Millennials are first-generation digital natives, always connected and with constant access to information. Their spending often revolves around healthcare, wellness and leisure, with a strong focus on sustainability, as they have grown up in an era defined by climate change. This greater environmental awareness in turn drives the brands they want to be associated with.
As millennials enter their prime earning and spending years, they’ve become the world’s most important consumer force, reshaping consumption patterns across industries globally. The velocity of these disruptive forces may likely benefit companies and businesses that align with such behaviours and catalyse attractive investment opportunities.
1 “Where are the Global Millennials? ”, A.T. Kearny, The Global Business Policy Council
2 “Millennials to account for 75% of global workforce by 2025”, AGCS Trend Compass
Trends driving the millennial economy
5G is forecast to contribute US$2.2 trillion (S$3 trillion) to the global economy by 2034, with key industries such as manufacturing, utilities, and professional and financial services benefiting the most3.
The increasing velocity of technology adoption, as exemplified by the millennial generation, will pave the way for the Fourth Industrial Revolution (4IR), which will see advances in Artificial Intelligence (AI), Internet of Things (IoT), genetic engineering and quantum computing.
3 GSMA’s ‘Mobile Economy’ report 2020
Sustainable living figures more prominently in the choices that millennials make. 51% of consumers who are actively checking labels to ensure a positive social/environmental impact and who will pay extra for sustainable products are millennials.
The sharing economy
Millennials are focused on access and services, not ownership, a trend which has given rise to the sharing economy. The sharing economy is expected to enjoy exponential growth over the next few years, matching the value of the traditional economy by 2025.
More willing to spend on experiences
Millennials prefer to spend money on experiences, such as vacations, concerts and meals, rather than assets. As a result, they are spurring the emergence of asset-light business models, where ownership is unnecessary, in the areas of business, leisure and travel.
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