CHICAGO — October 2025 — A new report from Circana, The Aging Arc: Insights into U.S. Generational Shifts, highlights how changing life stages, values, and technologies are reshaping consumer behavior and the retail strategies necessary to adapt.
The research indicates that Baby Boomers and Gen X currently account for the majority of retail spending, controlling nearly two-thirds of U.S. retail dollars. Yet the momentum is shifting fast. By 2030, Gen Z and Millennials are expected to drive more than 60% of retail sales growth, signaling a new era of consumer influence as younger shoppers enter their peak earning years.
Wealth, Values and Priorities
Baby Boomers remain the wealthiest cohort, with more than $124 trillion in assets projected to be transferred to their heirs by 2048 — a “Great Wealth Transfer” that will make Millennials the richest generation in history. Each generation, however, brings distinct motivations and purchasing priorities to the marketplace:
- Gen Z shops as an expression of identity, prioritizing ethical values, authenticity and social connection.
- Millennials are lifestyle-driven, drawn to brands that support family, convenience and wellness.
- Gen X focuses on functionality and practicality, rewarding reliability and value.
- Boomers prioritize comfort, quality, and products that make daily life at home easier.
Meanwhile, Gen Alpha — the first generation raised entirely in a connected world — is already demonstrating its economic potential, with an estimated $1 trillion in global spending influence closely tied to digital content and parental purchasing decisions.
The Digital and Channel Divide
Circana’s analysis shows strong channel preferences forming along generational lines. Younger consumers are fueling growth in e-commerce, club, mass and quick-service channels, where value and flexibility converge. Older consumers remain loyal to grocery and traditional retail formats, but are also embracing digital conveniences, such as delivery, online ordering, and app-based loyalty programs.
Social media’s influence continues to accelerate, especially among Gen Z, with nearly two-thirds of young consumers reporting they have purchased an item after seeing it online. Circana also points to the rapid adoption of AI-driven tools and wearable technologies that will soon enable consumers to make real-time purchasing decisions based on health, price, and lifestyle factors.
Retail Strategies for an Aging Arc
For retailers and brands, Circana identifies key imperatives for success across generations:
- Mobile-first experiences that meet shoppers wherever they are.
- AI and personalization that align offers with individual values and life stages.
- Community building through digital storytelling and loyalty programs.
- Omnichannel execution that integrates physical and digital touchpoints seamlessly.
“The intersection of age, identity and technology is transforming how Americans shop,” Circana notes. “Retailers that adapt their strategies to resonate across generations — from Gen Alpha to Boomers — will be best positioned to grow as the consumer landscape evolves.”
The full report, The Aging Arc: Insights into U.S. Generational Shifts, is available at Circana’s website.
