- Sally Lyons Wyatt
- Oct 14
- 2 min read
Marketers have long created campaigns based on demographics, but profound shifts in today’s generational spending create both new challenges and opportunities. To succeed in the current and future competitive environment, brands and retailers must move beyond stereotypes and create nuanced strategies that take into account distinct consumer behaviors across each cohort.
Dynamic generational purchasing behaviors reflect respective priorities that impact a wide range of channels, categories, and products. Of course, younger shoppers traditionally look for products that meet their interests and needs during that phase of life, whether it’s trendy apparel (think bell-bottoms in the ’70s, acid-wash denim in the ’80s and high-waisted jeans in the ’90s) or popular beverages (mocktails today versus cocktails of the past). As one might expect, older consumers tend to embrace wellness for independence and appreciate meaningful family moments in their proverbial golden years.
In today’s landscape, however, consumers within each cohort are making decisions in an omnichannel marketplace and in a culture that’s been redefined by technologies like social media and AI chatbots. A company that sells toys, for example, should understand that Gen Alpha is the most diverse generation ever and most kids and tweens now watch online shopping content for ideas.
Instead of the “generation gap” focused on spaces between groups, marketers can focus on the connections within each cohort to best tailor their offerings and messages in a thoughtful go-to-market strategy. Our research uncovered fascinating insights into current cohorts:
Gen Alpha, with members under the age of 12, is still emerging but is the largest global generation ever and is both digitally native and digitally forward. In fact, 36.2 million Gen Alphas are active internet users, exceeding teens by 11.6 million.
Gen Z, born between 1997 and 2012, have reversed some social trends from Millennials and Gen X. They’re highly educated, financially pragmatic, and especially into experiences, guided by a desire for self-expression and ethical consumption.
Millennials, hitting their prime family and career years, are allocating more of their spending to food and beverage and are into sustainable wellness routines. They want brands to feel exclusive and prefer online shopping, with 80% making most purchases digitally.
Gen X are now in their peak earning era. Often underestimated, they are pragmatic, prioritizing price and practicality over flashy trends or influencers, and research products before buying them. These self-starters sales place a high value on loyalty and efficiency.
Boomers have the greatest generational wealth and are expected to pass along assets along to their heirs, making Millennials the wealthiest generation in history. Boomers are moving through their senior years differently compared to previous seniors: a majority say they expect to work past age 70 or not retire at all, and, when asked why, they are embracing “healthy aging.”
Get more Generational Insights to Engage with Cohorts
Circana’s new report, “The Aging Arc,” provides a comprehensive analysis of today’s generational dynamics and why nuances matter. The research underscores the importance of understanding distinct priorities, values, and purchasing behaviors to connect effectively with each group.
