% of the U.S. population, but they spend over $16,500 annually on food and general merchandise. They average 580 trips annually, spending $28 per trip. Their clear favorite retailers start with Walmart, then Amazon and Target. This group is loyal to beauty brands like The Ordinary and fashion retailer Victoria’s Secret.

In summary, Gen Z shoppers are a mixed bunch, with many living in cities, earning lower incomes and not having kids yet. Businesses looking to reach them should consider their diverse backgrounds and spending habits, the report states.

Editor’s note: The Supply Side section of Talk Business & Politics focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics, and is sponsored by HRG.