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Shopper behaviors are evolving rapidly, challenging grocers to understand expanding influences, especially when it comes to younger shoppers.
Cleanliness, convenience, service, price and quality are important when shoppers decide where, how and from whom to buy groceries. However, the nation’s 75 million digitally native Gen Z and Millennial shoppers want more, expect more, and will choose retailers who give them
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More than 1,000 responses were gathered from
Gen Z (ages 18-24) and Millennial (ages 25-34) shoppers
with primary or shared responsibility for food purchases.
The New Age of Elevated Expectations
More!
What Shoppers Want Now
Exclusive Research
is How We Know
Who participated?
These demographic groups are entering their most formative years of household creation, a life stage that correlates with increased spending.
Why did we do it?
Grocers who want to succeed with the next generation of shoppers need to understand their unique shopping and eating preferences and key drivers of those behaviors.
So what?
Shopper Expectations are Increasing, Becoming More Expansive
Technology, changing demographics, unprecedented access to information and shifting views of the role of business are driving change, but basics still matter.
Taste, affordability, and quality are top considerations for food purchase decisions…
The food tastes good
Food is affordable
Products are high quality
Ingredients are clearly labeled
Product contains clean ingredients
Products/ingredients are sustainably sourced
Products are ethically sourced
None of the above
69%
68%
42%
39%
35%
26%
25%
5%
70%
67%
52%
39%
37%
27%
25%
3%
Gen Z
Millennials
At Home Remains Hot, but Takeout
and Delivery Loom Large
Shoppers have a lot of options to satisfy their hunger. Grocers saw wild swings in behavior throughout the pandemic, with younger shoppers learning the value of at-home meal preparation, a behavior that appears sticky.
What shoppers do during a typical
week when they are hungry…
Find something in my home to make/eat
Order for pickup/take-out
Order something for delivery
Go out to find something that is ready-to-eat
Go out to a restaurant where I can sit down to eat
70%
39%
35%
33%
28%
77%
43%
36%
34%
26%
Gen Z
Millennials
What it Means for Stores?
Younger shoppers enjoy the physical store experience and discovering
products, but a meaningful number are also averse to physical spaces.
Here’s what those surveyed said about
shopping for food inside stores
A great way to discover new or interesting products
An enjoyable experience
An activity I look forward to
Something I try to avoid doing
Something I will do less of in the future
Something old people do but young people don’t
A waste of time
None of the above
54%
44%
37%
18%
13%
11%
9%
7%
54%
42%
37%
21%
15%
12%
9%
8%
Gen Z
Millennials
Payment Preferences Are Changing
Convenience and preferred payment methods are key
to connecting with Gen Z and Millennials.
When making food purchases,
they like to pay with…
Gen Z
Millennials
71%
79%
60%
57%
35%
35%
17%
25%
16%
20%
Credit/
debit card
Cash
Mobile
payment
EBT/SNAP
Digital wallet
They also have a range of views when asked about the ability to walk out and have payment automatically deducted from their account.
Gen Z
Millennials
15%
17%
13%
16%
35%
26%
19%
22%
17%
19%
Do not
agree at all
Somewhat
disagree
Agree
Somewhat agree
Strongly
agree
How Younger Shoppers Stay Informed
Shifting expectations and media consumption habits have changed the
channels for communicating with younger shoppers.
Information about food stores and restaurants was seen in the following ways during the past month
Social media
Television ad
Mobile app advertisement
Ad on another website
Email from retail store
Billboard
Radio ad
Magazine
62%
39%
36%
28%
22%
20%
16%
14%
60%
45%
35%
27%
29%
15%
19%
14%
Gen Z
Millennials
YouTube
Facebook
Instagram
Snapchat
TikTok
Twitter
Pinterest
Reddit
Discord
WhatsApp
LinkedIn
73%
54%
68%
58%
60%
31%
28%
13%
16%
10%
4%
69%
72%
55%
38%
32%
28%
23%
14%
9%
15%
13%
Gen Z
Millennials
Where Gen Z and Millennials
Spend the Most Time
51%
48%
40%
52%
34%
28%
15%
18%
15%
13%
Social media
Email
Text
message
Physical mail
Prefer none
Gen Z
Millennials
How they prefer food retailers and
restaurants communicate with them
Shoppers Take Action on Information
Information travels fast in the digital world, requiring retailers to be aware
of conversations and engage in dialogue when appropriate. Doing so helps retailers reap rewards and avoid negative consequences.
Shoppers who stopped buying from companies they read or heard negative information about during the past year
50%
Yes
35%
No
15%
Not sure
Gen Z
Millennials
50%
Yes
39%
No
11%
Not sure
Shoppers who saw or read something about
a company that caused them to spend more
47%
Yes
40%
No
13%
Not sure
Gen Z
Millennials
Not sure
11%
41%
Yes
48%
No
What They Care About Most
A broad set of attributes factor into younger shoppers’
decision-making that go beyond the basics of convenience,
price, quality and service levels.
The following characteristics of a food retail store or restaurant are the most important in influencing younger shoppers’ choice of retailers
Respects and treats their employees fairly
Gives back to the local community
Has a diversity, equity and inclusion program
Provides information about where their products come from
Environmentally conscious
Buys from local food suppliers
Stands up for social justice causes
Supports charities and causes unrelated to their business
Actively develops their employees
Agrees with me politically
37%
25%
25%
24%
23%
20%
18%
18%
16%
13%
42%
26%
21%
24%
22%
25%
16%
17%
16%
12%
Gen Z
Millennials
The New Age of Elevated Expectations is a reality for retailers of food and consumables. Shoppers have more reasons to like, or dislike, retailers as operational complexity has increased, media consumption has changed, and drivers of preference have expanded. Winning with tomorrow’s shoppers requires a mindset of “more” as expansion of expectations continue.
What It All Means
About Inmar Intelligence
Gives back to the
local community
25%
26%
Millennials
Gen Z
50%
have stopped buying from companies they have seen negative information about in the past year.
55%
of young shoppers find
value in shopping for food inside the store.
14%
of younger shoppers don't want
communications from food retailers and restaurants.
Only
