Gen Z and millennials are creating a recession-resistant corner of the market

• General Zires and thousands of millennium thanks for supporting one area of ​​the market: health and wellness.

• Bofa data shows that younger Americans spend more significantly in this category.

• Analysts said this may give the shares of wellness a boost and help the sector to stagnate.

General Zires and thousands of Millennium spends greatly and help isolate one field of the market from stagnation: the wellness industry.

Bank of America analysts said that younger Americans are looking to lead a long -term interest towards healthier lifestyle habits, something that can support the health and wellness sector to continue to grow even if the economy is reversed.

“We believe that there is a continuous transformation of generations towards healthy habits, and it supports wellness shares. The younger population composition including Gen Z and Millennials are increasingly priority give ways to living ways, growing time, income on physical fitness, activity -based entertainment, and well -known materials,” the bank wrote in the observation of last month.

As a whole, families seem to be back away from estimated spending. Retail sales increased by 0.2 % in February, which is less than 0.7 % of economists who were expecting this month. However, spending in fitness centers increased by 7 % on an annual basis, according to the data of the Bank of America, the largest increase in 19 months.

On average, the families of General Z spend about 2.8 times the amount that children’s children do on fitness, while the millennial generation spends about three times that, the bank said.

The rapprochement of young people with health and wellness is also clear in alcohol spending, with more Gen Zers and Millennials shifting from drinking in recent years. BOFA data found that spending on non -alcoholic beer and Seltzers outperformed the spending on the alcoholic version of these drinks over the past four years.

Attention to some of the trends of wellness has also increased. Google’s search volume for “Grownge” and “Red Light Therapy” increased throughout 2023 and 2024.

Below are the three most important shares. Bank of America can benefit from the Gen Z and Millennials invest in their health:

The current price: 28.91 dollars

Performance from year to date: +29.12 %

What analysts say:

Life time, the fitness chain, witnessed a strong growth among the Millennium users and General Z to its application. Monthly active users between the ages of 18 and 44 grew by 60 % in 2024, according to the data of the sensors tower in which Bofa was martyred.

The company also worked well in the previous recession. During the shrinkage in 2008, the company’s profit margins rose, according to the bank’s analysis.