Younger generations such as Gen Z and millennials are playing a significant role in boosting the health and wellness sector, according to data from Bank of America. Their increased spending in this category could potentially benefit wellness stocks and help the industry withstand economic downturns, analysts have noted. The trend towards healthier lifestyle habits among younger Americans is expected to drive sustained growth in the health and wellness sector, even in challenging economic conditions. This demographic is prioritizing fitness activities, leisure pursuits, and wellness-related products, reflecting a shift towards healthier living habits. Despite an overall decrease in discretionary spending among households, expenditure on fitness centers has notably increased, indicating a strong interest in health and wellness. Gen Z and millennial households are spending significantly more on fitness compared to baby boomers. Additionally, there has been a shift away from alcohol consumption among younger consumers, with a notable increase in spending on non-alcoholic beverages like beer and seltzers. The rising interest in wellness trends like "cold plunge" and "red light therapy" further underscores the growing importance of health and wellness among younger generations. Bank of America has identified three wellness stocks that could potentially benefit from the increased investment in health and wellness by Gen Z and millennials, including Life Time Group Holdings (LTH). The fitness chain has witnessed substantial growth in its millennial and Gen Z user base, with strong performance during past economic downturns.