The military community controls approximately $1.2 trillion in annual spending power—larger than the GDP of most countries. Yet most brands significantly underestimate this market or target it ineffectively. This report breaks down where that spending goes and identifies the categories with the greatest opportunity.
Market Size Overview
The military community includes:
- 1.3 million active duty service members
- 800,000 reserve and National Guard members
- 18 million veterans
- 1 million military spouses
- 2+ million military dependents
Combined household income across this community approaches $1.2 trillion annually, with unique spending patterns driven by military life.
Income Stability: The Foundation
Unlike civilian consumers, military family income is remarkably stable:
- Guaranteed base pay with predictable annual increases
- Basic Allowance for Housing (BAH): $1,200-$4,200/month depending on location and rank
- Basic Allowance for Subsistence (BAS): $300-$450/month for food
- Healthcare coverage through TRICARE
- Additional pays for deployments, hazardous duty, and special skills
This stability means military families can commit to purchases, subscriptions, and financing that civilian families in similar income brackets might hesitate on during economic uncertainty.
Top Spending Categories
1. Housing: 25-35% of Income
Military families spend significantly on housing, whether renting off-base or buying. BAH rates drive housing decisions, and families often spend at or above their BAH.
- Average BAH: $2,100/month nationally
- 65% of military families live off-base
- Homeownership rate: 54% (vs. 65% national average—lower due to frequent moves)
2. Automotive: $8,000-12,000 Annually
Military families are active vehicle buyers:
- Average 2.1 vehicles per household
- Higher-than-average truck and SUV ownership
- Active car-buying programs through military credit unions
- More likely to buy used due to depreciation concerns with frequent moves
3. Financial Services: Growing Category
Banking, insurance, and investment services see heavy military spending:
- Military-specific banks (USAA, Navy Federal) dominate
- Life insurance purchase rates: 85% (vs. 52% general population)
- TSP (military 401k) participation: 87%
- Growing interest in financial planning services
4. Education: $15,000+ Per Family
Education spending is elevated across the military community:
- GI Bill benefits: $26,000+ annually for qualifying veterans
- Military spouse education programs expanding
- Higher private school enrollment due to frequent moves
- Tutoring and educational support services for military children
5. Retail and E-Commerce: $12,000-18,000 Annually
Military families are active retail consumers:
- Exchange and commissary: 40% of grocery spending
- Amazon Prime usage: 73% (vs. 65% general population)
- Higher online shopping rates due to base remoteness
Underserved Categories: Growth Opportunities
Several categories show significant opportunity for brands willing to serve the military market properly:
Home Services: Military families moving every 2-3 years need lawn care, cleaning, moving services, and home maintenance repeatedly. Yet few national brands have military-specific programs.
Telehealth and Mental Health: Growing demand for accessible healthcare, especially mental health services. TRICARE covers many services, but waitlists drive private spending.
Career Services: Military spouse employment services, transition coaching, and professional development are underserved despite strong demand.
Pet Services: Military families have higher pet ownership (67% vs. 62% nationally) and need pet-related services during PCS moves, deployments, and training.
Subscription Services: Streaming, meal kits, and subscription boxes perform well with military families seeking convenience during deployments and high-tempo periods.
Seasonal Spending Patterns
Military spending follows predictable cycles:
PCS Season (May-August): Massive spending on moving-related purchases, housing, vehicles, and establishing new homes. 65% of PCS moves happen in summer.
Back-to-School (August-September): Higher-than-average school supply and clothing spending due to frequent school transitions.
Holidays (November-December): Strong retail spending, with extra emphasis on shipping to deployed family members. APO/FPO shipping capability is essential.
Tax Season (January-April): Financial services engagement peaks. Many military families receive substantial refunds.
Channel Preferences
Where military consumers research and purchase:
Online Research: 92% research purchases online before buying
Mobile-First: 68% prefer mobile shopping experiences
Exchange/Commissary: 60% shop on-base at least monthly
Military-Verified Discounts: 90% actively seek military discounts (SheerID, ID.me)
Word-of-Mouth: 96% share positive experiences with other military families
Key Takeaways for Marketers
1. The market is larger than you think: $1.2 trillion rivals major national markets
2. Income is stable: Military families are recession-resistant consumers
3. They're constantly in-market: PCS cycles mean continuous purchasing needs
4. Loyalty is high: 88% prefer military-friendly brands
5. Word-of-mouth matters: One customer can influence hundreds through military networks
6. Timing matters: Align campaigns with PCS season and military calendar
Methodology
This report synthesizes data from: Department of Defense demographic reports, SheerID military consumer research, Blue Star Families annual survey, USAA member research, and Military Brands proprietary survey data from 2,400 military family respondents.
For custom market research or deeper category analysis, contact Military Brands.