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The retail consumer in 2020: Older, a bit frugal yet mostly optimistic

The retail consumer will most likely be female, older, living in a smaller household than today and likely living on their own come 2020.

October 7, 2015

The retail consumer will most likely be female, older, living in a smaller household than today and likely living on their own come 2020, according to a new report.

The kid and teen consumer segment will be much more multicultural and the youth retail market will not have as much buying power due to a declining population in the 18- to 24-year-old segment, predicts a Packaged Facts report, "American Consumers in 2020."

One of the most important consumer segments in five years will be aging baby boomers and the veracity of consumer spending will depend partially on whether current spending trends among the gaining changes. Older consumers have tended to spend less and are more focused on necessities compared to discretionary spend on entertainment and home furnishing.

Consumer spending in the next five years will also be tied to Millennial spending habits as the cohort advances into their late 30s.

"The question is whether millennials will continue on the path of minimalism and sharing that marked their consumer culture in 2015, or whether they will switch into more traditional patterns of homeownership and consumption," stated the report.

In terms of consumer confidence the outlook is healthy as data suggests consumers today are "relatively" optimistic about personal prospects between now and 2020.

"Looking ahead to 2020, in some areas American consumers in 2015 have a less dystopian view of the future than might be expected," stated David Sprinkle, research director, Packaged Facts, in a release. "Less than a quarter of consumers think that their food supply will be less safe and only a third believe that global warming will make life harder in five years."

But there are some red flags, noted the release, specifically regarding the economy. Consumers polled for the report aren’t too optimistic in that regard with less than a third believing there will be a better economy in 2020.