November 1, 2024 – In China, generational differences significantly shape trends in the food and beverage industry, as each age group brings unique preferences and priorities. From health-conscious Boomers to experience-driven Gen Z, these changes influence product development, purchasing behavior, and consumption habits across the market. Innova’s 360 research into consumer trends in China helps to analyze how each generation’s values are impacting the food and beverage industry in China.
Generational Profiles
Generation Z have a low annual disposable household income due to less work experience and single status. They are in the exploratory phase of their careers, with income gradually increasing. They prioritize physical exercise and care more about weight management and skin health. Consumer trends show that they are the least satisfied with their mental health, and their top concerns are stress/anxiety and mood improvement.
Millennials, in contrast, have the highest annual disposable household income due to more authority and expertise at work. They mostly live with two people’s paychecks. Consumer trends display that this age group place significant emphasis on heart health, immune health, and weight management. While they are more satisfied with their mental health than Gen Z, they are still concerned about stress and anxiety.
Generation X has a relatively high annual disposable household income, living on dual paychecks. Many in this age group have reached their career plateau and their income
has been more or unchanged. They tend to be the least physically active and prioritize heart health alongside bone and joint health. Consumer trends show that they are more mentally satisfied than Gen Z, with stress and anxiety being the top concerns.
Boomers have a medium annual disposable household income. Most of them are retired with a steady income. Consumer trends show that boomers are the most physically active generation and place the highest value on food healthiness. They care more about their heart health and bone/joint health than any other group. They are satisfied with their mental health. They are more concerned about their mood, clarity/clear thinking, and mental agility.
Megatrends and Consumer Trends
Consumer behavior across generations is influenced by global megatrends such as inflation, health concerns, technology, and sustainability. In China, pollution’s impact on health, the lack of affordable healthy, nutritious food, are the top 3 concerns for all generations. Well-being is the top eating-related value, particularly among younger consumers.
Consumer trends in China research reveals that 43% of Gen Z consumers have spent more on food and beverages to uplift their mood and increase accessibility to these products. They value product aftercare, unique offerings, and leading preferred brands, reflecting their desire for good value for money. Individuality, or the ability to personalize their food choices to match their taste, style, and values, are important eating values.
Millennials have more disposable income, and food delivery services entice their spending. They prioritize health benefits and nutritionally superior products, viewing these attributes as indicators of good value for money. 31% of consumers consider sustainability as an important eating value, making them the most active group in minimizing food waste compared to other generations.
Generation X has reduced their spending because they socialize less with food, grow their own produce, and buy less expensive products. More Boomers have spent less because they want to save money as a precaution. Tradition and heritage (foods/brands that have stood the test of time) are important eating values for them. For them, traditional and heritage-favoring foods and brands that have stood the test of time, are important eating values.
Consumer trends in China shows that across all generations, there is a shared concern for environmental impact. Minimizing food waste is the top environmentally responsible action taken by all generations in their food choices.
Consumer Health and Wellbeing Trends
Nutritious diets primarily support a healthy life, while mental and emotional health is a bigger focus for Gen Z in China. This generation, along with Millennials, actively seeks solutions that enhance mood and relieve stress. In contrast, Generation X is over-indexed in sleep and insomnia, indicating their struggle with restfulness.
Boomers prioritize memory, mental agility, and clarity and mood improvement, reflecting their desire for cognitive health as they age. While younger generations emphasize skin health and overall physical appearance, seniors place greater importance on bone and joint health, as well as heart health.
Consumer Sustainability Trends
Younger generations have eaten/shopped in moderation and chosen low environmentally impact food to highlight their commitment to sustainability. Older generations have chosen locally grown products and varieties that promote biodiversity.
In China, 42% of consumers recycled more in the past year. Recycle or upcycle stands out as consumers act on it mostly for the good of the environment. Other eco-friendly actions, such as minimizing food waste and choosing locally sourced products, attract consumers not only for their environmental benefits but also for potential financial and health advantages.
What’s Next in Consumer Trends in China?
Nearly 2 in 3 of Gen Z and 4 in 5 Millennials are highly concerned about stress and anxiety. Gen Z is more inclined to invest in food and beverages that uplift moods or relieve boredom. Brands have the opportunity to develop products with nutrients aimed at mood improvement and exciting sensory experiences to alleviate boredom.
For senior generations, the focus falls on preventing or managing chronic conditions. Heart health, immune health, and weight management are the top physical health concerns for Generation X and Boomers. Brands can launch products with functional ingredients that address disease prevention or management can directly cater to this group’s preferences.
Sustainability is the fourth eating value across all generations, but when it comes to value for money, environmentally friendly options rank behind quality and health benefits. Actions like minimizing food waste are often driven by financial or health reasons as much as by environmental concerns. Brands that integrate sustainability with added health or financial benefits are likely to resonate strongly with consumers in the future as demand for holistic solutions grows.
This article is based on Innova’s Now & Next in Generational Differences in China report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
