Gen Z Fitness Spending Up 30% Year-Over-Year While KO and PEP Face Volume Softness

A structural shift in Gen Z consumer behavior is accelerating away from traditional beverage and alcohol consumption toward premium fitness and wellness spending. Market intelligence data shows Gen Z gym and fitness memberships, class bookings, and activewear purchases grew 30% year-over-year through May 2026, outpacing overall consumer spending. Simultaneously, Coca-Cola and PepsiCo are reporting volume softness in traditional carbonated soft drinks and alcoholic beverages in younger demographics, signaling a generational divergence in consumption patterns.

The trend reflects broader health consciousness and social-media influence: TikTok and Instagram fitness influencers have normalized gym culture among teenagers and young adults, while regulatory scrutiny on sugar content and health campaigns have stigmatized sugary drinks. Brands like Lululemon, Peloton, and Equinox are capturing disproportionate wallet share from Gen Z, while legacy beverage makers face flat to declining volume in their highest-margin categories among this cohort.

The sectoral impact is asymmetric: KO and PEP face mix headwinds in their core soft-drink and beer portfolios, pressuring gross margins if they cannot migrate consumer volume to healthier alternatives at premium pricing. Nike, Lululemon, and specialty fitness chains gain from favorable sentiment and category tailwinds. Retail distribution benefits; Costco and Walmart see elevated basket size from fitness and wellness aisles offsetting beverage declines. The shift also benefits healthcare and wellness ETFs via companies like UnitedHealth that benefit from preventive-care spending.

Detractors argue the 30% growth rate is not sustainable and reflects pandemic-era novelty; others note that Gen Z's lower incomes may cause spending to normalize if economic growth slows. Nevertheless, the trend represents a durable structural change in what Gen Z prioritizes versus previous cohorts.