Bank of America analysts have observed a noticeable generational shift in consumer spending, with younger generations now prioritizing health and wellness over traditional forms of leisure. Over the past two years, industries such as salons and gyms have remained solid performers, with baby boomers leading beauty spending. However, Gen Z and millennials are increasingly focused on self-care and fitness, embracing wellness trends like red light therapy and cold plunges. This shift is reshaping consumer behavior, as younger generations are spending more on leisure activities such as pickleball, while also investing in wellness-focused services like anti-aging treatments. Bank of America’s data highlights a 7% year-over-year increase in fitness spending, marking the highest growth in 18 months.
Millennials and Gen Z are now dedicating a larger portion of their budget to fitness, surpassing their spending on bars and pubs, which has traditionally been a popular leisure expense. Further, the Global Wellness Institute revealed that the wellness industry reached a record-high worth of $6.32 trillion in 2023, a market larger than both pharmaceuticals and sports. This surge signals that wellness is becoming a "recession-resistant" segment, with businesses in this sector showing resilience despite broader economic challenges. While the "lipstick effect"—where beauty spending rises during economic downturns—still holds, the growing focus on fitness and wellness marks a new shift in consumer priorities.
