Making plans for Generation Z? Familiarize it, but with a twist
According to Larry Levin, executive vice-president of consumer and shopper marketing at Information Resources, Inc., “nobody cares about millennials anymore.” “Gen Z is a hot topic right now.”
According to panelists speaking at a June 4 session at IFT19, the Institute of Food Technologists’ annual meeting and food expo in New Orleans, Generation Z, the diverse and digitally savvy 6- to 25-year-old demographic, will soon overtake millennials as the world’s most populous generation and already wields significant buying power in the marketplace.
Throughout the presentation, Mr. Levin stated, “This group makes $16 a week in allowance.” You’re discussing a purchasing power of $40 billion. To put that into perspective, forty billion dollars is roughly equivalent to the snacking market.
According to Tim Benner, head of consumer research at Pizza Hut U.S., Gen Z consumers spend a larger percentage of their income on food than did earlier generations.
“At the moment, they’re spending more on food than they are on clothes and a variety of other items, accounting for about 20% of their income,” he stated.
According to Robert Byrne, senior analyst at Nielsen, 76% of Gen Z customers utilize food service once a week or more, which is higher than the average of 71% of consumers overall but marginally lower than millennials.
“Today’s malls are restaurants,” Mr. Byrne declared. “Gen Z still cherishes the dining experience. For them, it’s a social moment. Consider it. Speaking with my friends in real life is a break if I’m always immersed in this digital world.
Compared to previous generations, these customers are more inclined to make impulsive purchases, but price is still a major factor.”When they were growing up, mom and dad might have lost their jobs,” Mr. Levin remarked. “Since they experienced a difficult economic climate at home, two-thirds of them cite price as a motivator.”
According to Mr. Byrne, 55% of Gen Z usually selects restaurants with lower costs, compared to 45% of all other establishments.
Nevertheless, Mr. Levin noted that Gen Z, who frequently has unfavorable opinions about private label, values brands.”We’ve noticed that, among Gen Z, private label products currently carry a little bit of a stigma,” he said. “And the reason for that is that they think buying a private label product would reveal something about their family, but they’ll probably outgrow that feeling eventually.
“They also purchase under brand names because, at the end of the day, that is what they are. Teens… Teenagers still give a damn about what other people think. Since brands are status symbols, it’s critical to consider how you’ll build relevance with this particular customer base. Being a brand is one thing; being a partner is quite another. They are more interested in your tale than any other generation, therefore you need to consider how you might work with them on this piece.
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According to Mr. Byrne, Gen Z prefers familiar foods and ingredients and is less inclined than previous generations to sample new flavors.
According to him, “nearly 90% of Gen Z customers say that they visit restaurants once a month or more primarily to satisfy cravings.” While there are additional factors to take into account, the primary driver—satisfying a craving—relates to the concept of the impulse buyer. .. For it to become a factor in the consideration set, it must be enticing. Additionally, there must be a certain level of familiarity for anything to be craveable. The Gen Z generation isn’t always the most adventurous group out there.
According to Mr. Byrne, Gen Z’s top flavor preferences include fruity, spicy, sweet, and robust.He remarked, “We see another pattern emerge when we talk about flavor combinations.” “sugary and sweet, spicy and sweet, and sweet and salty.
She gave the example of Oreo. The Oreo cookie has made an appearance on menus and store shelves in the form of pie crusts, ice cream cones, chocolate bars, donuts, and drinks. It has been offered in bites and thins, and as of late, a wide range of limited-edition tastes are available.
“The idea is to elevate that daily task to a higher level,” she remarked. They see themselves as disobedient to the law. However, they only seek to defy the law in one area: color? Does it have texture? Is that spice? Is it too sugary?
According to her, Gen Z consumers also value product qualities like transparency and portability for on-the-go eating.When it comes to nutrition, “they definitely want to have their own personalization,” Ms. Sunseri stated. “They desireto have authority over their diet.
According to Mr. Levin, having fun and being genuine are essential elements of product development.
“It’s crucial that you start interacting with this group early on and support them as they make a purchase,” Mr. Levin advised. You have the chance to establish a relationship that lasts from birth to death. They might remember your brand for many decades to come.