If you’ve been to a music festival recently, you’ve seen them: seas of young people, decked out in their carefully curated outfits, capturing every moment for their social feeds. For years, the story was that Millennials, the generation that practically invented the “experience economy,” were the driving force behind this trend. But the torch has officially been passed. New data reveals that Generation Z is now the top-spending generation when it comes to live music, and they’re completely reshaping the festival landscape in the process.
From Having Things to Doing Things
First, a little context. For decades, consumer culture was about owning things. But Millennials (born 1981–1996) flipped the script. They pioneered the “experience economy,” where spending money on memorable events became more valuable than buying physical goods. More than three-quarters of them would rather pay for an experience than a product. Having watched their parents chase material wealth, and often entering adulthood saddled with debt, they sought fulfillment in creating memories and building relationships through shared activities. 1
Gen Z Takes the Crown
While Millennials laid the groundwork, Gen Z (born 1997–2012) has taken over. According to Luminate’s 2024 consumer research, Gen Z officially surpassed Millennials as the highest-spending generation on live music. They now spend an average of $38 per month on concerts, which is 23% more than the average U.S. music fan. 2
The real driver behind this surge is festivals. Gen Z shells out an average of $23 a month specifically on festival tickets—nearly double the average listener’s spend. This isn’t just a casual hobby; it’s a central part of their budget and social life.
The “Why” Behind Gen Z’s Wallet
So, what makes Gen Z such dedicated festival-goers? It’s a fascinating mix of social drive, financial paradox, and a new kind of hedonism.
For starters, it’s all about connection. When asked why they go to festivals, the number one reason for Gen Z is simply to “hang out with friends”. In a world dominated by digital interaction, festivals provide a vital physical space for community and shared experience. 3
This social drive is amplified by a powerful fear of missing out (FOMO). Gen Z’s spending priorities are telling: they’d rather spend money on concert tickets than on designer clothes, investing, or even saving for a home. This leads to a curious financial paradox. In their daily lives, Gen Z are known to be savvy, cost-conscious shoppers who hunt for discounts. But at an event, that frugality disappears. A staggering 86% of Gen Z admit to overspending their budget at festivals, driven by impulse buys and the desire for immersive experiences. 4
Interestingly, this generation is also redefining the party. Dubbed “generation sensible,” they are far less likely to indulge in heavy drinking than previous generations. Instead, they’re swapping booze for wellness activities like yoga and mindfulness, reflecting a greater awareness of mental health. For them, the festival is less about pure hedonism and more about self-expression and authentic connection. 5
What About Millennials and Gen X?
As Gen Z takes the lead, where do the other generations fit in?
Millennials are maturing. Many are now entering parenthood and taking on more financial responsibilities, which naturally shifts their spending priorities. They still deeply value experiences, but their participation may be less frequent or geared toward events that offer more comfort and convenience. 6
Gen X (born 1965–1980) plays a different, but crucial, role. Now in their peak earning years, they are the “sandwich generation,” often supporting both their Gen Z and Millennial children and their aging parents. While they possess immense wealth, they are less likely to be in the festival crowds themselves. Instead, they are the financial enablers. A significant portion of the money Gen Z and Millennials spend on tickets, travel, and festival fashion often comes directly or indirectly from the Gen X household, making them the silent investors in the youth experience economy. 7
The festival grounds have become a microcosm of a larger generational shift. It’s a world built by Millennials, now dominated by the social-first, selectively splurging Gen Z, and quietly funded by the pragmatic Gen X. Understanding these dynamics isn’t just interesting—it’s essential for anyone trying to capture the attention and dollars of the modern consumer.
- https://www.wealthformula.com/blog/millennials-gen-z-shape-market/ ↩︎
- https://luminatedata.com/blog/festivals-drive-gen-z-to-highest-concert-spend-in-q2/ ↩︎
- https://sensemktg.com/how-gen-z-and-young-millennials-are-redefining-the-festival-scene/ ↩︎
- https://www.gwi.com/blog/gen-z-spending-habits ↩︎
- https://sensemktg.com/how-gen-z-and-young-millennials-are-redefining-the-festival-scene/ ↩︎
- https://www.grandviewresearch.com/industry-analysis/us-music-tourism-market-report ↩︎
- https://nielseniq.com/global/en/insights/report/2025/the-x-factor/ ↩︎
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