Where Millennial Parents Are Shopping for Their Kids—and Why

Millennial research, Millennial insight, Millennial marketing, Gen Z research, Gen Z marketing, Gen Z insight, youth research, youth marketing

Millennial parents’ spending power is only growing year to year, and they’re already an influential consumer group—with distinctive preferences. So where are they going to buy products for their families? We asked, and have their top store ranking…

Last year, we told you to recalibrate your expectations for Millennial spending habits in anticipation of one big change many of them are about to face: parenthood.  As time goes by, that advice is only becoming more true. As a generation, Millennials control a massive chunk of change. In 2017, Millennials spent an estimated $200 billion, and Forbes predicts that in 2018 they will have the most spending power of any generation. With so many of them on the path to parenthood, a large portion of this cash will likely be spent on their kids. According to data from Crowdtap, about 80% of 18-35-year-olds are on track to become parents in the next decade, and in 2015, 90% of children were born to a Millennial mom. According to Ypulse’s own data, 23% of Millennials are already parents. And only 12% of 18-35-year-olds report no interest in having children, leaving 65% who are planning on having kids in the future or are actively trying—a massive demographic with huge spending power. As Advertising Age put it, Millennial moms may have “the greatest lifetime monetary value of any consumer segment in the history of marketing.” (And don’t forget about dads!)

We’ve already seen hints that their family spending has the power to start trends and shift industries. Just one example: FoodDIVE reports that Millennial parents are giving organic products a major boost, and for the first time, baby food was ranked as the top category where consumers thought it was “extremely important” to buy organic. So where are they spending their influential money? In our…

 
 

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The Newsfeed

Quote of the Day: “It's free to walk to work and I get some exercise in.”—Female, 26, NY

Niche beauty brands have blurred gender lines at their core—can large cosmetics companies play catch up without seeming “disingenuous”? Milk Makeup and Fluide have built their brands on being inclusive, but larger brands sometimes strike consumers as hopping on the band wagon when they try to do the same—especially since they created so many of the gender norms they’re now rallying against. The best way for them to get in on the trend? Start by making their hiring process more inclusive both “behind the lens” and in front of it. (Fast Company)

Starbucks thinks the “health and wellness” trend is to blame for declining Frappuccino sales. Despite marketing efforts like the Unicorn Frappuccino, syrupy drink sales are down 3% from last year. However, rivals like McDonald’s and Dunkin' Donuts could be stealing sugary beverage sales from the coffee giant, meaning young consumers’ penchant for healthification isn't necessarily the culprit. In fact, McDonalds recently debuted two new frozen drinks that earning praising on Twitter. (NYPFox News)

Apple is getting into kids’ content, teaming up with Sesame Workshop for a slate of original shows. Live-action, animated, and puppet-based series will be included in the programming, but Sesame Street itself is not part of the deal. There are no details yet on where Apple will release the shows, meaning they could either shop them to another platform or debut them on their own streaming platform. Considering that Apple has several original program deals in the works, they could be looking to bulk up their own bid in the streaming wars. (Kidscreen)

Twitter and Tumblr posts are getting a new lease on life—as screenshots on Instagram. While young users of Twitter and Tumblr have declined, Ypulse’s Social Media Trackerfound that over half of 13-35-year-olds use Instagram daily. Instagram is the preferred place to post memes, despite many accounts creating their content elsewhere. Why do they switch platforms to post? Instagram’s Discover tab allows faster browsing than Twitter, while Instagram images are displayed in full rather than being cut off, like they are on Twitter. (The Verge)

Eggo sales are down in between seasons of Stranger Things. Yes, the sci-fi series has that much influence on the frozen waffle’s revenue. One Eggo executive explains that they “quickly leveraged the [resulting] consumer engagement” from the show, and it paid off: sales jumped 14% in the fourth quarter of 2017 and 9.4% for the first four months of 2018. However, fewer people are binging the Gen Z & Millennial favorite these days, so Kellogg’s frozen pancakes, waffles, and French toast sales have slowed to just 1.3% year-over-year. (CNN)

Quote of the Day: “I fell in love with trance music.”—Male, 23, NY

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