KANSAS CITY, MO. – As a new generation of consumers come of age in the United States, so too comes a new array of preferences in the foods they purchase and consume. This was the topic of a webinar held on June 20, titled “Sustainability’s Role in Evolving Consumer Preferences in Protein,” hosted by the North American Meat Institute (NAMI). The webinar featured two speakers: Jonna Parker, the Fresh Foods team lead for Circana (formerly IRI), and Megan Passman, global insights manager for Lenexa, Kan.-based Corbion. In their presentations, Passman and Parker collectively explained how demand for sustainable food products have impacted the meat industry, and how younger shoppers are leading the charge in a push for “greener” foods and supporting companies and products that are environmentally responsible.
Despite a divide in spending frequency on categories of food products, commonalities still exist among age groups when it comes to grocery spending. For instance, 93% of consumers consider sustainability claims as a motivator when making purchasing decisions, even in the face of inflation. According to Parker, environmental claims on food products are important to 79% of millennials and Generation Z consumers. Understanding these pro-sustainability customers and what they desire in the foods they purchase is something integral for markets to consider in the future.
Parker identified four types of shoppers whose characteristics can influence their fresh meat purchases. “True Believers” were described as comprising the most engaged consumers in terms of being drawn to stores and products that share their beliefs in environmental claims and sustainability. “Enlightened environmentalists” refers to younger, high-income individuals with families, while “healthy realists” believe in a balanced diet and profile. Finally, “strap seekers” are a group that may lack the financial means to purchase sustainable products but are mindful of their importance.
Passman explained that there is a generational tilt when it comes to perceptions about sustainable food.
“We are seeing an increase in priorities among naturalness and environmental factors for products across the total store, which includes all food and beverages,” she said.
Despite this commonality across generations, Passman said certain generations have sustainability priorities that differ from one another. For instance, while millennials prioritize products that are natural and have recyclable and reusable packaging, Gen Z buyers place greater emphasis on products that are made from recycled materials and are fair trade certified.
Passman stated the meat industry has an opportunity to enhance younger consumer engagement by featuring on-pack claims that resonate with them, which can include production claims such as antibiotic-free or product attributes like antioxidants, which is one of the fastest-growing claims due to an increased awareness about food waste.
What is driving today’s consumers’ choices at the supermarket, Parker said, is convenience, which has become as important as price in many cases.
Despite this increased demand for convenience and value, Parker said the impact that inflation has had on food buying decisions over the past year has been significant. She said 95% of consumers said inflated food costs were a great concern as of this past April, with older buyers, chiefly Baby Boomers, admitting that food inflation has influenced their purchasing habits. Parker pointed out that consuming fresh foods before they expire is the primary means of combatting both cost and food inflation for 40% of shoppers. Additionally, when grocery shopping, 46% of buyers focus on purchasing certain pre-determined products to avoid spontaneous purchases as a means of offsetting inflation.
Parker said that one can’t presume that younger generations will pick up exactly where their older counterparts left off in terms of meat purchasing habits.
“Beef is still disproportionately seeing dollars come from Gen X and boomers, and currently has a wide gap when it comes to what millennials and Gen Z would buy normally, and what they’re doing today,” she said.
However, despite this gap, consumers from millennials and Gen Z tend to spend more on food and drink than their older peers.
“When a millennial buys beef, their basket size across the entirety of food and beverage is higher than Gen X and boomers,” Parker said.
Meanwhile across all age groups, consumers eating away from home is on the rise, although perhaps not to pre-pandemic levels.
According to data from Parker, in just the first quarter of 2023, foodservice sales have increased by 2.5% compared to the same period last year, which she said shouldn’t come as a surprise.
The principal reason for this, according to Parker, is that “we’re a little tired of cooking all our meals at home. We’re a little tired of having to plan them, shop for them, think about them, and the reality in the foodservice sector is that it’s easy, it’s plentiful, it’s available. And I think that really does disproportionately affect a department like meat.”