Kimberly Egan, CEO at the Center for Culinary Development, says “any manufacturer, retailer or foodservice operator without a laser focus on Gen Y needs to play catch-up. Fast.”
“Hear that rumble? It’s the sound of a generation finding its voice, Generation Y – those born between 1980 and 2000, also known as Millennials – is the lion just now trying out its roar. With total membership as high as 78 million, Millennials represent an irresistible customer pool – and not just because of their numbers. Call them Generation Me, Echo Boomers, whatever: more than any demographic in history, Millennials go beyond mere spending power... Gen Y is the ultimate savvy, brand-sensitive consumer cluster.”
Natural Food Network interviewed Trendologist Kara Nielsen from the center for her insights into this important segment.
NFN: Generation Y members display a social consciousness and commitment to local and organic, fair trade and vegan/vegetarian foods and they were raised by health-conscious Boomers. What appeals to them in the grocery store?
CCD: Marketers don’t have to convince Gen Y consumers of the value of health and wellness foods and beverages. Brought up steeped in the importance of balanced nutrition, they have an abiding faith in their effectiveness – even if they don’t consume them as often as they’d like. One functional they do reach for regularly is the energy-blast beverage (particularly males under 20). But look for emerging markets in “all-natural” weight-control foods to balance Millennials’ drive-through lifestyles, as well as anti-aging foods and cosmetics and protein-rich breakfast and snack foods.
NFN: You mentioned the popularity of energy drinks, what other beverages are favored by Gen Y?
CCD: Beverages were the most popular category of food/drink mentioned when we surveyed 1000 Gen Yers on their latest specific snacking/meal occasion, reports Nielsen. “The most common beverages were soda, 28%, and water, 26%. Next was juice at 21%, then coffee/tea, 11%, milk, 10%, energy/vitamin drinks, 5%, dairy/meal replacement, 1%. Males drank sodas more than females (36% to 21%); females preferred water (34% to 16% males)
Gen Ys are open to food and drinks that increase their performance, mental or physical. They are open to functional beverages but natural sources of stimulants are becoming more in vogue. Brain booster smoothies tested well on our second qualitative study focusing on dining choices. Exotic fruits, especially acidic ones, also have appeal.
NFN: What is the best approach for grocers seeking these market savvy consumers?
CCD: Look to hip, eco packaging, innovative tastes or functionality and – most important of all – a marketing message that comes across as anything but, well, a marketing message. That means “real” products, things Millennials feel they’ve stumbled onto themselves or through a peer recommendation, and with more than a whiff of cultish appeal. Millennials are far from brand-phobic, but the brands have to be the right ones, without the taint of the hard sell.
Kara Nielsen is a trendologist with the Center for Culinary Development in San Francisco (www.ccdsf.com) she can be reached at kara@ccdsf.com.
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