Gen Z and millennials driving growth in wellness sector, boosting wellness stocks.

From Yahoo Finance: 2025-05-23 20:56:00

Gen Zers and millennials are driving growth in the health and wellness sector, spending significantly more in this category according to BofA data. Analysts predict that this trend could boost wellness stocks and help the sector weather a potential recession. Younger Americans are prioritizing healthier lifestyle habits, leading to increased spending on fitness and wellness items. Gen Z households spend about 2.8 times more on fitness than baby boomers, while millennials spend three times as much. Interest in wellness trends like cold plunge and red light therapy is on the rise.

Additionally, young people are shifting away from drinking, with spending growth for nonalcoholic beverages outpacing alcoholic versions. Google searches for cold plunge and red light therapy have increased. Bank of America highlighted three wellness stocks poised for growth: Life Time, Planet Fitness, and Shark Home/Ninja Kitchen. These companies have seen increased interest from younger demographics and have shown resilience during past recessions. Planet Fitness, for example, has outperformed overall spending at fitness centers and maintained strong sales during the 2008 recession.



Read more at Yahoo Finance: Gen Z and millennials are creating a recession-resistant corner of the market