As millennials, or Gen Y, transition out of early adulthood and into the prime of their lives and careers, their share of spending power is poised to increase rapidly. The dollar share of CPG for millennials will increase significantly, from 17% today to more than 29% in 2021. This increase comes with a catch, however, as these millennial spenders face economic challenges that previous generations of CPG buyers didn’t have to contend with.
Since 1996, the average net worth of consumers under 35 has dropped by 35%. Data from Deloitte and other sources point to two major factors impeding millennial spending power: housing and student debt.
According to a survey by the Pew Research Center, 88% of millennials today live in metropolitan areas where rents are high.
Ultimately these increased financial pressures have driven an acute need for value that manifests as an increased focus on reducing costs wherever possible, particularly on groceries.
69% of millennials surveyed by RetailMeNot said they could not make a purchase without first searching for a deal or offer, and 48% said they avoid brands that do not provide offers.
CPG brands are at the forefront of this search for value. The top five categories in which Millennials seek coupons are groceries (93%), cosmetics (69%), clothing (62%), household items (60%), and restaurants (57%).
And while digital coupons often come with their own set of in-store redemption challenges, research suggests that the streamlined process of applying coupons to orders online has broad appeal to millennials.
Millennials, in particular moms, are busier than ever before, yet they’re increasingly feeling the strain of the ever expanding costs associated with the metropolitan areas where they want to live. This presents a significant opportunity for brands to position themselves as a valuable companion for their day to day lives.
Pairing a robust & personalized coupon section with integrated eCommerce functionality on your CPG brand website would hold strong appeal for millennials, positioning the brand as one that appreciates the challenges they face and is committed to helping them save time & money.