Circana LLC released a new report, The Aging Arc, revealing a profound shift in consumer influence across generations. The research highlights how unique life stages and watershed moments are redefining the retail landscape, making it essential for brands to understand these dynamics to achieve growth.

The report details the current and future state of generational spending power. While baby boomers and Gen X currently dominate retail with a combined 65% share of spend, a massive transfer of wealth is poised to make millennials the wealthiest generation in history. The research also provides an early look at Gen Alpha, the most digitally savvy generation ever, whose economic impact is already valued at $1 trillion globally.

“A profound shift in consumer influence is underway, and understanding the ‘why’ behind purchasing decisions is no longer optional — it’s essential for growth,” Sally Lyons Wyatt, global executive vice president and chief adviser for Circana, said in a release. “Our research provides a clear road map for brands to connect authentically and effectively with each cohort, from Gen Alpha to baby boomers, by uncovering their unique values and priorities.”

“The Aging Arc” also introduces distinct generational buying personas, identifying what drives purchasing decisions for each group. The findings show that Gen Z buys into “identity,” millennials into “lifestyle,” Gen X into “functionality” and boomers into “comfort.” The report identifies top-indexing product categories for each, ranging from video games and beauty for Gen Z to home improvement and pet care for boomers. Looking ahead, Circana projects that by 2030, Gen Z and millennials will drive 60% of retail sales growth, underscoring the urgency for brands to adapt their strategies now.