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Millennials’ Buying Behavior: Experiences Over Goods
Millennials have unique spending habits. Learn how they differ from other buyer demographics and how you can modify your offering to appeal to them.
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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.
Who are millennial buyers?
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:
- Marriage: According to a 2023 Pew Research Center analysis, 25 percent of 40-year-olds in the United States had never been married as of 2021 – a record high that represents a significant increase from just six percent in 1980. This trend reflects millennials’ approach to major life milestones, as they often delay or forgo traditional markers of adulthood.
- Cohabitation: Millennials tend to marry later (when they marry at all) and are more likely to live with a romantic partner without being married than previous generations.
- Parenthood timing: Millennials have children later but still have roughly the same number of children as previous generations.
- Fatherhood roles: Millennial fathers are more involved in raising their children.
- Education: Millennials are the most educated U.S. generation. Unsurprisingly, they also hold the largest share of U.S. student loan debt – about 40 percent of total debt – with an average balance per borrower around $40,438.
- Homeownership: Millennials are slower to become homeowners than previous generations. According to Apartment List’s 2024 Millennial Homeownership report, 45 percent of millennials own homes. However, by age 30, only 33 percent of millennials were homeowners, compared to 42 percent of Gen Xers and 48 percent of baby boomers.
Why do millennial shopping habits favor experiences over goods?
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:
- Millennials don’t equate money with happiness. Many millennials grew up in households primarily motivated by money. They saw their parents spend on material goods to show off their wealth and success. They may also have noticed that conspicuous consumption didn’t necessarily equate to happiness in their parents’ generation. Studies on happiness agree: People tend to be happier after spending money on an experience compared to a product.
- Millennials eschew debt. Millennials may have seen their parents’ conspicuous consumption lead them to become chained to debt, perhaps even losing their homes. This may be why more millennials are becoming Generation Rent, determined to spend their disposable income on experiences instead of solid assets for the future. While they may carry student loan debt (as described below), they are reluctant to take on more debt than necessary.
- Social media showcases lifestyles. Social media is another factor playing into the experience boom. Millennials were the first to grow up with the internet, smartphones and social media. To generate more social media likes, users showcase their lifestyles and experiences. Vacations produce way more Instagram-worthy pics than showing off your new purse or car. Social media allows everyone to talk about their lives and learn about others’ lives, which has only been possible with this generation. Millennials want to feel connected, and they’re scared of missing out. Technology has helped drive this shift, leading to the growth of the experience economy.
- Millennials have a unique relationship with money. Millennials grew up in the shadow of 9/11 and the Great Recession. While many went to college and attained degrees, some carry a heavy burden of student debt to the tune of an average of $40,438 per borrower. This debt impacts the lifestyle they can afford, which often doesn’t include purchasing a home. Some even live with their parents to cut costs. Nevertheless, millennials can be very loyal to companies that provide more perceived value. For millennials, a big part of added value is experiences.
How can businesses target millennial spending habits?
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:
- Host exclusive events. Host events to create a memorable experience. These can be launch events or teaser events where you place your product front and center and give people a chance to interact. This approach fulfills the millennial desire to attend an event and connect with others. For example, when selling books, include speaking events for authors or provide a location for a book club to meet.
- Customize the shopping experience. Millennials want to feel like they matter and that businesses cater to them; a customized shopping experience accomplishes both. Retailers are increasingly offering shopping upselling and cross-selling suggestions and promotions based on a customer’s previous history. The best CRM software stores extensive customer information to help you customize your offers and suggestions. Many POS systems have a built-in CRM component, making customer data gathering even easier.
- Take your customers on a journey. Don’t just sell to people; go out of your way to help them. Think about what your product is designed to achieve and how it’s supposed to improve people’s lives. For instance, if you sell fitness equipment, extend your website, blog posts and social media platforms to provide exercises, tips to maximize its use, and healthy recipes.
- Crowdsource your content. Involve customers by asking them to upload videos and photos of themselves using your product. Ask them for tips and suggestions to share with other customers. This user-generated content can help you showcase the enjoyable experiences your products create. Your users can feel like a part of a community and receive recognition from others while providing you with authentic, quality content for free.
- Use video to expand your brand. Video can improve your content marketing significantly. Consider providing customers with virtual experiences through online video content. For example, show them how your product is made, include interviews with the designers and engineers, and tell them about the history of your company or product. Upload or stream videos for a more immediate experience where customers can ask questions.
How are top brands winning over millennials through experiences?
Many big-name companies have successfully adapted to the experience economy of the younger generations. Here are a few notable examples.
Airbnb transformed travel into authentic experiences.
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:
- Generated $90 billion in U.S. economic activity in 2024
- Supported over one million jobs nationwide
- Achieved record-breaking guest arrivals with their 2 billionth guest milestone
- Hosts earned more than $57 billion in 2023
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 built community through lifestyle 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:
- Community events: Lululemon’s 2023 World Mental Health Day activities in China garnered more than 9,000 participants across six cities.
- Free in-store experiences: The brand offers complimentary yoga classes and fitness events in their retail locations.
- Innovative campaigns: Their “Dupe Swap” event, where customers could trade knock-off products for authentic items, attracted 50 percent new customers.
- Ambassador program: This program creates authentic brand advocates who embody the Lululemon lifestyle.
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.
Millennial marketing is the present and future
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.
