American Spending Habits
As we near the 243rd anniversary of America’s independence from Britain on July 4th, we thought it only made sense to look at the spending habits of Americans. Understanding where and how Americans are spending their money might help you see higher selling potential and profit!
Who IS the American Consumer?
To understand how Americans spend, we need to understand who the average American consumer is and how they’ve changed. In addition to the leaps and bounds in technology and the proliferation of online purchasing, there are some essential demographic changes that have occurred over the past 20 years as well.
-American consumers are becoming more and more diverse with varying economic backgrounds.
-While Millennials/Gen Y and Gen Z/iGen make up the largest portion of the US population at a combined 52.2%, Baby Boomers are the next largest group at 22.6%.
-Consumers aged 55 and older continue to be the most rapidly growing segment of the population.
-They are more educated and buying homes, getting married later or not at all.
-Many of them are highly influenced by products recommended by vloggers and influencers.
-They are no longer as brand loyal as they once were.
-The most important factors for them to consider when making a purchase are convenience, value, pricing comparisons, the ability to ask questions about products, and other consumer reviews.
What Are Americans Buying?
So what is the average American consumer actually spending their money on anyway? A recent study found that Americans are spending close to $18,000 a year on non-essentials. As much as we’re spending each year on contemporary essentials such as food, housing, gas, clothing, childcare, education, utilities, etc., nothing seems to be slowing down Americans’ impulse buying and non-essential spending.
Here are some non-essential goods and products that are among the biggest sellers:
-Beauty products such as skincare and makeup
-Health and fitness clothing and accessories
-Home decor for both indoors and outdoors
-Products for in-home entertaining
-Special occasions such as birthdays, anniversaries, milestones, and holidays
-Non-essential seasonal items:
*Spring: gardening implements, plants and seeds, fishing equipment
*Summer: pool/beach accessories, swimsuits, sandals
*Fall: Halloween costumes, fashion boots
*Winter: Christmas decorations, skiing/snowboarding clothing/accessories
As the American consumer’s spending habits continue to change and keep pace with current technology and purchasing options, the selling opportunities continue to shift and evolve with them. Sellers can now easily evaluate spending trends and become attuned to which demographic groups are spending the most, what they’re spending their money on, and when the most lucrative selling periods are.