Millennials: the generation that brought us avo toast and the gig economy. As they’re hitting their 30s and 40s, millennial spending habits are shaking things up across all industries. From digital shopping sprees to eco-friendly purchases, understanding their habits is crucial for marketers and businesses alike.
This generation is pioneering a digital-first mindset. From adopting ecommerce to embracing mobile payments, they've redefined shopping convenience. But it’s not just about speed and ease. It's about getting the most out of their money, making it essential for businesses to know how to connect this is savvy bunch.
In this blog, we'll explore seven key spending trends among millennials, and why they matter.
Millennials pack quite the economic punch. Their spending power rivals that of older generations, and as they step into new life stages like parenthood or home ownership, their financial priorities are evolving in intriguing ways. With 56% of millennials emphasizing success as a core value in their lives, everything from long-term investments to everyday spending is under the microscope.
Their financial habits also underscore their tech-savvy approach. Many millennials are comfortable navigating financial tech tools and apps to manage their finances, reflecting a digital-first mindset that sets them apart.
Navigating the ever-evolving financial landscape means marketers need to keep their finger on the pulse. Using consumer data to understand where millennials are is essential for businesses aiming to tap into their significant economic influence.
Let’s break down some millennial spending trends expected to grow in 2025.
For millennials, it’s all about experiencing more. Travel, personal growth, and exciting new challenges take priority over material possessions. This shift in millennial spending habits is clear when it comes to what they're spending their money on: 53% favor beach or resort vacations, and the number of UK millennials planning to travel abroad in the next six months has jumped 17% since 2023.
But their travel choices aren’t just about relaxation; they’re about enrichment. A whopping 57% prioritize learning new skills, while 41% actively seek out challenges in their lives. And this craving for adventure translates into how they plan their trips - 30% of UK millennials book vacations abroad to try new and exciting activities, making them 19% more likely than the average UK traveler to say this. They stand out for wanting experiences like water parks, adventure tourism, and sightseeing excursions.
Family also plays a key role. Millennials are 57% more likely than the average vacationer to look for family-friendly options, making them a crucial demographic for brands in the travel space catering to multi-generational trips. And when it comes to planning, social media’s a game-changer. Over a quarter of UK millennials use social platforms to map out their trips, making them 45% more likely than other vacationers to rely on social for inspiration.
Millennials aren’t just spending on travel; they’re investing in memorable, shareable, and meaningful experiences. Brands that can tap into this by emphasizing adventure, learning, and social-proofed recommendations will resonate most. Travel providers in particular, should showcase immersive experiences, family-friendly perks, and social media-worthy moments to connect with this experience-driven generation.
Sustainability and social responsibility may have been hot topics among millennials a few years ago, but recent trends show a shift in priorities. Across Europe and the US, millennials are becoming more cost-conscious and focusing on their immediate lives rather than broader societal issues.
In the UK, the number of millennials who prioritize sustainability when choosing food products has dropped by 26% since 2021. Meanwhile, in key European markets, millennials are 16% more likely to choose a lower price over an eco-friendly product than they were in 2020. Even in the US, where sustainability has traditionally been a strong value, those who want brands to be eco-friendly have declined by 11%, and those expecting brands to be socially responsible have dropped by 9%.
At the same time, personal aspirations like being a good parent, being a good partner, and achieving financial security are gaining importance in the US. The desire to "make a difference in the world," however, is trending downward. The overall takeaway? Millennials are shifting their focus inward - prioritizing what directly impacts their families, finances, and personal wellbeing over collective social causes.
Brands that've leaned heavily into sustainability and social responsibility messaging may need to reframe their approach for millennials. While these values still matter, price and personal relevance are becoming stronger factors in decision-making. Companies that can connect their offerings to practical benefits like saving money, supporting family life, or enhancing personal wellbeing, will be more likely to resonate with this evolving audience.
Millennials might still use “big internet” for high value purchases (on their laptops), but they’re also experiencing a growing reliance on mobile apps. It’s no real surprise given they’re the first generation to grow up with digital technology and the internet at their fingertips. Many millennials are happy to shop online - in fact, over 3 in 5 prefer it. They’re also comfortable shopping through social media channels and are 12% more likely to have used Instagram Shopping Bag in the past month, compared to the average Instagram user.
Millennials love the ease and functionality of using apps. In the last month alone, 1 in 5 millennials have paid for a mobile app, and they’re also 15% more likely than the average person to have used a bike or scooter app on their mobile in the last month.
Brands who offer seamless shopping experiences online across devices, including social shopping apps, are sure to win big with this tech-native generation.
Millennials have always been known for prioritizing their mental health, but it seems they’re increasingly focusing on their physical health too. The number interested in fitness and exercise has increased 7% since 2021, and they’re more likely than other generations to take vitamins, minerals, and supplements when they’re feeling unwell.
But it doesn’t end there. While Gen Z might be the generation breaking up with diet culture, millennials are catching up - kind of. In the US, millennials are 56% more likely to shop at Whole Foods weekly compared to the average American. And on a global scale, 39% of millennials prefer food products that are organic, and 35% prefer foods high in protein. It seems like this generation are moving away from ultra-processed convenience and focusing on a fresher approach to their food.
Brands looking to connect with millennial consumers in this space should focus on the health and wellness benefits of their products, while being super clear on ingredients and how products are sourced.
Millennials value success, and often the foundation for this lies in education, so it comes as no surprise that both formal education and continued learning are important to them.
Overall, 13% of millennials have paid for study programs or learning materials in the last month, indicating a sizeable investment in their education, and this figure is higher still in the Asia-Pacific region.
Brands offering the opportunity for millennials to invest in their personal growth, be that general education, or for professional development, are likely to get top marks with this audience.
Millennials are making their money work for them in different ways by looking at cryptocurrency, stocks, and shares. 12% of millennials own cryptocurrency, making them 20% more likely to own it than the average consumer. Plus, 21% of millennials own stocks and shares, making it the third most popular form of investment for this group.
It’s not just high-tech investments they’re making, some are going old school. The number of millennials who own gold as a type of saving or investment has grown 11% since 2021.
“Buy now, pay later" isn’t just a snazzy slogan for flexible payments to millennials, it’s their main approach to spending. Globally, 63% of millennials have a credit card, and in Latin America, 31% of millennials prefer the ability to spread payments over time without added interest when shopping online - the highest of any region. This generation wants what they want, regardless of being able to pay for it outright.
Millennials are increasingly relying on BNPL services, and brands looking to attract these consumers need to recognize this by offering interest-free monthly payments for goods and services.
Connecting with millennials requires authenticity at every touchpoint. They value transparency and truthful storytelling, making it crucial for brands to communicate openly and align with their values.
Social media is where many millennials discover new brands, with 31% saying they discover brands through ads seen on social – up by 8% since 2020. Platforms like Instagram and TikTok aren’t just for scrolling; they’re key stages for influencer partnerships and brand engagement. Leveraging influencers who resonate with millennial values can help brands amplify their message and build trust.
Personalization is also paramount. Use quality consumer insights (like those in this blog) to tailor your messages, offers, and experiences to match the preferences of your audience. This not only captures their attention - it also drives loyalty.
Ecommerce optimization is another critical area to look at. Millennials demand seamless online shopping experiences, from intuitive site navigation to quick and easy checkout. Speedy delivery options are also a significant draw, often tipping the scales in favor of one retailer over another.
Loyalty programs aimed at millennials should also reflect their preferences. Traditional point-based systems might not cut it anymore, so instead, focus on rewards that matter to them, like exclusive experiences, or personalized offers.
Brands that understand and adapt to these spending habits and preferences will be better positioned to connect with millennials on a deeper level. By embracing authenticity, leveraging social media, personalizing experiences, and optimizing ecommerce buying journeys, businesses can create meaningful and lasting relationships with this influential demographic.
Navigating the complex world of millennial spending habits can be a game-changer for your marketing strategies, and GWI Spark is here to make that journey smoother with AI-powered consumer insights. This powerful tool offers detailed insights into how millennials spend their money, from the brands they prefer to the values they prioritize.
Imagine uncovering that millennials are 29% more likely to have taken 9-10 vacations domestically in the past year after a single question - that's a goldmine of information for travel and hospitality marketers. You can tailor your campaigns to highlight domestic travel packages, leveraging this trend to capture millennial interest.
And let's not forget about financial behaviors. Millennials are navigating the financial landscape with a unique blend of traditional and innovative approaches. GWI Spark can help you understand their interest in cryptocurrencies, and other investment trends, enabling you to craft more compelling financial products and services.
With GWI Spark, you're not just collecting data; you're uncovering actionable insights that can transform your marketing efforts. Dive into the world of millennial spending and discover how you can better align your strategies with their evolving habits and preferences.
Understanding millennial spending habits isn't just about knowing where they spend their money - it's about grasping the underlying values and motivations driving their choices.
As we look to the future, it's clear millennials' emphasis on experiences, and technology will continue to shape markets in profound ways. For marketers and businesses, it means creating campaigns that resonate on a deeper level, aligning with millennials' values and lifestyles.
This generation’s digital-first approach and value-driven spending patterns demand authenticity and adaptability from brands. Tailoring offers and experiences to meet millennial preferences can set a brand apart in a crowded marketplace. As they continue to prioritize health and wellness, businesses that can integrate these elements into their products and services authentically will find themselves ahead of the curve.