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Introduction
 
Young Adults in the US and Western Europe have a total income of US$798 billion, making them an important group to target despite their falling share of the population. There are a great many stereotypes and myths about marketing to Young Adults, but most of them are false or at least, only true to a certain degree.
 

 
Scope
 
Data and analysis on Young Adult populations and incomes, broken down by region, employment status and living arrangements
 
In-depth quantitative data covering Young Adults' consumption behaviour across all food, drink and personal care categories
 
Extensive primary research of consumers and industry players to uncover the latest thinking and reveal emerging opportunities
 
Detailed action points offering practical strategies based on the trends and insights analyzed in the report
 
Highlights
 
Although the absolute numbers of Young Adults are barely growing and the group's relative size is declining, this does not mean that it is an unattractive group for marketers. Young Adults' income dynamics are changing as well, and the news here is significantly more positive, in terms of overall and disposable incomes
 

 
The significant gap between what Young Adults do and what they claim to do creates an equally significant opportunity for marketers to address Young Adults' needs by creating products and services that help them resolve this contradiction
 

 
The single most important thing that marketers targeting the Young Adults group must do is to avoid targeting Young Adults as a group. They need to work out exactly which consumer need states they are trying to address for consumers within the Young Adults age range and therefore, exactly which individual consumers they are trying to target
 

 
Reasons to Purchase
 
Obtain exclusive data on the spending power, working dynamics and living arrangements of Young Adults in the US and Europe
 
Understand the attitudes driving different Young Adult groups' consumption behaviour
 
Improve your marketing strategy by tailoring campaigns directly to the right people within the Young Adult consumer group

TABLE OF CONTENTS
 
CHAPTER 1 EXECUTIVE SUMMARY 3
 
Introduction 3
 
The future decoded 3
 
Action points 5
 
CHAPTER 2 THE FUTURE DECODED 16
 
Introduction 16
 
Trend: Young Adults make up less and less of the population 17
 
The number of Young Adults is falling in Europe 18
 
The proportion of Young Adults is falling everywhere 19
 
Trend: Young Adults are getting richer – and are well worth targeting 19
 
More and more Europeans are going into higher education 20
 
Young Adults’ incomes vary significantly, but are on the rise 21
 
High disposable incomes; wildly differing spending patterns 23
 
Trend: friends are becoming more important than families 24
 
Living away from home is increasingly common 24
 
Houseshares lead in the US… 25
 
…but cohabiting is preferred in Europe 25
 
Insight: Young Adult attitudes do not match behavior 26
 
Young Adults buy brands despite claiming not to like them 26
 
Contradictions between actions and beliefs apply across all areas of consumption 27
 
Insight: Young Adults are hard to target through conventional advertising 29
 
Conventional advertising resonates less well with Young Adults than other age groups 29
 
Electronic advertising is hard to get right 30
 
Insight: Young Adults are more receptive to indirect marketing 31
 
Young Adults say they do not listen to recommendations 31
 
Word-of-mouth marketing applies well to the Young Adults group 33
 
Young Adults need to believe that word-of-mouth informs rather than drives their behavior 35
 
Insight: Young Adults are less cynical but also less ethically motivated than is stereotyped 36
 
Young Adults are more likely to trust food and drinks claims 36
 
They are more likely to be involved in direct action than other groups 38
 
…but they are less likely to choose ethical goods 39
 
Insight: brand loyalty is diminishing but is still significant 41
 
Young Adults are first-time-buyers for many goods and services 41
 
If they have a choice, Young Adults will avoid trying new products 42
 
Young Adults are brand-promiscuous 43
 
Insight: health is less important than it first appears 44
 
Young Adults are aware of health issues 44
 
They are almost as keen as average to improve health… 44
 
…but they are less likely than average to actually improve health 45
 
Insight: Young Adults are high-value CPG consumers 46
 
Drinks are the most important category for Young Adults 46
 
Personal care is another spending priority 47
 
Young Adults’ food consumption is in line with the general population 48
 
Insight: on-the-go consumption is particularly important 48
 
Young Adults consume a great deal of snack categories 49
 
Soft drinks are popular across all the countries considered 50
 
The group has a relaxed attitude to on-the-go consumption 51
 
Insight: Young Adults are big-time beer drinkers 51
 
Alcohol consumption among LDA-24s is well above average 51
 
Young Adults prefer beer, then spirits, then wine 52
 
Occasions, not consumers, are the drivers 53
 
Insight: personal care spending is driven by image 54
 
Haircare and fragrances are most important 54
 
Young Adults need less make-up and skincare 55
 
‘Invisible’ hygiene is under-targeted 56
 
Conclusions 57
 
CHAPTER 3 ACTION POINTS 58
 
Introduction 58
 
Position brands to address Young Adults’ need states 58
 
Address the needs of people living away from home for the first time 58
 
Help Young Adults transition towards the Mid-Life stage 59
 
Increase and improve word-of-mouth and viral marketing 61
 
Target Opinion Formers and Adopters 61
 
Integrate viral messages with mainstream branding 62
 
Make ethical products appeal to Young Adults 65
 
Replace puritan images with more credible marketing 66
 
Market products based around affinity groups 68
 
Target Young Adults’ health concerns in food and drinks 70
 
Take healthy products out of the ‘diet’ ghetto 70
 
Continue trend towards less fattening alcoholic drinks 71
 
Tailor on-the-go products to match Young Adults’ requirements 73
 
Create student-focused on the go products 73
 
Target employed Young Adults’ workplace consumption 74
 
Drive value rather than volume in alcoholic drinks 75
 
Promote responsible drinking to Young Adults 75
 
Trade Young Adults up to higher value drinks 77
 
Build Young Adults’ consumption of hygiene products 79
 
Use aspirational marketing tactics for hygiene products 79
 
Extend brands into hygiene categories 80
 
CHAPTER 4 APPENDIX 83
 
Supplementary data 83
 
Definitions 90
 
General definitions 90
 
Employment group definitions 90
 
Living arrangement definitions 90
 
Research methodology 90
 
Future readings 91
 
Report writing team 91
 
How to contact experts in your industry 92
 

 
LIST OF TABLES
 
Table 1: Population aged 18-24, by country, Europe and US, 1999-2009 (millions) 18
 
Table 2: 18-24 year olds as proportion of total population, by country, Europe and US, 1999-2009 (%) 19
 
Table 3: Population aged 18-24, by employment group, Europe and US, 1999-2009 (millions) 20
 
Table 4: Total income of 18-24 year olds, by employment group, Europe and US, 1999-2009 (US$bn) 22
 
Table 5: Per head income of 18-24 year olds, by employment group, Europe and US, 1999-2009 (US$) 23
 
Table 6: Population aged 18-24, by living arrangements, Europe and US, 1999-2009 (millions) 25
 
Table 7: Young Adults’ brand-related need states and behaviors (% difference in score relative to overall adult population), Europe and US, 2004 27
 
Table 8: Young Adults’ attitudes to debt (% difference in score relative to overall adult population), Europe and US, 2004 28
 
Table 9: Proportion of consumers holding a non-mortgage loan, by age group, UK, 2004 28
 
Table 10: Frequency with which consumers listen to recommendations when choosing goods & services, Europe and US, 2004 32
 
Table 11: Frequency with which consumers solicit recommendations when choosing goods & services, Europe and US, 2004 32
 
Table 12: Young Adults’ frequency of telling people about products and services that they have used (% difference in score relative to overall adult population), Europe and US, 2004 36
 
Table 13: Young Adults’ willingness to trust corporate claims (% difference in score relative to overall adult population), Europe & US, 2004 38
 
Table 14: Willingness of consumers to pay extra for ethically produced food, drink and personal care products, Europe and US, 2004 40
 
Table 15: Willingness of consumers to pay extra for environmentally-friendly energy, Europe and US, 2004 40
 
Table 16: Relative importance of different CPG categories as Young Adults move away from home 42
 
Table 17: Young Adults’ attitudes to trying new products and experiences (% difference in score relative to overall adult population), Europe and US, 2004 43
 
Table 18: Young Adults’ health-related attitudes and behaviors (% difference in score relative to overall adult population), Europe and US, 2004 45
 
Table 19: Percentage of overweight and obese children, Europe and US, 1999-2009 46
 
Table 20: Young Adults’ value of food, drink and personal care consumption per head, Europe and US, 2004 (US$ ) 47
 
Table 21: Young Adults’ value of snack food consumption per head, Europe and US, 2004 (US$) 50
 
Table 22: Young Adults’ value of soft drinks consumption per head, Europe and US, 2004 (US$ ) 50
 
Table 23: Young Adults’ value of alcoholic drinks consumption per head*, Europe and US, 2004 (US$ ) 52
 
Table 24: Young Adults’ personal care consumption per head, Europe and US, 2004 (US$) 55
 
Table 25: Young Adults’ value of food consumption per head, Europe, 2004 (US$) 83
 
Table 26: Young Adults’ value of food consumption per head, US, 2004 (US$) 84
 
Table 27: Young Adults’ value of drinks consumption per head, Europe, 2004 (US$) 85
 
Table 28: Young Adults’ value of drinks consumption per head, US, 2004 (US$) 85
 
Table 29: Young Adults’ value of personal care consumption per head, Europe, 2004 (US$) 86
 
Table 30: Young Adults’ personal care consumption per head in the US, 2004 (US$) 86
 
Table 31: Survey data – Young Adults’ need states (score out of 5; % difference in score relative to overall adult population), Europe and US, 2004 87
 
Table 32: Survey data – Young Adults’ attitudes (score out of 5; % difference in score relative to overall adult population), Europe and US, 2004 88
 
Table 33: Survey data – changes in Young Adults’ behaviors over past 12 months (1 = much less; 5 = much more; % difference in score relative to overall adult population) , Europe and US, 2004 89
 

 
LIST OF FIGURES
 
Figure 1: Individuality and bonding are the most important need states for Young Adults 17
 
Figure 2: Conventional advertising media has a poor success rate at targeting Young Adults 30
 
Figure 3: Opinion Formers and Adopters are vital in driving new products’ mainstream adoption 33
 
Figure 4: On-the-go consumption encompasses areas where consuming food and drink is the secondary activity 49
 
Figure 5: Beer is the form of alcohol most appropriate to Young Adults’ pattern of social occasions 53
 
Figure 6: Cadbury’s Almond Biscotti Dream is an upscale confectionery product targeted at adult female consumers 60
 
Figure 7: Depending on product type, markets must target Opinion Formers, Adopters or a combination of the two 62
 
Figure 8: The Magnum Seven Deadly Sins online campaign is a successful example of viral marketing 63
 
Figure 9: The Dyson game is an example of successful viral marketing outside obvious product categories 65
 
Figure 10: Innocent Drinks has used its natural and ethical credentials to build a cool, alternative brand 67
 
Figure 11: The Co-operative Bank’s Amnesty International credit card aligns the values of the affinity group and the company 69
 
Figure 12: Coca-Cola Zero aims to overcome Young Adults’ reservations about health-related products 71
 
Figure 13: Bacardi Island Breeze and Diet Lambrini are targeted at female Young Adults who want to drink while minimizing calorie consumption 73
 
Figure 14: Walkers’ ‘Great British Takeaways’ chips appeal to male Young Adults’ lifestyle patterns and sense of humor 74
 
Figure 15: Many countries have voluntary codes that deter manufacturers from marketing drinks irresponsibly 76
 
Figure 16: Absolut Cut is a premium-branded RTD that aims to attract drinkers away from cheaper pre-mixed spirits 78
 
Figure 17: Mentadent Xperience’s innovative packaging and marketing is closely targeted at male Young Adults 80
 
Figure 18: Avon’s Mark product line is a cross-category range to be used throughout female Young Adults’ beauty regimes 81