David Portalatin, executive directory and automotive aftermarket industry analyst for the NPD Group has reported on the results of a recent NPD study detailing milennials’ purchasing power and the trends being seen in the automotive additives market.
This year, the millennial generation is expected to surpass the Baby Boomers and become the largest living generation in the United States*. With a projected population of 75.3 million and a reported $200 billion in annual purchasing power, it is necessary for retailers, manufacturers and marketers to understand and pay close attention to the behaviors of this newer, diverse breed of consumers, Portalatin noted.
“Technology and fashion may be among the top industries that come to mind when considering Millennial consumption, but this generation is also leaving its tracks in the automotive aftermarket world. While they love smartphones and sneakers probably more than any other generation, we can also say the same about fuel additives,” Portalatin wrote in his report.
A recent study conducted by NPD found that 30 percent of younger millennials (aged 18-24) said they would increase their usage of fuel additives, making them three times as likely as consumers aged 35-54 and six times as likely as those aged 55+ to say this.** Whether millennials upgraded their fuel at the pump or treated it with a packaged additive, they are using more additives and are more concerned than any other generation about treating their fuel.
What is spurring this behavior? When asked why they would use more fuel additives, most millennials cited “aging vehicles,” “problems with vehicles,” “a clean engine,” and “more educated about benefits” among their reasons. According to NPD’s Motor Fuels Index Database, millennials are the most likely of any generation to drive older vehicles, as 36 percent report that their vehicle is at least 11 years old.
Understanding that millennials are driving older cars and purchasing more fuel additives for a variety of reasons indicates that they are looking to increase their vehicle’s longevity and stretch their dollar. To attract millennials, messaging around additives, cleaner engines and increased vehicle longevity may help to capture this important group of consumers.
*Source: U.S. Census Bureau
**Fuel Additives: Consumer Insights on the Uptreatment of Fuel, July 2015