Are You Prepared for Gen Z? - SJU WordPress Sites...Are You Prepared for Gen Z? October 15, 2019....
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Copyright 2019. The NPD Group, Inc. All Rights Reserved. This presentation is proprietary and confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD. What Gen Z Tells Us About the Future of Food Are You Prepared for Gen Z? October 15, 2019
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Copyright 2019. The NPD Group, Inc. All Rights Reserved. This presentation is proprietary and confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD.
What Gen Z Tells Us About the Future of Food
Are You Prepared for Gen Z?
October 15, 2019
The NPD Group, Inc. | Proprietary and confidentialDocument classification: NPD Internal Only 2
1. Why Gen Z now?
2. Disruption of Food & Beverage
3. Winning with Gen Z
– Personal Value
– Functional Benefits
– Access
Agenda
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Gen Z is on the verge of adulthood.
The oldest Gen Z consumer is turning 22 years old
MILLENNIALSInternet Generation
GEN ZInformed Generation
1981 1996 1997 Present
23-38 years of
age
28 Avg. age of marriage
32 Avg. age of home
ownershipSource: The NPD Group, 2019
U.S. Census, 2019Pew Research Center, 2019
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67MILLION
INDIVIDUALS
20% $143BILLION
In buying power, and increasing with age
U.S. POPULATION of the total
Their spending power is garnering attention.
Source: The NPD Group/U.S. Census Bureau – Current Population Survey 2019 estimates; Gen Z born 1997 to presentForbes “How much financial influence does Gen Z Have?”, January 2018
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The NPD Group/CREST®, YE Dec ’18Gen Z born 1997 to present
Older Gen Z = 13-24 years of age
They are making a mark on foodservice.
24%
120
146
Of foodservice traffic
Gen Z represents nearly a quarter of foodservice visits
Older Gen Z is the strongest user of Fast Casual restaurants
Gen Z already contributes more than their fair share to foodservice traffic
Index to U.S. pop
Index to U.S. pop
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However, Gen Z adoption of restaurants remains at a post-recession pace.
205
192 192188 190 188 187 187
194 195190
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Annual Visits Per Capita, 13- to 24-Year-Olds
Gen Z 13–24Recession
Source: The NPD Group/CREST ®, YE December Gen-Z = born 1997+; Millennials = 1981-96; Gen-X = 1965-80; Boomers = 1946-64; Silent/GI Gen = before 1946
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Source: The NPD Group/National Eating Trends®, 2YE FebFresh food defined as fresh fruit, vegetables, refrigerated meats, poultry, fish, and eggs. End dish and additive/ingredient uses. Annual eatings per capita.
Gen Z is part of a generational shift that shook up retail food.
200
300
400
500
600
700
800
900
1000
0-9 10-19 20-29 30-39 40-49 50-59 60-69 70+
Fresh Food Consumption by Age
Gen Z Millennials1994
20142004
1984
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Growing Base Dish Foods Consumed In-Home
Source: The NPD Group/National Eating Trends®; YE Nov 2018 vs. 2015
More recently, eggs, one-dish meals, beans, dips, and meat alternatives are growing among Gen Z.
Foo
ds
Incr
eas
ing
amo
ng
Old
er
Ge
n Z
Eggs and Egg Dishes
Italian Mixed Dishes/Pasta
Asian Mixed Dishes
Rice/Rice Dishes
Mexican/Hispanic Dishes
Older Gen Z (13–22)
Nuts or Seeds
Biscuits
Legumes/Beans/Lentils
Meat Alternatives
Dips/Salsas
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Know the personal value your brand represents and stay true
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Gen Z use brands to create identity.
Sign of QualityReliable HabitStatus SymbolExtension of
Who They Are
Gen Z Millennials Gen X Boomers
Source: The NPD Group and CultureWaves
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Top 10 Most Trustworthy Brands for Gen Z
Gen Z does trust large brands if they…
Are childhood favorites
Deliver on brand promise
Have existed a long time
Have quality customer service
Are frictionless
Shortcut decision-making Source: Y Pulse/Ybrand Youth Tracker, 2018. Teens and
adults 13–21 years old. Q:“Which of the following are trustworthy?”
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Oreo does a great job staying relevant.
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These are the top chains visited by Older Gen Z.
Most Visited Restaurant Chains by Older Gen Z (13–24 yrs)
The NPD Group/CREST®, YE Dec. ‘18Chains ranked on share of traffic. Chains indexed on share of traffic – ages 13–24 to total ages. Indices 105+.
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Older Gen Z prefer these chains more than other generations.
Chains with Strong Cohort Development Index (120+)
The NPD Group/CREST®, YE December 18Chains indexed on share of traffic >1.0 – ages 13–24 to total ages. Shown are indices 120+. Ranked on index.
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Tastes have shifted from Millennials to Gen Z.
Chains with Strong Cohort Development Index (120+)
2010 2018
The NPD Group/CREST® YE Dec. ‘18Chains indexed on share of traffic >1.0 – ages 13–24 to total ages. Shown are indices 120+. Ranked on index.
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Tastes have shifted from Millennials to Gen Z.
Chains with Strong Cohort Development Index (120+)
2010 2018
The NPD Group/CREST® YE Dec. ‘18Chains indexed on share of traffic >1.0 – Ages 13–24 to total ages. Shown are indices 120+. Ranked on index.
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Integrate functional benefits where it makes sense
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Gen Z is growing up with a health-and-wellbeing mindset that is about doing what is best for you.
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Gen Z consumers are growing up to expect functional foods will help them avoid health problems.
2008 2010 2012 2016 20182014
Dietary Need Supplementary Niche ProactiveSpecialized Reactionary
Source: The NPD Group and CultureWaves
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Gen Z expectations for health and wellness support higher functioning on-the-go.
GEN Z
Expected
EXPECTATIONS
PortableProactiveRecoveryUnique
Inclusion of mental health
MILLENNIALS
On Trend
EXPECTATIONS
FunctionalExperiential
TrendyFlavor matters
Openly shares mental health issues
DRIVERS
ChobaniGimmies,
a kid-friendly line of portable
Greek yogurt
IQ Bar aims to be a nutrition bar for the brain.
Source: The NPD Group and CultureWaves
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Smoothie King makes a commitment to healthier, convenient eating.
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For Gen Z, plant-based is another option in their repertoire.
Are you vegan, vegetarian, or flexible vegetarian?% respondents replying YES
Gen Z
7%
Millennials
12%
Gen X
8%
Boomers
11%
Source: The NPD Group /National Eating Trends®, 2 YE May 2017
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Be accessible when and where Gen Z needs you
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Source: The NPD Group and Culture Waves
The purpose of these channels is simply to connect a seller with them.
Gen Z does not distinguish among an online store, social media, and brick-and-mortar.
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Gen Z is taking on responsibility for feeding themselves in a digital world offering low-effort solutions.
Source: The NPD Group and CultureWaves
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Jimmy John’s is refreshing its story – Freaky Fresh & Fast
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58%of Gen Z’s eating occasions are prepared without an appliance
Compared to just
47% of Millennials’ and Gen Xers’ occasions
Source: The NPD Group/National Eating Trends®, 2 YE May 2017
Minimal preparation is another way Gen Z keeps meals simple.
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On-the-Move Need State
Portable snacks are forecasted to grow
Total Eatings in F2023
+8.5% 14.7BProjected Eatings Change
F2023 vs. 2018
Excludes beverages Source: The NPD Group/SnackTrack®
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Winning In The Moment
Know the personal value
your brand represents
and stay true
Integrate functional
benefits where it makes sense
Be accessible when and
where Gen Z needs you
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