INNOVA MARKET INSIGHTS | The food and beverage industry has constantly evolved, driven by technology, sustainability, individual preferences, and generational differences, among the most significant influences on consumer behaviour.
Research from Innova has indicated that Generation Z has low household disposable income, lack of work experience, and single status. They are in the exploration stage of their careers and are highly invested in physical exercise, skin health, and energy stamina. While they are socially active and enjoy mingling in various locations, digital platforms are essential for their connection and entertainment.
Millennials have more disposable income due to increased expertise and authority at work and often live with two people’s paychecks. They prioritise exercise and healthy food choices, focusing on heart health and stamina. Similar to Gen Z, they are concerned about stress and anxiety and prefer socialising at home.
Generation X has been characterised by its high income, with many reaching career plateaus. They are physically active and emphasise bone and joint health for healthy aging. Satisfaction levels are similar to those of Millennials, with anxiety being a shared concern and prefer socialising at home.
Boomers have a steady medium income from pensions and are often retired. They prioritise food and are the most concerned about aging, with memory and agility being vital concerns. They prefer socialising at home and are less reliant on technology than younger generations.
Fundamental shifts in consumer behaviour across generations have also been partly driven by global megatrends, including factors like inflation, health concerns, and sustainability.
While inflation and financial constraints are at the top of all generations' minds, younger consumers (Gen Z and Millennials) exhibited a more optimistic outlook. Generation Z trends research showed that 27 percent invested in foods, beverages, and experiences that uplifted their mood. In contrast, older generations (Gen X and Boomers) were more likely to reduce expenses and prioritise saving.
Across all generations, there has been a strong emphasis on healthy living, with nutritious diets and physical exercise being key priorities. Gen Z is mainly focused on mental health, with stress and anxiety being significant concerns. Millennials prioritise energy and stamina, while Gen X focuses on heart health. Conversely, Boomers are most concerned with memory and agility, reflecting their age-related concerns.
Sustainability was another growing concern for all generations, with different generations demonstrating more attentiveness to specific types of environmental consciousness. Younger generations were likelier to choose products with low environmental impact and support brands that advocated for social causes than older generations, who were prone to minimise their food waste, avoid overconsumption, and prioritise choosing local, seasonal produce.
Two in five consumers considered freshness the most crucial element in enjoying food and beverage products. While this preference was shared across generations, seniors prioritised nutrition and realness, while younger generations favoured taste discovery and sweetness.
