How Each Generation Is Grocery Shopping
For the first time ever, five different generations are shopping in grocery aisles – each with their own expectations, desires and attributes as customers. Each generation, from Gen Z to Boomers, is changing the grocery landscape. And it all comes down to consumer behavior.
Consumer behavior encompasses a wide range of factors, including each consumers’ emotional and behavioral responses to buying products like groceries. In addition, socioeconomic status, cultural traits and psychological manners all play a role in grocery shopping habits as well. Different generations will hold different values, depending on their experiences throughout life. Once businesses understand each consumer, they can understand how to best serve them in 2024 and beyond.
To adapt to shifting customer needs, businesses need to embrace new technologies and truly understand how each customer shops, especially as they age. Let’s dive into the details behind how grocery shopping differs across generations – and what businesses can do to adapt.
The Generational Divide
How does each generation shop for groceries? It’s one of the most important questions for grocers looking to cater to a variety of customers across all ages, whether they shop online or in-person at brick-and-mortar stores. Grocery shopping habits have shifted dramatically as a fast-moving digital transformation takes hold across all businesses – especially retailers.
One of the most critical differences between generations starts with the most basic habits: How often do members of each generation even buy fresh groceries? Research on grocery shopping habits from Acosta finds that Gen Z and Millennial shoppers go shopping the most frequently of any generation. Gen Z and Millennials make a monthly average of 4.5 routine grocery trips. Meanwhile, research shows Boomers prefer in-store shopping more than any other generation – in part so they can double-check the freshness and the quality themselves in person.
The reality is that while each generation shares a common desire to buy fresh groceries, how they go about this goal differs greatly. Let’s explore all the differences in grocery shopping habits across each generation, looking at the impact of technology, inflation, and more.
The Impact of Digital Products
The global digital transformation has had a groundbreaking effect on almost every industry – and the grocery store world has not been left behind. Technology has helped the grocery retail business cater to their customers in new and innovative ways. More than ever, buyers of every generation have more options to interact with their groceries.
How does that look? Amazon’s new grocery store has no cashiers. Digital grocery shopping apps like Instacart facilitate grocery delivery no matter your location. Digital coupons. Barcode scanning apps at the store to scan as you go.
Modern innovations are changing how people interact with grocery stores and buy groceries. Some shoppers may prefer to never even step inside a brick-and-mortar store, while others cherish the time to look at products in person.
More than any other generation, Gen Z has never experienced life without the Internet. Of Gen Z shoppers, 42% surveyed say they use a digital grocery list and other digital products to shop, according to research on grocery shopping habits from Acosta.
Gen X grocery shoppers are embracing digital grocery tools like Instacart. Over 70% of Gen X shoppers redeem digital or mobile grocery store coupons in the past month.
Brand Loyalty
How often do grocery shoppers think about brands when stepping foot into stores? Brand loyalty can be a powerful factor for any business’s customers– especially grocery stores. In many major metropolitan areas in the US, customers often have choices between two or three grocery stores. In especially competitive markets like San Diego or Los Angeles, that number can be much higher.
Customers shop for their favorite brands for years and years – sometimes for life! Research from ZenDesk finds at least 7 in 10 global customers feel loyalty toward at least one brand or company. That number is much higher in the US: 80% of customers admit to brand loyalty to at least one brand.
So how does that look for grocery shoppers?
Research on grocery shopping habits from Acosta shows Boomers are some of the most brand-loyal customers. More than 80% of Boomers are buying the same products as last year. Boomers don’t just buy the same products – they’re also shopping at the same stores. More than 90% of Boomers surveyed reported shopping at the same grocery store as the year before. That’s a staggering number for a generation valuing consistency.
However, Millennials remain some of the least loyal shoppers to brands. Of this group, 48% agree they don’t necessarily care which brand they buy, and if they happen to find a better deal elsewhere, they will happily follow it.
It’s All About The Money
At the end of the day, money remains a pressing concern for the grocery shopper, no matter their age. One reason for this? Rising inflation across the U.S.
Though inflation peaked early in 2023 due to supply chain disruption, costs have continued to rise over the past year – leaving many consumers counting each dollar. In fact, inflation reached previously unseen levels in 2023. By December 2023, consumer prices were 3.4% higher than the previous year, a stark contrast for many families still struggling to purchase basic goods for their families with far less purchasing power – including groceries.
According to the 2023 Consumer Trends Report, Millennials are more concerned about their finances than any other generation. They’re also nearly twice as likely to have an unstable household income as Baby Boomers.
However, Baby Boomers surveyed are 78% more likely than their Gen Z counterparts to buy items on sale – and these older shoppers also tend to use credit cards with major money-saving perks. It reflects the economy and their tendency to shift towards maximizing value. After all, Boomers lived through the Great Recession and other major events that left many struggling to make ends meet. Boomers may be downsizing, but on average, they spend just over $300 a month, taking home groceries.
One surprising statistic? Gen X shoppers are reportedly spending the most of any generation on groceries. Research on grocery shopping habits from Acosta shows they spend an average of $380 monthly on groceries.
It’s less and less common for shoppers to make impulse purchases. Research shows 56% of Gen X respondents and 43% of surveyed Millennials are reducing the amount of fun purchases and impulse purchases in a major effort to cut costs and save a little extra money. On the contrary, just 37% of Gen Z respondents are making this same effort, though it remains at the forefront of their minds.
“Cutting back on non-essential items is the one top inflationary behavior that we’ve seen on this slow, steady decline as we’ve seen inflation cool,” Barbara Connors, vice president of strategy and acceleration at 84.51°, Kroger’s retail data science, insights, and media company, told PYMNTS.
“We see that categories around impulse and indulgence are areas where customers can start to add them back into their basket again because they’ve got a little more of that disposable income available for their groceries,” she added.
Retailers are seeing the same on their end. Specialty grocer Natural Grocers, which boasts 166 stores across 21 states, shared on their most recent earnings call that the daily average transactions year over year had fallen flat in 2023. They’re not alone: Grocery Outlet, a discount supermarket with more than 440 stores across eight states, reported in their recent financial results an average 4% increase in transaction size year over year.
For instance, specialty grocer Natural Grocers, which has 166 stores across 21 states, shared on its most recent earnings call that its daily average transaction size was flat year over year. Plus, Grocery Outlet, which has more than 440 stores across eight states, stated in its most recent financial results that it saw a 4% increase in average transaction size year over year – a small increase compared to past results.
Key Takeaways
Grocery shopping has never looked more different – for both the grocers and the customer. As new technology takes hold and inflation rises, grocery shopping habits across generations keep shifting. Businesses should shift their strategies and adapt to changing customer habits and looking for a little extra help taking your digital marketing to the next level? Reach out and let’s talk!
