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Insight of the Day: What Gen Z students really want from grocery

Findings:

  • Format Failure: Convenience stores lack products appealing to Gen Z, focusing on older generations' preferences.

  • Range Paradox: Gen Z desires unique and diverse products found in larger supermarkets but primarily shops at convenience stores where these are unavailable.

  • Invisible Environment: In-store representation of environmentally-friendly products is lacking, despite Gen Z's concern for the environment.

  • Meal Deals: While appreciated for value, meal deals lack variety and opportunities to try new, innovative products.

  • Loyalty: Student-specific discounts and personalized offers are underutilized by grocery retailers to build loyalty with Gen Z.

Key Takeaway

Grocery retailers are missing out on a significant opportunity to engage with and cater to the Gen Z demographic, resulting in a disconnect between what this generation wants and what is offered.

Trend

Gen Z is emerging as a new generation of shoppers with distinct preferences and expectations, shaped by their unique cultural context and values.

Consumer Motivation

Gen Z consumers are motivated by:

  • Convenience and accessibility due to limited mobility.

  • Desire for unique and diverse products that reflect their cultural identity.

  • Concern for the environment and preference for sustainable options.

  • Value for money but also willingness to explore new and innovative products.

  • Desire for recognition and personalized offers that cater to their specific needs, like student discounts.

Driving Trend

  • Changing demographics and cultural shifts.

  • Increased awareness of environmental issues.

  • Evolving shopping habits due to factors like limited mobility and reliance on convenience stores.

  • Desire for personalization and recognition as a distinct consumer group.

Target Audience

The article is primarily targeted towards grocery retailers and industry professionals interested in understanding and catering to the Gen Z market.

Product/Service & Age Group

The article focuses on grocery products, including convenience items, ready meals, meal deals, and environmentally-friendly products. The age group is Gen Z, typically ranging from teenagers to young adults in their early 20s.

Conclusions

  • Gen Z represents a valuable and untapped market for grocery retailers.

  • Adapting to their preferences and values is crucial for long-term success.

  • Retailers need to bridge the gap between Gen Z's expectations and the current offerings in convenience stores.

Implications

  • Brands: Need to rethink product assortment, store layouts, and marketing strategies to resonate with Gen Z.

  • Society: Witness a shift in the retail landscape as businesses adapt to the demands of a new generation of consumers.

  • Consumers: Gain access to more relevant and appealing products and services tailored to their needs.

  • Future: Retailers who understand and cater to Gen Z will be better positioned for sustained growth and success.

Consumer Trend

  • Conscious Consumerism

  • Experiential Shopping

  • Digital Natives

Consumer Sub Trend

  • Demand for Convenience

  • Preference for Authenticity and Diversity

  • Value-driven but Open to Innovation

  • Emphasis on Sustainability

Big Social Trend

  • Generational Shift

  • Environmental Awareness

  • Digital Transformation

Overall, the article highlights a clear need for grocery retailers to understand and adapt to the unique characteristics and preferences of the Gen Z demographic. By recognizing their motivations and aligning their offerings accordingly, retailers can foster loyalty and capture a significant market share

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