Health-minded consumers now drive 40% of retail food and beverage sales

CHICAGO — New research from Circana shows that generational differences are fundamentally changing the U.S. wellness economy, shifting how consumers see health, where they shop, and which food and beverage products make it into their baskets.

The research finds that consumers increasingly see wellness as a holistic concept covering physical, mental, emotional, and functional needs, rather than just focusing on calories or ingredients. This wider definition influences purchasing decisions across all age groups, but motivations and behaviors differ significantly by life stage.

According to Circana, Gen Z and Millennials are fueling demand for functional and convenient solutions that align with fast-paced, digitally connected lifestyles. These younger consumers tend to look for products that provide specific benefits such as energy, focus, hydration, gut health, or stress relief, often preferring formats like functional beverages, powders, and single-serve options. Discovery for these consumers is heavily shaped by e-commerce, social media platforms, and creator-generated content, which increasingly act as gateways into the wellness category.

In contrast, midlife and mature households focus more on prevention and long-term health care. Gen X and Baby Boomers tend to favor products related to heart health, immunity, bone strength, and overall longevity. Although these shoppers are increasingly adopting digital tools, they still rely more on traditional retail channels and well-known brands. Despite different shopping habits, Baby Boomers remain the biggest contributors to total food and beverage spending, highlighting their ongoing importance to the market.

“To succeed in today’s market, brands must recognize that healthy eating is no longer a one-size-fits-all concept,” said Sally Lyons Wyatt, global executive vice president and chief advisor at Circana. “From the functional needs of younger consumers to the preventive focus of mature households, understanding these generational shifts is critical for manufacturers and retailers aiming to meet evolving wellness priorities.”

Social media has become a powerful driver of wellness discovery and experimentation. Circana discovered that nearly half of Americans, 48%, have bought a product after seeing it in creator-generated content. This trend is speeding up growth in functional beverages, personalized hydration, and other wellness-focused categories, turning social platforms into digital storefronts where trends can spread quickly. For brands, the findings emphasize the increasing importance of authenticity, education, and clear communication of benefits in a crowded wellness market.

The research also highlights the resilience of wellness spending despite economic challenges. Health-conscious consumers now represent about 40% of all food and beverage sales, a portion that continues to grow even as shoppers remain focused on value. However, Circana notes that wellness influence varies across different occasions. While consumers strongly intend to eat healthier at home, convenience and indulgence still significantly influence foodservice and on-the-go choices, creating a more complex set of trade-offs for brands and retailers to navigate.

Across generations, simplicity is becoming a unifying theme. Consumers increasingly prefer products that offer multiple benefits in one item, such as energy with immunity or hydration with functional nutrition, without needing complex routines or extensive learning. This change is forcing manufacturers to simplify formulations and messaging, while retailers face the challenge of presenting wellness in ways that are easy to understand and relevant to different life stages.

Circana said the findings underscore the need for brands and retailers to move beyond broad “better-for-you” claims and adopt more targeted, generation-aware strategies. Aligning product development, marketing, and channel execution with distinct wellness motivations will be critical as the category continues to evolve and competition intensifies.