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Generation Rent: How Millennials are Fueling the Rental Economy



It’s long been said that millennials have the power to disrupt and reshape entire industries.

Most recently, this effect has been seen in the retail landscape, where millennial spending habits are setting the tone for the market’s future.

Not only does the millennial generation demand the convenience of making instant purchases—but they can now rent almost anything they want, anytime, and anywhere.

Visualizing the Growth of the Rental Economy

Today’s infographic from Adweek takes a deeper look at the consumer goods rental economy, and the potential long-term impact of this shift in buyer behavior.

Although the current market for rentals is still in its early stages, the sheer momentum that the industry has gained in the last year is enough to threaten even the largest retailers—forcing them to reconsider their own business models.

millennial generation renting

The data for the visualization above comes from market research company Lab 42. In a survey of 500 people, they found that 94% of the U.S. population has participated in the sharing economy in one way or another.

While the sharing economy spotlight typically shines on global behemoths like Airbnb and Uber, the research used to populate this infographic focuses on renting consumer goods for a short period of time, as a sub-segment of the sharing economy.

The Renting Revolution

Offerings within the rental sector have exploded over the last decade, with furniture being the number one category that consumers rent.

According to the infographic, reasons for renting furniture include:

  • Temporary housing: 45%
  • Expensive upfront costs: 43%
  • Testing products before committing: 41%
  • Hosting events at home: 35%
  • Moving into a new home: 29%
  • Redesigning a house: 27%

Other products that consumers rent include gaming systems, clothes, tools, and technology. Female renters are more likely to rent furniture, clothes, and jewelry, while male renters are more likely to rent tools and gaming systems.

Renting goods is predominantly done on an as-needed basis. The Lab 42 report states that for clothing, 77% of respondents indicate that they either rent, or would rent for a formal event.

The End of Ownership?

Despite the common misconception that millennials are driven by emotional needs, the reasons behind why they rent consumer goods are much more pragmatic.

  • Test things before purchasing: 57%
  • Need a temporary solution: 55%
  • Need an item or a service for a short time-frame : 52%
  • Less expensive than buying: 43%
  • More convenient than buying: 42%

Further, only 6% said that they rent because they do not like owning things. This tells us that the rental economy does not indicate the end of ownership, but rather, provides a strategy for consumers to try before they buy.

Attitudes Towards Sustainability

According to the research, very few millennials choose to rent consumer goods because it is better for the environment. However, Nielsen claim that 73% of millennials are willing to pay more money for sustainable offerings—impacting both retail and rental industries.

As evidence of this, Ikea will test a range of subscription-based leasing offers in all 30 of its markets by 2020 in a bid to appeal to environmentally conscious consumers and boost its sustainability credentials. If Ikea’s evolving business model is a success, it could open the floodgates for others to follow suit.

A Promising Market

In the clothing rental space, brands like Rent the Runway pave the way, but there has also been an explosion of startups entering the market in the last year.

One example is the monthly subscription service Nuuly. The company offers consumers access to over 100 third-party brands and vintage items. Consumers can borrow up to six items a month for $88. Similarly, American Eagle’s Style Drop program rents out the latest collections for a flat monthly fee of $49.95.

As more companies incorporate short-term rental services into their offerings, more millennials will shift their behavior from buying to renting—disrupting the traditional retail business model as we know it. With that being said, the impact of millennials having it all, and owning none of it, is yet to be determined.

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Charted: The World’s Aging Population from 1950 to 2100

This graphic visualizes the world’s aging population, showing data for every country and territory around the world.



Charted: The World’s Aging Population from 1950 to 2100

As demographics continue to shift in the 21st century, the world’s aging population will continue to be a focal point for many global decision makers.

Most countries around the world have experienced population explosions, or are about to. Combine this with declining birth rates and falling mortality rates, and it’s clear that the global senior population will continue to reach new heights.

These graphics by Pablo Alvarez use data from the 2022 UN World Population Prospects to visualize this increasing aging population across countries.

The World’s Aging Population from 1950 to 2100

In 2022, there were 771 million people aged 65+ years globally, accounting for almost 10% of the world’s population.

This segment has been growing at an increasing rate, and it’s expected to hit 16% in 2050, and eventually 24% by 2100. Here’s what that’s projected to look like, for every country and territory.

Country by Population Aged +65 Years195020222100
🇦🇫 Afghanistan2.85%2.39%16.03%
🇦🇱 Albania6.04%16.66%49.08%
🇩🇿 Algeria3.49%6.39%28.83%
🇦🇸 American Samoa2.38%7.27%45.41%
🇦🇩 Andorra10.02%14.98%37.04%
🇦🇴 Angola2.93%2.6%12.07%
🇦🇮 Anguilla3.69%10.71%37.49%
🇦🇬 Antigua and Barbuda4.14%10.63%35.4%
🇦🇷 Argentina4.13%11.92%31.79%
🇦🇲 Armenia8.17%13.15%36.13%
🇦🇼 Aruba1.77%16.15%36.51%
🇦🇺 Australia8.17%16.9%31.38%
🇦🇹 Austria10.42%19.81%33.93%
🇦🇿 Azerbaijan6.89%7.11%30.5%
🇧🇸 Bahamas4.76%8.89%29.58%
🇧🇭 Bahrain2.88%3.76%21.89%
🇧🇩 Bangladesh3.9%6.04%32.56%
🇧🇧 Barbados5.24%16.28%33.19%
🇧🇾 Belarus8.24%17.18%30.45%
🇧🇪 Belgium11.03%19.73%32.83%
🇧🇿 Belize3.57%5.09%29.21%
🇧🇯 Benin7.85%3.06%11.03%
🇧🇲 Bermuda5.71%20.41%37.73%
🇧🇹 Bhutan2.53%6.25%33.35%
🇧🇴 Bolivia6.11%4.85%21.75%
🇧🇶 Bonaire Sint Eustatius and Saba14.22%13.84%28.94%
🇧🇦 Bosnia and Herzegovina3.95%18.4%36.4%
🇧🇼 Botswana4.32%3.65%17.96%
🇧🇷 Brazil2.39%9.88%33.52%
🇻🇬 British Virgin Islands8.63%9.95%32.47%
🇧🇳 Brunei4.85%6.17%30.93%
🇧🇬 Bulgaria6.66%22.38%37.13%
🇧🇫 Burkina Faso2.01%2.53%13.07%
🇧🇮 Burundi3.22%2.48%13.23%
🇰🇭 Cambodia2.67%5.81%26.43%
🇨🇲 Cameroon3.47%2.67%11.89%
🇨🇦 Canada7.7%19.03%31.55%
🇨🇻 Cape Verde3.67%5.55%32.63%
🇰🇾 Cayman Islands6.05%8.17%28.75%
🇨🇫 Central African Republic5.%2.51%11.43%
🇹🇩 Chad4.33%2.01%9.64%
🇨🇱 Chile3.3%13.03%36.61%
🇨🇳 China5.04%13.72%40.93%
🇨🇴 Colombia3.22%9.%34.49%
🇰🇲 Comoros3.8%4.28%17.81%
🇨🇬 Congo3.36%2.72%11.99%
🇨🇰 Cook Islands2.94%11.73%29.75%
🇨🇷 Costa Rica2.97%10.83%36.99%
🇨🇮 Cote d'Ivoire2.21%2.4%10.86%
🇭🇷 Croatia7.82%22.36%37.03%
🇨🇺 Cuba4.36%15.81%36.31%
🇨🇼 Curacao5.82%14.95%30.46%
🇨🇾 Cyprus5.95%14.83%33.36%
🇨🇿 Czechia8.29%20.64%26.94%
🇨🇩 Democratic Republic of Congo3.77%2.92%10.62%
🇩🇰 Denmark9.04%20.49%30.45%
🇩🇯 Djibouti1.99%4.54%19.68%
🇩🇲 Dominica7.67%9.53%34.28%
🇩🇴 Dominican Republic2.72%7.4%30.47%
🇪🇨 Ecuador5.2%7.83%31.97%
🇪🇬 Egypt2.95%4.83%21.77%
🇸🇻 El Salvador3.93%8.22%36.02%
🇬🇶 Equatorial Guinea5.53%3.12%15.13%
🇪🇷 Eritrea3.2%4.01%19.86%
🇪🇪 Estonia10.56%20.58%34.15%
🇸🇿 Eswatini2.68%4.%16.26%
🇪🇹 Ethiopia3.01%3.14%18.6%
🇫🇴 Faeroe Islands7.59%17.92%26.91%
🇫🇰 Falkland Islands8.27%11.08%35.86%
🇫🇯 Fiji5.99%5.9%20.6%
🇫🇮 Finland6.63%23.27%34.04%
🇫🇷 France11.39%21.66%34.23%
🇬🇫 French Guiana7.96%5.98%21.13%
🇵🇫 French Polynesia3.%10.07%37.85%
🇬🇦 Gabon7.21%3.89%16.25%
🇬🇲 Gambia2.5%2.43%16.06%
🇬🇪 Georgia9.35%14.61%31.19%
🇩🇪 Germany9.46%22.41%33.72%
🇬🇭 Ghana4.62%3.55%15.91%
🇬🇮 Gibraltar6.94%20.84%37.63%
🇬🇷 Greece6.8%22.82%37.52%
🇬🇱 Greenland3.06%10.02%29.16%
🇬🇩 Grenada5.12%10.07%30.54%
🇬🇵 Guadeloupe5.51%20.04%34.45%
🇬🇺 Guam1.11%11.84%31.19%
🇬🇹 Guatemala2.31%4.91%28.05%
🇬🇬 Guernsey11.96%16.64%35.4%
🇬🇳 Guinea5.39%3.32%14.%
🇬🇼 Guinea-Bissau3.45%2.82%14.34%
🇬🇾 Guyana3.89%6.28%28.94%
🇭🇹 Haiti3.64%4.54%19.07%
🇭🇳 Honduras3.96%4.27%26.5%
🇭🇰 Hong Kong2.48%20.47%41.64%
🇭🇺 Hungary7.81%20.01%31.85%
🇮🇸 Iceland7.52%15.33%34.25%
🇮🇳 India3.1%6.9%29.81%
🇮🇩 Indonesia1.74%6.86%25.28%
🇮🇷 Iran5.22%7.62%33.72%
🇮🇶 Iraq2.79%3.41%18.44%
🇮🇪 Ireland10.99%15.14%32.48%
🇮🇲 Isle of Man13.9%22.29%31.8%
🇮🇱 Israel4.%12.04%25.97%
🇮🇹 Italy8.09%24.05%38.19%
🇯🇲 Jamaica3.83%7.45%44.05%
🇯🇵 Japan4.89%29.92%38.7%
🇯🇪 Jersey12.34%16.22%30.52%
🇯🇴 Jordan5.03%3.84%27.3%
🇰🇿 Kazakhstan6.47%8.04%19.58%
🇰🇪 Kenya5.28%2.87%16.98%
🇰🇮 Kiribati7.13%3.81%17.33%
🇽🇰 Kosovo5.33%10.19%43.35%
🇰🇼 Kuwait2.88%4.93%31.56%
🇰🇬 Kyrgyzstan7.91%4.54%21.08%
🇱🇦 Laos2.13%4.45%25.24%
🇱🇻 Latvia10.12%21.86%32.86%
🇱🇧 Lebanon7.24%9.89%32.11%
🇱🇸 Lesotho6.34%4.2%13.44%
🇱🇷 Liberia2.97%3.31%13.88%
🇱🇾 Libya5.21%4.86%27.77%
🇱🇮 Liechtenstein7.89%19.37%34.79%
🇱🇹 Lithuania8.65%20.8%32.79%
🇱🇺 Luxembourg9.71%15.03%31.55%
🇲🇴 Macao3.11%13.%32.39%
🇲🇬 Madagascar3.25%3.35%16.21%
🇲🇼 Malawi3.06%2.61%15.61%
🇲🇾 Malaysia4.91%7.5%30.78%
🇲🇻 Maldives3.14%4.78%35.61%
🇲🇱 Mali2.78%2.38%11.%
🇲🇹 Malta7.42%19.13%38.26%
🇲🇭 Marshall Islands5.68%4.56%17.8%
🇲🇶 Martinique5.85%22.77%37.31%
🇲🇷 Mauritania1.44%3.22%15.03%
🇲🇺 Mauritius3.18%12.79%33.76%
🇾🇹 Mayotte6.61%2.88%18.15%
🇲🇽 Mexico2.99%8.32%34.88%
🇫🇲 Micronesia (country)4.11%6.16%27.59%
🇲🇩 Moldova7.56%12.98%26.36%
🇲🇨 Monaco15.64%35.92%30.16%
🇲🇳 Mongolia3.87%4.61%26.18%
🇲🇪 Montenegro7.85%16.55%34.16%
🇲🇸 Montserrat7.92%17.7%33.05%
🇲🇦 Morocco2.86%7.72%29.97%
🇲🇿 Mozambique3.13%2.57%13.43%
🇲🇲 Myanmar3.21%6.82%23.69%
🇳🇦 Namibia4.1%3.97%15.38%
🇳🇷 Nauru8.98%2.5%15.87%
🇳🇵 Nepal2.74%6.09%29.51%
🇳🇱 Netherlands7.76%20.31%32.89%
🇳🇨 New Caledonia5.%11.02%31.61%
🇳🇿 New Zealand9.09%16.31%33.2%
🇳🇮 Nicaragua2.71%5.29%28.92%
🇳🇪 Niger.92%2.4%9.76%
🇳🇬 Nigeria3.%2.97%12.31%
🇳🇺 Niue4.79%15.16%22.55%
🇰🇵 North Korea2.72%11.71%30.49%
🇲🇰 North Macedonia5.87%14.91%36.56%
🇲🇵 Northern Mariana Islands2.95%10.81%32.09%
🇳🇴 Norway9.52%18.44%31.65%
🇴🇲 Oman3.05%2.76%23.96%
🇵🇰 Pakistan5.48%4.27%17.23%
🇵🇼 Palau8.59%9.93%21.48%
🇵🇸 Palestine4.77%3.53%23.44%
🇵🇦 Panama3.57%8.77%30.03%
🇵🇬 Papua New Guinea1.09%3.19%16.81%
🇵🇾 Paraguay3.73%6.26%26.51%
🇵🇪 Peru3.43%8.41%30.33%
🇵🇭 Philippines3.56%5.44%23.38%
🇵🇱 Poland5.22%18.55%35.69%
🇵🇹 Portugal7.%22.9%36.28%
🇵🇷 Puerto Rico3.63%22.93%48.9%
🇶🇦 Qatar3.5%1.52%15.01%
🇷🇪 Reunion3.81%13.28%32.4%
🇷🇴 Romania7.16%18.64%32.22%
🇷🇺 Russia4.8%15.8%27.86%
🇷🇼 Rwanda2.76%3.2%17.36%
🇧🇱 Saint Barthlemy7.3%10.61%43.89%
🇸🇭 Saint Helena8.63%28.66%32.61%
🇰🇳 Saint Kitts and Nevis5.36%10.13%29.79%
🇱🇨 Saint Lucia3.59%9.23%33.39%
🇲🇫 Saint Martin (French part)4.47%11.14%30.08%
🇵🇲 Saint Pierre and Miquelon6.34%17.32%33.4%
🇻🇨 Saint Vincent and the Grenadines7.71%10.86%32.34%
🇼🇸 Samoa2.52%5.22%18.75%
🇸🇲 San Marino10.15%20.47%35.73%
🇸🇹 Sao Tome and Principe3.92%3.76%15.6%
🇸🇦 Saudi Arabia3.32%2.81%30.28%
🇸🇳 Senegal3.42%3.14%16.54%
🇷🇸 Serbia6.15%20.56%37.55%
🇸🇨 Seychelles10.68%8.16%28.84%
🇸🇱 Sierra Leone3.02%3.14%15.52%
🇸🇬 Singapore2.29%15.12%36.51%
🇸🇽 Sint Maarten (Dutch part)12.03%10.57%34.51%
🇸🇰 Slovakia6.63%16.98%33.4%
🇸🇮 Slovenia7.52%20.96%33.59%
🇸🇧 Solomon Islands4.03%3.47%15.29%
🇸🇴 Somalia2.6%2.57%10.75%
🇿🇦 South Africa4.06%5.89%20.55%
🇰🇷 South Korea2.74%17.49%44.44%
🇸🇸 South Sudan3.48%2.89%13.11%
🇪🇸 Spain7.23%20.27%38.72%
🇱🇰 Sri Lanka8.76%11.54%35.73%
🇸🇩 Sudan3.03%3.5%13.28%
🇸🇷 Suriname4.09%7.39%25.8%
🇸🇪 Sweden10.19%20.25%31.83%
🇨🇭 Switzerland9.49%19.31%32.61%
🇸🇾 Syria7.66%4.68%24.62%
🇹🇼 Taiwan2.11%16.71%37.32%
🇹🇯 Tajikistan4.34%3.47%19.43%
🇹🇿 Tanzania2.2%3.1%14.97%
🇹🇭 Thailand3.21%15.21%39.17%
🇹🇱 Timor3.14%5.21%25.42%
🇹🇬 Togo4.29%3.13%11.77%
🇹🇰 Tokelau4.7%8.66%25.03%
🇹🇴 Tonga4.6%6.22%21.65%
🇹🇹 Trinidad and Tobago3.93%11.52%32.67%
🇹🇳 Tunisia4.4%9.02%31.24%
🇹🇷 Turkey3.77%8.64%33.9%
🇹🇲 Turkmenistan5.84%5.15%21.55%
🇹🇨 Turks and Caicos Islands5.79%10.34%28.25%
🇹🇻 Tuvalu4.98%6.48%16.15%
🇺🇬 Uganda2.87%1.69%14.33%
🇺🇦 Ukraine7.54%18.81%33.2%
🇦🇪 United Arab Emirates3.35%1.83%15.77%
🇬🇧 United Kingdom10.84%19.17%32.56%
🇺🇸 United States8.18%17.13%30.47%
🇻🇮 United States Virgin Islands7.54%20.42%39.11%
🇺🇾 Uruguay8.23%15.58%35.98%
🇺🇿 Uzbekistan5.87%5.14%22.24%
🇻🇺 Vanuatu5.65%3.74%16.29%
🇻🇪 Venezuela2.29%8.61%27.71%
🇻🇳 Vietnam4.13%9.12%30.02%
🇼🇫 Wallis and Futuna1.76%13.47%32.98%
🇪🇭 Western Sahara2.82%5.84%23.73%
🇾🇪 Yemen3.98%2.66%18.25%
🇿🇲 Zambia2.76%1.75%12.66%
🇿🇼 Zimbabwe3.18%3.32%14.22%
🌐 World5.13%9.82%24.03%

Some of the places with high elderly shares today include high-income countries like Japan (30%), Italy (24%), and Finland (23%).

The lowest shares are concentrated in the Middle East and Africa. Many countries have just 2% of their population aged 65 years and older, such as Qatar, Uganda, and Afghanistan.

But over time, almost all countries are expected to see their older population segments grow. In just three decades, it is estimated that one-in-four European, North American, and Asian residents will be over 65 years of age.

By 2100, a variety of Asian countries and island nations facing low population growth are expected to see more than one-third of their populations aged 65 years or older, including South Korea and Jamaica at 44%. However, it’s actually Albania that’s the biggest outlier overall, with a projected 49% of its population to be aged 65 and older by 2100.

Passing the Generational Torch

The challenge of an aging population is set to impact all sectors of society, including labor and financial markets, demand for housing and transportation, and especially family structures and intergenerational ties.

One way to help grasp the nature of transition is to note the changing ratio between seniors and young children in the world population, as seen in the below crossover diagram:

Elderly population surpass that of children aged 5 and below

Dropping fertility rates, in addition to improved child and infant mortality rates, are known to have played a major role in the plateauing population of children.

However, not all countries have witnessed this crossover yet, as it usually coincides with higher levels of economic development.

As countries such as India, Brazil, and South Africa reach higher levels of per capita income, they will be likely to follow down the paths of more advanced economies, eventually experiencing similar demographic fates and challenges.

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