Millennials (or Gen Y, born 1980-1994), representing 21% of the global population in 2025, command the largest total income across generations. Their collective earnings are projected to grow by 46% by 2040, solidifying their position as a significant economic force. However, financial caution, time constraints and pressured values temper their spending behaviour.
Economic shocks drive a cautious mindset
Having witnessed the 2008 financial crisis, the Eurozone debt crisis, the COVID-19 pandemic and the cost-of-living increase in 2022-2023, millennials now face surging geopolitical and economic uncertainty. Past experiences and the turbulent reality erode financial confidence and encourage cautious and strategic money management.
Over half (54%) of millennials intend to increase their savings this year, higher than Gen X and baby boomers
Source: Euromonitor’s Voice of the Consumer: Lifestyles Survey, fielded January-February 2025
Financial pressures vary between markets, underscoring the need for regional nuance. While millennials in developed regions feel financially constrained due to restricted growth in remuneration and high debt levels, millennials in emerging economies are often the top-earning generation with fewer financial obligations. In China and Brazil, for example, millennials earn 41% and 47% more than the average income per capita, indicating a strong financial footing. Nevertheless, global uncertainties and past economic shocks keep global millennials cautious.
Brands that enable millennials to plan and optimise spending will secure their trust and loyalty. Tailored strategies for varying financial constraints may include:
- Tiered pricing. Price laddering lets aspirational shoppers trade up without alienating cost-sensitive ones.
- Flexible payments and loyalty. Subscription models, BNPL services and loyalty schemes help millennials spread large expenses over time, maximising value.
- Quality and price validation. One in three millennials is willing to pay a premium for high-quality apparel and accessories, the highest share among all generations, making transparent assurances of quality and value indispensable.
Time pressures shape purchasing decisions
Nearly half of millennials report constant pressure to juggle work demands, family responsibilities and personal ambitions, including building a personal brand. This strain fuels strong demand for solutions that streamline tasks and routines, making AI-powered tools particularly appealing to this cohort.
The Lifestyles Survey 2025 shows that 29% of millennials rank time with family as their top priority, compared to just 7% who prioritise work. The survey also indicates that 59% of millennials set firm boundaries between their professional and personal lives – the highest rate among all generations. As a result, most millennials actively seek ways to simplify their routines, with 58% willing to spend money to reclaim time.
This trend offers significant growth opportunities for brands that leverage advanced automation, AI and innovation. Consumer appliances are leading the way. For example, Samsung’s initiative, “Screens Everywhere”, integrated into its refrigerators, improves food identification and streamlines meal planning.
Digital and information overload threaten millennial core values
Millennials prioritise three core values: health, real-life experiences, and sustainability; yet, digital dependency and information overload increasingly undermine them. Businesses that deliver data-backed solutions, multifunctional offerings, and seamless integration of digital and physical experiences are well positioned to succeed.
Mental wellbeing has become a central concern, fuelled by constant online exposure. According to the Lifestyles Survey 2025, 37% of millennials believe the internet significantly raises their stress levels, compared with 32% globally, and 52% say they spend too much time in front of screens. While digitalisation cannot be eliminated, products that target stress relief and mood enhancement present a strong commercial opportunity for businesses targeting millennials.
Experiential spending also remains key for millennials. However, financial constraints are curbing growth in prominent real-life experience categories, such as leisure and hospitality, prompting a shift to more affordable digital alternatives. Brands that combine cost-effectiveness with immersive features through virtual try-ons or smart mirrors, can capture millennial interest while respecting their mental health priorities.
Sustainability remains a major purchase driver for millennials too. This cohort also leads trust in labels such as “environmentally friendly” and “sustainably produced” and is more willing than other generations to pay a premium for sustainable goods. Still, rising greenwashing and information noise are eroding this confidence. To build trust, brands must align sustainability claims with proven performance metrics and key purchase drivers such as quality, safety or efficacy.
Learn more about different generations in our reports, Maximising Opportunities in the Millennial Market, Unlocking Growth in the 60+ Consumer Market, and Future of Consumption: Unlocking Gen Z Behaviour for Crafting Powerful Strategies.