Gen Z & Millennials Fuel Recession-Proof Wellness Boom: Top Stocks to Watch in 2025
Gen Z & Millennials Are Building a Recession-Resistant Wellness Economy
Why Health-Conscious Young Consumers Are Reshaping the Market
In an era of economic volatility, one sector is defying the odds: health and wellness. Driven by Gen Z and millennials, this $1.5 trillion industry is thriving even as other discretionary spending categories falter. Bank of America’s latest research reveals that younger generations are prioritizing fitness, sobriety, and holistic wellness at unprecedented rates—creating a rare "recession-resistant" corner of the market.
Here’s how their spending habits are rewriting economic rules and which stocks are positioned to dominate in 2025 and beyond.
The Generational Shift Fueling Wellness Growth
1. Fitness Spending: Gen Z & Millennials Outspend Boomers 3:1
While overall retail spending growth slowed to 0.2% in February 2024, fitness center expenditures surged by 7% year-over-year—the largest jump in 19 months. BofA card data shows:
- Gen Z households spend 2.8x more on fitness than baby boomers.
- Millennials invest 3x more in gyms, boutique studios, and wellness apps.
Why It Matters: Unlike boomers, younger generations view fitness as non-negotiable. “Health is wealth” isn’t just a mantra—it’s a lifestyle driving long-term revenue for wellness brands.
2. The Sober-Curious Movement: Nonalcoholic Beverages Outperform
Gen Z’s aversion to alcohol is reshaping the beverage industry:
- Nonalcoholic beer/seltzer sales grew 4x faster than alcoholic versions since 2021.
- 42% of millennials now identify as “sober-curious,” per Nielsen data.
This trend isn’t just about health—it’s a cultural shift. Brands like Athletic Brewing and Ritual Zero Proof are capitalizing on demand for sophisticated alcohol alternatives.
3. Viral Wellness Trends: Cold Plunges, Red Light Therapy & Pickleball
Google searches for “cold plunge” and “red light therapy” skyrocketed by 300%+ in 2023-2024. Meanwhile, pickleball—a favorite among millennials—now boasts 36.5 million U.S. players.
These trends highlight a key insight: Wellness is no longer just exercise. It’s a 360-degree approach combining physical recovery, mental health, and social connection.
3 Recession-Proof Wellness Stocks to Watch in 2025
Bank of America analysts identify three companies uniquely positioned to thrive, even in a downturn:
1. Life Time Group Holdings (LTH)
- Current Price: $30.04 | YTD Growth: +34.17%
Why It Wins:
Life Time isn’t your grandfather’s gym. The chain has pivoted to luxury wellness campuses featuring:
- Cold plunge pools and infrared saunas
- Pickleball courts (a $900M revenue driver by 2025)
- App-based engagement: Gen Z/Millennial app users grew 60% in 2024.
Recession Resilience: During the 2008 crisis, Life Time’s margins expanded by 12% as affluent members prioritized self-care.
Analyst Take:
“Life Time’s hybrid model—blending fitness, recovery, and community—aligns perfectly with Gen Z’s definition of wellness.”
2. Planet Fitness (PLNT)
- Current Price: $95.89 | YTD Growth: -3.72%
Why It Wins:
While cheaper than Life Time, Planet Fitness dominates the “mass wellness” market:
- $10/month memberships attract budget-conscious Gen Zers.
- 24/7 access and TikTok-friendly “Judgement Free Zones” drove 21% same-store sales growth during the 2008 recession.
2024 Momentum: BofA card spending at Planet Fitness locations outpaced industry averages by 15% this year.
Analyst Take:
“Planet Fitness isn’t just surviving—it’s acquiring competitors’ members during economic dips.”
3. SharkNinja (SN)
- Current Price: $84.27 | YTD Growth: -13.05%
Why It Wins:
This home essentials brand (think Ninja blenders and Shark vacuums) is quietly dominating the “wellness at home” trend:
- #1 TikTok Presence: 250M+ views for #NinjaBlender recipes in Q1 2025.
- Smarter Kitchens: Air fryers and nutrient-preserving blenders cater to Gen Z’s DIY wellness culture.
Revenue Outlook: Nielsen predicts SharkNinja will beat Q1 sales estimates by 8% in North America.
Analyst Take:
“SharkNinja turns everyday appliances into wellness tools—a strategy that’s pandemic and recession-proof.”
Why Wellness Stocks Are Built for Economic Uncertainty
- Recurring Revenue Models: Gym memberships (LTH, PLNT) and appliance subscriptions (SN) provide stable cash flow.
- Cultural Staying Power: Wellness is now ingrained in Gen Z/millennial identity—not a passing fad.
- Historical Precedent: During 2008, fitness stocks outperformed the S&P 500 by 22%.
The Bottom Line
Gen Z and millennials aren’t just buying products—they’re investing in a lifestyle. As BofA notes, this demographic shift creates a “multi-decade tailwind” for brands that blend fitness, recovery, and community. While no sector is fully recession-proof, wellness stocks like LTH, PLNT, and SN offer rare resilience in uncertain times.
Investors Take Note: The $1.5T wellness industry is no longer niche. It’s the new backbone of discretionary spending—powered by a generation that prioritizes health over excess.