Gray Is the New Gold: Luxury Brands Target Aging Wealth

In 2025, are luxury brands waking up to the untapped potential of older consumers — a demographic that has long been sidelined in favor of younger, trend-driven shoppers? Will this be a leading trend for retailers this year?

Those over 50 now control the majority of global wealth, presenting a stable and valuable market for luxury goods. This group is defined by strong brand loyalty, a preference for quality over price, and a deep appreciation for heritage and craftsmanship — values that align with the essence of luxury brands.

“This has long been a missed opportunity for the luxury market,” Bellamy Grindl, principal and founder, Retailytics, said in an interview with PYMNTS.

“Older generations not only have more disposable income but are also less price-sensitive and highly brand-loyal. They value quality and heritage, which aligns perfectly with what luxury brands offer.

“The problem is many feel ignored because media and marketing remain hyper-focused on younger audiences. By prioritizing youth, brands risk alienating a demographic that’s eager to invest in their products.”

What should brands do?

“Luxury brands should focus on truly engaging with older consumers in a way that feels authentic and values their purchasing power,” Grindl said. “Things like refining messaging, expanding channels to meet the customer where they are, and celebrating heritage and craftsmanship to build deeper emotional connections.” 

According to PYMNTS Intelligence report, “Why One-Third of High Earners Live Paycheck to Paycheck,” which surveyed more than 4,200 U.S. consumers to understand how they are spending their money across income groups, the highest earners (specifically those making over $200,000 annually), typically spend a large portion of their income on luxury items and experiences. On average, they allocate 9.3% of their income to recreation, leisure and entertainment and 8.5% to clothing, accessories and personal care.

By expanding their focus to include older demographics, luxury brands can leverage this substantial purchasing power while mitigating the economic uncertainties that come with fluctuating tariffs and market volatility, according to Sudip Mazumder, SVP, retail industry lead, North America, at digital consultancy Publicis Sapient.

“Luxury brands face challenges in relying solely on youth trends, especially in light of the possibility of new tariffs that could increase production costs, prompting price hikes,” Mazumder told PYMNTS.

“Younger consumers are often price-sensitive and their preferences can change rapidly, making it risky for brands to focus exclusively on appealing to them. Meanwhile, older consumers, especially those over 50, hold a significant portion of global wealth and tend to value quality, brand loyalty and lasting value in luxury items.

“A multigenerational approach allows brands to cater to both younger, trend-driven consumers and older, wealth-conscious buyers, offering stability and resilience through a diverse customer base. This strategy addresses immediate economic challenges and future-proofs brands by embracing digital channels and personalized experiences to meet evolving preferences across age groups.”

Luxury brands recognize the value of a balanced approach that appeals to both ends of the consumer spectrum, according to Zachary Robichaud, Instructor, School of Retail Management, Ted Rogers School of Management, Toronto Metropolitan University.

“Luxury brands targeting older consumers is a significant trend for 2025, driven by shifting demographics and the purchasing power of this audience,” Robichaud said in an interview with PYMNTS.

“Older consumers now control the bulk of global wealth, making them an essential demographic for retailers seeking sustainable growth. As populations age, brands are adapting their offerings to align with the preferences of affluent older shoppers, focusing on timeless design, quality and personalized experiences. This change expands their consumer base and creates loyalty within a market segment that prioritizes value and reliability.”

Wealthier shoppers, particularly those earning more than $100,000 annually, have a stronger desire for personalized offers, according to the PYMNTS Intelligence report, “Personalized Offers Are Powerful — but Too Often Off-Base,” created in collaboration with AWS.

According to the report, 89% of consumers who make more than $100,000 a year are interested in receiving personalized offers, higher than the 83% of consumers earning between $50,000 and $100,000, and more than the 74% of those making less than $50,000 who also want personalized offers.

In an interview with PYMNTS, Craig Rowley, senior client partner, retail and consumer consulting, Korn Ferry, noted concerns about potential U.S. tariffs on imports, which could force retailers to adjust shipments, change sourcing, or reduce purchases and create uncertainty.

“Retail continues to focus on reducing costs while improving services,” Rowley explained. “Clients are looking carefully at operating expenses and looking for savings. The industry is also barreling ahead on investment in AI [artificial intelligence]. AI will help to accelerate decision-making by providing real-time insights to the market and provide merchandise offerings that better meet the needs of customers.”

Going hand in hand with this, Rowley added, “is continuing to improve eCommerce and omnichannel operations to make it easier for consumers to find the products they need, help them make buy decisions and, at the same time, reduce eCommerce operating costs. Retailers are working hard to understand customer segmentations because boomers are retiring and millennials are buying more from retail than other segments.”

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