November 6, 2024 – Generational differences play a significant role in shaping the food and beverage industry, as each age group brings distinct preferences and priorities. From health-focused Boomers to convenience-driven Millennials and experience-seeking Gen Z, these generational changes influence product innovation, purchasing decisions, and consumption patterns. Innova’s 360 research into generational trends in Latin America highlights how each generation’s values and varying needs impact the market.
Generational Profiles
Generation Z are characterized by lower household disposable income due to limited work experience and single status. They are at the exploration stage of their careers, and their income has been increasing. They prioritize physical exercise and focus on skin health, energy and stamina. However, they are the least satisfied with their mental health, with stress and anxiety being their top concerns.
Millennials, benefiting from two people’s paychecks and more work experience, have higher disposable income compared to Gen Z. Consumer trends show that their income continues to rise, and they place greater importance on the healthiness of food. Millennials focus on heart, immune, and brain health while staying physically active. Though more satisfied with their mental health than Gen Z, they are still concerned about stress and anxiety.
Generation X has relatively high household disposable income, living on two people’s paychecks. Most of them have reached their career plateau, and their income is steady. They are less physically active and pay more attention to the healthiness of food. Besides heart health, they emphasize healthy aging and immune health. Consumer trends reveals that they share a similar level of mental health satisfaction as Millennials but are more concerned about tiredness and fatigue.
Boomers have a higher household disposable income, and most of them are retired with a steady income. They are the least physically active group and value the healthiness of food. Consumer trends show that their primary health concerns include heart, brain, bone/joint health, and healthy aging. Boomers are the most satisfied with their mental health, focusing on memory and mental agility as top priorities.
Megatrends and Consumer Trends
Consumer behavior in Latin America is shaped by global megatrends like inflation, health concerns, technology, and sustainability. Generational trends research display that financial concerns is the top concern across all generations, followed by various health concerns. Gen Z are worried about a lack of good healthcare provision and job availability, while Boomers prioritize personal safety and data security or cybercrime.
Environmental responsibility is also influencing food choices, as 47% of consumers have minimized food waste in the past year. Boomers lead in this effort, actively reducing waste and selecting seasonal produce, while they also over-index on supporting local products. Meanwhile, Generation Z focuses on educating themselves about the origins of their food.
Consumer Health and Wellbeing Trends
In Latin America, a healthy life is primarily supported by nutritious diets, while mental and physical exercise are also highly focused by Generation Z. Across generations, there are similar aspects for healthy living, with weight management and heart health being key concerns for all. Generational trends research display that more than 1 in 3 Gen Z and Millennials in Brazil and Mexico are very active in their physical activities. While younger consumers focus on concerns like skin health, older generations prioritize healthy aging and bone/joint health. These important aspects of healthy aging reflect age-related concerns.
Consumer Sustainability Trends
In Latin America, younger generations are educating themselves on food origins and production processes to take meaningful environmental actions. Whereas older consumers focus on minimizing food waste and choosing locally grown products to show their commitment to sustainability.
In Mexico and Brazil, 64% of consumers have engaged in recycling or upcycling over the past year, driven primarily by environmental concerns. Generational trends research reveals that other actions, like reducing food waste and supporting local produce, are motivated by both financial and health benefits. Consumer trends display that older consumers tend to take more environmental actions than younger ones. Consumers in Latin America urge brands and products to focus on nature protection and sustainable packaging.
Pleasure and Enjoyment Trends
In Latin America, enjoyment of food is mostly driven by freshness, rich flavors, homemade products, and good value for money. Consumer trends show that 2 in 5 consumers, fresh ingredients are the most important element to enjoying food. Older generations place greater importance on fresh ingredients, rich flavors, homemade appeal, and nutritional benefits. Meanwhile, Generation Z values sweetness, exotic or exclusive ingredients, and luxury brands.
What’s Next in Consumer Trends in Latin America?
In Latin America, health concerns vary significantly across generations, shaping opportunities for brands. For Gen Z and Millennials, skin health is the top physical concern, highlighting space for products that focus on skin care and age-related issues to enhance physical appeal.
Older generations, particularly Generation X and Boomers, prioritize chronic condition management, with memory and mental agility and bone/joint health being key concerns. Brands can cater to seniors by incorporating functional ingredients that address these needs, focusing on disease prevention and management. For enjoyment, older consumers value homemade and fresh ingredients. Brands can appeal with fresh ingredients as natural food with an artisanal claim. Brands that balance health with enjoyment in food are likely to capture all generations evolving preferences.
This article is based on Innova’s Now & Next in Generational Differences in Latin America report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
