Gen Z and Millennials Fuel Wellness Boom: Fitness Centers and Non-Alcoholic Drinks Soar
Staff Editor Gen Z and Millennials Drive Surge in Wellness Spending, Analysts Report
The health and wellness market is experiencing a significant boost, driven by increased spending from Gen Z and millennial consumers, according to a recent report from Bank of America analysts. This generational shift towards healthier lifestyles is reshaping the wellness sector, even as overall discretionary spending faces a pullback.
Fitness center spending has seen a notable year-over-year increase, with younger generations allocating considerably more funds to fitness compared to their baby boomer counterparts. This trend is accompanied by a shift away from alcohol consumption among Gen Z and millennials, as non-alcoholic beverage spending growth outpaces that of alcoholic beverages.
Emerging wellness trends such as “cold plunge” and “red light therapy” are gaining traction, further indicating the evolving preferences of younger consumers in the health and wellness space.
Bank of America has identified several top wellness stocks poised to benefit from these generational spending trends. Life Time Group Holdings (LTH) is experiencing strong growth among millennial and Gen Z users, demonstrating resilience in past recessions and alignment with current wellness trends.
Planet Fitness (PLNT) is another standout, with card spending growth surpassing overall fitness center spending. The company has shown historical resilience through economic downturns, positioning it well in the current market.
Sharkninja Inc (SN) is capitalizing on the popularity of home devices and kitchen appliances among fitness influencers. The company has seen increased social media engagement and positive revenue estimates, reflecting the growing interest in at-home wellness solutions.
As the wellness sector continues to evolve, driven by the spending habits and preferences of younger generations, these companies are well-positioned to capitalize on the shifting landscape of health and fitness consumption.
