Jun 12
LGBTQ+ Consumer Power Surges: Brands Face New Demands for Authentic Engagement
READ TIME: 3 MIN.
A series of recent reports from organizations such as the Human Rights Campaign and market intelligence firms highlight the remarkable growth in LGBTQ+ consumer spending power, now estimated at $1.4 trillion in the United States alone and $3.7 trillion globally. This makes the global LGBTQ+ community, if considered as a single economy, the fourth largest in the world—a fact that is reshaping how businesses approach inclusive marketing and corporate responsibility [Human Rights Campaign, https://reports.hrc.org/corporate-equality-index-2025, 2025] [Mintel, https://store.mintel.com/us/report/marketing-to-lgbtq-communities-us-2025/, 2025] [ebar.com, https://www.ebar.com/story/155087, 2025-06-07].
The increasing influence of Gen Z is a central theme across market research. Nearly 30% of Gen Z adults in the U.S. now identify as LGBTQ+, a figure that dwarfs previous generations and signals a dramatic expansion of the community’s economic influence in the coming years [ebar.com, https://www.ebar.com/story/155087, 2025-06-07]. According to Ipsos data cited in a March 2025 market analysis, nearly 18% of global Gen Z respondents identify as not heterosexual, with significant proportions identifying as bisexual, transgender, non-binary, genderfluid, pansexual, demisexual, or asexual [NickWolny.com, https://nickwolny.com/what-is-pink-money/, 2025-03-02].
The earning power of Gen Z is also set to skyrocket, with projections that their combined global income will reach $33 trillion by 2030—accounting for a quarter of all global income. This generational shift means that brands ignoring LGBTQ+ consumers risk missing out on a massive and rapidly growing market [NickWolny.com, https://nickwolny.com/what-is-pink-money/, 2025-03-02].
Today’s LGBTQ+ consumers—and their allies—are more discerning and vocal than ever before. A recent survey highlighted in the Bay Area Reporter found that 85% of LGBTQ+ respondents expect companies to face long-term business consequences if they scale back their support for LGBTQ+ communities. This is not just theoretical: Retailers like Target, which recently reduced its diversity, equity, and inclusion (DEI) commitments, have seen significant drops in both stock value and foot traffic—demonstrating the financial risk of perceived inauthenticity or retrenchment.
The impact extends to specific brand activations, such as Pride sponsorships. Over 60% of respondents said that when a company previously sponsored Pride events but then stopped, their perception of the brand became more negative or they would actively avoid its products altogether. This data underscores the importance for brands of not only making public commitments but following through consistently.
Beyond the “Pink Dollar”: Broader Engagement Required
The term “pink money” refers to the collective purchasing power of the LGBTQ+ community. Historically, businesses targeted gay and lesbian consumers, often due to perceptions of higher disposable income among double-income, no-kids (DINK) households. However, today’s LGBTQ+ market is increasingly diverse, including transgender, non-binary, and asexual consumers, among others [NickWolny.com, https://nickwolny.com/what-is-pink-money/, 2025-03-02].
Market analysts point out that young LGBTQ+ consumers are especially attuned to whether brands’ political actions and corporate behaviors align with their stated values. Superficial marketing or “rainbow-washing”—the practice of adopting LGBTQ+ symbols without substantive actions—no longer suffices. Instead, long-term loyalty is built through genuine inclusion, policy advocacy, and support for issues that matter to the community [Mintel, https://store.mintel.com/us/report/marketing-to-lgbtq-communities-us-2025/, 2025] [Human Rights Campaign, https://reports.hrc.org/corporate-equality-index-2025, 2025].
With LGBTQ+ consumer power at historic highs and set for further growth, businesses are reevaluating their approaches to inclusion. Leading brands are investing in year-round engagement, supporting workplace equality, and advocating for LGBTQ+ rights beyond marketing campaigns. Analysts predict that companies embracing this holistic approach will see sustained gains not only in market share but also in brand reputation and employee satisfaction [Human Rights Campaign, https://reports.hrc.org/corporate-equality-index-2025, 2025] [Mintel, https://store.mintel.com/us/report/marketing-to-lgbtq-communities-us-2025/, 2025].
The message from recent market data is clear: LGBTQ+ consumers are a powerful, growing force in the global economy. Brands that engage authentically and inclusively will thrive, while those that falter risk losing loyalty not only from LGBTQ+ customers but also from their allies.
