September 30, 2024 – The food and beverage industry is evolving rapidly, driven by technology, sustainability, and changing individual preferences. Generational differences play a major role in shaping consumer behavior. Innova’s 360 research into generational trends reveals key insights into the primary concerns and aspirations of consumers in the US and Canada. From financial issues to health goals and the rising focus on sustainability, we explore the key drivers behind each generation’s influence on the market and how these differences impact purchasing decisions.
Generational Profiles
Generation Z are characterized by low disposable income and is in the exploration stage of their careers. They are highly invested in physical exercise and care more about skin health, and energy and stamina. They are socially active and like to mingle at various locations, but they rely heavily on digital platforms for connection and entertainment.
Millennials have growing disposable income due to more expertise and authority at work, and they mostly live with two people’s paychecks. They are also highly invested in exercise and healthy food choices and prioritize heart health. Like Generation Z, they are concerned about stress and anxiety and prefer socializing at home. However, this generation is more experienced with technology than Generation Z.
Generation X are characterized by their high income, and their income has remained unchanged over the past year. Many individuals of this generation have reached their career plateaus. They are less physically active and prioritize bone and joint health for healthy aging. They share similar stress and anxiety concerns as Millennials. They are experienced with technology and prefer socializing at home.
Boomers, while in a lower income bracket with less income growth, often have accumulated assets over time. Their top concerns revolve around aging, particularly memory and mental agility. They prioritize food and prefer socializing at home. Though the least digitally acquainted generation, many still use technology to stay connected with others.
Megatrends and Consumer Trends
Key shifts in consumer behavior across generations are influenced by global megatrends like inflation, health concerns, technology, and sustainability.
While inflation and financial constraints are top concerns for everyone, younger generations like Generation Z and Millennials maintain a more optimistic outlook about the future. Generation trends research shows that 23% of Generation Z say that they invest in food and beverages that uplift their mood, whereas older generations, particularly Gen X and Boomers, focus on cutting back expenses and prioritizing saving.
High-quality and healthy products are considered good value for money for all generations. However, younger consumers place more importance on larger and unique products, while Boomers prefer appropriate quantities. Consumers from all generations prioritize accessible, affordable, and healthy foods, with equality and well-being emerging as the top two eating values in Canada and the US. These values outweigh the price for many, reflecting a focus on health and inclusivity in food choices.
Honesty and transparency for ingredients and sourcing equally matter to all generations. Meanwhile, sharing food and experiences is more significant for Generation Z and Millennials.
Health and Wellbeing Trends
A nutritious diet is important for a healthy life, with Generation Z in Canada and the US also placing significant focus on mental and physical exercise. When it comes to mental health, both Generation Z and Millennials seek solutions to enhance mood and reduce stress. In contrast, nearly 2 in 3 Boomers and over half of Generation X express satisfaction with their mental health. Sleep and insomnia are major concerns for Generation X, while Boomers are more concerned about memory and mental agility.
Weight management is essential across generations but with different motivations. Younger consumers aim for muscle gain and enhanced self-esteem, physical appeal, and confidence, while older generations prioritize longevity and the prevention of chronic conditions.
Younger generations value skin health, whereas seniors focus on healthy aging and bone and joint health. Several products in the US and Canada are increasingly catering to these concerns. For example, Encore’s Focus Original MCT Creamer boosts focus and mental clarity, and Danie’s Natural Juice Blends Turmeric Sunrise Juice highlights the benefits of a healthy drink for radiant skin, reflecting the growing focus on healthy aging and well-being.
Sustainability Trends
Younger generations in Canada and the US have chosen low environmental impact foods and have educated themselves about food origins and production processes over the past year. In contrast, older consumers have minimized food waste and chosen locally grown products during the same period. While 44% of consumers recycle or upcycle primarily for environmental reasons, other eco-friendly actions, such as minimizing food waste or selecting local goods, are often motivated by financial or health benefits.
Environmentally friendly packaging and recyclability are important packaging attributes to all generations, though their actions to support the environment vary. Generation Z and Millennials support brands that advocate for social causes, while older consumers express interest in supporting local businesses. Across all the generations, there is a growing demand for brands to enhance their focus on sustainable packaging and waste management to better protect the environment.
Pleasure and Enjoyment Trends
1 in 3 consumers in Canada and the US consider fresh ingredients as the most important element in enjoying food and beverage products. While this preference is shared across generations, there are some key differences in other indicators of enjoyment. For example, Boomers prioritize nutrition and realness, while Generation Z and Millennials favor taste discovery. Several products can be noticed catering to these interests, advertising fresh elements, nutrition, and rich and novel flavors.
What’s Next in Generational Trends?
Innova’s consumer trend research highlights distinct generational differences that present future brand opportunities. 3 in 5 Generation Z and Millennials are concerned about stress and anxiety, with many investing in food and beverages that uplift their mood or alleviate boredom. Brands can develop products that offer nutrients for mood improvement or exciting sensory experiences. Skin health is the top physical health concern for younger generations, making products that address skin and age-related problems a potential opportunity for brands.
Older consumers focus on preventing or managing chronic conditions. Brands can incorporate functional ingredients that address disease prevention or health management, appealing to this demographic. Honesty and transparency are also important eating values that are significant to seniors, emphasizing nutrition and realness as drivers of enjoyment and pleasure in food. Brands are likely to focus on natural and nutritious products that might be enticing to this demographic.
This article is based on Innova’s Now & Next in Generational Differences in the US & Canada report. Find out more about this report by booking a demo or reach out to us using our Contact Form.
