Millennials are the largest digitally indigenous age group, and they’ve overtaken baby boomers as the largest adult population in America. Millennials range in age from 24 to 39, meaning that many have settled down with careers, homes, and a ton of bills to pay. Their buying power is indisputable: It’s estimated that by 2030, the combined annual incomes of millennials universally are expected to exceed 4 trillion dollars. These figures have retailers doing a double-take; While millennials present a huge marketing opportunity, they have high prospects of brands and low regard for marketing, forcing brands to create new tactics.
Fascinating Statistics About Millennial Spending Habits
- Millennial shoppers spend $600 billion in the United States yearly.
- Millennials’ average yearly expenditures total around $47,112, demonstrating their prime spending years.
- The average income per year is $56,099 before taxes, displaying prime earning as well.
- 49% of millennials say they use ad blockers on their computer, while 31% claim they use them on their smartphone.
- 61% of millennials share their logins to streaming content online, and 64% use their personal connections with someone to access an account.
- 76% of millennials do not feel capable of achieving personal and financial goals due to debt, despite the fact that they are seen as a financial powerhouse generation.
Typical Millennial Spending Habits and How They Spend Their Money
In this part, you’ll find out how many millennials purchase online, what they buy most of all, and more.
1. 54% of millennials are more likely to make purchases online
(Source: MarTech Advisor)
A key part of marketing includes bringing product quality up to the point where customers gather. When it comes to millennials, well, they’re online. MarTech Advisor says that 54% of millennial grocery shoppers make online purchases. If your brand targets millennials, it’s imperative to be noticed online.
2. Millennials spend 60% of their income on luxury items, making it important to engage millennial consumers
(Source: Charles Schwab)
Millennial consumers acknowledge that they are prepared to pay more for items that are trendy or one of its kind. Charles Schwab states that in one study, 60% of millennials decided to buy a coffee that was more than $4, in contrast to just 29% of baby boomers.
3. 72% of millennials are spending money on technology and fashion for fun
(Source: Charles Schwab)
Millennials are more likely to spend more money than necessary on new gadgets and clothing. In Charles Schwab’s Modern Wealth Index, 76% of millennials stated that they would spend money on novel technology products; 69% reported that they’d buy clothes they didn’t actually need. These insights help signal to brands what millennials are truly engrossed in, which can be used to concentrate on future strategies.
4. 67% of millennials are worried that their personal financial data from online companies may get hacked
As a connected generation, millennials are primarily the ones involved in online purchasing. With convenience and price in mind, online outlets offer additional value to millennial shoppers. In recent years, millennials have grown to be more concerned about security when carrying out transactions online; 40% of millennials refer to reviews and testimonials before buying any product, with the number being even higher when they’re specifically purchasing products online.
Who Are Millennial Consumers?
Let’s find out more details about millennial’s buying habits, decision making, where their loyalties lie, among other things.
5. 57% of millennial women consumers base their purchase decisions off of a brand’s values and positions on issues
(Source: Business Wire)
In the United States alone, women make up $170 billion in buying power — which is 85% of the total buying power of millennials. Understandably, social responsibility matters to them immensely. As a brand, it’s imperative to clearly identify what morals matter to your corporation and convey those statements to your audience in an attentive, authentic way.
6. Millennial statistics show that 50% of positive customer service encounters play a factor in loyalty to brands
(Source: Morning Consult)
We all know that in the era of social media, one well-placed Tweet can negatively impact a brand’s foundation, which is terrifying. If you work in the direction of ensuring positive care experiences for all clientele, though, you can build up goodwill from your customers.
7. 70% of millennial consumers trust strangers, not brands
We also know that brand loyalty is imperative for businesses. When a customer is loyal to your company, that dedication can bring consumer advocates from the wild to attract attention. Brands have the potential to build a great deal of loyalty with this method.
8. 60% of millennials state that they have held relationships with particular brands for up to 10 years
The average millennial is 30 years old, meaning that the bulk of them developed relationships with brands in their teens or early twenties. Building long-lasting relationships with millennials is extremely important, and the following is an example of why you need millennial consumers.
9. Trends of millennials consumers show that 70% will go out of their way to buy from a brand they consider loyal
Millennials are noticeably different from other age groups; Their purchasing choices aren’t just about the merchandise service, or the effortlessness of purchasing. Just about three-quarters of millennials will allocate their time and energy to shopping from a specific company which they feel is truly stable, building loyalty.
10. 55% of millennials’ consumer interests show that they like when brands offer rewards online, as opposed to just conventional rewards
Millennials favor brands that offer a unique value for their money with great customer services. Even though many brands see millennials as a downturn for business, 60% of millennials stay loyal to brands they procure from. Millennial facts also refer to the importance in giving back to the community, as they look forward to companies they follow doing the same. As millennials like experiences over belongings, they heavily weigh a brand’s customer experience into their opinion, which is a new customer centric experience.
Addressing Millennial Consumers On Social Media
Now, take a look at the numbers regarding millennials on social networks.
11. 49%of millennials use ad blockers on their computer, and another 31% have one on their smartphone
(Source: Retail Dive)
All in all, millennials are receptive to advertising if it’s relevant. On the other hand, the meddling nature of some ads leads to the use of blockers online. Although the bulk of millennials use ad blockers while they shop online, they still are amenable to some marketing ads. Many prefer in-feed advertisements so long as they do not interrupt the overall shopping experience of a website.
12. Millennial generation statistics show that on average, they spend 211 minutes on apps or the Internet daily
(Source: Hello World)
Since millennials tend to prefer online entertainment over cable television, advertising has become personalized to be more specific. With the rise in popularity of social media advertising and influencer marketing, these are becoming new customs for brands.
The following numbers will inform you about millennials’ debt, and student loan debt, which is a current problem for many.
13. In Q2 of 2019, student loan debt for borrowers between 25 to 34 reached $497.6 billion
Millennials spending statistics show that they are profoundly hampered with debt from student loans. This is primarily due to the fact that many borrow large sums of money to pay for education and they don’t always choose the best credit cards young adults to have access to. Millennials carry almost $500 billion in student loan debt.
14. Over 50% of millennials say their student loan debt defers their ability to save for a home
Negative assets leave a hefty impact on millennials’ spending power in 2021 as homeowners. Over 50% have said huge financial amounts owed significantly delay their capability to save for a future home.
What Do Millennials Spend Their Money On?
What they buy more than other generation groups, and what is the most important thing they would buy, you’ll find out in the statistics below:
15. Millennials spend the most on comforts and conveniences
- 60% of millennials would splurge more than $4 on a single coffee
- None of them are spenders and will not pay a little extra to eat at the hip restaurants in town
- 69% of millennials buy clothes just for fun or popularity
- 29% of Generation X and 15% of boomers spend money on taxis and Ubers, while over 50% of millennials do
16. Millennials spend more per year on
- Grocery stores
- Hobbies, electronics, and clothing
17. At the same time, millennials are spending less than older generations on
- Furniture/building materials
(Source: Gui Costin)
The magnitude of millennial spending habits and their combined buying supremacy is impossible for marketers not to pay no attention to. To catch the attention of this highly-educated and dubious generation, brands need to work harder than ever to connect with audiences on a high level.