An article published January 26,2012 by AdAge.com provides a snapshot of the critical role millennials will play in driving the economic recovery. We were specifically interested in the data surrounding millennial new moms.
Since the recession started, the total number of births has declined 7.3% from 4.3 million in 2007 to 4.0 million in 2010. If total births return to pre-recession levels over the next three years, it will be because millions of millennials feel financially secure enough to start a family.
The article, by Peter Francese, a demographic trends analyst at Ogilvy & Mather and founder of American Demographics magazine, states that in the first year of a child’s life, busy parents and free-spending grandparents will spend an average of $15,000 to $20,000 on a vast array of products, particularly if the baby is either a first child or the first baby girl.
Every 100,000 babies above the 2010 base of 4 million will add $1.5 to $2 billion in annual consumer spending. New moms are the real job creators in this country.
The economy may continue to struggle in many areas, but we believe that new moms are an opportunity for virtually every product category and every brand. A new baby likely means a new home, a new car, a change in health insurance, the need for bigger and better appliances, new ways of traveling for a family, as well as the need for new forms of security and a new outlook on the future. It’s a great opportunity for brands who understand her and the changes to her life and partner with her for success.