SNAPSHOT
BY KATHY PERROTTA
Are you ready for the new kids on the block? Ipsos data reveals Gen Z consumers’ pandemic priorities and what they mean for your business
Conscious consumption
Defining generational habits and traits are often shaped by shared formative experiences and major life-changing events. Transformational occurrences like the Great Depression certainly impacted behaviours and needs of the Silent Generation (aged 75+), while 9/11 impacted and imprinted millennial (aged 25 to 41) practices and perspectives. The current global health pandemic and societal lockdowns are no different. While our pandemic experience has prompted change across the generations, it potentially stands to have the biggest longterm effect on activities and attitudes of Gen Z consumers (aged 11 to 24 and born between 1997 and 2008: though that definition may vary slightly depending on who you ask). The cohort currently represents almost 20% of the Canadian population. Gen Z priorities, particularly among the leading Gen Z adult segment (aged 19 to 24) are shaped by egalitarianism, diversity and a conscious code of ethics. Beliefs and perceptions of the younger Gen Z segment (aged 12 to 18) are currently being modelled in these turbulent times. Gen Z food-shopping habits continue to show strong development at convenience and gas outlets. However, fewer immediate consumption trips and more online shopping options necessitates that stakeholders update their understanding of the evolving needs and habits shaping Gen Z choices, especially if they want to remain relevant in the post-pandemic era.
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Ipsos FIVE daily consumption tracking data reveals that a key element shaping eating and drinking choices is consideration for options that support the "social good". Activating against Gen Z's desire to support brands that address environmental and ethical concerns, provides boundless opportunity across many core categories. Priorities include, food safety, quality (nonGMO, organic), local products/ingredients, sustainable packaging, sustainability, fair trade and treatment of workers in the production process.
Well-being benefits A rising share of Gen Z consumption occasions in the pandemic era are motivated by the need for something healthy and nutritious (+3%). Plus, Gen Z's holistic and expanding approach to defining what is healthy is a notable development. The pandemic experience—characterized as a time of increased stress, anxiety and boredom—has further prompted Gen Z consumers to opt for healthy options that meet physical energy goals, while also seeking options that support emotional and mental well-being. Adapting shelf set to add functional options that aid in relaxation and anxiety relief is a considerable opportunity.
Meal solutions Ipsos Foodservice Monitor shows strong Gen Z traffic at foodservice, even in the midst of pandemic-driven channel declines. Expansion of foodservice or partnership growth will undoubtedly attract Gen Z shoppers. While homebound during the pandemic period, Gen Z meal preparers, most likely to dine alone, continue to look for easy solutions to aid with daily preparation rigors. Home habits have prompted more consumption of cereal, potato chips, vegetables, and chicken and rice, with fewer dining
occasions that include, cheese, granola bars, sandwiches, potatoes and burgers. Can C&G stakeholders develop a suite of solution-oriented meal options that could promote more fill-in and emergency trips? In addition to food type, consider pack size; format preferences like kits; and other easy preparation criteria as key to meeting needs.
Mobile, mobile, mobile Surrounded by information, technology and interactive devices, Gen Z demonstrates strong information gathering habits on mobile devices, with almost half of the segment reporting always or regularly researching food and beverages before deciding to buy. In addition, there’s opportunity to digitize in-store experiences (think micro-markets) to connect with Gen Z shoppers.
Alcohol habits As members of Gen Z cohort hit the legal drinking age, they will be a future force in the alcohol sector. The Ipsos ACT Canada daily consumption tracking shows that Gen Z adult drinking habits have not decreased due to the closure of restaurants and bars, but have moved home. Gen Z adults are not drinking less, they are drinking differently, which provides considerable opportunity to develop relevant product mixes and pairing promotions to spur visits. Overall, Gen Z is more pragmatic, practical and socially conscious than the predecessor generation. In turn, key players in the C&G sector will need to recognize that there are unique differences between Gen Z and their millennial counterparts. Rather than targeting them as one broad segment, craft offers that appeal to their unique needs and desires, particularly as the "new kids on the block" shape up to be the next influential generation. ◗ Kathy Perrotta is a vice-president with Ipsos Market Strategy and Understanding, working with the Food & Beverage Group Syndicated Services. Data sources within this group include, Ipsos FIVE and Foodservice Monitor (FSM).
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