Gen Z and millennials embrace health and wellness. These stocks could benefit

The U.S. wellness market, valued over $500 billion and growing 4-5% annually, is primarily propelled by Gen Z and millennials' increasing prioritization of health and fitness, reflected in their significantly higher spending on fitness clubs (e.g., Gen Z spends 2.8x more than Boomers) and a broader shift towards non-alcoholic beverages, contributing to the lowest per capita alcohol consumption since 1962. This durable trend also extends to anti-aging products, creating investment opportunities in companies like Life Time and Planet Fitness, SharkNinja, and beverage firms such as Coca-Cola and Anheuser-Busch InBev, despite some recent data indicating a slight uptick in Gen Z alcohol participation.

Analysis

The U.S. wellness market represents a significant and durable growth sector, valued at over $500 billion and expanding at 4-5% annually, driven primarily by a structural shift in consumer behavior among Gen Z and millennials. According to Bank of America credit card data, this demographic's prioritization of wellness is quantifiable, with Gen Z households spending 2.8 times more on fitness than baby boomers. This trend directly impacts adjacent industries, most notably contributing to a decline in alcohol consumption to its lowest per capita level since 1962, a 10% drop from the 2021 peak. This has created distinct investment narratives: fitness providers like Life Time (LTH), noted for its rapid adoption of high-growth trends like pickleball, and Planet Fitness (PLNT), which is successfully penetrating the value-oriented and first-time gym-goer market, are clear beneficiaries. The trend also extends to wellness-related consumer goods, with SharkNinja (SN) identified as a company capitalizing on the anti-aging and recovery sub-theme. While the overarching narrative points to secular decline for alcohol, creating opportunities for firms like Coca-Cola (KO) and Anheuser-Busch InBev (BUD) in the non-alcoholic space, recent data from IWSR showing an uptick in Gen Z drinking participation introduces a degree of uncertainty, with analysts divided on whether this moderation is a permanent cultural shift or a temporary economic effect.

Key Decisions for Investors

• Consider overweight positions in fitness operators like Life Time (LTH) and Planet Fitness (PLNT), which are directly capitalizing on documented, multi-year spending increases from millennial and Gen Z consumers.
• Investors should evaluate ancillary wellness plays, such as SharkNinja (SN), that demonstrate agility in launching products aligned with high-growth sub-trends like at-home light therapy and anti-aging, which are gaining traction with younger demographics.
• Approach the beverage sector with a nuanced strategy, favoring companies like Coca-Cola (KO) and Anheuser-Busch InBev (BUD) for their exposure to the growing non-alcoholic segment while closely monitoring consumption data, as conflicting reports on Gen Z drinking habits introduce uncertainty for the traditional alcohol market.