What Do Millennials Spend Vs Gen X and Baby Boomers in Online Spending

Buying power and shopping habits can vary greatly by generation. Though online shopping is popular across all adult age groups in the U.S., differences in how age groups appoint with digital channels are an important focus for omnichannel brands and their marketing and sales platforms. Below is a sampling of information on key spending and digital trends by generation.

Figure one: U.Due south. Population by Generation

_{Source: U.S. Census Bureau, Pew Research Center, 2018.}

Though definitions and age ranges can vary past source, Figure 1 shows a commonly accustomed breakdown of the U.S. population by generational age groups. Though baby boomers are technically the largest cohort in absolute population (74 one thousand thousand), much attention is paid to millennials, who are forecast to outnumber babe boomers past 2019.

Spending ability

Effigy 2: Spending by Generation

_{Source: eMarketer, 2018}

But as important every bit the size of each generation is the spending associated with each. As seen in Figure 2, average household expenditure tends to peak between the ages of 35 and 55, which also tends to be the menses of peak earnings for many adults. Overall spending, nonetheless, is highest for the infant boomer population, which spent more than $two.vi trillion in 2016. Though boilerplate household and total expenditures are highest for these two cohorts, millennials are set to show the most growth in spending. Equally older generations go out the workforce and millennials advance in their careers, spending ability for the Gen Y accomplice is expected to overtake both Gen Ten and baby boomers within the side by side five to 10 years.

Digital heir-apparent penetration

Due east-commerce growth has transcended generations, with all age groups xiv and older showing rapid adoption of digital channels in their shopping behavior. In 2018, 18- to 34-year-olds had the highest percent of digital buyers (net users who made at to the lowest degree i purchase via digital channel during the agenda year), while the lowest penetration was seen amid the youngest and oldest groups. And, interestingly, it is the oldest cohort of 65+ that has demonstrated the highest growth in digital heir-apparent penetration, rising from only 22% in 2009 to 47% in 2018.

Dissimilar spending habits

In addition to differences in population size and spending power, unlike generations tend to brandish different lifestyle patterns and preferences that interpret into distinct shopping behaviors. Below is a sampling of dissimilar facts and anecdotes on what defines each generation's shopping preferences:

Gen Zers:

• Account for an estimated $44 billion in buying power. ¹
• Short attention spans; the average online attention span of a Gen Zer is viii seconds. ²
• 78% of teenagers cheque their devices at to the lowest degree hourly. ³
• 52% experience they spend likewise much time on their mobile devices. ⁴

Millennials

• Expected to account for thirty% of total retail sales by 2020. ^v
• Believe that user-generated content is l% more trustworthy than branded imagery. ⁶
• 62% are more likely to become a loyal client when a brand engages them on social networks. ⁷
• 72% are more likely to purchase based on photos from others who have used a production. ⁸

Gen Xers

• 40% prefer viewing online content on laptops. ⁹
• 44% utilize in-store pickup or dwelling house delivery services when bachelor. ^ten
• Over 10% less probable to make impulse buys while using in-shop pickup of goods than millennials or boomers. ¹¹

Baby boomers

• 49% spend at least eleven hours a week online. ¹²
• 84% prefer to shop in-shop. ¹³
• 82% use social media ¹⁴

» Side by side: Exercise Consumers Really Prefer Shopping Online?

¹ Forbes, "Motility Over Millennials: Generation Z Is the Retail Industry'due south Side by side Large Buying Group," January 12, 2017
ⁱⁱ https://www.webpagefx.com/weblog/social-media/market place-to-each-generation-social-media/
³ Common Sense Media, "Technology Addiction: Business organisation, Controversy, and Finding a Balance," May three, 2016
^four Mutual Sense Media, "Technology Addiction: Concern, Controversy, and Finding a Balance," May 3, 2016
⁵ Accenture Enquiry, "Who are the Millennial Shoppers? And What Practice They Really Desire?" April 26, 2015
⁶ https://www.webpagefx.com/blog/social-media/market-to-each-generation-social-media/
⁷ ShopperTrak, "A Portrait of the Millennial Shopper" May thirty, 2016
⁸ Salsify, "Cracking the Consumer Code: Product Content Drives Conversion," conducted by SurveyMonkey, April 19, 2016
⁹ https://www.webpagefx.com/weblog/social-media/market-to-each-generation-social-media/
¹⁰ Acosta Sales & Marketing, "The Why? Behind the Purchase," January nineteen, 2018
^xi eMarketer.com
¹² Forbes, "Appealing to the Affluent Older Consumer: A Retail Guide," Jan iii, 2017
¹³ http://salesfloor.net/2017/08/generations-shopping-habits/
^fourteen http://salesfloor.net/2017/08/generations-shopping-habits/

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