'Go Woke, Go Broke?' Not So Fast: New Survey Reveals LGBTQ+ Consumers Are Cutting Spending with Companies Retreating from DEI

LGBTQ+ community members poised to take their $1.4 trillion purchasing power to companies that support them

Published: June 6, 2025 | Last Updated: June 6, 2025

The message from LGBTQ+ consumers is crystal clear: If companies won't stand with us, we won't stand with them. A new survey from the National LGBT Media Association reveals that 88% of queer consumers have noticed corporate pullbacks from diversity and inclusion initiatives over the past year, and they're prepared to take their business elsewhere.

The comprehensive survey of more than 400 LGBTQ+ consumers, conducted in May 2025, paints a picture of a community that's both aware and organized. Three-quarters of respondents said they would either stop buying entirely or reduce spending with companies that scale back LGBTQ+ marketing or diversity initiatives. Even more telling, 85% actively support competitors who maintain their commitments to the community.

"I have read a lot of surveys, and when you get to near 90% on anything, it is reason for concern," said Todd Evans of Rivendell, an LGBTQ+ advertising agency and NGMA member. "These statistics are nothing to laugh at, especially when you consider that the reduction in presence to the LGBTQ+ consumer seems to be just a knee-jerk reaction to a short-term political administration."

The numbers back up what many in Michigan's LGBTQ+ community have felt viscerally, that corporate America is backing away from Pride sponsorships and inclusive marketing in response to political pressure. But what some companies might see as playing it safe, LGBTQ+ and ally consumers see as betrayal.

The opportunity hiding in corporate cowardice

While national corporations retreat, savvy local businesses are recognizing an unprecedented opportunity. Benjamin Jenkins, Publisher of Pride Source Media, has watched this shift play out in real time.

"The corporate reticence has been palpable in our newsroom — we're seeing major advertisers pull back from Pride sponsorships and LGBTQ+ marketing," Jenkins said. "But what's fascinating is how quickly local businesses are recognizing the opportunity these national corporations are leaving on the table."

Smart local businesses are stepping up their LGBTQ+ outreach right now, knowing they can capture market share and build lasting loyalty while their bigger competitors retreat. It's classic contrarian investing — when others are selling out of fear, smart investors are buying in, investing in authentic, long-term relationships with a community that has tremendous spending power and brand loyalty.

The economic implications are substantial. The LGBTQ+ community represents $1.4 trillion in U.S. purchasing power, according to recent Human Rights Campaign data, with global LGBTQ+ purchasing power reaching $3.7 trillion annually. If the global LGBTQ+ community were a country, it would represent the fourth-largest economy in the world.

These aren't just numbers, they represent the future of American spending power. Nearly 30% of Gen Z adults identify as LGBTQ+, meaning companies that abandon this community today are walking away from tomorrow's customers.

‘Go woke, go broke?’ Not so fast (looking at you, Target)...

The survey found that 85% of LGBTQ+ consumers expect companies to face long-term business consequences for scaling back their support. They're not wrong. Target's recent experience offers a cautionary tale. After rolling back its DEI programs, the retailer has watched its stock plummet nearly 34% since January, hitting five-year lows while foot traffic has dropped nearly 10%.

When it comes to Pride sponsorships specifically, the data shows lasting damage to brand perception. Among respondents whose companies previously sponsored Pride events but are no longer planning to do so, over 60% said they will either actively avoid the company's products or that it negatively affects their perception.

LGBTQ+ consumers aren't just passive participants in this economic shift — they're active advocates. When companies reduce their support, respondents indicated they would stop buying products (85%), voice concerns on social media (65%), sign petitions advocating for corporate inclusion (70%) and actively support competitors who maintain LGBTQ+ commitments (85%).

This consumer activism creates a unique opportunity for independent LGBTQ+ media outlets. As national corporations pull back from mainstream LGBTQ+ advertising, local businesses seeking to connect with this economically powerful community need trusted platforms to reach them.

Independent LGBTQ+ publications like those in the NGMA network, which collectively reach more than 400,000 readers in print and 1.1 million online, provide direct access to engaged consumers who are actively seeking businesses that support their community.

For Michigan businesses, this represents a chance to build authentic relationships with LGBTQ+ consumers at a time when they feel abandoned by larger corporations. The survey shows that over 90% of respondents are more likely to purchase from companies that both advertise to LGBTQ+ audiences and actively advocate for policies protecting LGBTQ+ rights, even in the face of potential backlash.

Evans warns that corporate retreats from LGBTQ+ support may seem politically expedient now, but they come with lasting consequences. "People remember companies that failed to act properly, and they have long memories, especially when the cause is near and dear to them like their own personal identity."

As Michigan's LGBTQ+ community continues to grow and gain economic influence, the businesses that choose to stand with us today will reap the benefits tomorrow. Those that retreat may find it much harder to rebuild trust once the political winds shift again.

The survey makes one thing abundantly clear: authenticity matters, loyalty runs deep and the LGBTQ+ community is keeping score.

Survey methodology and additional data breakdowns are available from the National LGBT Media Association.