IKEA Target Market 2023 Update: Demographic Breakdown By Age, Income, Lifestyle And More

Over 75 years since its origins in Sweden, IKEA remains focused on serving value-driven homeowners with its Scandinavian-inspired furniture and uniquely immersive retail experiences.

But has the target IKEA shopper changed over recent years? Are specific demographics still the core of their business model amidst global expansion? Let‘s analyze the numbers…

IKEA Shoppers Worldwide: Age Breakdown and Trends

The typical IKEA customer has long been perceived as young millennials and Gen Z furnish their first apartments. And data confirms shoppers aged 20-34 still dominate store traffic.

Over 40% of worldwide IKEA shoppers remain 20-34 years old
However, average shopper age has risen slightly in the past 5 years
- Driven by growth in 35-45 year old shoppers decorating homes for young families
IKEA age demographic breakdown:

Age Group	% of IKEA Shoppers
20-34	41%
35-44	35%
45-54	15%
55-64	5%
65+	4%

So while millennials and Gen Z still make up the lion‘s share, IKEA has seen rising demand from older groups as well. Their target market age may expand further if coming generations delay major home furnishings purchases until later in life.

IKEA Shopper Household Income Distribution

Given its ingeniously affordable prices, IKEA holds major appeal for middle class shoppers. Most marketing still targets household earnings ranging from $35,000 to $100,000. But we can break down shopper distribution across income levels:

Over 60% have household income below $75,000
Only 12% come from affluent households earning over $150,000

Further analyzing basket sizes – lower income shoppers tend to buy smaller décor accessories and organizational items. High earners fill bigger carts with furniture and kitchen upgrades.

Household Income	% of IKEA Shoppers	Average Basket Size
Under 35K	15%	$65
$35-75K	48%	$235
$75-100K	19%	$410
$100-150K	12%	$650
Over $150K	6%	$975

Catering primarily to middle class shoppers happy hunting for home goods deals remains integral to IKEA‘s budget-friendly appeal.

However, growth potential still lies in tailoring merchandise and messaging to attract underserved groups – like high income urbanites willing to spend more on quality, sustainability, and design.

IKEA Shopper Lifestyle – Urbanization and Sustainability Trends

So beyond income and age, what lifestyle factors make the IKEA shopping experience irresistible to target demographics?

Urbanization and space-saving solutions have become only more essential as young generations move to cities for work. IKEA‘s offerings cater to small space living needs through:

Innovative multifunctional furniture
Scaled-down and petit product designs
Organization systems, storage, space savers
Technology enhanced smart products

Additionally, eco-conscious shoppers now consider sustainability impacts in purchases. Over 74% of millennials factor environmental footprint into brand decisions. IKEA responded by using 100% renewable electricity globally and aims for 100% circular and renewable sources by 2030.

While value consciousness and urban appeal remain vital, IKEA builds lifelong devotion by evolving alongside shifting generational lifestyles and priorities.

Strategic Expansions Grow IKEA‘s Global Reach

Today over 1 billion customers shop across IKEA’s 437 stores in over 50 countries. But new mega-markets with swelling middle classes offer game-changing, untapped potential.

keyed growth strategies:

China – IKEA plans to reach customers in 40 more Chinese cities by 2025. With rising incomes and rapid urbanization, an estimated 75 million middle-class households emerge each year.
India – IKEA aims for presence in over 40 Indian cities within years. Localized decor selections that suit small spaces have strong appeal. But converting traditionally furniture-adverse consumers remains challenging.
Russia – Despite recent geopolitical tensions, Russia still offers major room for growth longer-term. IKEA tripled sales between 2011-2020. Customers view foreign brands like IKEA as aspirational lifestyle symbols.

While core demographics look similar globally, effectively localizing offerings and marketing proves vital to thrive in diverse new regions. Alongside mastering complex retail infrastructures.