When the young embrace experience consumption

Over the past few decades, a silent wave has been reshaping consumer behavior worldwide. In many modern shopping centers, escape rooms, cooking classes and indoor surfing simulators have taken the place of the more traditional stores.

Scan social media feeds and you'll find fewer people, especially fewer youths, flaunting new watches or handbags, and more sharing videos of sunset yoga in Bali, food truck "discovery" in Berlin, or a once-in-a-lifetime concert. This is not because social media algorithms today show a biased selection of such experiences, reflecting a real and deeper shift in our financial decisions, what we do with our money, and how we go about pursuing happiness.

As it turns out, consumers are moving away from material goods to experiential purchases for multiple reasons. This trend is complex, and the reasons for it are both good and not so good. On the positive side, two of the main reasons have to do with our search for happiness and meaning, and on the not-so-good side the main reason is the cost of living and its wider implications.