12 Industries That Will Thrive Thanks To Millennials - CB Insights

12 Industries That
Will Thrive Thanks

To Millennials 2019
Table of Contents
ACTIVITIES & HOBBIES

1. CAMPING 5
2. FITNESS 8
3. TRAVEL 11
CONSUMER GOODS
4. FAST CASUAL DINING 15
5. COFFEE 18
6. FROZEN FOODS 20
7. SELTZER 24
8. HOUSEPLANTS 27
9. SKINCARE 31
TRANSPORTATION
10. AUTOMOTIVE 34
11. MICROMOBILITY 37
FINANCE
12. PERSONAL FINANCE 40
12 Industries That Will Thrive Thanks To Millennials 2

Millennials are one of the largest
generations in history, and they’re on
the cusp of their prime spending years.
These are the industries that stand to
benefit the most.
Popular media coverage of millennials often fixates on the

industries the generation is allegedly killing and their supposed
fiscal irresponsibility.
But over the next few decades, Generation Y will enter its prime
spending years — and it’s set receive $30T in wealth from baby
boomers and Gen X.
This transfer of wealth has already begun transforming a range of

industries. Some industries benefiting from millennials’ increased
spending power, such as travel, reflect well-worn Gen Y tropes like
the general preference for “experiences” over things. Others, like
car ownership and camping, show that many of the claims about
millennials’ different spending habits are overblown, and that
significant continuities exist between Gen Y and their parents
and grandparents.
However, these industries won’t thrive unchanged.
The companies that will come out on top are those that are
reorganizing and reprioritizing around Generation Y. This
means they’re embracing changing preferences to offer more
sustainability, affordability, and flexibility in their products
and services. They’re also embracing new technology and the
unprecedented discoverability and customer connections it allows.

In this report, we dive into some of the industries — from frozen
foods and fast casual dining to micromobility and personal finance
apps — that could massively benefit from the rise of Generation Y.

1. Camping
AS MORE MILLENNIALS HAVE CHILDREN, THEY’RE

EMBARKING ON CAMPING ADVENTURES IN THE GREAT
OUTDOORS AS FAMILIES
Camping has enjoyed significant revenue growth over the last

several years, largely thanks to millennials.
Total wholesale camping equipment sales rose above $2.5B in

2018, up from less than $2B in 2013. Also in 2018, nearly 80M
American households went camping — a new high.
Kampgrounds of America, an association of almost 500 North

American private campgrounds, says the industry’s “aggressive
growth” is largely attributable to an influx of younger campers,
who are camping in larger numbers and camping more often. Last
year, 56% of all new campers were millennials (up from 51% in
2017), and 41% of total reported campers were millennials.
Part of millennials’ enthusiasm for camping springs from the

fact that many of them are entering their prime spending years
and starting families of their own. Over 1M millennial women are
becoming mothers every year, meaning Gen Y now makes up the
majority of annual births in the United States, according to the
National Center for Health Statistics.
These shifts are creating a need for budget-friendly family

recreational activities. Fifty percent of existing millennial campers
say that having children and increased spending power has made
them want to camp more often. Couples with kids surveyed were
more likely than any other demographic to take 3+ camping trips
per year, and significantly more likely to report intending to spend
more nights camping in 2019.

Another force driving the growth of camping among millennials is
the popularization of new accompanying experiences that offer
greater comfort and amenities. These can help mitigate challenges
like finding a campsite, dealing with bugs, and safety. They can also
make a campsite more family friendly, with additions like basketball
courts, themed weekends, satellite TV, and full-featured bathrooms.
Of the 1.4M households that began camping for the first time in
2018, almost 60% preferred cabins, recreational vehicles, and other
“glamping” amenities to sleeping in tents.
Finally, technology is helping millennials learn more about camping

and find camping experiences.
Virtually all campers reported bringing their some kind of tech

device with them camping, primarily in case of emergencies or to
research safety issues. Online platforms like Hipcamp and Campsy
have emerged to help campers book unique lodging experiences
like yurts, treehouses, and caves.

Social media is also helping campers discover new places to visit,
then share their experiences with others: 30% of millennials said
that they picked a camping spot after seeing someone else go there.
New technology, the rise of high-end camping, and millennials’

emerging roles as parents and full-fledged earners are changing
camping. Once a niche form of relatively inaccessible outdoor
recreation, camping now more closely resembles an alternative
travel industry, with a range of lodging and experience options.
Most importantly, it is an even more kid- and family-friendly
activity than it once was — essential for the generation that now
makes up the majority of new parents in the US.

2. Fitness
BOUTIQUE GYMS & CLASSES ARE SPREADING AS

MILLENNIALS SEEK CHOICE AND COMMUNITY
Few industries will benefit as directly from the rise of millennials’

economic power as the fitness industry.
Generation Y is already more motivated to stay in shape than

previous generations: over three-quarters of millennials (76%)
exercise at least once a week , compared to 70% of Gen Xers and
64% of baby boomers.
Millennials are also much bigger spenders when it comes to gym

memberships, dropping almost $7B annually — double the amount
spent by Gen Xers and boomers.
Source: Bruce Mars/Pexels

Millennials also differ in terms of how they spend on fitness,
tending to steer clear of traditional full-service gyms like Gold’s
Gym or LA Fitness. In fact, despite Generation Y’s enthusiasm
for exercise, mid-market fitness clubs have actually seen their
memberships stagnate over the years.
Instead, the fitness industry is seeing growth at the ends of the

spectrum: budget gyms and boutique studios.
The number of people who joined a budget gym — fitness clubs

that charge members $20 per month or less, such as Planet Fitness
— increased by almost 70% in 2015 alone, according to IHRSA. The
gyms offer a wide variety of amenities, often including classes, at a
fraction of the cost of a traditional mid-market gym membership.
At the same time, boutique studio memberships grew by 70%

between 2012 and 2015, with memberships hitting an all-time
high in 2016. The customers at these boutique studios — including
places like SoulCycle, Rumble, and Pure Barre — are firmly in the
millennial camp, averaging 18 to 25 years old, according to IHRSA.
Expenses at these boutiques can run high, with a single class at
boxing gym Rumble costing more than $30.
Millennials’ willingness to pay up, despite their unique financial

pressures, may be partially driven by their tendency to view exercise
as a social group activity rather than an individual one. One 2014
survey found that 63% of people who attended boutique studio
gyms did so because of the “community aspect formed by other
people attending,” with another 47% attributing their attendance to
the atmosphere.
This community aspect could help studio gyms earn the loyalty
of millennials customers. Gym-goers who feel connected to a
particular club or class are more likely to stick around as members.

To attract millennial clients, some old-school gyms are adapting
their models to capitalize on the increasing popularity of the
boutique studios. In 2017, Gold’s Gym debuted a series of “coach-
led, community-driven and individually adapted boutique-style
classes” under the Gold’s Studio moniker, which went live in 40 of
its 700+ locations.
While millennials are more eager to exercise — and more willing to

pay for it — than any generation that came before them, it’s unclear
what fitness industry players will come out on top as Gen Y enters
its spending prime.
US health clubs have already rushed to capitalize on millennials’

devotion to self-improvement, with the volume of US health clubs
increasing by 20% between 2011 and 2015. But it remains to be
seen whether this expansion will ultimately look like a bubble, as
the trendy nature of many health clubs may make them just as
susceptible to turnover as traditional gyms, if not more.
What does seem certain, given millennials’ proclivity for health

and working out, is that the fitness industry’s growth shows no
compelling signs of slowing down.

3. Travel
MILLENNIALS ARE SEEKING OUT MORE AFFORDABLE,

BESPOKE TRAVEL ARRANGEMENTS
With an appetite for meaningful travel experiences and access to

new online platforms that make customized travel easy, millennial
travelers are looking to cut out middlemen and invest in their own
bespoke travel experiences — without paying a higher cost.
This has triggered a reorganization of priorities for an industry that

has long focused primarily on appealing to baby boomers, a retired
and relatively deep-pocketed demographic with plenty of free time.
However, millennial consumers have proven just as keen to see the
world as their parents and grandparents.
Source: Gratisography/Pexels

An Airbnb study from 2016 showed that many millennials prioritize
saving for their next trip over paying off debts or saving to purchase
their first home. Another found that 21% of millennials would
accept a lower salary if it meant they could travel more frequently.
The majority of Generation Y would even be willing to sacrifice their
Netflix subscription, coffee, alcohol, carbs, and even sex in favor of
traveling, according to Forbes.
But while millennials are just as eager to see the world as older
travelers, their tastes are markedly different, and traditional
vacation packages are unlikely to meet their high expectations.
Many are turning their backs on traditional guided sightseeing tours
and bus excursions in favor of more authentic travel experiences.
“Destinations need to improve their

experiential offering. Traditional
attractions and old buildings and churches
do not suffice anymore. Music festivals,
cultural and culinary events, multi-day
dance parties and artistic happenings
all must be on the menu of destinations
looking to attract more millennials.“
— MICHEL KARAM, FOUNDER AND CEO, MÜVTRAVEL
Traveling millennials want to find hidden gems and local favorites

that capture the true essence of a destination. Services like Airbnb
and VRBO directly appeal to this, eschewing traditional hotels to
allow tourists to live like locals.

At the same time, millennials are also demanding when it comes to
price. The ubiquity of price-comparison apps and the convenience
of e-commerce are making it easier than ever for frugal millennial
travelers to find great deals, and 85% of millennial travelers check
multiple sites before making a commitment.
As with many industries in today’s information economy,

millennial travel trends are strongly influenced by social media.
Research finds that 87% of millennials on Facebook use the site
for travel inspiration, making it the most influential social media
platform for Generation Y travelers thinking about their next trip.
In addition, 82% of millennial travelers said they considered user
reviews an important factor when planning a trip, and 76% decided
upon a destination based on the recommendation of a family
member or friend.
While the combination of millennials’ high expectations, budget-

conscious mindset, and desire for authentic experiences poses
unique challenges to traditional travel businesses, it also means
greater opportunities for companies ready to cater to Generation
Y’s discerning tastes.
As fastidious planners and price-conscious consumers,

Gen Y travelers are likely to prefer third-party platforms and
marketplaces where they can more precisely customize their
experience. Chain hotels looking to regain market share lost
to emerging accommodation marketplaces will need to either
embrace this millennial preference or find another way to attract
millennials back to their businesses.
In 2018, Marriott International opened a hotel designed specifically

for young travelers in Tampa, while Hilton began building a new
iteration of its millennial concept hotel, Tru, in Baltimore. The
relatively small, stylized rooms at Tru cost less than $100 a night
and feature a smartphone-powered check-in system, designed for
affordability and efficiency.

At Hyatt Centric — a Hyatt concept designed for millennials —
staffers are encouraged to share recommendations with guests,
and guides to local breweries and restaurants are placed in rooms.
Meanwhile, Residence Inn Marriott locations host weekly mixers
designed to give millennial travelers social get-togethers that bring
them closer to the local flavor of their destination.
For the old guard of the travel industry, attracting millennials by

building out better technology, service, and affordability is an
existential requirement. As Smashotels President and CEO Scott
Greenberg put it:
“If we attract young people, old people will

show up. But if you build a hotel for old
people, young people never show up.”

CONSUMER GOODS
4. Fast casual dining
MILLENNIALS OPT FOR SPEED, SELECTION, AND VARIETY

WHEN THEY EAT OUT
Problems in the casual dining industry came to a head in 2017,

as popular chains like TGI Fridays and Applebee’s were forced to
shutter dozens of locations amid slumping sales and lower traffic.
The primary culprit, according to analysts, was millennials — a
generation that allegedly no longer goes out to eat, preferring to
cook or order take-out.
The reality is that casual dining chain sales are down among all
demographics, not just millennials. Millennials are not avoiding
restaurants — in fact, no generation has a higher percentage of
frequent restaurant visits. And their restaurant usage is growing,
with millennials with children making 5% more visits to restaurants
in 2018 than they did in 2017, according to The NPD Group.
What’s changing is that millennials are turning away from old-school

chain restaurants and embracing new fast casual dining concepts.
Millennials are price-sensitive and eager for healthy, fresh food

options, and they crave choice in their restaurant experiences. Almost
40% of millennials eat meals on the go, compared to 26% of Gen Xers
and 19% of Baby Boomers, according to a Technomic research study,
and more than 50% want a “good deal for their money.”

Fast casual restaurants from Chipotle and Subway to Shake Shack
and Five Guys are largely designed with these preferences in mind,
with fast ordering and app-powered pickup and delivery as basic
pillars of their model. Fast casual dining also has an average
check size around $9-$14, compared to less than $9 for fast food
and as much as $20-$50 for higher-end casual dining. This gives
millennials a dining option that doesn’t sacrifice too much quality
for affordability.
The fast casual industry has also seen a wide proliferation of

varied cuisines and tastes. From the successful vegan outlet By
Chloe to the plant-based sandwiches at Next Level Burger to the
sushi kiosks of Miso Ko, there’s a fast casual option for virtually
any set of dietary restrictions and ethical choices.
Traditional dining and fast food chains looking to update their

offerings for Generation Y need to consider not just their prices
and menus, but also how they can integrate with technology,
the degree of personalization they offer in their meals, and their
approach to health.

Chipotle pioneered the trend towards the fully customized fast casual
meal with its made-to-order burritos and bowls. Chains like Blaze
Pizza are following behind: at Blaze, customers can fully customize
their pizza and have it cooked in front of them in just 3 minutes.
As consumer food preferences evlove, Fatburger experimented

with offering a plant-based burger in 2018 and found millennial
customers were willing to pay more for the higher quality product.
Other chains have also been quick to respond to heightened interest
in plant-based meat alternatives. Burger King, Cheesecake Factory,
Red Robin, and Qdoba are just some of the nationwide chains that
have introduced plant-based meat products from Impossible Foods.
Similarly, chains including Carl’s Jr., Dunkin, and TGI Fridays have all
begun serving meat-free alternatives from Beyond Meat.
Technology also plays an important role in the fast-casual

industry. Twenty-five percent of fast casual diners say that
technology options are an important factor in their choice of
restaurant, according to the National Restaurant Association.
From Starbucks to Panera, chains are embracing mobile ordering

and in-store pickup to attract a busier, millennial audience. Self-
service kiosks, like those at Subway and McDonald’s, are beginning
to emerge at fast casual locations as well, and CEO of Capriotti’s
Sandwich Shop Ashely Morris predicts widescale adoption of such
technology in the front- and back-of-house in the long term.
However, more traditional casual dining may get a boost as more

millennials have children. Designed for longer, sit-down meals
rather than grab-and-go cuisine, these kinds of restaurants serve
the need for a “third space” restaurant — a place where parents
can go with kids to unwind without being hurried out the door.
A challenge for the fast casual dining restaurants of tomorrow

will be building establishments that can be equally family and
kid-friendly without sacrificing the key factors that make them
appealing to millennials today.

CONSUMER GOODS
5. Coffee
MILLENNIALS LOVE COFFEE — AND THEY’RE WILLING TO

PAY MORE FOR GOURMET PRODUCTS
Like Generation X and the baby boomers before them, millennials

drink a lot of coffee. They also started drinking coffee much
younger — on average, around 15 years old. After several years of
declining sales among most age groups, millennial consumers are
the vanguard of a resurgence in the coffee industry. Today they
account for approximately 44% of the demand for coffee in the US.
But while millennials’ coffee consumption isn’t slowing, it is changing.
Instead of store-bought and pre-packaged coffee, millennials are

seeking out cold brew and other specially prepared beverages, as
well as ethically sourced, sustainable, and gourmet products.
Source: Burst/Pexels

Many millennial consumers are looking beyond older, legacy coffee
brands to blends from boutique “third-wave” coffee roasters.
Recent data shows that 70% of past-day coffee consumed by
millennials is considered “gourmet.”
Millennials are also gravitating away from hot coffee toward

canned cold brew and nitrogen-infused beverages. The can form is
convenient for an on-the-go consumer, while different flavors and
styles offer a range of options for choosy customers.
Environmentally conscious millennials are also taking a much

more active interest in how and where their coffee is grown, and
that’s influencing their buying decisions. Many Gen Y consumers
are at least somewhat knowledgeable about their coffee, favoring
brands committed to fair trade and environmentally sustainable
growing practices.
Millennials’ love of coffee is a positive sign for coffee growers and

brewers. Demand for premium coffee is unlikely to diminish in the
near future, creating favorable market conditions for incumbents
and new entrants alike. However, millennial preferences won’t put
up with generic products.
With the ever-increasing amount of choice in the coffee space,

manufacturers need to look to differentiate their offerings if they
want to attract millennial attention — and they have a wide range
of strategies to do so, from adding additional caffeine, promoting
ethical or sustainable sourcing, or even experimenting with new
ingredients like protein powder, nootropics, or CBD.

CONSUMER GOODS
6. Frozen foods
CONVENIENCE-SEEKING MILLENNIALS ARE DRIVING A

RENAISSANCE IN THE FROZEN AISLE
The frozen food sector, which could be worth as much as $290B

globally by 2021, has long had something of an image problem.
Frozen foods might be convenient, but until recently, they were
not typically associated with healthy eating or seen as a desirable
alternative to freshly prepared meals.
Gen Y may be changing that.
Millennials’ changing preferences around food and health are

resulting in a renaissance of frozen foods, a resurgence in sales,
and the emergence of new startups creating and delivering
bespoke frozen meals. In 2017, millennials spent an average of 9%
more on frozen foods per trip to the grocery store than households
of other demographics. In 2018, the total volume of frozen foods
sold in the US increased for the first time in 5 years, driven largely
by millennials and consumers with children.
Several factors are driving millennials’ interest in frozen foods.

Gen Y has a professed appreciation for convenience and eating on
the go, and frozen foods can be a convenient, fast, and affordable
alternative to ordering delivery or going out to eat.
Economic factors may also be contributing to this shift. For

millennials burdened with stagnating wages and significant
student loan debt, affordable frozen foods are becoming
increasingly appealing.

“Something as simple as buying frozen
food is really just symptomatic of the
trends we’re seeing at large. When you’re
seeing $400 dollars come out of each
paycheck to pay a student loan, that’s
certainly going to impact your ability to
go grocery shopping in a way that people
more traditionally used to.”
— ALLIE AGUILERA, POLICY AND GOVERNMENT AFFAIRS
MANAGER, YOUNG INVINCIBLES
Another factor at play is the surge in the availability of healthy

frozen foods. Traditional frozen food options haven’t been highly
diverse or healthy in their offerings. There has, however, been a
600% increase in the number of Americans identifying as vegan
in the past 3 years alone — and frozen food manufacturers are
racing to capitalize on the popularity of plant-based diets among
millennials. Fifty-two percent of millennials prefer organic food,
and a massive 40% are eating a plant-based diet.

Source: Wikimedia Commons
Plant-based brands such as Gardein (owned by Pinnacle Foods,

which also owns the popular Birds Eye frozen food brand),
Daiya (acquired by Japanese pharmaceutical concern Otsuka
Pharmaceutical in 2017), and Sweet Earth (owned by Nestle) have
all made significant gains in the frozen food market in recent years
— and the trend shows no sign of stopping.
Sales of plant-based meat substitutes alone increased by 23%

from 2017 to 2018, with frozen plant-based convenience foods
proving especially popular in the West South Central region of the
US, according to the Good Food Institute.
Millennial consumers also expect frozen foods to be higher quality

than they were in the past. Conagra Brands, which owns the
Banquet brand of frozen ready meals, doubled down on product
quality following a management shake-up in 2015 to meet
heightened consumer expectations.
Other brands have emerged to capitalize on the gourmet frozen food

trend, including Frozen Foodies, which offers cryogenically frozen
meals prepared by professional chefs using gourmet ingredients.

Daily Harvest offers a frozen smoothie and frozen bowl subscription
delivery service and advertises heavily to millennials on Instagram,
while Buttermilk focuses solely on pre-made Indian meals that can
be reheated in the microwave at home and served immediately.
Wider selection, higher quality, and competitive pricing are all

likely to drive frozen food sales in the near future. However, as
consumers’ expectations increase, so too will manufacturing costs.
The biggest challenge legacy frozen food companies face isn’t
convincing a new generation of consumers of the benefits of frozen
food; it’s how to manufacture and price higher-quality products
competitively without cutting too deeply into profit margins.

CONSUMER GOODS
7. Seltzer
DITCHING SODA, MILLENNIALS SEEK A HEALTHIER FIZZ IN

THEIR DRINKS
While many millennials have little appetite for sugary sodas, that
doesn’t mean they aren’t looking for other convenient carbonated
beverage options — and they’re finding them in seltzers and
flavored sparkling waters.
Sales of sugary carbonated drinks have fallen steadily for several

years, and although sales rebounded for some brands in 2018,
many of the largest soda manufacturers have gone back to the
drawing board as consumers turn toward healthier alternatives.
The beverage industry has been quick to respond to these trends.

In recent years, the dramatic increase in seltzer’s popularity has
sparked an arms race among major beverage manufacturers
as they seek to shore up their losses on soda with sales of low-
calorie carbonated drinks.

Several major drink manufacturers have diversified their product
offerings to include flavored seltzers. Coca-Cola acquired Mexican
seltzer brand Topo Chico, which has long been popular across the
American Southwest, for $220M in 2017. Coca-Cola also offers
sparkling-water beverages through its Dasani and Smartwater
brands. PepsiCo owns Izze, a range of juice-seltzer blends, as well
as Bubly and SodaStream.
In addition to major brands, dozens of smaller independent

beverage companies have emerged to quench millennials’
thirst for flavored seltzers. Spindrift, which claims to be the first
sparkling water in the US to be flavored exclusively using real fruit
juice, has grown rapidly since its founding in 2010. The company
achieved revenue growth of more than 1,000% over a 36-month
period from 2016 to 2018.
Venture capitalists invested more than $152M in seltzer and

sparkling water companies in 2018 alone — more than the sum
invested in 2016 and 2017 combined.
New upstarts are taking advantage of this momentum, looking to

capture the attention of millennials by adding new ingredients into
the mix — most notably CBD (which was declared federally legal
this year) and alcohol.
Recess, a CBD-infused seltzer brand, opened an online store to

sell its hemp-infused CBD seltzer in early 2019. The product is
marketed as a wellness aid, and also contains supplements like
L-theanine, an amino acid found in tea leaves.
White Claw Hard Seltzer, meanwhile, produces a range of flavored

100-calorie alcoholic seltzers. During summer 2019, White Claw
sales surpassed that of any craft beer except for Blue Moon. A
Nielsen survey showed hard seltzer’s sales growth at 193% over
2018. Of all hard seltzers, White Claw represented more than half
of total sales.

In light of falling revenues and the soda industry’s ongoing image
crisis, big soda companies have had little choice but to respond
to the rise of seltzer by diversifying their product range to include
healthier options that align with younger consumers’ tastes. Many
leading beverage companies, including Coca-Cola and PepsiCo,
have adopted an acquisitive approach to product diversification
with mostly positive results.
With its sparkling water business up 19% in 2018 alone, Coca-

Cola is in an enviable position to leverage changing tastes in
the beverage market — but even Coke cannot take its historical
dominance for granted.
For established brands, the biggest challenge may not be catering

to changing tastes, but reinventing themselves to capitalize on
their strong brand recognition while moving away from product
lines that have traditionally been perceived as unhealthy, including
their core soda beverages.

CONSUMER GOODS
8. Houseplants
WELLNESS-FOCUSED URBAN MILLENNIALS BRIGHTEN

THEIR SURROUNDINGS WITH PLANTS
In 2019, Bloomberg declared that plants had become the new children
for Generation Y. The Washington Post went further still, saying that
millennials were filling their homes — as well as the “void in their
hearts” left by not having children or pets — with houseplants.
There are a couple of problems with this narrative. For one thing,
millennial women accounted for 82% of all births in the United
States in 2016. Meanwhile, 35% of all pet owners in the country are
millennials, making them the largest pet-owning generation — so
many millennials do have children, pets, or both. Moreover, there’s
not much evidence that people see houseplants as substitutes for
children or pets.

That said, plant sales are on the rise, increasing in the US by nearly
50% in the past 3 years to reach $1.7B, according to the National
Gardening Association. The average household spend on indoor
plants has also increased, growing from about $30 in 2016 to
nearly $50 in 2018.
Forces behind this demand may include millennials’ interest

in holistic wellness and proclivity for urban living, where the
temporary nature of rentals often doesn’t allow more permanent
changes to one’s housing. On the supply side, a range of new
digitally native D2C plant brands have sprung up to offer an easier
and more accessible houseplant buying experience.
Houseplants have become an integral part of many Gen Yer’s

wellness and self-care routines. On social media, terms like
“jungalow” — a portmanteau of “jungle” and “bungalow” — and “urban
wilding” have become incredibly popular hashtags for stressed-out
millennials hoping to create urban oases in their apartments.
D2C plant brand The Sill’s tagline, “Plants Make People Happy,”
directly contextualizes houseplants as a form of self-care
and wellness.
“They call us Generation Stress for a

reason. We position plants and our brand
as the break in all this. It’s the antidote
to this unfortunate thing that our entire
generation suffers from: anxiety. And
plants really can be part of the cure.”
— ELIZA BLANK, THE SILL

Advocates regularly cite scientific studies showing houseplants
can increase productivity, reduce stress, boost physical health,
and improve air quality. While recent research shows that
houseplants have a generally negligible effect on indoor air quality,
the mood-changing effects of surrounding yourself with plants are
real and clear.
Also important in the resurgent growth of the houseplant industry

is the “youthification” of America’s urban areas. Millennials today
have a preference for city living that eclipses that of baby boomers
and Generation X at the same age, and tend to rent more than other
generations: 74% of millennials live in rental properties, compared
to 61% of early boomers in 1981 and 62% of Gen Xers in 2000.
While renting is more affordable, and makes city living more

possible, it also makes it harder to personalize and customize a
living space. Plants offer a low-cost, low-impact way to do this.
And as millennials seek out greenery to enhance their living

spaces, retailers aren’t waiting passively for customers to come to
them; instead, they’re adapting their offerings to reflect changing
shopping habits among millennial consumers.
Direct-to-consumer houseplant companies like The Sill, Greenery

NYC, and Bloomscape offer highly cultivated aesthetics designed
to be found and shown off on social media. They also offer
meticulous plant care instructions and prioritize online sales.
Several houseplant subscription services have emerged in recent

years, including Click and Grow, Horti, and The Sill’s Plant Parent
Club. Larger e-commerce platforms like Amazon and Etsy have
also launched specialized marketplaces for houseplants. These
services not only make cultivating and caring for houseplants
easier for busy urban consumers, but also strongly align with
broader e-commerce trends that are popular with millennials.

While these trends may threaten traditional garden retailers,
some independent nurseries have adapted and found success
with millennial shoppers. California’s Folia Collective, Sanso, and
Peacock & Co. have attracted millennial shoppers by embracing
the clean, angular aesthetics of companies like The Sill and
focusing their sales on houseplants — appropriate for a generation
that’s more likely to have space for indoor than outdoor plants.
By offering easily available, aesthetically clean, and lower-cost

houseplants, plant retailers of all stripes can better appeal to
wellness-minded and urban-dwelling millennials.

CONSUMER GOODS
9. Skincare
DRIVEN BY CONSCIOUS CONSUMERISM AND ONLINE-

FIRST STRATEGIES, SMALLER COMPANIES GAIN GROUND
ON LEGACY COMPETITION
Over the last several years, the cosmetics industry has seen
strong growth, driven largely by millennial’s new discovery and
purchasing behaviors and the rise of niche new brands catering to
their preferences.
As of 2017, millennial shoppers were buying 25% more cosmetics

than 2 years prior, and significantly more than baby boomers, with
self-described “makeup enthusiasts” using 6 or more products
each day, according to NPD.
The global cosmetics market was worth about $530B in 2017 and
is expected to surpass $800B as soon as 2023. However, between
2010 and 2015, the 10 biggest cosmetics brands in the market
lost 6% market share, according to a Deloitte study, while smaller
brands grew their share by 5%.

At the root of this shift is the millennial generation’s changing
preferences around how they find and choose skincare brands.
Millennials are 3x more likely than previous generations to

research new brands and products using social media, and 37%
more likely to trust a brand after coming across a sponsored post
about it. Beauty videos in particular are on the rise: global views
of beauty videos on YouTube increased by 60% to a total of 219B
between 2016 and 2017.
This tendency to use social media to find products has spurred

the growth of new online-first and D2C beauty brands like Glossier,
which used Instagram as its primary marketing channel to surpass
$100M in sales in 2018.
Meanwhile, brick-and-mortar companies like Ulta Beauty are

embracing niche merchandising as a strategy to lure consumers.
Ulta has worked with the Kardashians, became the exclusive retail
partner of popular skincare brand Peach & Lily in early 2019, and
recently announced that 1,200 Ulta Beauty stores will carry D2C
company Madison Reed’s products. Ulta saw an average of 20%
revenue growth each quarter for the last 3 years.
While millennials are generally price conscientious, 73% are willing

to pay more for products that are sustainable (compared to 66%
of average consumers), with a lack of testing on animals as their
highest priority.
They also want to buy natural, high-quality products. Roughly half

of millennials reported purchasing skincare products free from
synthetic chemicals during the past year, while launches of vegan
beauty products increased by 175% between 2013 and 2018,
according to Mintel’s Global New Products Database (GNPD).

As the skincare market becomes more crowded than ever, it’s
important for brands to build strong connections with their
customers. Glossier, for example, is working on its own “social
commerce” project designed to connect customers with the
company and with each other. Building its own platform could help
insure Glossier against the possibility of Instagram’s influence
turning against it, while giving the brand a more direct relationship
with customers.
Ultimately, while millennials are more conscientious consumers

of skincare products than generations before them, that hasn’t
slowed down their spending. Armed with the ability to easily
research new skincare companies, and faced with a wider range
of niche brands than ever, millennials are buying far more skincare
products than any other generation.
It’s up to the skincare brands to now capture that attention, deliver

products that match millennials’ preferences (such as sustainable
practices and natural ingredients), and nurture that connection
over the long term.

TRANSPORTATION
10. Automotive
MILLENNIALS STILL WANT TO DRIVE — THEY JUST WANT

CHEAPER, MORE EFFICIENT VEHICLES
Despite their concern for the environment and reputation as bicycle

riders and public transportation commuters, a large portion of
Generation Y is just as keen to get behind the wheel as their parents
were. In terms of vehicle-miles traveled, millennials actually drive
more (controlling for factors like marriage and urban living).
In Q1’18, millennials were responsible for all new-vehicle sales

growth in the US — quite an accomplishment for what many in the
industry described as the automotive sector’s “lost generation.”
“Millennials had all but been written off

as a serious customer group in the auto
industry. But data tells a much different
story. The demographic is maturing and
is now poised to be a driving force in
automotive marketing.”
— MARTY MILLER, EXPERIAN AUTOMOTIVE
However, millennials do differ in their preferences. While older

cohorts may favor luxury vehicles, such as high-end sedans and
SUVs, most millennial motorists prefer smaller, more efficient,
and more affordable sedans. In a 2019 survey, 86% of younger
millennials and Gen Z members said they would consider buying
a sedan themselves when they buy a car.

Millennials also have a demonstrated preference for foreign-made
vehicles. Of the 10 most popular vehicle brands among millennial
consumers, only 3 are American. Japanese automakers Honda,
Nissan, and Toyota — the 3 top-selling vehicle brands among
millennial consumers — are routinely rated as among the most reliable
vehicle brands in the world. In addition, their popularity as midrange
brands means comparatively lower prices for newer vehicles.
Despite millennials’ auto preferences, many automakers are

eliminating sedans from their lineup: Ford recently announced that
it would discontinue 100% of the sedans in its lineup by the year
2020. General Motors and Fiat Chrysler are following suit.
To retain their competitiveness in the domestic market, American

automakers will likely need to reverse the ongoing elimination
of sedans from their lineups. While overall data shows that
consumers are buying more trucks and crossover SUVs than
sedans, that data doesn’t account for generations. While sales of
compact SUVs and larger cars are up among Generation X and
baby boomers, only 2 non-sedan cars were among the 10 most
popular vehicles driven by millennials in 2018.

Volkswagen, Hyundai, Subaru, and Toyota are a few of the
international car brands that released new sedans in 2019,
catering largely to millennials looking for smaller, and in many
cases, first vehicles.
Experts and analysts expect that sedans will continue to make up

as much as 30% of the domestic vehicle market in years to come.
So far, it appears that it’s primarily foreign automakers who are
intent on capitalizing on this trend — and on the larger trend of
millennials getting behind the wheel in larger numbers.

TRANSPORTATION
11. Micromobility
FOR URBAN MILLENNIALS, MICROMOBILITY WILL BE THE

KEY TRANSIT CHOICE OF THE FUTURE
Gen Y has been pivotal in the trend of resurgence i America’s urban

areas. Not only do they have a significant preference for city living,
they are also 21% more likely to buy their homes near city centers
than Gen Xers. For the cohorts aged 25-34 and 35-44, the critical
factor in that decision is access to transit, according to a Journal of
Regional Science study.
Given that millennials make up America’s largest-ever generation,

that is positive news for the sector of the transportation industry
most primed to capture the future urban market: micromobility.

Micromobility services — including ride-hailing platforms like
Uber and Lyft, bike-share programs like New York City’s Citi
Bike, and electric-scooter rental services like Bird and Lime —
have grown rapidly in recent years. Today, there are more than
85,000 e-scooters available for rent in 100 cities across the US,
with more than 38.5M trips made in 2018 alone. As a whole, the
micromobility sector is expected to be worth up to $300B by 2030.
American cities in particular are ideal environments for

micromobility startups. Roughly 60% of all trips made in the US
are 5 miles or less, and e-scooters and e-bikes are much more
efficient than driving for such short distances.
Uber has already noticed its shared e-bike platform Jump

cannibalizing its ride-share business during peak hours:

Top users of services like Jump and Uber are also significantly less
likely than other respondents to buy a new car, according to the
Shared-Use Mobility Center:
Top automakers in America and around the world have begun

working on their own micromobility projects to capture the
demand for a more affordable, efficient form of transport,
especially inside America’s urban cores.
GM has unveiled its own e-bike project, ARĪV, which is launching

first in Germany, the Netherlands, and Belgium before shipping to
customers in the United States.
In late 2018, Ford bought e-scooter company Spin for a reported

$100M, and the company has been operating a docked bike-share
program in San Francisco and the Bay Area since 2013.
Other legacy transportation companies trying to adapt to a

micromobile world include BMW, which is building its own line
of electric bikes and motorcycles; Harley-Davidson, which is
building an electric motorbike; and Audi, which is building electric
mountain bikes.

One of the keys to success with micromobility will be the ability
to work with municipalities to bring scooters and bikes to the
road in a sustainable manner. Although some municipalities have
welcomed micromobility startups with open arms, some have been
resistant to allowing them to operate within city limits.
The city of Santa Monica, California filed a criminal complaint against

Bird after the company deployed its fleet of e-scooters in 2017, and
city attorneys in San Francisco issued cease-and-desist letters to
Bird and Lime in 2018, claiming the scooters were a public nuisance.
Several other cities across the US, including Nashville, San Antonio,
and Seattle, have introduced legislation in recent years either
restricting or outright banning micromobility startups from operating
in those cities following complaints, accidents, and fatalities.
For micromobility companies looking to capitalize on millennial

consumers, a key challenge will simply be figuring out how to operate
in the urban geographic locations that the generation prefers.

FINANCE
12. Personal Finance
MILLENNIALS ARE INCREASINGLY TAKING CONTROL OF

THEIR MONEY WITH APPS, NOT BANKS
Despite being saddled with the highest student loan debt of

any generation and the fastest-rising cost of living in a decade,
millennials are often characterized as being inept when it comes to
their finances.
The reality, however, is that nearly half of millennial Americans are

actively saving for emergencies, retirement, and even future homes.
Despite lower earnings than Gen Xers or baby boomers had at their
age, millennials are more likely to have savings goals, manage their
debt better, and do a better job of sticking to their budgets.
Generation Y’s secret weapon when it comes to navigating

budgeting, saving, investing and spending — even with depressed
wages and a less-than-desirable job market — is technology.
Millennials are the vast majority of users of web and mobile

personal finance apps, which are year by year becoming
increasingly popular tools to help millennials better understand,
organize, and improve their finances.

With more than half of American smartphone users using at
least one full-service banking app and almost one-fifth using a
standalone budgeting app, consumers across demographics are
embracing fintech products — but Gen Y users rely on mobile
banking and standalone budgeting apps more than their older
counterparts. Personal budgeting apps are especially popular with
millennials, with approximately 70% of the user base of these apps
belonging to the millennial cohort.
One of the most popular verticals for personal finance tech is

banking. In one survey, 71% of millennials said that they would
rather go to the dentist than listen to what a bank has to tell them
— a sentiment driven largely by poor customer service and poor
technological integration.
That distaste has created a huge opportunity for digital-first

challenger banks, 7 of which have already surpassed 1M accounts:
Revolut, Chime, Nubank, Qapital, Monzo, N26 and Uala. CG42’s
2018 retail banking study predicted that the 10 largest banks
would lose more than $340B in deposits to this upstart brand of
competition over the next year alone.
Millennial adoption has also fueled the growth of robo-investment

advisors like Betterment ($16.4B in assets under management),
Wealthfront ($11B AUM), and Personal Capital ($8.5B AUM).
Robinhood, a trading platform, was valued at $7B as of 2019. In
2015, it revealed that it had a user base of 80% millennials, with an
average age of 26.
As the rapidly rising cost of living continues to squeeze already

struggling millennials, it’s inevitable that demand for personal
finance apps to help cash-strapped consumers make informed
decisions will remain high.

To stay relevant, legacy financial institutions will need to offer
mobile apps that are both technologically sophisticated and
simple to use. These apps may utilize technologies like Face ID for
quick login, offer integrations with the other financial products like
Robinhood that millennials are using, and be built as consumer
products first — not portals into a web interface from the 1990s.

WHERE IS ALL THIS DATA FROM?
The CB Insights platform

has the underlying data
included in this report
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12 Industries That

Will Thrive Thanks

ACTIVITIES & HOBBIES

12 Industries That Will Thrive Thanks To Millennials 2

Popular media coverage of millennials often fixates on the

This transfer of wealth has already begun transforming a range of

However, these industries won’t thrive unchanged.

12 Industries That Will Thrive Thanks To Millennials 3

12 Industries That Will Thrive Thanks To Millennials 4

AS MORE MILLENNIALS HAVE CHILDREN, THEY’RE

Camping has enjoyed significant revenue growth over the last

Total wholesale camping equipment sales rose above $2.5B in

Kampgrounds of America, an association of almost 500 North

Part of millennials’ enthusiasm for camping springs from the

These shifts are creating a need for budget-friendly family

12 Industries That Will Thrive Thanks To Millennials 5

Finally, technology is helping millennials learn more about camping

Virtually all campers reported bringing their some kind of tech

12 Industries That Will Thrive Thanks To Millennials 6

New technology, the rise of high-end camping, and millennials’

12 Industries That Will Thrive Thanks To Millennials 7

BOUTIQUE GYMS & CLASSES ARE SPREADING AS

Few industries will benefit as directly from the rise of millennials’

Generation Y is already more motivated to stay in shape than

Millennials are also much bigger spenders when it comes to gym

Source: Bruce Mars/Pexels

12 Industries That Will Thrive Thanks To Millennials 8

Instead, the fitness industry is seeing growth at the ends of the

The number of people who joined a budget gym — fitness clubs

At the same time, boutique studio memberships grew by 70%

Millennials’ willingness to pay up, despite their unique financial

12 Industries That Will Thrive Thanks To Millennials 9

While millennials are more eager to exercise — and more willing to

US health clubs have already rushed to capitalize on millennials’

What does seem certain, given millennials’ proclivity for health

12 Industries That Will Thrive Thanks To Millennials 10

MILLENNIALS ARE SEEKING OUT MORE AFFORDABLE,

With an appetite for meaningful travel experiences and access to

This has triggered a reorganization of priorities for an industry that

12 Industries That Will Thrive Thanks To Millennials 11

“Destinations need to improve their

Traveling millennials want to find hidden gems and local favorites

12 Industries That Will Thrive Thanks To Millennials 12

As with many industries in today’s information economy,

While the combination of millennials’ high expectations, budget-

As fastidious planners and price-conscious consumers,

In 2018, Marriott International opened a hotel designed specifically

12 Industries That Will Thrive Thanks To Millennials 13

For the old guard of the travel industry, attracting millennials by

“If we attract young people, old people will

12 Industries That Will Thrive Thanks To Millennials 14

4. Fast casual dining

MILLENNIALS OPT FOR SPEED, SELECTION, AND VARIETY

Problems in the casual dining industry came to a head in 2017,

What’s changing is that millennials are turning away from old-school

Millennials are price-sensitive and eager for healthy, fresh food

12 Industries That Will Thrive Thanks To Millennials 15

The fast casual industry has also seen a wide proliferation of

Traditional dining and fast food chains looking to update their

12 Industries That Will Thrive Thanks To Millennials 16

As consumer food preferences evlove, Fatburger experimented

Technology also plays an important role in the fast-casual

From Starbucks to Panera, chains are embracing mobile ordering