October 24, 2024 – The food and beverage industry is constantly changing, driven by advancements in technology, sustainability efforts, and shifting consumer preferences. Generational differences influence purchasing behaviors, highlighting different priorities across age groups. Innova’s 360 degree research into European consumer trends highlights the primary concerns and aspirations of European consumers. From financial pressures to health objectives and the growing emphasis on sustainability, we analyze how each generation’s values are impacting the food and beverage industry.
European Consumer Generational Profiles
Generation Z has a low annual disposable household income due to their limited work experience and single status. As they are in the early stages of their careers, their income is steadily rising. They prioritize physical exercise, skin care, energy and stamina. They are the most socially active generation and enjoy socializing at various locations. They heavily rely on digital platforms for connection and entertainment.
Millennials have the highest household disposable income due to their greater expertise and authority at work, and they mostly live with two people’s paychecks. Like Gen Z, they focus on physical exercise and healthy eating but place more emphasis on heart health, energy and stamina, and skin care. Stress and anxiety are major concerns for this age group. They are a socially active group and use digital platforms to connect with others, entertain, and work.
Generation X has relatively high household disposable income, living on two people’s paychecks. Many have reached a career plateau, and their income has been unchanged over the past year. They are less physically active and prioritize heart health, bone and joint health, and healthy aging. Mental health concerns such as stress and anxiety are similar to Millennials. They prefer socializing at home and are experienced with technology.
Boomers have low household disposable income. Most of them are retired with a steady income. They prioritize heart health, bone and joint health, and healthy aging more than any other group. They are more concerned about their memory and mental agility. They are the least socially active and prefer to socialize at home. They are the least digitally acquainted group, yet more than half of them use digital technology to stay connected with others.
Megatrends and Consumer Trends
Consumer behavior across generations is shaped by global megatrends like inflation, health concerns, technology, and sustainability. While inflation and financial constraints are top concerns for all, younger consumers maintain a more optimistic outlook about the future. European consumer trends show that 19% of Gen Z invest in food and beverages that uplift their mood, whereas Boomers focus on spending less due to the worsening financial situation.
For all generations, high quality, healthy, and environmentally friendly products are considered good value for money. However, younger consumers value larger product quantities, while Boomers prefer appropriate quantities. Although personal finance is the top concern globally, wellbeing, and accessibility and affordability are the top 2 eating values in Europe for all generations.
European consumer trends display that sustainability and honesty and transparency in ingredients and sourcing are important to Boomers, Generation X, and Millennials. Meanwhile, sharing food and experiences is more significant for Generation Z and Millennials.
Consumer Health and Wellbeing Trends
A healthy life is primarily supported by nutritious diets, with physical exercise being a key focus for Generation Z and Millennials. While weight management is important for all, motivations differ by generation. Younger consumers focus on enhancing self-esteem, physical appeal and confidence, while senior generations are motivated by its potential to increase longevity and prevent chronic conditions.
European consumer trends reveal that 45% of Generation Z and 57% of Millennials are satisfied with their mental health. However, stress and anxiety are their top concerns. Generation X are over-indexed in sleep and insomnia. Boomers are most concerned about memory, mental agility and clarity.
In Europe, skin health is a primary concern for younger generations, while seniors prioritize healthy aging, focusing on bone and joint health. These important aspects of healthy aging reflect age-related concerns.
Consumer Sustainability Trends
Younger generations in Europe have chosen varieties that increase biodiversity and have educated themselves about food origins and production processes over the past year. Meanwhile, older consumers have minimized food waste and chosen locally grown products during the same period. In Europe, consumers recycle or upcycle mostly for the good of the environment, while other actions appeal to consumers for their financial and health benefits. European consumer trends display that packaging attributes such as eco-friendliness and recyclability are valued across all generations. While Gen Z and Millennials support brands advocating social causes, senior generations prioritize supporting local producers, merchants, and fair trade products.
What’s Next in European Consumer Trends?
Sustainability is the fourth most important eating value in Europe, following good quality and health benefits. Consumers engage in environmentally friendly behaviors not just out of altruism but also for financial and health reasons. They recycle or upcycle mostly because of environmental concerns. Brands can pair sustainability with added benefits. They can create sustainable food and beverages that should not only be limited to conventional feel-good incentives but also offer additional health and financial benefits.
Generation Z, with their focus on mood enhancement and alleviating boredom, presents opportunities for brands to develop mood-boosting or sensory-stimulating products. For seniors, honesty and transparency are key, along with a strong sense of community. Brands that prioritize open communication and focus on supporting the community have a higher appeal to this group. As the demand for holistic, functional products grows, future innovation in food and beverage is likely to address both emotional and ethical concerns across all generations.
This article is based on Innova’s Now & Next in Generational Differences in Europe report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
