Understanding the millennial mindset

by Charlotte Atchley, Nico Roesler and Anna Wiber
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Millennial grocery shopping
While millennial consumers are looking for fresher and healthier foods, these shoppers aren't all the same.
 

KANSAS CITY — Millennials as a generation are a force to be reckoned with. With 83.1 million people in the United States classified as millennials by the U.S. Census Bureau, this generation makes up a fourth of the country’s population. By 2018, the projected income of millennials will be about $3.39 trillion annually, blowing past baby boomers.

“They’re not all broke, unemployed and living in their parent’s basement collecting participation trophies,” said Jeff Fromm, co-author of Marketing to Millennials and partner at Kansas City, Mo.-based advertising agency Barkley. “They’re starting families. Many of the trends we see start from more affluent millennials.”

Despite this power, millennials can be picky about how they spend their money. Saddled with student debt and coming of age during a recession, millennials want their purchases to reflect their values. They have equated dollars with democracy … and vote with the almighty dollar.

Know Allergies PQ
 

Millennials want something for their money — not just calories to fill bellies. Cost and ingredients are the top factors cited for purchasing bakery products, according to Innova Market Research’s survey of younger millennial (18 to 25) buying habits.

“We know millennials are looking for a healthier brand, but we also know from our research that they tend to be the most price-conscious consumers out there, so the key to the millennial shopping behavior is value,” said Jacque Taylor, director of marketing for Lehi Valley Trading Co., at NACS Show 2017. “They want a healthier snack brand, but they also want it at a value price.”

Millennials also want to support companies that reflect their own values: companies that are giving back to the environment and/or communities and those supporting an ethical supply chain. After analyzing 8.6 million online posts and comments by millennials over the course of a year, CBD Marketing found that millennials want to buy from manufacturers that are environmentally conscious and transparent about their ingredients, process and business. This is how companies gain brand loyalty from a generation marked by skepticism and motivated by price.

Know Allergies bars
Know Allergies produces non-G.M.O., natural bars that are free from the top allergens including peanuts, tree nuts, milk and eggs.
 

Millennials are looking for healthy food, which they often equate to simple ingredients they recognize, non-G.M.O. and organic.

“Millennials don’t want all the bad stuff added,” said Amos Bartlett, 27-year-old founder and president of Know Allergies, producer of non-G.M.O., natural bars that are free from the top allergens including peanuts, tree nuts, milk and eggs. “We want it all taken away. We’re sick of preservatives; we’re sick of fake things. We want real food.”

Sixty-four per cent of millennials prefer snacks with fewer ingredients, according to a study by the Center for Generational Kinetics, and 79% said being able to understand everything on the ingredient list boosted their trust in packaged snacks. Millennials are more likely than baby boomers to say they worry about potentially harmful ingredients in the food they buy, according to Mintel.

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READER COMMENTS (1)

By Carol Voight 2/14/2018 12:54:03 PM
I agree with the concept of smaller quantities offered in some product areas(we waste 40% of our food due to spoilage, etc.) However this will also add to the over abundance of packaging materials adding to the "garbage mountains" growing across the country and the world. Let's also promote better recycling methods and participation for all the excess packaging materials.