Spending Power of Young Adults - US - November 2006

Abstract

In this report, Mintel explores the demographics of young adults, their shopping and purchasing behavior, how they spend their leisure time, how they use the Internet, and how a wide range of major brands position and promote their products to young adults through TV ads.

Marketers are constantly trying to get a piece of young adults�f pocketbook, and for good reasons. In 2006, there are 68.9 million individuals aged 18-34, representing 23.1% of the total U.S. population- a sizeable and diverse group.

Two distinct groups of young adults- 18-24s and 25-34s- show noteworthy differences when it comes to spending and use of free time. Young adults aged 18-24 are still pursuing an education, may be living with their parents, have more discretionary income, enjoy shopping as a social activity, and rely more and more on the Internet for communication. Adults aged 25-34 are starting careers, buying homes, raising children, and have less leisure time.

The youngest adults are exploring the world and trying to find their place in it, and part of this means keeping up with the latest fashions and trends. The older adults in this group, in contrast, are beginning to shift their focus to family life and careers, and more of their discretionary spending and leisure time is geared toward their families.

To paint a picture of each distinct age group, Mintel conducted and analyzed consumer research that seeks answers on the following topics:

• Is shopping a social activity or a necessity?
• Do young adults prefer shopping in a store or on the Internet?
• Where do young adults prefer to shop?
• How has the Internet affected young adult shopping, spending, work, communication, and leisure time?
• How does family situation affect what and how young adults purchase?
• How do young adults spend their leisure time?

This report compares the values and priorities of the 18-24s and the 25-34s, and also examines how they differ from or resemble the older base of the entire population to help marketers shape campaigns that will effectively reach young adults.