Industries That Are Now Thriving Because Millennials Have Taken An Interest In Them
The millennial generation aka generation 'ME' is often bombarded with various stereotypes like being under-employed and fiscally irresponsible. We also see media coverage on many industries like chain restaurants and beer that have collapsed because of millennials. However, while some industries have failed to adapt to the changing business models, there are other industries that have thrived due to millennial demand.
The millennial generation has allowed companies in various industries to act as disruptors and change the current landscape. They have acted upon the needs of millennials like the need for greater experiences over material things that have led to their success. Here are the top industries that are thriving thanks to millennials.
Camping Gear Sales Have Increased by $2.5 BN
The millennial generation is all about spending money on experiences and one industry that has benefitted from this trend is camping. As millennials have kids, they are interested in spending more time in nature and taking camping trips with their families. This demand has led to an increase in camping gear sales by $2.5 BN in 2018.
America is home to more than 500 camping grounds that have seen an influx of millennials in recent years. A major reason for this can be attributed to the fact that many millennials have entered their prime spending years and looking for budget-friendly recreational activities to enjoy with their families.
The Fitness Industry Has Experienced A Big Push
Self-care is now more important than ever and the millennial generation ensures that they take time to lead a well-balanced life. One industry that has seen the effects of this self-care fad is the fitness industry. More millennials are likely spending big money when it comes to gym memberships in comparison to Gen X and baby boomers.
The reason for the success of the fitness industry is also partly because millennials are more motivated to stay in shape than their predecessors. However, this demand is not just for large chain-gyms like LA Fitness or Gold's Gym but also for boutique studios that offer more personalized classes. The number of fitness studios has increased significantly over the past few years.
Millennials Love To Travel
Millennials want greater experiences and this has led to a thriving airline industry thanks to millennial demand. This generation wants to fill their lives with meaningful travel experiences instead of material objects. Hence, customized travel platforms that offer affordable tickets while cutting out the middle man are booming.
Travel has become a way of life for many millennials and studies show that many of them are more inclined towards saving money for their next trip instead of paying off debt or building an emergency fund. However, these travel experiences do not include high-end experiences but rather more budget-friendly options for a more authentic experience.
Fast Dining Is A Huge Draw For Millennials
Many restaurants in the dining industry, especially large restaurant chains, were forced to shut down amidst dropping sales. A major reason for this was the lack of demand for the millennial generation that prefers to eat on-the-go or order in rather than go out for dinner. This is a reflection of the fast-paced lives this generation leads.
This change in dining habits has led to an increase in demand for fast-casual dining. These are eateries that offer healthy food options while offering a comfortable dining experience. Chipotle, Shake Shack and Five Guys are examples of a few restaurants that meet millennial dining needs.
Coffee, Coffee, Coffee!
Like their predecessors, millennials also consume a lot of coffee. The only difference is that this generation consumes coffee at a much younger age- around 15 years old. Millennials make up 44 percent of the demand for coffee in the U.S. But while the amount of coffee they consume hasn't changed, the type of coffee they drink has.
In contrast to the traditional brew, millennials prefer cold brew and coffees made from ethically sourced beans and sustainable practices. This has led to the various boutique coffee chains that are capitalizing on this demand. They also offer a range of coffee options for millennials 'on-the-go.’
The Frozen Food Industry Will Be Worth Over $290 Billion
The millennial generation is all about convenience. This applies to various aspects of their lives from travel to food. With convenience as a driving factor in food consumption, the demand for frozen foods has increased significantly over the past few years. Research shows that the frozen food industry will be worth over $290 B by 2021.
The main reason for the increase in frozen food demand is that it is quick and easy. It's also an affordable option in comparison to other foods. Millennials spend 9 percent more on frozen food that any other generation. As this generation is burdened with student debt, frozen foods are an attractive option.
Seltzer
The millennial generation values food products that are healthier and more eco-friendly. This means that they are not big on sugary drinks like Coke. Many large fizzy drink producers are now looking to offer healthier options. This has led to a demand for carbonated drinks like La Croix and Seltzer that are healthier and more convenient.
With the growing popularity of low-carb drinks, large manufacturers are looking to offset their losses by jumping on this new trend. In 2017, Coca-Cola bought Topo Chico, a Mexican Seltzer brand. Investors have also noticed this trend and in 2018 nearly $152 M was in sparkling water and seltzer companies.
The Skincare Industry Is Growing
Millennials' need for eco-friendly products doesn’t just include food but beauty products as well. With a greater emphasis on conscious spending, many brands have seen an increase in demand for sustainable skincare products. Companies like Glossier have responded to this need by being incredibly transparent about what goes into their products.
This demand is also driven by social media which has helped brands reach a wider audience base. In fact, millennials are 3x more likely to buy a product if they heard about it on a social media platform. For example, the number of views on YouTube beauty videos increased by 60 percent between 2016 and 2017.
Houseplant Sales Have Increased By 50%
The millennial generation is known for being environmentally friendly and this has led to more members of this generation buying more plants for their home. This is especially true for indoor plants as a majority of millennials live in apartments. Research shows that the demand for houseplants has increased by 50 percent over the past three years.
This demand is also driven by this generation's desire to create a more holistic and urban living space. Additionally, many rental apartments don’t allow for too many permanent changes so houseplants provide the perfect opportunity to add a personal touch.
Their Interest in Personal Finance Helped Grow The Industry
The millennial generation is burdened with more student debt than any of their predecessors and are often labeled as being fiscally irresponsible. But although this generation is faced with a high cost of living, they are still making sure to spend and save wisely. In fact, this generation prioritizes personal finance more than the previous generations.
One tool that has helped millennials manage money better is technology. There are numerous apps and tools that help this generation budget and spend their money in the most optimal way possible. This is in addition to the various personal finance blogs and money podcasts that offer a wealth of information on money management. This has led to an increase in demand for the personal finance industry.
The Automotive Industry Is Selling More Small Cars
Although the millennial generation may be more environmentally friendly and ensure they keep carbon emissions to a minimum, this has not reduced their demand for cars. This demand can be attributed to the fact that this generation wants to be more in control of their lifestyle. In 2018, there was an increase in car sales due to millennial demand.
While there is still a demand for cars, the difference lies in the type of cars that millennials prefer. They like smaller cars that are more efficient along with a strong preference for foreign-made cars like Honda, Nissan and Toyota.
Micro-mobility Is A New Trend
In addition to efficient cars, millennials also prefer modes of transportation that are eco-friendly and accessible. This has led to an increase in demand for micromobility vehicles. This is prominent in large metropolitan cities where millennials are looking for ways to get to their destination in the quickest way possible.
Micromobility includes ride-sharing apps like Uber and Lyft and bike-sharing companies like Lime and Bird. These companies have become incredibly popular in recent years because they are easy to use and environmentally friendly. There are 100,000 e-scooters available across 100 cities in the U.S.
80% Of Millennials In The U.S. Spend On Live Entertainment
In recent years, there has been a decline in the music industry in terms of album sales. But while millennials are no longer buying albums, they prefer to listen to music in a different way- live concerts. Since 2006, the price of the average concert ticket has increased by $13.
A survey showed that 73 percent of millennials were willing to spend money on live concerts, this is much higher than baby boomers where only 55 percent said they would spend money on a concert. According to Eventbrite, 80 percent of millennials in the U.S would attend at least one concert.
They're Utilizing Public Libraries In A New Way
While physical books may be a dying industry with reading apps like Kindle, millennials are still making use of public libraries. They offer a great spot to study along with free WIFI, making it an ideal place to hang out with friends.
Although most millennials don't check out books from their local library in person, there is still a demand for online book checkouts. There is also a demand for the free e-books available on the library’s website. Nearly 4 out of 10 millennials check out books online from their public library.
Learning Platforms Are Getting A Boost
The millennial generation is always looking to learn new things and gain new skills. This could either be to improve their skills for work or fulfill a hobby. Many millennials say that gaining new skills will not only give them an edge at work but will also provide work-life balance.
This has led to an increase in demand for numerous online learning tools and apps like Duolingo and YouTube. Millennials prefer to spend their free time learning something new like pottery, dance or cooking and are willing to spend more money on this.
They Also Use Public Transport
The millennial generation uses public transport a lot more than their previous generation. This demand can be attributed to the fact that the cost of living today is much higher than it was in previous years, making public transport an attractive and affordable option.
Secondly, many millennials live in the city and not the suburbs where public transport is widely used and offers great connectivity. In addition to this, millennials also care about the environment and prefer to use public transport as it does not contribute to air pollution as much as cars.
Non-linear Companies Are Growing At A Fast Rate
Millennials like to consume goods and services that suit their personal tastes and want to consume this content at their own pace. This has led to a demand for non-linear companies that have unique business models that cater to the needs of this generation.
Companies like Netflix and Hulu have become incredibly popular in recent years. Unlike cable television, these platforms allow subscribers to watch shows in their own time and also suggest movies and shows based on their viewing preferences.
They're Beginning Lay Roots In Real Estate
As the unemployment rates decrease, more millennials are buying homes. This also has to do with the fact that most millennials are moving into the phase of their lives where they are getting married and buying homes. This has led to a boost in the housing market as more millennials want to buy homes.
While there is also evidence that suggests that millennials don't want to buy homes and prefer to stay mobile, many researchers also say that millennials do want to put down roots eventually. This has led to a demand for numerous real estate companies.
Millennials Prefer Craft Beer
In recent years, There has been a decline in the sale of regular beer but this is offset by an increase in demand for craft beer by millennials. The sale of craft beer increased by 7 percent in 2018 and now makes up one-quarter of the beer sales in the U.S and has increased by 40 percent in five years.
Millennials prefer craft beer to regular beer because these beers are made by smaller breweries that cater to the tastes of this generation. They prefer beer that is locally made because it also lets them support smaller, independent brewers.
Millennials Can't Get Enough Snack Food
There has been a decrease in demand for numerous products in the food industry like cereal, gum and soda but one product that has seen a boost in sales due to millennials is snacks. This generation prefers to eat small meals throughout the day instead of three large meals which makes snacking a huge part of their diet.
Research shows that the snack industry is expected to become a $50 billion industry by 2021 and millennials are more likely to snack between breakfast, lunch and dinner. They are also into late night snacks which have led to a demand for fast-casual meals as well.
