New consumers’ generations bring rapid changes into the food market.
The different profiles of the new consumers’ generations looking at the next decade (millennials or generation Y) is outlined by a new survey conducted by the Institute for Retail Trade in Consumer Products (IELKA).
Tuesday, December 11, 2018
It is noted that those who were born from 1976 to 1996, classified in two sub-generations, the millennials who were born from 1988 to 1996 (today in their 20’s) and the Xennials (found among the generations of Millennials and generation X) who were born from 1978 to 1988 (today in their 30’s).
According to the survey, specific generations, e.g. millennials and xennials have been hit harder by the effects of the economic crisis that reduced their disposable income. This is recorded at the average weekly expense, which is 12% lower for xennials and 28% for millennials in relation with the official average.
Apart from the reduced income, other factors influencing this development are the reduced number of members per household in those ages, and especially for the millennials which to a large extent reside in households of a single person like students or are not yet the main buyers of the household as they are still hosted by their parents.
Significant variations are also noted in the way they choose products and physical stores. However, it is visible that for the majority of consumers (63%), the offers and discounts are the main reason for choosing a supermarket store, from which just 44% of the xennials respond the same way and only 36% of the millennials. Nevertheless the majority prefer 57% more offers than low prices compared to the millennials and xennials, who only a 31% and 29% respectively are headed to the same options.
Similar is the trend for private label products with the percentage of consumers choosing a supermarket store based on private label products being 43% and the percentages in millennials and xennials to drop to 17% and 25% respectively.
These perceptions are also reflected in their feelings about their overall buying experience. In particular, both millennials and xennials enjoy less in supermarkets than the average. This finding is related to the different timing of this buying target market, as those give priority to other activities rather than to the food markets.
Apart from the above, a basic differentiation of the millennials’ generation, which demonstrates the shift to a more diverse and digital environment that is more mature now, is increasingly moving away from television advertising, choosing alternative means, such as 49% text messaging, and through the use of social media at 43%. At the same time, however, the survey records the retention of the influence of the supermarket tender book, which is still a preferred means of informing 59% of the public. It seems that in the near future a mix of traditional and new digital media will be the ideal way for buyers to reach out to businesses.
The impact of new technologies on the purchasing behavior of these ages is also reflected in the impact of social media on eating habits.