From supplement stacking to sleep tracking, Gen Zers are helping to rewrite the rules of the $2 trillion global wellness industry.
That’s one of the main takeaways from a new report by McKinsey Partner Anna Pione and coauthors. Their research finds that younger consumers—especially Gen Zers and millennials—are not only disproportionately driving wellness spending but also redefining it.
In a survey of more than 9,000 consumers across China, Germany, the United Kingdom, and the United States, nearly 30 percent of US Gen Z and millennial respondents say they are prioritizing wellness “a lot more” than they were a year ago, compared with up to 23 percent of older generations. These findings, which are similar across geographies, translate into dollars spent. In the United States, Gen Z and millennials account for 36 percent of the adult population but 41 percent of annual wellness spending. Compare that with consumers aged 58 and older, who make up 35 percent of the population but only 28 percent of wellness spending in the United States.
This shift is reshaping the entire consumer health industry and expanding the scope of what counts as “wellness.” While older generations might equate wellness with the core components of physical health, Gen Z consumers see it as a 360-degree approach to living better that includes dimensions such as sleep, mindfulness, and even appearance (hello, “skin cycling” and collagen gummies).
Younger consumers are also more likely than other age groups to be what Pione and team call “maximalist optimizers.” These are digitally savvy consumers who experiment with a wide range of health and wellness products and conduct extensive research to discover what works best for them. They’re into functional nutrition (think food and beverage products that promote increased energy levels, better gut health, stronger immune systems, and improved muscle, bone, and joint support); cosmetic procedures and antiaging treatments; and, despite their relative youth, longevity-focused products and services.
As Gen Zers continue to age, one question looms: Will they settle into the same basic wellness routines as the generations that preceded them, or will their preferences reshape the category for everyone else? While some of their purchases are connected to specific life stages, the report finds that consumers in all age groups are spending on products and services beyond what might be considered a core wellness product or service for their age group.
For instance, younger generations are more likely than others to travel more than two hours for trips intended to improve their mental, physical, or spiritual well-being. However, these types of wellness retreats are also being targeted to retirees, the report finds, suggesting that other wellness preferences of today’s younger consumers could become mainstream across different age groups.
To Zoomers—and, increasingly, to everyone else—wellness is no longer just about living longer; it’s about living better. And while Gen Zers are more willing than other age groups to spend on certain wellness goods and experiences, they’re also looking for value. For companies, that means that product quality and efficacy are important purchase considerations for this cohort. In the wellness world, hype fades fast—but results don’t.
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