Millennial, Gen Z Buyers Overtake Boomers in Retail Spending Share

The latest spending data, complied by Numerator^[1], shows that Millennials and adult Gen Z together now account for almost a third of U.S. consumer purchasing, a sharp rise compared with 2020. Their growing financial role signals that retailers who once focused heavily on older generations are reconsidering how they compete for wallets that look different every year.

Millennials currently hold the largest share of spending among younger consumers, contributing 26.1 percent. That translates into more than one out of every four dollars spent in tracked retail categories. Gen Z, though still a smaller slice of the market overall, has expanded faster than any other demographic. Their influence climbed from 2.6 percent five years ago to 6.1 percent today, more than doubling as more members of the generation reach adulthood and begin shopping for themselves. Together, the two groups now command 32 percent of spending, representing an eight-point gain since 2020.

Older shoppers continue to drive a sizeable share of the market, yet the numbers suggest a gradual power shift. Gen X’s contribution remains steady at about 34 percent, holding its position without major swings over the past several years. In contrast, Boomers and older consumers have experienced notable erosion. Their spending share has fallen by nearly ten points since 2020 and now stands at 33.7 percent, bringing them closer than ever to parity with younger buyers.

The movement away from longstanding spending dominance among Boomers reflects demographic realities as well as changes in lifestyle and needs. At the same time, it underscores why brands are evaluating how to appeal to younger priorities, whether that means value, convenience or sharper digital experiences. The report notes that as generational shopping power evolves, expectations evolve alongside it.

Purchasing behavior across store types reveals even more about how this shift is taking shape. While digital familiarity defines Gen Z in many cultural conversations, this group’s CPG spending still leans firmly toward in-store environments. Value-driven formats pick up much of their attention, with club stores seeing the strongest share growth across all generations. Convenience stores are also gaining, not only among younger shoppers but even among Boomers. In contrast, traditional mass and drug channels are showing declines across multiple age groups, hinting at a wider trend away from formats that once dominated household shopping.

Online purchasing in CPG categories is rising more slowly. Millennials drive most of those gains, including small increases in both mass-market e-commerce and pure online retailers. The digital picture becomes more pronounced in the broader general merchandise market. Pureplay online channels expanded across all generations there, including Gen Z and Boomers, each picking up 1.2 points of share. That challenges assumptions that digital retail depends mostly on younger consumers.

Younger shoppers also show shifting interest in retailers tied to home improvement, auto needs and club shopping for general merchandise. Older shoppers, meanwhile, are the ones fueling online gains in those same categories. Department stores and electronics channels are losing share among younger generations, whether in person or online, suggesting that these formats may not currently align with what Gen Z and Millennials hope to find when they shop.

These patterns depict a marketplace where no generation moves in isolation. Everyone is adjusting their behavior, but younger buyers are shaping the direction more than they once did. Brands aiming to connect across age groups are being pushed to rethink strategy, focusing less on assumptions and more on how different shoppers define convenience, value and relevance. A retail landscape that once leaned heavily on Boomers now depends increasingly on the preferences of those still building their adult lives.

Notes: This post was edited/created using GenAI tools.

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