Time and convenience have emerged as the two biggest issues for food and grocery companies to address in order to future-proof their businesses, according to an IGD report.
The study examines how ‘Generation Z’ – consumers born between 1992 and 1999 – will shape the future of the food and grocery industry, overthrowing baby boomers as the generation with the biggest spending power and influence.
People in Generation Z, also known as ‘post-Millennials’, are prepared to spend money for convenience, according to the report. Indeed, when it comes to saving time, over half (54 per cent) sometimes go to the nearest store even if it is more expensive, compared to 40 per cent of over-25s.
In addition, some 52 per cent of 18-25-year-olds claim they sometimes spend a bit more for products that are easier to cook or prepare, compared to 42 per cent of those aged over 26.
Commenting on findings, Michael Freedman, Senior Shopper Insight Manager at IGD, said: “Our research gives us a unique insight into the minds of a group that, while relatively small today, will become even more influential and crucial to understanding the shopping behaviours of generations to come.
“We’re seeing the priorities of post-millennials differ significantly from older generations, with societal shifts and advancements in technology being key factors in the changing shopping needs of 18-25 year olds.
“It will be key to future-proofing businesses to meet the growing demands from post-millennials who expect better products, prices, more product diversity and improved services, along with wanting meaningful experiences and inspiration – while always demanding convenience.”
According to the report, the top ten ways in which post-Millennials save time when it comes to their food and groceries are:
1. By using self-checkouts (77 per cent)
2. By buying prepared food in jars, tins, packets or cartons (69 per cent)
3. By spending less time cooking (68 per cent)
4. By shopping in smaller convenience stores (67 per cent)
5. By buying food-to-go (64 per cent)
6. By buying pre-prepared meals or instant products (61 per cent)
7. By eating up leftovers from a previous meal (57 per cent)
8. By buying pre-cut products, such as vegetables or fruit (56 per cent)
9. By missing breakfast (55 per cent)
10. By cooking in bulk (48 per cent)
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