With single-person households reaching a record share of the U.S. market, businesses are redesigning everything from apartments and grocery packaging to travel, healthcare and subscription services around consumers who live alone.
By yourNEWS Media Newsroom
A growing number of American companies are abandoning the assumption that their typical customer lives in a family household.
Nearly 29% of U.S. households now consist of just one person, the highest proportion on record, according to the U.S. Census Bureau. That demographic change is influencing decisions across industries as businesses develop smaller products, more flexible services and experiences designed specifically for people living independently.
The economic implications extend well beyond smaller grocery packages.
Apartment developers are adding studios, micro-units and compact homes with communal amenities. Cruise operators are creating more cabins for passengers traveling alone. Tour companies are organizing group trips aimed at individual travelers, while furniture makers are offering apartment-sized sofas, compact appliances and multifunctional products intended for limited living space.
Shikha Jain, lead partner and head of consumer for North America at Simon-Kucher, said the growth in solo households reflects a broader change in how Americans think about their lives.
“Americans are shifting from the traditional view to reflect more personal goals, gain greater flexibility, and support a meaningful life,” Jain said.
The rise of one-person households has developed over generations rather than emerging suddenly.
In 1940, only 7.7% of occupied U.S. households contained one person. By 2020, the share had reached 27.6%, more than tripling over 80 years. Americans marrying later, living longer and becoming more comfortable with independent living have all contributed to the shift.
The result is a consumer group whose finances and purchasing decisions can differ substantially from those of married couples and families.
People living alone cannot divide the cost of rent, utilities, groceries and many other household expenses with another person. That often leaves them spending more per person on necessities while also placing a higher value on convenience.
“In short, people who live alone spend more of their income on rent or entertainment, while couples benefit from shared expenses like housing, utilities and groceries,” Jain said.
That difference is changing how businesses think about value.
Rather than purchasing family-sized products that may go unused, solo shoppers often favor smaller quantities and services that reduce time, effort and waste.
“Solo consumers buy differently,” Jain said. “They want packaging that saves time, takes less effort, and minimizes waste.”
Grocery retailers have responded with larger selections of prepared meals, individual snacks and smaller packages intended to prevent food from being discarded.
The strategy also puts supermarkets into more direct competition with restaurants. Ready-to-eat meals and individually portioned products allow stores to attract consumers who want the convenience of dining out without preparing a large meal at home.
Warehouse clubs occupy a different part of the market, continuing to emphasize bulk quantities and the savings available to families that can spread purchases and household costs among multiple people.
For solo consumers, meanwhile, convenience itself can justify a higher price.
Jain said many are willing to spend more for services such as home delivery and subscriptions that remove additional work from everyday tasks.
“Businesses that shift from thinking of solo consumers as shrunken families to understanding their values will grow their markets,” Jain said.
Those values are also increasingly tied to experiences rather than simply accumulating possessions.
Simon-Kucher’s New American Dream study found that younger Americans are placing greater emphasis on independence and current experiences rather than following traditional milestones.
Between 21% and 25% of Gen Z and Millennial respondents have at least two income streams, according to the research, giving some younger consumers more financial flexibility.
Many are also directing more money toward enjoying their lives in the present instead of emphasizing future savings.
“We’re seeing consumers pivot to experiential spending that redefines value and meaningful connections over material goods,” Jain said.
That shift has encouraged companies to compete on more than price and product specifications.
Some businesses are building social interaction directly into what they sell. Health clubs, for example, are organizing exclusive gatherings and designing spaces that encourage members to meet and interact, an approach that has become particularly popular among younger customers.
Travel businesses are responding in similar ways by creating organized experiences that allow people to travel independently without necessarily spending the entire trip alone.
Technology and healthcare providers have also adapted to the changing household structure.
Healthcare systems expanded telehealth and remote patient monitoring after the COVID-19 pandemic, giving people who live by themselves additional ways to manage medical needs from home.
Smart-home devices, video doorbells and other digital services have also become more attractive to solo households by providing added convenience, flexibility and a greater sense of security.
The growth of solo living can therefore affect not only what consumers purchase but also which features they consider worth paying for.
Jain said companies that remain focused primarily on products built for conventional family households could miss an increasingly important segment of the market.
“Solo consumers spend more and drive product innovation and customer experiences across many sectors,” she said.
The trend also appears unlikely to reverse in the near future.
“It’s not a fad,” Jain said. “Companies will continue building innovations that solo consumers appreciate, like personalized recommendations, flexible subscription services, smaller product packaging, and experiences that prioritize community, convenience and flexibility.”
Those changes are already visible across housing, food, tourism, furniture, technology and healthcare, as businesses increasingly recognize that a one-person household is not simply a smaller version of a family household.
The financial pressures can be greater because there is no second income or household member with whom to divide expenses. At the same time, the independence associated with living alone can give consumers more direct control over how they spend their money, organize their homes and use their time.
That distinction is central to the broader transformation Jain described.
“Solo living is a key example that demonstrates the shift from the traditional path to a more personalized vision where flexibility, independence and experiences are valued,” Jain said. “Instead of conforming, a single household represents a living arrangement where one can control their time, environment and match personal goals.”
For businesses, the record growth of one-person households means those preferences are no longer confined to a small specialty market. With nearly three out of every 10 U.S. households now occupied by a single person, designing products and services around individual consumers is increasingly becoming part of mainstream corporate strategy.
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