Wellness: Gen Z and millennials are creating a recession-resistant corner of the market
- InsightTrendsWorld
- Apr 1
- 10 min read
Why it is the topic trending:
Significant Spending Power of Younger Generations: Gen Z and millennials are demonstrably spending more money on health and wellness compared to older generations, making it a noteworthy economic trend.
Recession-Resistant Market Segment: The article highlights that the wellness sector, driven by younger consumers, appears to be holding up well even as overall discretionary spending slows down, making it an important area for economic analysis.
Generational Shift Towards Healthy Habits: There is an observed long-term shift in younger generations prioritizing healthier lifestyles, impacting their spending habits across various categories.
Specific Examples of Increased Spending: The article provides concrete data points, such as the rise in spending at fitness centers and the increased consumption of non-alcoholic beverages, illustrating this trend.
Investment Potential in Wellness Stocks: The analysis suggests that this sustained interest in wellness could lead to growth and resilience in the health and wellness stock sector.
Overview:
The article discusses how Gen Z and millennials are significantly contributing to the growth and resilience of the health and wellness market in 2025. Data from Bank of America indicates that these younger generations are prioritizing healthier lifestyle habits and are spending considerably more on fitness, activity-based leisure, and wellness-focused items, even as overall discretionary spending shows signs of slowing. This trend suggests that the wellness sector may be relatively recession-resistant and presents opportunities for related businesses and investments.
Detailed findings:
Gen Z and millennials are spending substantially more on health and wellness than baby boomers.
Gen Z households spend approximately 2.8 times more on fitness than baby boomers, while millennials spend about three times as much.
Despite a general slowdown in retail sales, spending at fitness centers has increased significantly year-over-year.
Younger generations are increasingly shifting away from alcohol, with spending on non-alcoholic beer and seltzers outpacing alcoholic versions for the past four years.
Interest in specific wellness trends, such as "cold plunge" and "red light therapy," has surged in recent years, as indicated by Google search volume.
Bank of America analysts identify Life Time Group Holdings, Planet Fitness, and Sharkninja Inc as key beneficiaries of this trend.
Life Time is experiencing strong growth among millennial and Gen Z app users.
Planet Fitness has seen its card spending growth outpace overall fitness center spending.
Sharkninja, with its popular blenders for fitness enthusiasts, is experiencing significant social media engagement and is on track to beat revenue estimates.
Historical data suggests that fitness companies like Life Time and Planet Fitness have shown resilience during past economic downturns.
Key takeaway:
Gen Z and millennials are significantly investing in their health and wellness, creating a robust and potentially recession-resistant segment within the market. This generational shift towards healthier lifestyles presents substantial opportunities for businesses catering to this demographic.
Main trend:
Youth-Driven Wellness Economy
Description of the trend (please name it):
The Next-Gen Well-being Wave: This trend describes the significant impact of Gen Z and millennials on the health and wellness market, where their strong focus on healthier lifestyles and proactive investment in related products and services is reshaping the industry and creating a powerful economic force. This wave is characterized by a holistic view of wellness that encompasses fitness, nutrition, mental health, and mindful consumption, driven by a digitally native generation that values experiences and personal well-being.
What is consumer motivation:
Prioritization of Health: A strong emphasis on physical and mental well-being as a key life value.
Proactive Health Management: Taking a preventative approach to health through fitness, diet, and wellness practices.
Experience-Driven Spending: Investing in activities and products that contribute to a healthier and more fulfilling lifestyle.
Influence of Social Media and Digital Culture: Being informed and influenced by online trends, fitness influencers, and the accessibility of wellness information.
Desire for Non-Traditional Leisure Activities: Shifting away from traditional social norms like heavy alcohol consumption towards more health-conscious options.
What is driving trend:
Increased Awareness of Health and Wellness: Greater access to information and a cultural emphasis on healthy living.
Social Media Influence: The promotion of fitness and wellness lifestyles by influencers and peers online.
Mental Health Awareness: A growing understanding of the importance of mental well-being and its connection to physical health.
Availability of Diverse Wellness Options: A wide range of fitness activities, health foods, and wellness services catering to different interests and needs.
Shifting Social Norms: A decreasing social emphasis on activities like heavy drinking, particularly among younger generations.
What is motivation beyond the trend:
Beyond immediate health benefits, this focus on wellness reflects a deeper desire for self-improvement, personal fulfillment, and a sense of control over one's own life and well-being. In a potentially uncertain economic climate, investing in one's health can be seen as a fundamental and enduring form of personal capital.
Description of consumers article is referring to:
Age: Primarily Gen Z (under 28 in 2025) and Millennials (28-43 in 2025). The article specifically highlights their spending habits and interest in wellness.
Gender: The article does not explicitly focus on gender, suggesting that this trend is significant across both male and female individuals within these age groups.
Income: While the article doesn't specify income levels, the fact that they are spending "significantly more" in the wellness category suggests that these younger generations are allocating a notable portion of their discretionary income towards health and well-being. This likely includes a range of income levels within these demographics who prioritize wellness spending.
Lifestyle: Individuals who actively prioritize their health and well-being, engaging in activities like fitness, seeking out healthier food and beverage options (including non-alcoholic alternatives), and showing interest in modern wellness trends. They are likely digitally connected and influenced by online trends and information related to health and wellness.
Conclusions:
The article concludes that Gen Z and millennials are the driving force behind the robust growth in the health and wellness market. Their sustained interest and increased spending in this sector suggest that it may be more resilient to economic downturns compared to other areas of discretionary spending. This generational commitment to healthier lifestyles presents significant opportunities for businesses that can effectively cater to their needs and preferences.
Implications for brands:
Fitness and Wellness Centers: Should focus on attracting and retaining younger members by offering relevant programs, leveraging technology (like apps), and staying attuned to the latest fitness trends (e.g., pickleball, cold plunge).
Food and Beverage Industry: Should continue to innovate in the non-alcoholic beverage space and cater to the demand for healthier food options and ingredients.
Wellness Technology and Products: Companies offering fitness trackers, health apps, and wellness-focused discretionary items (like Sharkninja's blenders) are well-positioned to benefit.
Marketing and Advertising: Should tailor their messaging and channels to resonate with Gen Z and millennials, emphasizing health benefits, lifestyle integration, and potentially aligning with social media trends and influencers.
Implication for society:
Improved Public Health Outcomes: A greater emphasis on healthy habits among younger generations could lead to positive long-term public health outcomes.
Shift in Social Norms: The decreasing popularity of alcohol among younger demographics could signify a broader shift in social norms around leisure and well-being.
Economic Growth in the Wellness Sector: The sustained spending in this area will likely continue to fuel innovation and job creation within the health and wellness industry.
Implications for consumers:
Increased Access to Wellness Resources: The growing demand will likely lead to a greater availability and variety of fitness options, healthy food choices, and wellness services.
Potential for Higher Spending on Wellness: Consumers in these age groups may allocate a significant portion of their budget towards health and well-being.
Positive Lifestyle Changes: The trend encourages and supports the adoption of healthier habits and lifestyles.
Implication for Future:
The trend of Gen Z and millennials prioritizing wellness is likely to persist and even intensify in the future. This will continue to shape the health and wellness market, driving innovation in products, services, and technology. Brands that can understand and adapt to the evolving needs and preferences of these generations will be best positioned for long-term success in this sector. The emphasis on mental health and holistic well-being is also likely to grow.
Consumer Trend (name, detailed description):
Conscious Consumption for Well-being: This trend describes consumers, particularly younger generations, making deliberate choices about what they consume, prioritizing products and services that contribute to their physical and mental health and overall well-being. This includes a focus on healthier food and beverages, fitness activities, and wellness-focused discretionary items.
Consumer Sub Trend (name, detailed description):
Sober and Sober-Curious Movement: This sub-trend involves a growing number of younger adults reducing or eliminating their alcohol consumption, driven by a focus on health, mental clarity, and alternative social experiences. This is evident in the increased popularity of non-alcoholic beverages.
Big Social Trend (name, detailed description):
The Wellness Imperative: There is a growing societal emphasis on health and well-being as a fundamental priority. This is reflected in increased awareness of mental health, a focus on preventative healthcare, and a cultural value placed on healthy lifestyles across different age groups, but particularly pronounced in younger generations.
Worldwide Social Trend (name, detailed description):
Global Health Consciousness: Across many parts of the world, there is a rising awareness and prioritization of health and wellness. This is driven by factors such as increased access to information, longer life expectancies, and a desire for a higher quality of life, leading to similar trends in healthy eating, fitness, and well-being practices globally, albeit with cultural variations.
Social Drive (name, detailed description):
The Pursuit of Optimal Living: Individuals, especially younger generations, are driven by a desire to optimize their physical and mental well-being to live fuller, more productive, and more enjoyable lives. This involves actively seeking out and investing in resources and practices that support this goal.
Learnings for brands to use in 2025 (bullets, detailed description):
Focus on Younger Demographics: Tailor products, services, and marketing efforts to resonate with the health and wellness priorities of Gen Z and millennials.
Embrace Digital Channels: Utilize social media, influencer collaborations, and digital marketing to reach and engage these digitally native generations.
Highlight Health Benefits and Lifestyle Integration: Clearly communicate the health advantages and how your offerings fit into a healthy lifestyle.
Offer Variety and Innovation: Continuously evolve your products and services to keep pace with the latest wellness trends and the diverse interests of younger consumers.
Consider Non-Alcoholic Alternatives: For beverage brands, a strong focus on and investment in non-alcoholic options is crucial.
Build Community and Engagement: Foster a sense of community around your brand through online platforms and interactive experiences.
Strategy Recommendations for brands to follow in 2025 (bullets, detail description):
Invest in Digital Marketing and Social Media: Create engaging content on platforms like TikTok, Instagram, and YouTube showcasing the benefits of your wellness products or services. Partner with relevant influencers to reach target audiences authentically.
Develop Products and Services Catering to Specific Needs: Analyze the specific wellness interests of Gen Z and millennials (e.g., functional fitness, mental wellness support, healthy and convenient food options) and tailor offerings accordingly.
Offer Flexible and Accessible Options: Consider subscription models, digital platforms, and at-home solutions to cater to the convenience and flexibility desired by younger consumers.
Emphasize Authenticity and Transparency: Be upfront about ingredients, sourcing, and the science behind your wellness products. Younger consumers value trust and authenticity.
Create Experiential Offerings: Consider incorporating experiences into your brand, such as fitness classes, wellness retreats, or interactive digital content that goes beyond just selling a product.
Final sentence (key concept) describing main trend from article:
Gen Z and millennials are powerfully shaping the economy by prioritizing and investing significantly in their health and wellness, creating a dynamic and resilient market.
What brands & companies should do in 2025 to benefit from trend and how to do it:
In 2025, brands and companies looking to thrive in the health and wellness market should focus intently on the needs and preferences of Gen Z and millennials. To benefit from this trend, they should:
Deeply understand the motivations and values of these demographics: Research their specific wellness interests, their preferred communication channels, and what they prioritize in terms of health and lifestyle.
Develop relevant and innovative products and services: Create offerings that directly address the needs and desires of these consumers, whether it's through cutting-edge fitness technology, appealing non-alcoholic beverages, or wellness-focused food options.
Build a strong and authentic online presence: Engage actively on social media platforms frequented by Gen Z and millennials, using authentic and relatable content to connect with them and build trust.
Offer accessible and flexible solutions: Recognize the importance of convenience and affordability for these generations and tailor their offerings accordingly.
Final note:
Core Trend:
Name: Gen Z & Millennial Wellness Spending Power
Detailed Description: The significant and growing expenditure of Gen Z and millennial consumers on health and wellness products, services, and experiences, making them a dominant force in this market segment.
Core Strategy:
Name: Youth-Centric Wellness Engagement
Detailed Description: Brands need to adopt marketing, product development, and communication strategies specifically tailored to resonate with the values, interests, and digital habits of Gen Z and millennial consumers in the wellness space.
Core Industry Trend:
Name: The Rise of Preventative and Lifestyle Wellness
Detailed Description: The health and wellness industry is increasingly focused on preventative measures and lifestyle choices, driven by the demands of younger generations who are proactive about their well-being rather than solely reactive to illness.
Core Consumer Motivation:
Name: Prioritizing Holistic Well-being
Detailed Description: Gen Z and millennials are motivated by a holistic view of well-being that encompasses physical fitness, mental health, healthy eating, and mindful consumption, influencing their spending decisions in the market.
Final Conclusion: The strong and sustained investment in health and wellness by Gen Z and millennials represents a fundamental shift in consumer priorities, offering a wealth of opportunities for brands that can effectively understand and cater to this influential demographic in 2025 and beyond.
Core Trend Detailed:
Name: Gen Z & Millennial Wellness Spending Power
Detailed Summary: The core of this trend lies in the undeniable financial influence that Gen Z and millennial consumers are exerting over the health and wellness market. Unlike previous generations who may have focused on wellness later in life, these younger demographics are actively prioritizing their physical and mental well-being from a younger age, translating this priority into significant spending on fitness activities, healthier food and beverage options (including a notable shift towards non-alcoholic alternatives), wellness technology, and other related products and services. This spending power is not only driving growth within the wellness industry but also demonstrating a potential resilience to broader economic downturns, as these generations appear committed to investing in their health even when discretionary spending in other areas might be curtailed. The trend is further fueled by the pervasive influence of social media, where wellness lifestyles are heavily promoted and discussed, creating a culture that values and encourages these healthy habits. This represents a long-term shift in consumer behavior that businesses must acknowledge and adapt to in order to remain relevant and successful in the evolving marketplace.
