Shopping: Gen Z and Millennials Are Redefining What Items Are ‘Necessities’ Amidst Economic Uncertainty
- InsightTrendsWorld
- May 6
- 5 min read
Why it's trending
Economic uncertainty: The cost-of-living crisis and economic uncertainty have led to a shift in consumer behavior, with young Americans prioritizing experiences and nonessential items over long-term savings.
Changing consumer priorities: Gen Z and Millennials are redefining what items are considered 'necessities,' with a focus on experiences, hobbies, and interests.
Growing importance of emotional well-being: Consumers are seeking ways to prioritize their emotional well-being, including spending on experiences and activities that bring them joy.
Detailed Findings
Nonessential items considered necessities: 87% of Gen Z and 84% of Millennials consider certain nonessential items and services as "necessities."
Hobbies and interests: 56% of Gen Z and 59% of Millennials believe spending on hobbies and interests is a necessity, not a luxury.
Streaming services: 36% of Gen Z, 37% of Millennials, 37% of Gen X, and 29% of Baby Boomers consider streaming services like Netflix and Hulu as necessities.
Prioritizing experiences over savings: Nearly half of young consumers (51% of Millennials and 45% of Gen Z) would rather reduce long-term savings than give up certain lifestyle experiences.
Key Takeaway
The key takeaway is that Gen Z and Millennials are redefining what items are considered 'necessities' amidst economic uncertainty, prioritizing experiences and nonessential items over long-term savings.
Main Trend
The main trend is "Experience-Driven Consumption", where consumers prioritize experiences and activities that bring them joy and fulfillment over material possessions.
Description of the Trend
This trend involves consumers seeking out experiences and activities that provide emotional fulfillment and enjoyment, rather than just accumulating material possessions. The trend is driven by the growing importance of emotional well-being and the desire for unique and memorable experiences.
Consumer Motivation
Consumers are motivated by a desire for emotional fulfillment and enjoyment, and are seeking out experiences and activities that provide a sense of joy and satisfaction.
What is driving the trend
The trend is driven by the growing importance of emotional well-being, the desire for unique and memorable experiences, and the increasing availability of experiential options.
Motivation beyond the trend
Beyond the trend, consumers are motivated by a desire for personal growth, self-expression, and connection with others.
Description of consumers
The article refers to consumers who are likely:
Age: 18-40 years old (Gen Z and Millennials)
Gender: Both males and females
Income: Middle to upper-middle class
Lifestyle: Busy and tech-savvy individuals who value experiences and emotional fulfillment.
Conclusions
The trend of Experience-Driven Consumption is expected to continue, with consumers prioritizing experiences and activities that bring them joy and fulfillment.
Implications for brands
Brands need to focus on creating experiences and products that cater to young consumers' desire for emotional fulfillment and enjoyment.
Implication for society
The trend has implications for society, as it highlights the growing importance of emotional well-being and the need for experiences and activities that promote joy and fulfillment.
Implications for consumers
Consumers will continue to prioritize experiences and activities that bring them joy and fulfillment, and will seek out brands that understand and cater to their emotional needs.
Implication for Future
The trend is expected to continue, with consumers increasingly seeking out experiences and activities that provide emotional fulfillment and enjoyment.
Consumer Trend
"Experience-Driven Consumption": Consumers prioritize experiences and activities that bring them joy and fulfillment over material possessions.
Consumer Sub Trend
"Emotional Spending": Consumers are driven by emotional needs and desires, and prioritize spending on experiences and activities that provide emotional fulfillment.
Big Social Trend
"Wellness and Self-Care": The growing importance of emotional well-being and self-care is driving consumer behavior and priorities.
Worldwide Social Trend
"Experiential Economy": The shift towards experiential consumption is a global trend, with consumers seeking out unique and memorable experiences.
Social Drive
"Emotional Fulfillment": Consumers are driven by a desire for emotional fulfillment and enjoyment, and prioritize experiences and activities that provide a sense of joy and satisfaction.
Learnings for brands to use in 2025
Focus on creating experiences: Brands should focus on creating experiences and products that cater to young consumers' desire for emotional fulfillment and enjoyment.
Understand emotional needs: Brands need to understand and cater to consumers' emotional needs and desires.
Prioritize emotional connection: Brands should prioritize building emotional connections with consumers.
Strategy Recommendations for brands to follow in 2025
Develop experiential marketing strategies: Brands should develop experiential marketing strategies that create memorable and engaging experiences for consumers.
Focus on emotional storytelling: Brands should focus on telling emotional stories that resonate with consumers.
Prioritize consumer well-being: Brands should prioritize consumer well-being and emotional fulfillment.
Final sentence
The trend of Experience-Driven Consumption is expected to continue, with consumers prioritizing experiences and activities that bring them joy and fulfillment.
What brands & companies should do in 2025
Brands should focus on creating experiences and products that cater to young consumers' desire for emotional fulfillment and enjoyment. They should prioritize building emotional connections with consumers and develop experiential marketing strategies that create memorable and engaging experiences.
Final Note
Core Trend: Experience-Driven Consumption - a trend where consumers prioritize experiences and activities that bring them joy and fulfillment over material possessions.
Core Strategy: Focus on creating experiences and emotional connections - a strategy that involves developing experiential marketing strategies and prioritizing emotional storytelling.
Core Industry Trend: Growing importance of emotional well-being - a trend that highlights the growing importance of emotional well-being and self-care.
Core Consumer Motivation: Desire for emotional fulfillment - a motivation that drives consumers to seek out experiences and activities that provide emotional fulfillment and enjoyment.
Final Conclusion
The trend of Experience-Driven Consumption is expected to continue, with consumers prioritizing experiences and activities that bring them joy and fulfillment. Brands that adapt to this trend by focusing on creating experiences and emotional connections will be better positioned to succeed in the future.
Core Trend: Experience-Driven Consumption
Description
The trend of Experience-Driven Consumption refers to the growing importance of experiences and activities that bring joy and fulfillment to consumers. This trend involves consumers prioritizing experiences over material possessions and seeking out unique and memorable experiences that provide emotional fulfillment.
Key Characteristics of the Trend (summary)
Prioritizing experiences over material possessions
Seeking out unique and memorable experiences
Emotional fulfillment and joy are key drivers of consumer behavior
Growing importance of self-care and wellness
Market and Cultural Signals Supporting the Trend (summary)
Growing demand for experiential activities and services
Increasing popularity of subscription-based services and membership programs
Rise of social media platforms and influencer marketing
Growing importance of emotional well-being and self-care
How the Trend Is Changing Consumer Behavior (summary)
Consumers are seeking out experiences that provide emotional fulfillment and joy
Prioritizing experiences over material possessions
Increasing demand for unique and memorable experiences
Growing importance of self-care and wellness in consumer behavior
Implications Across the Ecosystem (summary)
For Brands and CPGs: Brands need to focus on creating experiences and products that cater to consumers' desire for emotional fulfillment and joy.
For Retailers: Retailers need to adapt to the shift towards experiential consumption and offer unique and memorable experiences for consumers.
For Consumers: Consumers will continue to prioritize experiences and activities that bring them joy and fulfillment.
Strategic Forecast
Brands that prioritize creating experiences and emotional connections with consumers will be better positioned to succeed in the future.
Retailers that offer unique and memorable experiences will attract and retain customers.
Consumers will continue to seek out experiences that provide emotional fulfillment and joy.
Final Thought
The trend of Experience-Driven Consumption is expected to continue, with consumers prioritizing experiences and activities that bring them joy and fulfillment. Brands that adapt to this trend by focusing on creating experiences and emotional connections will be better positioned to succeed in the future.
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