Millennials, often characterized by their unique preferences and technological savviness, have influenced various sectors of the economy. Their distinct values and consumption habits, shaped by rapid advancements in technology and shifting cultural norms, have led to the rapid transformation or even decline of certain industries. Here, we explore 18 industries that have felt the brunt of this generational shift, where millennial behavior and choices have “decimated” traditional business models, paving the way for new trends and innovations. From fast food chains to department stores, the impact of millennials is a testament to their power as consumers and their role in redefining market dynamics.
The Rejection of Riding
Millennial disinterest contributes to the decade-long decline in motorcycle sales. In a 2017 note, AB analyst David Beckel highlighted that their data indicated a notably lower adoption rate of motorcycling among younger Millennials compared to earlier generations. As a response, Harley-Davidson has embarked on efforts to introduce new models and establish partnerships to appeal to younger Americans and revitalize the brand’s appeal.
Old-School Yoghurt
Traditional “spoonable” yogurt faces competition from innovative alternatives. Mintel forecasts a potential 5 percent decrease in overall yogurt sales between 2017 and 2022. General Mills disclosed a 2 percent decline in yogurt sales in the US for the most recent quarter, primarily attributed to diminishing Greek and light yogurt sales. In response, General Mills is shifting its focus to emerging yogurt varieties like “French-style” Oui by Yoplait, aiming to stimulate sales in this evolving market.
Failing Fabric Softener
Editorial credit: yackers1 / Shutterstock.com.
The Wall Street Journal reported that liquid fabric softener sales in the United States experienced a notable 15 percent decline from 2007 to 2015. Even the market leader, Downy, witnessed a 26 percent drop during this period. Procter & Gamble, the manufacturer of Downy, has attributed this decline to millennials’ need for more awareness regarding the product’s purpose. The head of global fabric care at Procter & Gamble commented that many millennials need to become more familiar with the intended use of liquid fabric softeners.
No Napkins
Recent trends indicate that younger consumers favor paper towels over traditional napkins, as a 2016 Washington Post article reports. The article references a Mintel survey, which revealed that only 56 percent of shoppers had bought napkins in the preceding six months, whereas 86 percent had purchased paper towels. Paper towels offer enhanced versatility, serving multiple purposes compared to napkins. Additionally, millennials’ tendency to dine out more frequently has played a role in the dwindling popularity of napkins, as noted by The Post.
Bye Bye, Bar Soap
As per Mintel data, bar soap sales declined 2.2 percent from 2014 to 2015, when the broader shower-and-bath category experienced growth. Millennials are considered a contributing factor to this decline. Mintel highlighted that nearly half (48 percent) of all US consumers harbor concerns that bar soaps become germ-infested after use. This concern is notably more pronounced among consumers aged 18-24, with 60 percent sharing this sentiment, as opposed to just 31 percent of older consumers aged 65 and above, as mentioned in a Mintel press release.
Soda Sales
2006 marked the start of a decline in soda sales by volume in the United States, ending a 20-year growth streak. This downward trend has persisted annually since, with Coca-Cola and Pepsi brands experiencing respective volume declines of 2 percent and 4.5 percent in the US in 2017, as reported by Beverage Digest. Coca-Cola’s strategies to rejuvenate sales have largely persuaded millennials to opt for lower-calorie beverages. Earlier in 2018, Diet Coke underwent a relaunch accompanied by a millennial-targeted advertising campaign featuring new flavors and endorsements from social media influencers. Furthermore, Coca-Cola has pursued acquisitions of trendy beverage brands, such as Australian kombucha maker Organic & Raw Trading Co, sparkling-water brand Topo Chico, and coconut-water brand Zico.
The Decline of Home Cooking
A recent UBS report predicts that by 2030, online food delivery may constitute a significant 10 percent share of the overall food-services market. This potential shift could pose challenges for companies renowned for their pre-packaged or home-cooked meal offerings, including General Mills and Kraft Heinz.
Driving Golf Away
While millennials have spearheaded the emergence of fitness trends like SoulCycle and barre classes, golf has similarly struggled to ignite their enthusiasm. The National Golf Foundation’s 2017 report indicated a 1.2 percent decline in golf participation in the US in 2016. Concurrently, sales dipped, amounting to $3.57 billion in 2017, down from $3.6 billion the previous year. The Business Journals further reported that the count of golf courses and country clubs in the US has reached its lowest point in a decade.
Cereal Killers
Cereal sales have experienced a noticeable decline in recent years. Mintel data reveals that cereal sales in the US have fallen by 11 percent over the past five years, reaching approximately $9 billion in 2017. The New York Times reported in 2016 that nearly 40 percent of millennials considered cereal an inconvenient breakfast choice due to the cleanup involved after consumption. In response, younger consumers opt for more convenient breakfast options with minimal cleanup, such as yogurt or fast-food breakfast sandwiches, that can be consumed on the go.
Department Store Death
The surge of millennials towards online shopping platforms and fast-fashion giants like H&M and Zara has dealt a severe blow to traditional department stores like Macy’s and Sears, leading to the closure of numerous outlets nationwide. One contributing factor is that when millennials decide to spend, they increasingly invest in experiences, such as dining out and exploring new travel destinations. Their preferences lean away from high-end designer brands, as they find satisfaction in budget-friendly private-label options, exacerbating the challenges faced by traditional department stores.
Themed Restaurants
For themed restaurants like Hooters and Twin Peaks, a waning fascination with their themes has presented a business challenge. Industry reports reveal that the number of Hooters establishments in the US dwindled by over 7 percent from 2012 to 2016, and sales have plateaued. Hooters has grappled with the task of appealing to millennials for some time now. In 2012, the chain tried to rejuvenate its image by updating its decor and introducing new menu offerings to attract more millennial and female patrons. More recently, the chain unveiled plans to bolster sales by expanding its delivery services.
Toys R Gone
In the last five years, fertility rates have reached a historic low, bringing the birth rate among women aged 15 to 44 down to 62 births per 1,000 women. This trend is posing challenges for industries primarily catering to babies and children. Toys R Us, for instance, highlighted this concern in its 2017 annual filing, noting that its revenue is closely tied to birth rates in the countries where it operates. Many nations’ declining or stagnant birth rates, driven by aging populations and increasing education and income levels, have affected Toys R Us and other businesses like Build-A-Bear and local toy stores. However, they have not resorted to bankruptcy.
Shaving Gear
The growing trend of a more relaxed attitude toward shaving, particularly embraced by men below the age of 45, is presenting significant challenges and necessitating strategic shifts within the razor industry. As reported by CNN, even Gillette, an important player, had to take drastic measures last year, reducing prices by an average of 12 percent and promoting facial hair maintenance tools like beard trimmers. Gillette’s data indicates a decline in men’s average monthly shaving frequency, dropping from 3.7 to 3.2 times over the past decade. Consequently, the razor industry experienced a 5.1 percent sales decline by June compared to the previous year.
Starter Homes
Millennials have begun entering the housing market, marking a significant shift. According to a 2017 report from the real-estate platform Zillow, millennials, encompassing individuals aged 18 to 34, have become the largest cohort of homebuyers in the United States. However, their journey to homeownership has been prolonged compared to previous generations. Spencer Rascoff, CEO of Zillow, has shed light on this delay, attributing it to the limited availability of starter homes, leading millennials to rent for extended periods. Additionally, when they purchase their initial home, they tend to opt for higher-quality homes than prior generations.
No-Mayo
A provocatively titled “How Millennials Killed Mayonnaise” article in Philadelphia magazine has ignited discussions on this condiment’s declining popularity. As The Wall Street Journal reported, Euromonitor data shows a significant 6.7 percent drop in mayonnaise sales in the US between 2012 and 2017. Iconic brands such as Hellmann’s and Kraft were compelled to reduce prices to maintain consumer interest. During the first quarter of 2017 to 2018, mayonnaise prices dipped by 0.6 percent, contrasting with a 1.6 percent overall increase in packaged food prices, according to Nielsen data.
Beer Gone
It’s becoming increasingly evident that millennials have shown a notable decline in beer consumption compared to previous generations. Over the past 15 years, the annual drop in beer consumption among drinkers aged 21 to 24 has averaged around 3 percent. According to Nielsen data, beer’s reach decreased by one percentage point from 2016 to 2017, while wine and spirits remained stable in the US market. Furthermore, per-capita beer consumption in the US experienced a substantial drop of nearly 10 percent between 2008 and 2017, as reported by Euromonitor data. Among the most severely impacted are prominent American beer brands like Coors and Bud Light.
Traditional Weddings
Recent trends in the world of weddings reveal that millennial couples are departing from conventional banquet halls and hotel reception spaces in favor of more unique venues like barns and farms. A survey by the wedding website The Knot supports this shift towards unconventional locations. There is a noticeable trend towards a more relaxed and informal approach in the broader context of weddings, ranging from venue choices to attire. Wedding planners interviewed by Business Insider have noted that many clients are choosing to tie the knot at a later stage in life and are financing their own weddings, giving them the freedom to break away from traditional parental customs and expectations.
The Casual Dining Curse
The “Casual Dining Curse” phenomenon is a subject of ongoing debate among industry leaders. While some executives argue that reports of the industry’s demise due to millennials may have been exaggerated, the reality cannot be ignored. Established brands like Buffalo Wild Wings, Ruby Tuesday, and Applebee’s have grappled with declining sales and a wave of restaurant closures. Casual dining chains, in general, have encountered formidable challenges in their efforts to draw in patrons and bolster revenue streams.
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