What’s in Store 2014, the latest edition of the annual trends publication of the International Dairy-Deli-Bakery Association (IDDBA) reveals that by 2030, Millennials will out number Baby Boomers. This generation is brand agnostic, bargain seeking, technology hungry, and the most ethnically diverse. This paints a very different demographic picture for food retailers and manufacturers in the coming half century.
Nielsen found that African Americans make more trips to small-format retail channels like dollar stores (20.7% versus 11.9% by non-African American households), convenience stores and gas stations (18.7% versus 12.7%), but 5% fewer trips to grocery stores, 4% fewer to supercenters, and 10% fewer to mass merchandisers. Hispanic shoppers spend 14% more ($128.60 total) on routine trips and 10% more ($111.50 total) on stock up trips than the total US average. Asian Americans, on average compared with the U.S. consumer, spend less per trip but shop more often, spending more overall than average. They are more likely to buy sale items or make purchases with coupons, as well as being most likely to compare prices and shop online.
Aside from race and ethnicity, generational shifts will alter the current consumer demand model.
Millennials are a debt-laden, bargain-seeking, technology hungry, adventure-seeking, and ethnically diverse demographic. The group, which the Facts, Figures & the Future blog points out are likely to total 78 million in the U.S. by 2030, compared to 56 million Boomers (according to United Nations projections) are a formidable force. Millennials are attracted to ethnic products, particularly because they are the most ethnically diverse generation in US history. The demographic also seeks powerful nutrition, flavorful food, comfort and indulgence, and speed and convenience.
Millennials, typically tagged as consumers aged 16–34 years old, are hungry for knowledge on where foods come from, and how to prepare and serve them. Supermarkets and food companies are likely to cater to this group, born between 1982 and 2001. They will represent 19% of the U.S. population by 2020. Their buying power for food-at-home will double in that timeframe. Millennials want affordable foods that are ethnically diverse.
United Nations data predicted that the world population aged 60 years and over will reach 22% by 2050 compared to 11% in 2000, a jump from 605 million to two billion people. People are living longer and doing things, like marrying and having children, later in life. They’re also working later in life and living independently.
Baby Boomers and seniors, whose ages span nearly 20 years, have a plethora of needs and preferences, and are set on leading healthy lives in their old age. One key method to achieve this is addressing medical concerns through the foods they eat. Boomers tend to see healthy foods as those with clear benefits rather than those that tout health claims as a result of isolating an ingredient from its natural source and using it as fortification for another product. Boomers are interested in foods that aid digestion, cardiovascular health, and memory function, but manufacturers could increase their interest by showing strong scientific evidence of the efficacy of those benefits. They also want products that ease their packaging concerns and advertising that doesn’t patronize them.
What’s in Store 2014, the 28th edition, is a 230-page trends report that details consumer and industry trends affecting the in-store dairy case, cheese case, bakery, deli, and foodservice departments. Its 200+ tables, developed in cooperation with leading industry firms and associations, include department sales, per capita consumption, consumer preferences, system 2, UPC, and private label sales data. The purchase of What’s in Store 2014 includes access to What’s in Store Online, a collection of downloadable tables from the book, plus white papers and trends articles (many with accompanying downloadable tables) that offer supplementary in-depth trends information. The cost is $99 for IDDBA members and $399 for non-members, plus shipping and handling. For more information and to order, visit iddba.org/wis.aspx.