Investments and savings When it comes to investments and savings, millennials are more likely to invest in mutual funds and equities while their parents stuck too traditional investment instruments. Gen X had long-term goals hence their investment horizon and instruments were long-term as well. Millennials, however, prefer to delay getting married and start a family.
They would rather focus on short term spends on cars, vacations, electronic gadgets and smartphones. That is the reason why they prefer investing in stocks and mutual funds. Majority of people who open Demat accounts in India are also within the millennial age group of years. Spending on food Millennials are the ones responsible for this sudden spurt of food delivery start-ups across the world as they love the convenience and spend less time in cooking.
It is also said that Gen Y loves to dine out at restaurants more than any other generation. Millennials love to shop online because they hate spending an entire day to buy a pair of jeans. In metro cities, you have to jostle through traffic, stand in long queues at the checkout counter just to make a few purchases at a mall. Your email address will not be published.
Save my name, email, and website in this browser for the next time I comment. Table of Contents. Millennial spending habits are, well… …different from those of Baby Boomers. Millennials are next in line to become the most essential spenders on the market. Half of millennials are regular donors. Image source: Apartment List 2. And how much are they willing to pay for a cup of coffee?
Source: 5WPR Well over half of the generation have bought something spotted on social media. Source: McKinsey In , millennials surpassed baby boomers as the largest living generation in the US. They are budget-conscious risk avoiders who rely heavily on recommendations. They follow the latest trends and may even pay more to be among the first to receive a new or innovative product.
They are willing to overspend to receive high quality. Source: McKinsey Apparel is yet another category where millennials are outspending other cohorts. Source: Bankrate Less than half of millennials have a rainy day fund or one that could cover a minimum of three months of their living expenses.
Source: Schwab Though millennial consumers like to splurge, one-third of them are responsible in terms of financial planning. Source: Statista This generation prefers shopping from the comfort of their own homes. Free delivery would convince almost half of millennials to make a purchase. Source: Global Web Index Online retailers that want to reach this cohort should consider offering free delivery.
Millennial men working from home spend more on online shopping than millennial women. Source: CBInsights The buying habits of millennials continue to drive innovation in the skincare industry. Source: EY Currently, this is the generation of Uber and taxi services consumers.
Source: YPulse Millennials are a generation of pawrents. Image source: YPulse Millennials are price-sensitive and eager for healthy, fresh food options, and they crave choice in their restaurant experiences. Fast casual restaurants from Chipotle and Subway to Shake Shack and Five Guys are largely designed with these preferences in mind, with fast ordering and app-powered pickup and delivery as basic pillars of their model. The fast casual industry has also seen a wide proliferation of varied cuisines and tastes.
Traditional dining and fast food chains looking to update their offerings for Generation Y need to consider not just their prices and menus, but also how they can integrate with technology, the degree of personalization they offer in their meals, and their approach to health.
Chipotle pioneered the trend toward the fully customized fast casual meal with its made-to-order burritos and bowls. Chains like Blaze Pizza are following in its footsteps: at Blaze, customers can fully customize their pizza and have it cooked in front of them in just 3 minutes. As consumer food preferences evolve, Fatburger experimented with offering a plant-based burger in and found millennial customers were willing to pay more for the higher-quality product.
Other chains have also been quick to respond to heightened interest in plant-based meat alternatives. Burger King , Cheesecake Factory , Red Robin, and Qdoba are just some of the nationwide chains that have introduced plant-based meat products from Impossible Foods.
Technology also plays an important role in the fast casual industry. From Starbucks to Panera , chains are embracing mobile ordering and in-store pickup to attract a busier, millennial audience.
Meanwhile, Burger King and Chipotle have dedicated drive-thru lanes for online orders. Many restaurants are now offering menus via QR codes, in-app table service, and other technology-centric options for diners.
However, more traditional casual dining may get a boost as more millennials have children. A challenge for the fast casual dining restaurants of tomorrow will be building establishments that can be equally family- and kid-friendly without sacrificing the key factors that make them appealing to millennials today. Like Generation X and the baby boomers before them, millennials drink a lot of coffee.
They also started drinking coffee much younger — on average, around 15 years old. After several years of declining sales among most age groups, millennial consumers are the vanguard of a resurgence in the coffee industry. Instead of store-bought and pre-packaged coffee, millennials are seeking out cold brew and other specially prepared beverages, as well as ethically sourced, sustainable, and gourmet products.
Millennials are also gravitating away from hot coffee toward canned cold brew and nitrogen-infused beverages. The can format is convenient for on-the-go consumers, while different flavors and styles offer a range of options for choosy customers. Many Gen Y consumers are at least somewhat knowledgeable about their coffee, favoring brands committed to fair trade and environmentally sustainable growing practices.
Many Gen Y consumers are exploring alternatives to traditional dairy products in their coffee and flocking to retailers catering to this demand. Oat milk, in particular, has seen strong growth among millennial consumers seeking alternatives to dairy milk. Demand for premium coffee is unlikely to diminish in the near future, creating favorable market conditions for incumbents and new entrants alike.
With the ever-increasing amount of choice in the coffee space, manufacturers need to look to differentiate their offerings if they want to attract millennial attention — and they have a wide range of strategies to do so, from adding additional caffeine to promoting ethical or sustainable sourcing to experimenting with new ingredients like protein powder, nootropics, and CBD. Frozen foods might be convenient, but until recently, they were not typically associated with healthy eating or seen as a desirable alternative to freshly prepared meals.
In , the total volume of frozen foods sold in the US increased for the first time in 5 years, driven largely by millennials and consumers with children. In , with much of the world stuck at home because of the Covid pandemic, sales of frozen food soared. Baby boomers, women, and single individuals accounted for significant increases in frozen food sales, but older millennial consumers remain the largest consumer market for frozen foods.
Gen Y has a professed appreciation for convenience and eating on the go, and frozen foods can be a fast and affordable alternative to ordering delivery or going out to eat. Economic factors may also be contributing to this shift. For millennials burdened with stagnating wages and significant student loan debt, affordable frozen foods have become increasingly appealing. Another factor at play is the surge in the availability of healthy frozen foods. Traditionally, frozen food options have not been highly diverse or healthy in their offerings.
Frozen food manufacturers are racing to capitalize on the popularity of plant-based diets among millennials. While plant-based diets have gained in popularity among baby boomer and Gen X consumers, millennials have adopted new dietary habits much more readily. Source: Wikimedia Commons. Millennial consumers also expect frozen foods to be higher-quality than they were in the past.
For example, Conagra Brands , which owns the Banquet brand of frozen ready meals, doubled down on product quality following a management shake-up in to meet heightened consumer expectations. Other brands have emerged to capitalize on the gourmet frozen food trend, including Frozen Foodies, which offers cryogenically frozen meals prepared by professional chefs using gourmet ingredients. Meanwhile, Buttermilk focuses solely on pre-made Indian meals that can be reheated in the microwave at home and served immediately.
Daily Harvest offers a frozen smoothie and bowl subscription delivery service and advertises heavily to millennials on Instagram. Wider selection, higher quality, and more competitive pricing are all likely to drive frozen food sales in the near future. Sales of sugary carbonated drinks have been on the decline for years, with many of the largest soda manufacturers going back to the drawing board as consumers turn toward healthier alternatives.
The beverage industry has been quick to respond to these trends. Sparkling waters, in particular, have proven remarkably popular with health-conscious consumers. Newer entrants such as bubly, a PepsiCo brand launched in , have quickly achieved similar sales totals as established legacy brands, suggesting there may yet be room for new sparkling water products to meet heightened consumer demand.
Like PepsiCo, several other major drink manufacturers have diversified their product offerings to include flavored seltzers, often adopting an acquisitive approach. Coca-Cola also offers sparkling water beverages through its Dasani and Smartwater brands. PepsiCo owns Izze , a range of juice-seltzer blends, as well as bubly and SodaStream.
However, as a percentage of spending, Gen Xers allocate the least, about 1. In fact, alcohol and tobacco spending is the only category of the 11 we looked at for which Gen Xers allocate the least of their spending of the three generations.
Tobacco products and smoking supplies include cigarettes, e-cigarettes, cigars and smoking accessories. The breakdown in spending between alcohol and tobacco is also similar across generations; spending on alcoholic beverages is about 1. Personal insurance and pensions spending include post-tax income spent on life, endowment, annuities and other personal insurance and retirement, pensions and Social Security. The BLS found that over the past year personal insurance and pensions spending increased the most of any major category, rising by 7.
The remaining spending for each generation falls under the two BLS categories of cash contributions — cash contributed to persons or organizations outside of the consumer unit — and miscellaneous — which includes several subcategories such as bank service charges and credit card memberships.
We estimated the average annual savings for each generation by subtracting total annual spending in the 11 defined categories from post-tax income. Baby boomers had the lowest savings rate of about 6. Millennials fell in the middle with a savings rate of 9. It is important to note that spending on pensions and Social Security , a subcategory of personal insurance and pensions, may also be counted as savings.
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