Memories Over Materialism: Millennials, Gen Z shop for experiences more than stuff, and businesses are responding

The spending habits of younger generations show they’re more interested in exchanging money for memories rather than material things – placing experience-based businesses in the limelight.

Combined, millennials, born from 1981 to 1996, and Gen Z, born from 1997 to 2012, made up about 42% of the U.S. population in 2023, according to Statista. Millennials alone accounted for roughly 22% — making them the largest generation.

While Gen X holds the largest share of global spending power at 23.5%, according to reporting by Visual Capitalist, millennials are not far behind with nearly 22.5% of spending power globally. But a NielsenIQ and World Data Lab report finds Gen Z is catching up and will see the fastest growth in spending power over the next decade.

A study by the Harris Poll reported 38% of millennials spent money on air travel during a 30-day period in October and November of 2021, compared to just 16% of all consumers. During the same period, 40% of millennials spent money on out-of-home entertainment, such as in-person events like concerts. Only 14% of baby boomers did the same.

The trend continues, a predictions report by Lane Terralever revealed. Before going into 2024, 54% of younger millennials said they planned to visit more local attractions than they did the previous year. Half of Gen Z said the same. Only 21% of baby boomers anticipated visiting more local attractions in 2024.

This shift in priority from material things to experiences impacts businesses brand messaging, building design and, of course, which kinds of services and products are offered.

Craving community
Although the trend preceded the COVID-19 pandemic, the results of the pandemic only solidified it. Overall spending on experiences jumped 65% from 2019 to 2023, Mastercard’s Travel Industry Trends Report found. Spending on items only increased by 12%.

Katie Putthoff, owner of Loomi Candle Bar and Gifts in downtown Springfield, has a background in marketing which included studying consumer behavior. Following the pandemic, Putthoff said consumers are wanting experiences that allow them to connect with people – something that wasn’t always possible in the wake of the virus.

“That’s something I’m passionate about – giving people a space and a reason to connect,” Putthoff said of her do-it-yourself candle making business.

Ashley Laren, owner and artist at Ashley Laren Art, said people are starting to place greater value on hobbies. As a millennial herself and someone who offers art classes to a demographic including many individuals in their 20s and 30s, she is noticing consumers want to participate in activities that allow them to make a memory with others.

Formerly, shopping and going to bars were common activities that allowed people to bond. Now, Laren said she has observed online shopping is gradually replacing in-person shopping and drinking culture is on the decline.

“As a society, we’ve changed how we engage with the world,” she said.

One Ozark business catering to this trend is Finley Farms, the site of two restaurants and a coffee shop. Taylor Davidson, marketing manager, said in addition to food and drinks, special events are among the offerings on-site. These include yoga classes, elderberry syrup workshops and what they call farm-to-bridge dinners.

“It’s just a reason to bring the community together,” Davidson said.

Millsap Farms, a 20-acre farm in north Springfield, added an on-site experience a few years after purchasing the farm. Its weekly pizza club event running May through October brings around 200 people each week to the farm. Since 2013, guests have paid an entry fee for handmade pizza, a farm tour and live music.

Co-owner Curtis Millsap said pizza club has become like a “fraternal organization” – with the only requirement to join being the purchase of a ticket.

“A good number of our people are regulars who come back again and again,” Millsap said.

Novelty vs. nostalgia
Pizza club consists of a mix of older and younger generations. Different aspects of the experience draw in each, Millsap said. For the older crowd, the event evokes nostalgia for outdoor, multigenerational events – like an old-fashioned church picnic. For the younger crowd, living in a time where farmers account for less than 2% of the U.S. population, visiting the farm is a novel experience.

Millsap contrasts the vast knowledge available to society in the information age with the lack of real-life experiences at hand. Whether through pizza club or leading students on farm tours, he aims to bridge this gap.

“There’s no shortage of education and, of course, endless videos and cycles of media,” Millsap said, “but most people have very little actual experience with doing almost anything – whether that’s growing food or building a fire.”

Finley Farms also sees a customer demographic that spans across the generations. Since both restaurants are on-site, The Ozark Mill and The Garrison, residing in a restored mill originally built in 1833, history is one of the main appeals for older generations. Davidson said younger visitors often come for the beautiful setting, which serves as a popular backdrop for social media photos. Additionally, offerings change with the seasons, adding to the novelty of each visit.

“If they came out here in the spring, they’re going to have a different experience now in the fall,” Davidson said.

All about atmosphere
The importance of creating an experience is one reason Putthoff decided to rebrand soon after purchasing the business in January 2024 from founders Garrett and Rose Cochran. Formerly Heirloom Candle Bar, Loomi Candle Bar and Gifts incorporates an ode to the past while taking on a younger feel.

“I thought it was the perfect opportunity to create a brand that just felt really joyful when you walked in the door,” Putthoff said.

Bright colors and trendy fonts contribute to the brand’s more youthful expression. Putthoff said the change happened organically as she started redecorating the store. The rebranding efforts have paid off, as Putthoff said Loomi has seen an increase in sales since reopening in September.

Another example emphasizing environment is Millsap Farms, where pizza club is about pizza – but not.

“There’s some truth to it being good pizza. It is good pizza,” Millsap said. “It’s great pizza, but even more so, it’s that they’re having that experience.”

The experience consists of pizza that didn’t come from a box, but from a wood-fired oven. It doesn’t take place at a restaurant table, but in a forest glade on a farm. Live music is offered in lieu of a speaker. Strangers transform into familiar faces connecting over one thing in common – pizza club.

“To be frank, if I served my pizza out of a food truck window,” Millsap said, “it would probably be received differently than it is coming out of my wood-fired oven on my organic farm.”