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American Lifestyles 2014: Looking Forward - US - April 2014
Scope and Themes
 
What you need to know 
Americans’ spending topped $10 trillion in 2013 for the first time as consumer confidence rose amid a growing economy. The outlook for 2014 continues the positive trend with spending expected to increase by a further 3.6% – more than three times the projected rate of inflation for the year. Meanwhile, Americans are saving less and less. Combined, these data portray an American consumer who is less focused on past financial difficulties and reducing spending at all costs, and instead paints a picture of greater optimism.

While attitudes adopted during the recession (eg saving money) are not completely wiped from memory, penny-pinching appears to have faded over the past year as spending in nonessential areas such as dining out, vacations, leisure and entertainment has outpaced spending overall – and is expected to continue over the next five years. Meanwhile, Americans are less likely to report saving any extra money they have and instead are planning to treat themselves to those nonessentials that were not part of their budgets when money was tight. 

However, the current upcycle in the stock market has hit its fifth year of gains, making it one of the longest-running bull markets in the post-WWII era. Near-record longevity has spurred a debate about whether the market has neared the top; furthermore, economic conditions over the past decade have caused some paranoia. History has taught that the good times can’t last forever – which also contributes to American consumers’ continued caution. 

Definition
This report provides a comprehensive overview of Americans’ spending in 2013 in total as well as across 16 areas of consumer spending. A demographic profile of Americans and future projections, as well as an examination of the economic conditions impacting Americans is also included. An in-depth analysis of Americans’ purchasing priorities, their economic outlook, attitudes toward shopping, use of online tools to increase convenience/search for lower prices, personal goals including a focus on health and wellness aspirations for 2014 are also presented.

This report builds on the analysis presented in Mintel’s American Lifestyles: Five Years Later – US, April 2013, as well as the 2012, 2011, 2010, 2009, 2008, and 2007 reports of the same title. The report also includes findings from more than 90 other Mintel reports across 16 consumer markets: food (at home); dining out; alcoholic beverages (at home); alcoholic beverages (out of home); non-alcoholic beverages (at home); beauty and personal care; OTC healthcare remedies; household care; clothing, footwear, and accessories; technology and communications; vacations and tourism; leisure and entertainment; home and garden; transportation; personal finance; and housing. 

Each of the 16 market sections of this report (as noted above) contains a listing of the components that make up expenditures unique to that category.

Value figures throughout this report are at rsp (retail selling prices) excluding sales tax unless otherwise stated.

Data sources
Sales data
Mintel has developed market sizes and five-year forecasts (2014-18) for each of the 16 consumer categories included in this report based on the following sources: 

●	Food (at home): based on Information Resources, Inc. InfoScan® Reviews; Bureau of Economic Analysis; US Bureau of Labor Statistics, Consumer Expenditure Survey; US Census Bureau, Economic Census and Annual/Monthly Retail Trade Survey; USDA Economic Research Service; IDDBA/Perishables Group Fresh Facts; Progressive Grocer, Consumer Expenditures Study; FreshLook Marketing Group; Supermarket News; National Chicken Council; National Confectioners Association; NACS; Convenience Store News; Automatic Merchandiser’s “State of the Vending Industry Report”
●	Dining Out: based on US Census Bureau; Annual and Monthly Retail Trade Survey; Bureau of Economic Analysis
●	Alcoholic Beverages (at home): based on Information Resources, Inc. InfoScan® Reviews, Beverage Information Group, “2013 Beer Handbook,” “2013 Liquor Handbook,” “2013 Wine Handbook,” Bureau of Economic Analysis, The Beer Institute, BevNet
●	Non-alcoholic Beverages (at home): based on Information Resources, Inc. InfoScan® Reviews; US Census Bureau, Economic Census; USDA Economic Research Service; Convenience Store News; Automatic Merchandiser’s “State of the Vending Industry Report.”
●	Beauty and Personal Care: based on US Bureau of Labor Statistics, Consumer Expenditure Survey; US Census Bureau, Economic Census; Information Resources, Inc. InfoScan® Reviews; Progressive Grocer, Consumer Expenditures Study; Experian Simmons NHCS; trade publications
●	OTC Healthcare Remedies: based on Information Resources, Inc. InfoScan® Reviews; US Census Bureau, Economic Census; Nutrition Business Journal; Progressive Grocer; CSPNet
●	Household Care: based on Information Resources Inc. InfoScan® Reviews; US Census Bureau, Economic Census; Progressive Grocer
●	Clothing, Footwear, and Accessories: based on Bureau of Economic Analysis
●	Technology and Communications: based on Bureau of Economic Analysis
●	Vacations and Tourism: based on Bureau of Economic Analysis, US Office of Travel and Tourism Satellite Accounts
●	Leisure and Entertainment: based on Bureau of Economic Analysis
●	Home and Garden: based on Bureau of Economic Analysis
●	Transportation: based on Bureau of Economic Analysis
●	Personal Finance: based on Bureau of Economic Analysis
●	Housing: based on Bureau of Economic Analysis
●	Miscellaneous: based on Bureau of Economic Analysis

Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore Americans’ spending habits, lifestyles, and goals for 2014. Mintel was responsible for the survey design, data analysis and reporting. Fieldwork was conducted in January 2014 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in our survey results. Please note that our surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in our survey results.

Mintel has also analyzed data from Experian Marketing Services, using the NHCS (Simmons National Hispanic Consumer Study). 

The Experian Marketing Services, Simmons NHCS was carried out during July 2012-September 2013 and the results are based on the sample of 20,540 adults aged 18+, with results weighted to represent the US adult population. 

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms
Abbreviations
The following is a list of abbreviations used in this report: 

3G | Third Generation
4G | Fourth Generation
ACA | Affordable Care Act
AHA | American Heart Association
AHAM | Association of Home Appliance Manufacturers
BEA | Bureau of Economic Analysis
BFY | Better-for-You
BLS | Bureau of Labor Statistics
BMI | Body Mass Index
BPC | Beauty and Personal Care
BTS | Bureau of Transportation Statistics
CAGR | Compound Annual Growth Rate
CDC | Centers for Disease Control and Prevention
CE | Consumer Electronics
CIRP | Consumer Intelligence Research Partners
CLIA | Cruise Lines International Association
CPI | Consumer Price Index
CSD | Carbonated Soft Drink
DIY | Do-it-Yourself
DPI | Disposable Personal Income
EIA | US Energy Information Administration
EIU | Economist Intelligence Unit
EPA | Environmental Protection Agency
ERS | Economic Research Service
FSI | Financial Services Institution
GDP | Gross Domestic Product
GFR | General Fertility Rate
GMO | Genetically Modified Organism
GNPD | Global New Products Database
LFP | Labor Force Participation
MPAA | Motion Picture Association of America
mpg | Miles per gallon
MULO | Multi Outlet, Representative of Total US Grocery, Mass, Drug, Total Walmart, Dollar, Military, and Club outlets
NADA | National Automobile Dealers Association
NCHS | National Center for Health Statistics
NHCS | National Hispanic Consumer Study (Experian Simmons)
OTC | Over-the-Counter
PCE | Personal Consumption Expenditure
PPACA | Patient Protection and Affordable Care Act
PSAVERT | Personal Saving Rate
QSR | Quick Serve Restaurants
RITA | Research and Innovative Technology Administration
RPI | Real Personal Income
rsp | Retail Selling Price
RTD | Ready-to-Drink
USDA | United States Department of Agriculture
VOD | Video-on-Demand

Terms
Generations are discussed within this report, and they are defined as: 

World War II /Swing generation | Members of the WWII generation were born in 1932 or before and are aged 82 or older in 2014. Members of the Swing Generation were born between 1933 and 1945 and are aged 69-81 in 2014.
Baby Boomers | The generation born between 1946 and 1964. In 2014, Baby Boomers are between the ages of 50 and 68.
Generation X | The generation born between 1965 and 1976. In 2014, Gen Xers are between the ages of 38 and 49.
Millennials* | The generation born between 1977 and 1994. In 2014, Millennials are between the ages of 20 and 37.
iGeneration | The generation born between 1995 and 2007. In 2014, iGens are between the ages of 7 and 19.
Emerging generation | The newest generation began in 2008 as the annual number of births declined sharply with the recession. In 2014 members of this as-yet unnamed generation are younger than age 7.

*Also known as Generation Y or Echo Boomers

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows: 

CPI

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates. 

The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.

Based on Bureau of Labor Statistics definition.

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