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Millennials have unique spending habits. Learn how they differ from other buyer demographics and how you can modify your offering to appeal to them.
Millennials’ massive spending power makes them an attractive target for businesses selling products and services. However, reaching them isn’t a cut-and-dried process. They approach life significantly differently than previous generations, and these differences are apparent in their buying behavior. Traditional marketing plans and sales processes don’t seem to work as well with this cohort because millennials prioritize the experience over what they’re actually getting.
To sell to millennials successfully, it’s essential to understand who they are, how they think and how they spend their money. We’ll dive into millennial spending habits and why this demographic values experiences over goods, as well as share how you can target millennials’ buying behavior.
The millennial generation consists of people born from 1981 to 1996. Older millennials are primarily the children of baby boomers (born between 1946 and 1964), while younger millennials likely have Generation X parents (born between 1965 and 1979). There are around 72.7 million millennials in the U.S. population, and that number is projected to reach 78 million by the year 2030.
Millennials are purchasing powerhouses who have likely embarked on careers. Many have children, and many are married. Millennials with kids purchase items like toys, clothes, and products for education, enrichment and safety. Some have bought or want to buy a home and will likely be involved with purchases associated with homeownership.
However, these milestones are far from uniform among millennials. Here are some commonalities among members of this generation:
Millennials prefer experiences over products because most grew up with everything they needed — product ownership wasn’t a primary focus. In contrast, the baby boomer generation, one of the biggest consumer generations ever, saw product ownership as a sign of success.
Because owning products isn’t particularly impressive to most millennials, they do not view ownership as a measure of someone’s success to the same degree. Many millennials look elsewhere for fulfillment and value experiences over things. Their lifestyle became more important than following a traditional career path and buying bigger cars and houses.
The shift towards experiences is supported by compelling data: Deloitte’s 2025 Gen Z and Millennial Survey found that work-life balance remains the top consideration when these generations choose employers, reflecting their prioritization of experiential value over traditional material success markers.
Here are a few factors driving the millennial preference for experiences:
When you hear about the experience economy, you may instantly think about a day trip or adventurous vacation. But experiences don’t have to be so obvious. Products can provide experiences, and creating these experiences can help you engage with millennials.
For example, back in 2015, HP launched a special edition Star Wars notebook to coincide with the release of Star Wars: The Force Awakens. It also started the #AwakenYourForce social media marketing campaign to promote interaction, create engagement and deepen the experience.
The secret to turning products into experiences is building community, which is something businesses didn’t prioritize in the past. Today, community creation is essential for brand success. Customers don’t just want a relationship with you; they want a relationship with other fans. This is why social media marketing is so crucial. It fosters engagement and helps build a brand community.
Here are several ways to turn a product into a brand experience that captures the interest of millennials:
Many big-name companies have successfully adapted to the experience economy of the younger generations. Here are a few notable examples.
Airbnb has become a prime example of experience economy success, generating over $90 billion in U.S. economic impact in 2024 alone. The platform’s success stems from its ability to offer authentic, local experiences rather than standardized accommodations.
Key results:
Airbnb’s strategy focuses on creating unique, personalized travel experiences that allow guests to “live like locals.” The company has expanded beyond accommodation to include Airbnb Experiences, offering curated activities and local adventures, demonstrating how traditional service providers can evolve to meet millennial demand for authentic experiences.
Lululemon’s experiential marketing strategy has driven remarkable growth, with revenue increasing 19 percent to $9.6 billion in 2023 and gross profit rising 25 percent to $5.6 billion. The company has successfully transformed from a yoga apparel brand into a lifestyle community.
Key strategies and results:
Lululemon’s focus on experiences and community building has helped them capture the millennial and Gen Z market, with the brand becoming a go-to choice for athletic wear among these demographics and fostering unprecedented customer loyalty.
According to recent spending data, the collective annual income of roughly 1.8 billion millennials worldwide is expected to exceed $4 trillion by 2030, making this demographic increasingly important for businesses to understand and serve.
Recent market research shows that millennials spend an average of $115 per month on wellness-related experiences and services, reflecting their prioritization of self-care and experiential spending. This trend toward experiential spending is expected to continue as millennials enter their peak earning years.
As Gen Z and future generations join millennials in buying power and influence, a desire for experiences will only increase. Find ways to frame your products and services as experiences and provide genuine value. This will help you connect with your audience, meet evolving consumer needs, and ensure customer loyalty for years to come.
If you modify your marketing tactics and find they aren’t working, consider surveying your target audience. The survey data you gather will give you firsthand insights into what they want and need from you as the market evolves.
Skye Schooley contributed to this article.