coming of age
One of the largest generations in history is about to move into its prime spending years. Millennials are poised to reshape the economy; their unique experiences will change the ways we buy and sell, forcing companies to examine how they do business for decades to come.
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A larger Cohort
The Millennial generation is the biggest in US history—even bigger than the Baby Boom.
The first digital natives
Millennials have grown up with the internet and smartphones in an always-on digital world.
- Millennials
- Gen X
- Boomers
"Which online activities do you regularly do for fun and entertainment?"
Source: Prosper Insights & Analytics for the Media Behavior and Influence Study
Social and connected
The online world - and social media in particular - have given the Millennials a platform to reach the world.
"After searching online, how do you communicate with others about a service, product, or a brand?"
Source: Prosper Insights & Analytics for the Media Behavior and Influence Study
Less money to spend
Lower employment levels and smaller incomes have left younger Millennials with less money than previous generations.
Mean income for 15–24 year olds as a % of total population
Source: Bureau of Labor Statistics
Encumbered with debt
Student loan payments are taking up a growing chunk of postgraduate Millennials' income.
Mean Student Loan Balance for 25 year olds, in US Dollars
Source: Federal Reserve
different priorities
With less to spend, they're putting off commitments like marriage and home ownerships.
% of adults 18-31 married and living in their own household
Source: Pew Research Center,
Current Population Survey
Snug in the nest...
A growing number of Millennials are choosing to live at home with their parents.
% of 18-34 year olds living with parents
Source: IPUMS-CPS, IPUMS-USA and
Goldman Sachs Global Investment Research
- Current Population Survey
But waiting to fly
An overwhelming percentage of Millennials say they want to own a home sometime in the future.
% of renters who plan to buy a home some day
Source: Trulia
Marriage can wait
The percentage of young people married and living on their own has dropped by more than 50% since the 1960s.
% of 18-31 year olds married and living in their own household
Source: Pew Research Center,
Current Population Survey
Putting off parenthood
Millennials aren't just putting off marriage. They're also waiting longer to have children.
- 1970s
- 1980s
- 1990s
- 2000s
- 2010s
% of women having children by age
Source: IPUMS-CPS and Goldman Sachs Global Investment Research
Never say never
Millennials may be putting it off, but polls have shown they do want to have their own families some day.
Source: Pew Research Center
The Hierarchy of needs
The must-haves for previous generations aren’t as important for Millennials. They’re putting off major purchases—or avoiding them entirely.
- 15% Extremely
Important - 25% I might purchase
one if I really need it,
but indifferent otherwise - 5% I do not feel
strongly about it
- 30% I do not intend to
purchase one in
near future - 25% Important,
but not a big priority
- 10% Extremely
Important - 10% I might purchase
one if I really need it,
but indifferent otherwise - 25% I do not feel
strongly about it
- 30% Important,
but not a big priority - 25% I
do not intend to
purchase one in
near future
- 15% Extremely
Important - 15% I might purchase
one if I really need it,
but indifferent otherwise - 20% I do not
feel
strongly about it
- 30% Important,
but not a big priority - 20% I do not intend to
purchase in
near future
- 7% I might purchase
one if I really need it, but indifferent otherwise - 8% I do not feel
strongly about it - 15% Do not intend to
purchase in
near future
- 40% Extremely
Important - 30% Important,
but not a big priority
"How important is it for you to own the following?"
Source: Goldman Sachs Fortnightly
Thoughts intern
survey, 2013
The Renter generation
A growing percentage of older millennials are choosing to rent, not buy.
Renters as a % of total population, 25-34 years
Source: Organization for Economic Co-operation and Development
Beyond the brand
When marketing to Millennials, a strong brand isn't enough to lock in a sale.
- Strongly agree
- Tend to agreee
- Tend to disagree
- Strongly disagree
- Don't know
"When I shop, I always try to buy branded products"
Source: Ipsos MORI Global Trends 2014;
[16k
respondents across 20 countries]
Clicking to Buy
Unsurprisingly, the generation that lives online, buys online.
Purchased something on the internet the last 12 months, UK
- 16-24
- 25-34
- 35-44
Source: Office for National Statistics, United Kingdom
Searching for Value
Quality is still key for Millennials, but price is a more important factor than it is for other generations.
"What factors make you loyal to a brand?"
- Millennials
- Non-Millennials
Source: AIMIA Inc. "Born this Way: US Millennial Loyalty Survey" ©2012
Defining Healthy
For Millennials, “healthy” doesn’t just mean “not sick.” It’s a daily commitment to eating right and exercising.
- Millennials
- Gen X
- Boomers
"What's your definition of healthy?"
Source: What's Your Healthy Survey, Aetna 2013
Smoking and drinking
As young Millennials pursue wellness, they’re turning away from unhealthy habits like drinking and smoking tobacco.
“Do you disapprove of people [who are 18 or older] doing the following…?"
Source: monitoringthefuture.org
Fitness Focused
How important is wellness to the Millennials? As their consumption in other areas drop, they’re willing to pay more for athletic gear.
- Athletic Brands
- Total industry [PCE]
Year-over-year sales growth of athletic apparel and footwear brands vs growth in total apparel and footwear spending
Source: Company data, Personal Consumption Expenditures [PCE] from Bureau of Economic Analysis, Goldman Sachs Investment Research