Arbitrage Blog

Read the latest blog post!


The Solo Economy

Written by Arbitrage2025-12-19 00:00:00

Arbitrage Blog Image

The "solo economy" is no longer just a niche. It is a mainstream demographic and cultural shift, with consumer behavior increasingly shaped by people who live alone, date less intentionally, marry later (or not at all), and build fulfilling lives outside traditional couple-centric milestones. In the United States, for example, Pew Research Center's analysis of Census/ACS data found that 42% of adults were living without a spouse or partner in 2023. At the household level, the Census Bureau reports that married-couple households were 47% of all U.S. households in 2022 (down from 71% in 1970), while nonfamily households rose to about 36% in 2022 - an infrastructure-level change that affects housing, services, retail formats, and everything from subscription models to restaurant seating. Even among younger adults, the trend is pronounced: The Economist reported that among Americans ages 25-34, the share living without a spouse or partner has doubled over five decades, reaching about 50% for men and 41% for women.

This trend is not simply "more single people," but rather more people choosing singlehood without treating it as a waiting room. Social norms are loosening, and the stigma is weakening in measurable ways. Social psychologist and author of Single at Heart: the Power, Freedom, and Heart-Filling Joy of Single Life Dr. Bella DePaulo has argued for years that the cultural story that married life is inherently superior is not supported by the best evidence; as she put it bluntly, "No, single people, your lives are not second rate... That's not what the science shows." This reframing matters because it changes purchasing behavior. When people view coupledom as optional rather than required, they invest differently: in friendships, experiences, wellness, personal goals, and services that support independence.


Because dining has historically been designed around pairs and groups, restaurants are one of the clearest real world mirrors of the solo economy. That design assumption is now being stress-tested by demand. Citing OpenTable, the Associated Press reported that solo dining reservations in the U.S. rose 29% over the last two years, alongside increases in Germany and the UK. The human story behind that statistic is telling. In the same AP report, one diner described solo lunch as restorative - "It's like a spa, but a different type" - not a consolation prize. That sentiment aligns with how industry leaders are interpreting the shift. OpenTable's CEO linked the growth to more than logistics such as remote work, pointing instead to "a broader movement of self-love and self-care and really… enjoying your own company." Academic research echoes the idea that the stigma itself is changing. OpenTable points to research indicating that 68% of Gen Z and Millennials have dined solo at a sit-down restaurant in the past year. The same OpenTable resource reports that solo diners, on a per-person basis, spend more on average than other diners - an important counterpoint to the old fear that parties of one are "bad for the floor." In other words, the solo economy is not only changing social scripts; it is rewriting revenue assumptions and pushing restaurants toward a more explicit "welcome for one" hospitality.


Solo travel is the parallel trend with the biggest psychological payoff, and the industry is responding because demand is now too large to ignore. Hostelworld's 2025 "State of Solo Travel" report describes a solo cohort that skews young (66% ages 18-30) and disproportionately female (60%). While not every solo traveler is single, the overlap in mindset is significant: autonomy, self-direction, and self-trust. The Washington Post captured the market's pivot away from penalizing one-person bookings. It also quoted a travel entrepreneur describing the post-pandemic surge as a structural change in what people want and what companies now must plan for. In the UK, The Guardian reported that group tour operators are seeing solo travelers make up an ever-larger share of bookings, with one business owner saying that solo travelers accounted for 46% of its forward bookings. Many of these tourists emphasized the "freedom to explore on their own terms."


Being alone is increasingly treated as a feature, not a bug. As the Census Bureau's household statistics show, living arrangements have already shifted dramatically over decades, and the markets are simply catching up. People are buying structured social connections on their own terms (food tours, small-group itineraries, communal hostels, and chef's counters, to name a few) where you can arrive solo without being isolated. The consumer says, "I will opt in when it's additive," and increasingly opts out when it is draining, financially risky, or identity-narrowing. The cultural shift underneath it all is straightforward: for a growing share of adults, partnership is no longer the default setting for a meaningful life, and the economy is finally reorganizing around this reality.

Like this article? Share it with a friend!