Millennial Consumers To Reshape US Economy
Millennials, defined as those born between 1980 and 2000, are quickly becoming a major influence on the United States economy. By 2030, they could account for 75 percent of the nation's workforce.
The impact the millennials have on the economy is due in large part to the changes they are experiencing. For example, in the last three years alone, millennials have begun to take fewer student loans as they complete school, enjoying greater amounts of disposable income, and shopping online with greater frequency.
These changes create specific spending habits that are unique to millennials. For example, millennials are purchasing more of certain goods and services than are other generations.
Industries that are set to benefit from millennial consumption patterns include the following:
- Social media: Half of millennials use social media to decide where to spend money on experiences.
- Streaming: 88 percent of millennials subscribe to a streaming service such as Netflix.
- Healthy living: Millennials often embrace healthy and organic living.
- Athleisure: This is now the biggest clothing-related category in the United States.
- Real estate: Homeownership in the United States, and related spending, is growing.
- Online shopping: The e-commerce industry is growing steadily.
- Technology: Millennials (75 percent) frequently use their mobile devices to conduct financial transactions.
- Travel: One-third of millennials are willing to spend at least $5,000 on a vacation.
Because of the impact millennials will have on the economy in coming years, investors can benefit from investing in businesses that are set to benefit from millennials' spending habits. Check out our millennial investment ideas.