Gen X is now highest-spending generation – report

Expect big changes in how consumers shop. Oh, and move over Baby Boomers, because Gen X-ers are now the biggest spenders.

This year, Generation X (born between 1965 and 1980) consumers will outspend Baby Boomers (1946-1964) for the first time globally, and will remain the biggest spenders until at least 2033, according to home delivery giant Parcelhero.

It says the passing of the baton “will mean big changes on the High Street, online and even to society in general”.

New figures revealed by the data analyst and consumer researcher NeilsenIQ show Gen X consumers will spend £11.28 trillion this year worldwide, eclipsing the Baby Boomers’ £10.02 trillion. In fact, Baby Boomers are also likely to be outspent by Millennials (born between 1981 and 1996) this year.

Millennials’ spending could reach £10.91 trillion, knocking Boomers into third place.

Parcelhero’s head of Consumer Research, David Jinks, said: “While the postwar Boomer generation has seen the values of their houses and pensions soar, leaving many comfortably off, many of them are now retired. That means Generation Xs… are now the UK’s biggest spenders.

“There are approximately 13.7 million people in the UK who belong to Generation X, making up about 20% of the total population. [They] are now the biggest earners and highest contributors of tax, despite being a smaller cohort than the 14.1 million Millennials.” 

Jinks added: “The new dominance of Gen X is going to mean significant changes, both on the High Street and online, as their preferences start to lead many retail trends. Gen X-ers have been called ‘the latch key generation’ as many grew up with both their parents working and/or divorced, letting themselves in when they returned home from school. Consequently, Gen X-ers became one of the most self-reliant of recent generations, as well as the last to grow up without the support of mobile phones and the internet.

“Whereas Boomers still preferred to make their biggest spending commitments in-store, Gen X is equally happy to splash the cash online. They may be the last analogue generation but they are also enthusiastic digital adopters. 

He also noted that brand loyalty is highest among Gen X consumers, “who respond best to transparency, product performance and customer reviews, rather than flashy advertising”, according to research by the customer engagement platform Salesfloor.

The report said Gen X are also the most omnichannel of all generations. They research carefully online, reading experts’ and consumers’ reviews, but are equally likely to make their final purchase online or in-store.

“It’s also a generation less likely to be swayed by the opinions or promotions of online influencers. Indeed, Gen X may be the last generation willing to pay significantly more for proven quality and reliability.”