A report from training and research agency IGD examining post-millennials (those born between 1992 and 1999) reveals how this generation is set to replace the baby boomers as the biggest spenders with the most influence.
The study identified time and convenience as being the key issues for this demographic, who are prepared to pay more for products that fit these criteria.
Post-millennials, the report shows, are more likely to shop at the nearest store, rather than travel to a cheaper one. They are also more willing to spend extra on ready meals than their baby-boomer antecedents.
Post-Millennials: The Stats
- 77% save time by using self-checkouts
- 69% save time by buying prepared food in jars, tins, packets or cartons
- 68% save time by spending less time cooking
- 67% save time by shopping in small convenience stores
- 64% save time by buying food to go
- 61% save time by buying pre-prepared meals or instant products
- 57% save time by eating leftovers from a previous meal
- 56% save time by buying pre-cut products, such as vegetables or fruit
- 55% save time by missing breakfast
- 48% save time by cooking in bulk
“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- to 25-year-olds", said Michael Freedman, senior shopper insight manager at IGD.
Risks And Opportunities
Freedman suggested there were opportunities for the food and grocery industry to exploit. He also warned companies' need to future-proof their businesses, as post-millennials "expect better products, prices, more product diversity and improved services, along with wanting meaningful experiences and inspiration, while always demanding convenience”.
The report indicates that while most post-millennials still mainly shop in large stores, use of these stores is lower than average (53% vs 63% of those aged over 26). When asked about shopping in large stores, a quarter (25%) of 18- to 25-year-olds who shop therein claim to have difficulty in finding products (vs 16% of those aged over 26) and 23% find it too time consuming (vs 16% of those aged over 26).
“The industry needs to be able to get ahead of the times and be willing to be nimble. [...] They are interested in food, but, ultimately, any work that the industry can do to highlight speed and convenience for them will pay dividends,” Freedman concluded.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Gavin Ryan. Click subscribe to sign up to ESM: The European Supermarket Magazine.
