What: Singles economy emerges as major retail force with one-fifth of global households being single-person, driving demand for personalized products and services.

Why it is important: The rise of single-person households signals a lasting change in consumption patterns that challenges traditional retail models built around family-centric shopping.

The singles economy has become a distinctive and competitive force in retail, driven by single people who prioritize high consumption and quality of life. Demographic shifts show single-person households accounting for one-fifth of global households, with projected growth of 48% by 2040. This trend is driven by multiple factors, including delayed marriages, urbanisation, career prioritisation, and cultural shifts toward independence.

The impact on retail is substantial, particularly in food and beverage, where single-serving options and personalised dining experiences are growing. Digital commerce plays a crucial role, with retailers implementing AI-powered personalisation and social commerce integration. While single households might spend less collectively, their higher per-capita spending and greater discretionary income present significant opportunities for adapted retail strategies.

IADS Notes: The singles economy represents a fundamental shift in retail demographics and consumer behavior. February 2025 data shows significant growth in single-person households across major markets, with 29% in the US and 42% in South Korea. November 2024's Euromonitor report reveals 67% of consumers seeking simplified lifestyles, while October 2024's research demonstrates increasing demand for personalised retail experiences.

This trend aligns with broader societal changes, as December 2024's data shows how rising living costs are influencing shopping patterns, and January 2025's insights highlight how changing consumer values are reshaping retail paradigms. These developments indicate how retailers must fundamentally rethink their strategies to serve an increasingly independent and experience-focused consumer base.

How the solo economy is reshaping the retail industry