"The usage trends are largely the result of a shift in the primary use case of Snapchat", said Instagram forecasting analyst Jaimie Chung.
However, Snapchat will gain fewer users age 24 and under, "as competition from rival Instagram heats up".
Meanwhile, Snapchat's growth among older Americans has a lot to do with Snapchat's content deals, which have more recently included those with the NFL, NBCUniversal, Turner, Hearst, and Disney along with others.
Still, while growth among older groups will be higher, it will come from a much smaller base. According to eMarketer, its user gap behind competitor Instagram will go from 6.8 million monthly users in 2016 to 9.5 million in 2021.
Snap Inc, owner of popular messaging app Snapchat, disclosed on Monday that it expected investors buying up to a quarter of the shares in its $3.2 billion initial public offering this week to agree not to sell them for a year. The platform has multiple partnerships with television networks for mini episodes.
Snapchat is all the rage among teens, but it turns out more American parents are also jumping on the social media bandwagon. While overall growth is projected to slow down by 2021, eMarketer is citing Instagram Stories as competition to Snapchat's user base.
As it prepares to go public, Snapchat certainly has momentum on its side-but competition is looming large. eMarketer has increased its U.S. usage projections for 2017 by more than 5%, expecting 70.4 million Americans to use the platform. "Meanwhile, the younger groups are less likely to add Snapchat when Instagram Stories can fulfill their broadcasting needs".
The feature, which is similar to Snapchat's Stories, has 150 million daily active users worldwide. By then, Instagram will have 98.7 million users in the United States, surpassing Snapchat's U.S. users by 9.5 million. That could keep many people in the Facebook ecosystem. If it does raise the price, the IPO would value Snap at close to $25 billion - which is the valuation the company expected when it first considered an IPO. It is looking to price 200 million shares on Wednesday night at a range of $14 to $16 dollars a share. The roughly 50 million shares are designated for new Snap IPO investors who do not now have a stake in the company, the sources said.