Millennials Are Adding Additives
David Portalatin, Vice President, Industry Advisor ;
This year, the Millennial generation is expected to surpass the Baby Boomers and become the largest living generation in the United States*. With a projected population of 75.3 million and a reported $200 billion in annual purchasing power, it is necessary for retailers, manufacturers, and marketers to understand and pay close attention to the behaviors of this newer, diverse breed of consumers.
Technology and fashion may be among the top industries that come to mind when considering Millennial consumption, but this generation is also leaving its tracks in the automotive aftermarket world. While they love smartphones and sneakers probably more than any other generation, we can also say the same about fuel additives. A recent study conducted by NPD found that 30 percent of younger Millennials (aged 18-24) said they would increase their usage of fuel additives, making them three times as likely as consumers aged 35-54 and six times as likely as those aged 55+ to say this**. Whether Millennials upgraded their fuel at the pump or treated it with a packaged additive, they are using more additives and are more concerned than any other generation about treating their fuel.
What is spurring this behavior? When asked why they would use more fuel additives, most Millennials cited “aging vehicles,” “problems with vehicles,” “a clean engine,” and “more educated about benefits” among their reasons. According to NPD’s Motor Fuels Index Database, Millennials are the most likely of any generation to drive older vehicles, as 36 percent report that their vehicle is at least 11 years old.
Understanding that Millennials are driving older cars and purchasing more fuel additives for a variety of reasons indicates that they are looking to increase their vehicle’s longevity and stretch their dollar. To attract Millennials, messaging around additives, cleaner engines, and increased vehicle longevity may help to capture this important group of consumers.
*Source: U.S. Census Bureau
**Fuel Additives: Consumer Insights on the Uptreatment of Fuel, July 2015
Related Blog Posts
Technology, generational change, and emerging consumer food values will result in new realities for both retail food and foodservice in 2018 and beyond.
It has been almost a full year since the launch of NPD’s Retail Tracking Service – Expanded Channels (RTSx) for the U.S. automotive aftermarket.
Being a resident of Katy, Texas (a suburb about 20 miles west of downtown Houston), I found myself right in the middle of Hurricane Harvey as it made landfall on the Texas Gulf Coast at the end of August.
- 2018 Could Be a Rocky Road for Retail
- The top 10 selling toys in the UK in the countdown to Christmas
- Who’s Buying Auto Parts Online — and Why?
- The NPD Group to Launch Subscription Video Tracking
- Beauty Outlook 2018
- Profiling the DIY Walmart Consumer