The Future of Food. Are You Ready for the Millennials?
Millennials born between 1981 and 1999 are the largest segment of the US workforce and have dramatic spending power, representing more than 80 million people.
Companies need to be agile in the way they rethink and reposition their offer to cater to this demanding cohort. (Report)
- Millennials have a passion for premium. As noted, millennials differ from other generations in that they are more likely to expect features traditionally seen as premium. Some of these preferences are obvious, such as 61 percent of millennials expect foods to be GMO-free, compared to 46 percent of those aged 50+. Others are more surprising, such as 54 percent of millennials also expect ancient grain to be included in their foods, compared to 29 percent aged 50+.
- Millennials put their money where their mouth is. Not only do they expect premium products, they are willing to pay for them, too. This is because ‘organic’ and ‘natural’ products make millennials feel more responsible and health conscious, and therefore deserving of a higher price. 68 percent of millennials are willing to pay more for organic foods, and 66 percent are willing to pay more for sustainable foods 3/4 that’s around 30 percent more than those aged 55+.
- Millennials trust small and local. Smaller brands have been gobbling up half the growth in premium sales (larger manufacturers have settled for a three percent share to date) because millennials associate them more with premium product features and ingredients. 35 percent of millennials indicate their trust in smaller brands has grown while only 18 percent of those aged 55+ said the same.
- Millennials prize choice and convenience. Millennials are the first native-to-the-Internet generation, so no wonder 43 percent say they would buy all of their food online if they could, compared to only 14 percent aged 50+. And it fits into the rest of the puzzle 3/4 e-commerce opens the door to more choice, smaller brands and manufacturers, and more local suppliers.
- Millennials actively share their food interests on social media. Preferences and expectations are one thing, but millennials are also great evangelists for the things they love on social media, and their sharing augments the influence of the trends they drive. For example, 69 percent of millennials take a photo or video of their meal before eating, essentially creating a free spotlight on the brands or restaurants they choose to feature.
“Millennials are discerning consumers, and they are increasingly willing to pay a premium for brands and products that embody their preferences for authenticity, transparency and responsible ingredient sourcing,” said Matt Kleinschmit, managing director, consumer & shopper insights at Maru/Matchbox. “The impact of this emergent generation continues to grow as they advance in their careers and become more established, and their habits are dramatically reshaping the food industry. This report employed leading edge, community-based research methods to distill the major trends and offers strategies for companies seeking to profit from this new reality.”
(Modern Restaurant Management)