Catering to the Evolving Tastes and Needs of Millennials and Gen Z: A Retail Transformation

As the population of millennials in the United States is expected to peak at 75 million by the early 2030s, and the income of Generation Z surpasses that of millennials, food retailers must prepare for these significant demographic changes and the shifting purchasing habits that accompany both age groups. According to new research from Kroger's 84.51˚ retail data science, insights, and media arm, understanding the evolving role of food for younger generations and their unique shopping behaviors is crucial for retailers to stay ahead of the curve.

Unlocking the Potential of the Millennial and Gen Z Food Landscape

The Evolving Role of Food: From Sustenance to Holistic Wellness

The research from 84.51˚ reveals a profound shift in the way millennials and Gen Zers view food. Whereas previous generations saw food primarily as a means of sustenance and nutrition, these younger cohorts are increasingly relying on food to address a broader range of needs, from physical health to mental well-being and social connection. Food is now seen as a powerful tool for solving health concerns, from diabetes and heart disease to mental illness. Additionally, millennials and Gen Zers are forging deep connections between food, their communities, and issues such as environmental sustainability and social justice. This multifaceted role of food is creating a heightened sense of importance and responsibility for these shoppers, leading to a heavier mental load when it comes to grocery shopping and meal planning.

The Burden of Grocery Shopping: Simplifying the Shopper's Journey

As the role of food expands, millennials and Gen Z shoppers are facing a growing mental burden when it comes to grocery shopping and meal preparation. With increasingly complex family dynamics, such as caring for both children and aging parents, the pressure to make the right food choices has intensified. Shoppers are pleading for retailers to "make my life easier" by simplifying the shopping experience and providing solutions that alleviate the stress of planning and executing meals. While product-based solutions like convenient meals and simple options can be helpful, the research suggests that the biggest unmet need lies in the planning and decision-making process, where shoppers often feel overwhelmed and "give up" by the end of the week.

Divergent Shopping Behaviors: Catering to Generational Differences

Despite the shared desire for simplicity and convenience, the research from 84.51˚ reveals that millennials and Gen Z shoppers exhibit distinct shopping behaviors and preferences. For instance, millennials still tend to shop in-store more often than they buy online for pickup or delivery, whereas Gen Z shoppers are more inclined to place online grocery orders for pickup. Additionally, the most frequently purchased items differ between the two generations, with millennials gravitating towards bagged snacks, baked breads, and fluid milk products, while Gen Z is more likely to buy crackers, refrigerated Asian foods, and processed cheese. Understanding these nuanced differences is crucial for retailers to develop tailored strategies that cater to the unique needs and preferences of each generation.

Innovative Solutions: Empowering Shoppers and Enhancing the Grocery Experience

In response to the evolving needs of millennials and Gen Z, food retailers are implementing a variety of innovative solutions. According to the 2024 Report on Food Industry Contributions to Health & Well-being from FMI – The Food Industry Association, 82% of food retailers and suppliers employ dietitians throughout their companies, and nearly 20% have in-store registered dietitians to assist shoppers in making informed purchasing decisions. Additionally, grocers are expanding their foodservice offerings, as one in every four shoppers is replacing restaurant meals with options found at their local grocery stores. These initiatives aim to simplify the shopping experience, provide personalized guidance, and offer convenient meal solutions that cater to the diverse preferences and lifestyles of younger consumers.As the millennial and Gen Z populations continue to grow in influence, food retailers must adapt and innovate to meet their evolving needs. By understanding the shifting role of food, addressing the mental burden of grocery shopping, and catering to the unique shopping behaviors of each generation, retailers can position themselves for success in the rapidly changing food landscape. By embracing a customer-centric approach and leveraging data-driven insights, the industry can unlock the full potential of these dynamic consumer segments and deliver a grocery experience that truly resonates with the needs of the future.