Generation Z is set to overthrow baby boomers as the most confident generation with the biggest spending power.
According to research by IGD, Generation Z or ‘post-millennials’ - born from 1992 to 1999 - will be the most influential generation and will shape the future of grocery shopping to suit their needs by the time they reach middle age.
The report found one in five post-millennials mainly shop in convenience stores, which is more than double the number of those aged over 26. More than half said they would go to the nearest store even if it’s more expensive, compared with 40% of those aged over 25.
IGD said saving time was a clear priority for post-millennials and the grocery industry will have to adapt supermarket formats, prices and product development to capture spend.
“There are great opportunities for those businesses within the food and grocery industry to gain competitive advantage by meeting the needs of this powerful group of shoppers,” said IGD senior shopper insight manager Michael Freedman.
“However, those businesses that fail to understand the specific requirements of 18 to 25s will only risk losing out. 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.”
More than half of post-millennials will spend more for easy-to-cook products, compared with 42% of those aged over 26. Almost 70% said they saved time by spending less time cooking.
“This generation are currently the most confident of the shopper groups, and our data shows us that they’re confident in the opportunities they have ahead of them, as well as being the most optimistic about their future,” said Freedman.
“As they settle down and start having families, they will inevitably pass on their influence to future generations who will also adopt these behaviours. Therefore by understanding post-millennials now, businesses can start to anticipate the needs of generations to come.”