2/3 of Millennials Shop For Groceries Online… How Does This Impact Food and Beverage Brands?
Millennials get called a lot of things; lazy, entitled, narcissistic, and technology addicted. Despite the bad wrap, one thing is for sure – they’re great at using technology to make their lives easier. The sheer size of the demographic is astounding with 1.8 billion millennials worldwide making them the largest demographic in U.S history. No doubt, as this consumer demographic grows older, their choices will continue to have a huge impact on many different industries. Much like the impact they already have on the food and beverage industry. A new study by Clavis Insight found that 66 percent of millennials are now purchasing their groceries online, a number that will only continue to rise.
For many of these consumers, in-store grocery shopping takes too much time, gas and/or money, whereas online grocery shopping does not. One of the arms of the online grocery industry is meal kit delivery which was founded in 2007 in Europe and now has more than 150 services in the United States alone. It’s estimated that in less than 15 years the industry will be worth $3-5 billion USD, proving that as millennial shoppers continue to buy online, more businesses will crop up in order to cater to that demand.
Even the USDA has taken their Supplemental Nutrition Assistance Program (SNAP, formerly Food Stamps) program, that has been running since 1964, and started a 2 year test program to run it online. When the government takes notice of a trend, you know it’s here to stay
This shift has many implications for the food and beverage industry. Firstly, grocers will have no choice but to make the move to the online marketplace. This doesn’t necessarily mean the end of all grocery stores, but there’s no arguing the fact that retailers who decide to stick to brick and mortar risk will falling behind and losing out on revenue.
The future is now and the millennials are it. There may or may not be truth to all the derogatory names that get thrown at them, but the fact is, they have a major influence on the world of retail. Online grocery shopping is here to stay and retailers will have to get on board or move aside and watch craft businesses take over.
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