Survey: Millennials cut back discretionary spend; most popular brands are …

Millennials are feeling the pinch from inflationary pressures and buying more private-label goods.

Seventy-six percent of millennials have reduced their discretionary spending behavior due to higher prices for everyday and non-discretionary goods, according to a survey of millennials by Roth MKM, a full-service investment bank focused on advising and financing growth companies. Also, 45% have started purchasing more private-label goods in place of branded ones.

For the second survey in a row, Nike, Adidas, Vans and Steve Madden are the leading fashion footwear brands among millennials. Gucci is the most popular luxury goods brand.

The survey also revealed that 28% of all millennials who purchase items online have signed up for auto replenishment or subscription items on Amazon, 53% are more likely to buy directly from the manufacturer if personalization is available.

Additional findings from the Roth’s 2023 Millennial Survey, conducted in partnership with MFour Mobile Research, are below:

• Hello Fresh, Blue Apron and Home Chef are the most popular food/meal kit subscription services.
• Forty percent of millennials who purchased furniture purchased their last furniture or home goods product online and had it delivered to their home.
• Millennials view Serta, Purple, Sealy, Ikea and Sleep Number as the mattress brands that best serve their needs.

• Sixty-four percent of millennials had their health and wellness purchases influenced by the COVID-19 pandemic. And  20% are consuming more energy drinks since the pandemic, with 46% more likely to seek out a “healthier” energy drink.
• Sixty-one percent of millennials have returned to their traditional fitness club since the COVID-19 pandemic

• Sixteen percent of millennials that own pets use walking or boarding services for their pet, with Rover and Wag! being the preferred pet service marketplaces.

“Health and wellness and convenience have become more important for millennials since the COVID-19 pandemic,” said Paul Zaffaroni, managing director and head of consumer investment banking at Roth MKM. “Consumer brands that have adapted to these changes will continue to command premium valuations from institutional investors and strategic acquirers,”

“While millennials continue to revert to more normal post-pandemic behaviors, they are clearly feeling the pinch from inflationary pressures that are evident across the consumer landscape,” added Matt Koranda, managing director, senior research analyst at Roth MKM. “ Our survey shows that millennial consumers are still willing to spend on innovative brands, products, and services that tailor offerings to meet their unique needs.”

Roth’s 2023 Millennial Survey surveyed 2,500 millennial-aged women and men.