While not as large a demographic as their baby boomer parents, echo boomers are proving to be a powerful customer base, according to a new IBISWorld research report. It finds that the generation is expected to exert “considerable influence” over many industries in the United States.
Although echo boomers hold the highest post-housing collapse unemployment rate of any demographic, they are actually highly educated and hold substantial buying power.
Consider that echo boomers are delaying homeownership and, consequently, revenue for the apartment and condominium construction industry is projected to grow an average 10.6% per year to $44.95 billion in the five years to 2017.
This generation also wants to live in metropolitan areas. Therefore, the commercial building construction and real estate industries are expected to benefit. Commercial real estate industry revenue is expected to hit $860.18 billion in 2017, up from an estimated $602.61 billion in 2012.
Echo boomers are considered “aspirational shoppers” with high style and low budgets. Several retailers (Tiffany, Coach, Target, etc.) have already begun catering to this demographic by offering lower-priced items in their stores.
Males, in particular, have made the greatest shift, with growing interest in personal grooming. Therefore, cosmetic and beauty manufacturers and hair and nail salons are catering to and benefiting from this demographic.
Along with being one of the most educated generations, echo boomers continue to invest in their well being and expanding their knowledge. This is benefiting industries like for-profit universities, junior colleges, language instruction and health and fitness clubs.