10 Things Millennials Buy Far More Often Than Everyone Else
Roughly a year ago, we at Money rounded up a fun list of 10 things millennials won't spend money on—at least not to the same degree as older generations. Cars, cable TV, and Costco were all on the list, as were houses. A freshly released Pew Research Center study indicates that a larger-than-expected percentage of young people are still living with their parents rather than moving out and perhaps buying a place of their own.
Yes, millennials are stingy when it comes to spending in certain categories. Yet even as they aren't following in the footsteps of their consumer forebears in terms of embracing big-ticket items like houses and cars, millennials spend far more freely on certain other items compared to older generations. Here are 10 things they buy more often—sometimes a lot more often—than Gen Xers or Baby Boomers, including a few big surprises.
Gas Station Food
Millennials have been referred to as the grab-and-go generation, with 29% saying that they often purchase food and drink while on the run, compared with 19% of consumers overall. You might think that Chipotle or perhaps Starbucks would be the biggest beneficiary of this habit. But according to the NPD Group, Gen Y restaurant visits are actually on the decline, particularly among older millennials who are more likely to have families. What's more, in terms of drawing millennial food and beverage visits, the fast-casual segment is handily beaten by an under-the-radar retail category: the gas station.
Whereas fast-casual accounted for 6.1% of millennial food and beverage stops in 2014, NPD researchers point out that 11.4% of such visits took place at convenience stores like 7-Eleven, Wawa, Cumberland Farms, and Sheetz, where the hot to-go offerings include salads, wraps, healthy(ish) sandwiches, pizza, and wings alongside old standards like hot dogs and microwaveable burritos. Some even have espresso and smoothie bars, which is probably news to most older folks. "If you're 50 or over, you still think the convenience store is primarily a gas station," the NPD Group's Harry Balzer explained to USA Today.
Patience is not exactly a virtue among consumers who grew up with smartphones and social media. Consumer psychologist Kit Yarrow sums up this mindset as "I want what I want, when I want it," and points to a Shop.org survey indicating that millennials have been twice as likely as other generations to pay extra for same-day delivery of online purchases.
Earlier this year, the New York Times took note of a surge in same-day delivery, in particular among services supplying alcohol directly to the customer's door. "It has not hurt that millennials, who are used to ordering food for delivery on their smartphones, have come of legal drinking age," the Times noted.
Sriracha is everywhere. It is spicing up potato chips and croutons, adding some extra kick to Heinz ketchup, and offering a strange twist at Pizza Hut. Heck, it's even in beer. And the overwhelming reason Sriracha is ubiquitous is that it's evolved into the go-to condiment of the all-important millennial demographic. More than half of American households now have hot sauce on hand. Sriracha specifically is stocked in 9% of them—and in 16% of households headed by someone under age 35.
The hot sauce craze has translated to a constantly changing roster of ultra-spicy items on fast food menus. Part of the reason that millennials prefer spicier foods is that they were exposed to different tastes at fairly young ages. “Millennials like hot, spicy foods because of their experience with more ethnic foods, like Hispanic and Asian,” said Kelly Weikel, senior consumer research manager at Technomic.
This past spring, an odd extension for Google Chrome was desisnged to allow users to sub the phrase "snake people" in the place of "millennials" on screens. It was a fun goof that now seems like ancient history. But it turns out that millennials really are snake people, in the sense that they have more interest than other generations in buying and keeping snakes—and all reptiles—as pets.
“This age group, 15-35 years old, is the generation that is most active in reptile keeping and searching for related material online," Keith Morris, national sales manager for the reptile product site ZooMed.com, told Pet Age last summer. Data collected by Pet Age also indicates millennials are more willing to splurge on their pets with luxuries like custom beds: 76% said they'd be likely to splurge on pets rather than themselves, compared with just 50% of Baby Boomers. Yet another survey indicated that millennials are far more interested than Boomers and Gen Xers in pet healthcare as a job benefit. So the big takeaway is: Millennials really love pets in all shapes, sizes, and species.
The demographic that overwhelmingly gets the credit for yoga pants replacing jeans as the mainstream go-to casual bottom of choice (and even coming to be seen as legitimate work clothes at the office) is of course the millennial generation. Yoga pants, hoodies, sweatpants, and other leggings are lumped into the "athleisure" or "leisurewear" clothing category, which has been most warmly embraced by millennials—and in turn inspired retailers ranging from Ann Taylor to the Gap to Dick's Sporting Goods to ramp up their selections of women's exercise wear that's not necessarily for exercise.
"When I look at athleisure bottom business—the yoga pant, sweat pant, sweat short—it has displaced the jean business one to one," NPD Group retail analyst Marshal Cohen said recently. Sales of such clothing rose 13% during a recent 12-month span, and now represent roughly 17% of the entire clothing market, according to the market research firm. "For every jean we are not selling or used to sell we are selling an athleisure bottom. It has become as important to the market as denim would be."
Side note: Yoga pants aren't the only skin-tight garment getting a boost from millennials. During the 12-month period that ended in May, spending on women's tights was up 24% among millennials, who now account for 45% of all sales in the category.
According to a Gallup poll conducted last summer, 45% of Americans actively seek out organic foods to include in their diets. Millennials are a lot more likely than average to feel that it's important to go organic, however, so the preferences of younger consumers skew the overall average up. Whereas only 33% of Americans age 65 and older actively try to include organic foods in their diets, 53% of Americans ages 18 to 29 do so.
Tattoos & Piercings
It's been estimated that 20% of Americans—and nearly 40% of millennials—have at least one tattoo. Surveys conducted for Pew Research several years ago indicated that about 30% of millennials had piercings somewhere other than their ears, which is six times higher than older Americans.
Despite the growing acceptance of tattoos simply by way of them becoming mainstream, millennials remain somewhat cautious about getting one because it could hurt their chances of being hired. Or at least they're careful when deciding the placement of a tattoo. In a recent University of Tampa poll, 86% of students said that having a visible tattoo would hurt one's chances of getting a job. It's understandable, then, that 70% of millennial workers with tattoos say they hide their ink from the boss.
American parents, likely exhausted by nighttime feedings, hectic schedules, and such, understandably feel the need to resort to energy drinks. A recent Mintel survey shows that 58% of U.S. households with children consume Red Bull, Monster, or other energy drinks, compared to just 27% of households without kids.
Meanwhile, millennials are even more likely than parents in general to throw back energy drinks: 64% of millennials consume them regularly, and 29% of older millennials (ages 27 to 37, who are more likely to be parents themselves) say they've increased the number of energy drinks they consume in recent months.
Donations at the Cash Register
Some shoppers feel annoyed and put on the spot when a store clerk asks if they'd like to make a charitable donation while ringing up a purchase at the cash register. This isn't the case with the typical millennial, however.
According to a report from the consultancy firm the Good Scout Group, of all generations "Gen Y likes being asked to give to charity at the register the most." What's more, millennials say that they donate at store cash registers more often than any other generation, and they also felt "most positively about charities and retailers once they gave."
More so than other generations, millennials have demonstrated a distaste for mass-market beers and spirits—and a preference for the pricier small-batch booze. In one survey, 43% of millennials say craft beer tastes better than mainstream brews, compared to less than one-third of Baby Boomers. As millennials have grown up and more and more have crossed the age of 21, craft beer sales have soared at the same time that mass-market brands like Budweiser and Miller have suffered. A Nielsen poll showed that 15% of millennials' beer money goes to the craft segment, which is impressive considering the limited buying power of this college-age demographic. By comparison, craft brews account for less than 10% of money spent on beer by Gen X and Baby Boomers.
Millennials are also given an outsize share of the credit for the boom in craft spirits over household brands handled by the big distributors. As with craft beer, researchers say that millennials like craft liquors partly because it's easier to connect to the back story of the beverages, and there's an air of "inclusive exclusivity" and uniqueness about them. For that matter, millennials seem to care more in general about liquor brands. In one survey, 64% of millennials said that including the brand of spirit in a menu cocktail description was important or very important, compared to 55% of Gen Xers and 50% of Baby Boomers who felt that way.