Generation Y is entering the workforce in record numbers and a vast array of industries are set to benefit from the spending habits of these trend setter consumers.

Born between 1980 and 1994, Generation Y – also known as Gen 'Why', Echo Boomers, or Millennials – are poised to become the most influential generational group since their Baby Boomer parents. Why? Well, for one thing, there are a lot of them. By 2011 they are expected to account for 38% of the global workforce.

They're also fundamentally changing the way we do business. Gen Y are well-educated and technologically savvy. Their focus is on lifestyle, over employment stability and financial security. Taking risks and having new experiences over habit and routine.

During their uni years, they transformed the worlds of online entertainment (think YouTube and iTunes) and communication (MySpace, Facebook anyone?) as we know it. They also embraced the love of their helicopter parents, many Gen Y's continuing to reside chez the parentals well beyond their school days. As they enter the workforce, their ephemeral disposition, rent-free, full-time incomes, and impulsive spending will continue to shape the development of a number of industries.

From food to fashion, to technology and travel, IBISWorld this month takes a look at the shopping lists of Gen Y, and a handful of the industries they're poised to impact.

Up at the top are mobiles and motor vehicles. Driven by a persistent urge to update, they have the highest rates of mobile penetration in the Mobile Telecommunications Carriers industry. But inbuilt obsolesce will not fool them. They are environmentally conscious, so want returns from their investments in technology, not a piece of plastic to add to landfill.

The number of Generation Y drivers will also continue to grow over the next decade. Remember however that this is a generation that grew up calculating their ecological footprint. They also know the current fuel crisis is about insatiable demand of a finite resource supply. So the hybrid vehicles produced by the Motor Vehicle Manufacturing industry appeal to them, as does the option to offset fuel emissions as some players in the Domestic Airlines industry are doing.

They seek meaning too, and want products that represent them and what they stand for. They are largely responsible for the increasing number of casual lines coming out of the Clothing Retailing and Footwear Retailing industries as they pursue apparel aligned with their leisurely lifestyles.

Their influence too, extends to the food industries. While, fast food negates the need for spending time preparing meals, and Gen Y's last-minute lifestyle has made them the Takeaway Food Retailing industry's largest segment. But 'certified organic', 'food miles', and 'seasonal produce' are fast becoming the staples of their lexicon, and all industries from Fruit and Vegetable Processing, to Cafes and Restaurants are set to feel the push.

This year, the first of the Generation Y's will turn 26. As increasing numbers of them enter the workforce, their relevance as a consumer group will only continue to multiply over the next decade. Considering how they'll impact not only industries, but our social, economic and political structure more broadly may provide one avenue for companies seeking to tap into their radar.

Metcash Limited (Metcash) is an Australian publicly listed company, generating revenue through the wholesale distribution of grocery and liquor. Metcash operates three individual businesses: IGA Distribution, Campbells Wholesale and Australian Liquor Marketers (ALM). IGA Distribution is a marketing and distribution company, supplying over 2,700 independent grocery stores across Australia. Campbells Wholesale offers a range of groceries, liquor and confectionery to over 100,000 business customers. ALM is a liquor wholesaler, supplying over 13,000 hotels, liquor stores and restaurants throughout Australia and New Zealand.

Metcash reported a sales growth of 4.5%, from $9.76 billion to $10.20 billion, for the year ended 30 April 2008. Net profit after tax increased from $166.8 million to $197.4 million, a year on year growth of 18.4%. Earnings per share grew by 16.7% from 22.15 cents to 25.86 cents. All of the three major divisions, which experienced moderate to solid growth despite tighter economic conditions, contributed to these positive results. Net profit margin increased from 1.71% to 1.94%. This margin improvement was driven by the economies of scale achieved from the full integration of Foodland Associated Limited's Australian operations, which were acquired during FY2006.

Management are moderately optimistic on the outlook of Metcash for FY2009 in spite of higher fuel prices, increased food costs and higher interest costs. Earnings per share before amortisation have been forecast to be between 28.3 cents and 29.3 cents, representing a growth of 6.0% to 10.0% on FY2008.

Divisional Overview

IGA Distribution

Sales from IGA Distribution grew by 7.4% from $5.6 billion to $6.0 billion, despite the negative impact of the closure of the Blacktown (New South Wales) distribution centre. Metcash continued to gain market share during the year, up from 18.6% in FY 2007 to 19.2% in FY 2008.

Campbells Wholesale

Sales from Campbells Wholesale grew by 9.4% from $1.4 billion to $1.55 billion. This was fuelled by new clients won during the year and organic expansion achieved through solid sales growth in confectionery and primary stock categories.

Australian Liquor Marketers (ALM)

Sales from ALM increased 1.9% from $2.4 billion to $2.5 billion. This moderate result was achieved in the face of heavy competition and discounting by major liquor chains as well as the loss of the Hedley/Coles contract.

Industry Risk: A late start to the ski season

The July school holidays are traditionally the peak of the Australian ski season. Snow falls at Falls Creek, Perisher Blue and Thredbo all passed the half-metre mark at the beginning of the month. A cold snap has also assisted in the use of snow-making equipment, resulting in 27 lifts operating at Perisher Blue and 10 at Thredbo at time of writing.

Risk in the Ski Lifts and Other Personal Transport industry is forecast to be at a MEDIUM level over the 2008-09 outlook period, an increase from the LOW level recorded over the previous two years. This increase in risk is attributable to expectations of generally slowing economic growth, with this industry's revenue growth forecast to slow to 1.2% for the year.

On the other hand, risk in the Hotel Accommodation industry, which includes resorts, is expected to be at a MEDIUM-HIGH level for the second consecutive year. However, strength is seen in growth in the number of overseas visitors to Australia, particularly from China, India and other parts of Asia. As a result, IBISWorld expects industry revenue to grow by 3.2% in 2008-09.

Below is an outline of the historical and forecast risk score of the above mentioned industries. These can be compared to overall risk for the Australian economy.