American grocers’ consumer base is evolving – rather significantly. New research by retail data company 84.51° highlighted a few of the noteworthy consumer shifts that have only just begun to take root.
“Over the next decade, the diversification of consumer wealth, ethnicity, family dynamics, and many more factors will have a substantial effect on the wants and needs of the average shopper,” 84.51° noted in a recent report.
“Projected demographic shifts and grocery purchase signals provide a starting point to help brands maintain relevance.”
The Future of Grocery Shopping
According to 84.51°, the grocery shopper of tomorrow will be:
- Older: People aged 65 or over are expected to outnumber children under the age of 18 by 2034.
- More diverse: The number of Caucasian Americans will shrink (-7%) over the next decade, as the number of Asians (+13%) and Hispanics (+12%) rises significantly.
- Facing an economic divergence: Income inequality is expected to widen.
- From a non-traditional household: Single-person and multigenerational households are expected to grow in the foreseeable future.
Research shows that Millennials are projected to peak at 74.9 million in size by 2033. Meanwhile, Gen Z’s income is projected to reach $33 trillion by the end of this decade, surpassing millennials’ income by 2031.
Generational Purchasing Tendencies
The latest research by 84.51° also noted the purchase tendencies of each generational cohort.
Gen Z consumers’ most frequent purchases tend to be the following:
- Crackers and baked foods
- Refrigerated Asian foods
- Processed cheese
Millennials’ frequent purchases tend to be:
- Bagged snacks
- Baked breads
- Fluid milk products
Gen X’s frequent purchases tend to be:
- Bagged snacks
- Baked breads
- Fluid milk products
Baby Boomers frequently purchase:
- Fluid milk products
- Baked breads
- Bagged snacks
In general, 84.51° observed that Baby Boomers show less interest in niche grocery categories like cider, while both Millennials and Gen Xers tend to appreciate products that offer convenience.
Gen Z shoppers especially prefer on-the-go snacks. 84.51° acknowledges, however, that this young generational cohort could change its preferences as it ages.
“Gen Z’s focus on affordability and overall value highlights their cost sensitivity,” 84.51° noted. “And, even though this demographic currently places less importance on promotions and loyalty rewards, their shopping habits and preferences are still developing, giving brands an opportunity to build strong relationships and trust.”
The Food Institute Podcast
Restaurant results for the second quarter weren’t stellar, but people still need to eat. Are they turning to their refrigerators, or are restaurants still on the menu for consumers? Circana Senior Vice President David Portalatin joined The Food Institute Podcast to discuss the makeup of the current restaurant customer amid a rising trend of home-centricity.
