There is a strong preference for snacks and 5-6 meals a day over the traditional 3 meals a day. A study indicates millennials snack as often as 4 times a day. Snacks are consumed to relieve stress, provide emotional comfort and for one to indulge or as a reward. With the increase in snacking frequency, there is a growing demand for snacks coupled with substantial nutritional value, convenience and a variety of appealing textures and flavors.
Producers must be aware that millennials have a high tendency to read the label for nutrition value, ingredients and calorie counts prior to making a purchase. In fact, most millennials are also concerned about the origination of food and the process of manufacturing. They care about the environment and expect companies they deal with to be transparent, all key factors that will affect the purchasing decision.
B. Putting Their Money Where Their Mouth Is
Most millennials want fresh, healthy and natural food, and are willing to pay a premium for this. They seek food products that are organic, free of GMOs and are innovative compared to traditional offerings, even if these options cost relatively more. The increase in appreciation of the farm-to-table concept is evident in the increasing number of craft breweries and artisan bakeries emerging, where established international brands with lower price points are being shunned in favor of these premium options.
Millennials do not like cooking. Convenience is their priority and spending time meal prepping and cooking are lower priorities. They perceive eating out and trying new restaurants with their social circles as a unique experience and would justify paying for this expense with ease. At the grocery store, they tend to head towards the frozen foods and prepared foods aisles with convenience at the top of their minds.
Frozen foods producers are also emphasizing the quality of the ingredients used as well as introducing innovative flavors including different cuisines and fusion offerings to further entice consumers. They are aware that these changes justify their price increases from the consumer’s perspective, which ultimately increases profitability margins.
C. Sustainability
According to Nielsen, about 3 in 4 millennials are altering their purchasing habits with the environment in mind. Millennials have a greater willingness to pay more for products with sustainable ingredients, environmentally friendly, organic or socially responsible products. Sustainability practices can range from food production to packaging to logistics. Food companies have recognized this trend and have made adaptations to gain a competitive advantage and to increase bottom lines. For instance, Mars, PepsiCo, Coca-Cola, Unilever and Walmart all announced sustainability pledges with a focus on where products come from, the production and manufacturing processes and the overall impact on the environment. Mass plastic bottle users such as Danone, PepsiCo, Nestle and Coca-Cola have also invested in plastic bottle alternatives and are committed towards increasing the amount of recycled plastic used in their bottles. Other companies have been investing in various sustainability initiatives, such as biodegradable and compostable six-pack ring designs made from barley and wheat, boxed water, wood-based bottles, edible containers etc.
There has also been an increase in the usage of “ugly produce”. Raw produce that were deemed aesthetically unappealing previously would have been discarded as waste. Nowadays, companies such as Whole Foods and Walmart are intentionally sourcing imperfect produce from farms to prevent it going to waste. These are then processed from the original form before being sold in juice or sliced forms, which consumers would purchase without being concerned about the initial appearance.
