NIQ sees new divide in consumer spending

CHICAGO — Consumer spending patterns are becoming less defined by generation and more by decisions about when to splurge and when to save, according to new research from NielsenIQ.

NIQ’s latest global report, “A Tale of Two Consumers: The Polarized Mindsets Reshaping Global Consumption,” developed with World Data Lab, finds that shoppers across generations are increasingly moving between premium and value products within the same basket. The trend is putting mounting pressure on brands positioned in the middle of the market.

While generational spending power remains significant, NIQ said age alone is becoming less useful for explaining how consumers make purchasing decisions.

Gen X accounted for $15.2 trillion in consumer spending in 2025 and is expected to remain the world’s highest-spending generation through 2033. Gen Z, meanwhile, is projected to reach $12 trillion in global spending by 2030.

But shoppers across Gen Z, Millennials, Gen X and Boomers are exhibiting a similar pattern. Depending on the category, occasion and perceived need, consumers may pay a premium for one product while seeking the lowest-priced acceptable option for another.

“Consumers haven’t stopped spending, they’ve become more selective,” said Ramon Melgarejo, president of e-commerce at NIQ. “Age still matters, but it no longer explains the full purchase decision. Whether it’s a Gen X parent managing multiple households or a Gen Z shopper building lifelong consumption habits, both are asking the same question: do I really need this in my basket?”

NIQ said the behavior is contributing to a “barbell effect” in the marketplace, with demand increasingly concentrating at the premium and value ends while traditional middle-market products face greater pressure.

The divide extends beyond generations. Affluent consumers accounted for $35.9 trillion in global spending in 2025, compared with $31.6 trillion among the much larger core consumer population, according to the report.

For retailers and consumer goods companies, the findings suggest that demographic targeting alone may no longer be enough. Brands increasingly need to demonstrate either why a product deserves a premium price or why it represents compelling value.

That dynamic could create opportunities for premium brands and value-oriented products while making differentiation more difficult for products occupying the middle of a category.

NIQ said the shift does not necessarily mean consumers are spending less. Instead, shoppers are making more deliberate decisions about which products warrant additional spending and where they can trade down without sacrificing what matters to them.