What: The solo consumer economy emerges as a powerful retail force, with single-person households driving significant changes in consumer behavior and market opportunities.

Why it is important: This demographic shift represents a fundamental transformation in consumer behavior, requiring retailers to rethink traditional approaches to customer experience and service delivery.

The rise of single-person households is reshaping the retail landscape, with significant proportions in major markets (29% in US, 34% in Japan, and 42% in South Korea). This demographic shift reflects conscious lifestyle choices, particularly among younger individuals delaying traditional commitments. The trend is driving substantial market opportunities, exemplified by the solo travel sector's projected growth to USD 200 billion by 2032. Consumer behavior is evolving accordingly, with solo dining seeing an 8% increase and solo diners spending 48% more per person than other customers. The emergence of the "me-market" has normalized solo consumption, with consumers confidently spending on self-care and personal experiences, creating new opportunities for retailers to develop targeted products and services.

IADS Notes: The rise of single-person households represents a fundamental shift in retail demographics that is reshaping consumer behavior. This transformation is particularly evident in research from November 2024 showing that 70% of shoppers now prefer personalized experiences. The impact of this shift is further demonstrated by September 2024 data revealing that nearly 7 in 10 shoppers prefer retailers offering personalized experiences across all channels. These findings suggest that the normalization of solo activities, from dining to shopping, is not just a demographic trend but a broader cultural shift requiring retailers to fundamentally rethink their approach to customer experience and engagement.

The power of the “solo” economy