Young parents with more than $5,000 in disposable income are the future of luxury shopping, study finds
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- YouGov published a report about Americans' desire for luxury goods despite concerns over inflation.
- Future luxury shoppers are young parents with disposable income and an optimistic outlook.
- Respondents said they're more likely to pay for luxury goods in 2024 compared to 2021.
Young parents are becoming the face of luxury in America.
A report published this month by YouGov, a market research company, explored Americans' hunger for luxury goods and brands. The research and data analytics firm pulled data from its YouGov Profiles — which include more than 27 million global panel members — and its YouGov Brand Index.
"Luxury demand continues to skyrocket despite inflationary fluctuations," the SVP at YouGov America, Chris Melchiorre, said in a statement. "As more Americans purchase or consider purchasing luxury goods, luxury brands need a holistic understanding of their evolving and broadening customer segments."
In fact, the report found that more respondents in 2024 will likely buy a luxury good in the next 12 months than in 2021.
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While most of the report discussed luxury consumer trends between 2021 and 2024, it also looked at future luxury buyers, defined as Americans who said they would purchase luxury goods during the next 12 months.
"Americans who are likely to buy luxury goods in the next 12 months are more likely than the general population to be aged 25-34, parents, and financially optimistic," YouGov found.
According to the report, 32% of future luxury buyers are between 25 and 34 years old.
The report also found that 47% of future luxury buyers are parents or guardians, and 26% have at least $5,000 in household disposable income. This cohort of future luxury buyers is also optimistic, with 53% expecting their housing situation to improve in the next 12 months.
As for what brands future luxury buyers look toward, the report ranked Gucci at No. 1, with 36% of that cohort indicating they're considering purchasing an item. Gucci is followed by Rolex, Dior, Tiffany & Co., and Louis Vuitton.
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The insights come as economists and investors voice concerns over the United States economy. Business Insider reported this month that the country's growing debt costs could prompt a worrisome downfall, including higher inflation and a lower quality of life. Bank of America said the federal debt reached $34 trillion this January, and an estimate found that the United States will accumulate another $1 trillion in debt every 100 days.
Despite the current economic concerns, the YouGov report found that American luxury buyers aren't avoiding large price tags.
According to the report, 57% of luxury buyers spent up to $999.99 on luxury goods in 2023, while 30% spent between $1,000 and $9,999.99.
Just 3% spent more than $100,000 last year.