Consumers in the US are dedicating a growing portion of their income to hobbies, leading to a surge in spending on craft supplies, sporting goods, and other recreational activities. This trend is evident in national data, with hobby categories as a share of overall goods consumption reaching record highs, surpassing even pandemic-era levels. For instance, spending at sporting goods, hobby, musical instrument, and book stores rose 15% in June from a year earlier.
This shift in spending habits is widespread across generations, from Gen Z to baby boomers. Many individuals are willing to cut back on other expenses or dip into savings to fund their passions. For example, Helena Salarini, a 62-year-old retired nanny, spends over $1,000 annually on crafting supplies and, to offset costs, buys fewer types of fruit and cheese and uses free online exercise videos instead of a gym membership. Similarly, Sofia Szyfer, a 25-year-old publicist, spends nearly $300 a month on sticker subscriptions and crafting events, choosing these over going to bars, clubs, or live entertainment. Carolyn Duan, also 25, spent $217 on a needle kit, reflecting a belief that spending on hobbies can improve quality of life.
This increased focus on hobbies is impacting personal finances nationwide. The personal saving rate fell to 2.7% in June, the lowest since June 2022, as personal outlays outpaced disposable income. Economists like Stephen Stanley of Santander Capital Markets note that consumers are sustaining spending by reducing their saving rate, a trend that is not sustainable indefinitely. Despite these financial trade-offs, the demand for hobbies is driving sales for retailers like Michaels, which has seen a multi-generational movement towards crafts, and has expanded its offerings to include fabrics, party supplies, and in-store events.
The "analog revolution" extends beyond crafts to activities like running and golf. Brian Norris, a 37-year-old commercial real estate professional, spends significantly on running, including $320 race shoes, an $899 compression-recovery system, and an estimated $2,000 for a single marathon weekend. Rocky Hsueh, a 28-year-old accountant, has redirected discretionary spending from gambling to golf, recently purchasing a $650 custom-fitted Callaway driver and a nearly $300 launch monitor, finding immense enjoyment in the sport. Middle-income households, in particular, are significant contributors to this trend, accounting for nearly a third of spending at hobby shops, grocery stores, and general merchandise retailers.
