How to appeal to Gen Z shoppers

One of the joys of the speciality food and drink arena is that it’s a moveable feast. Independent brands and retailers can be nimble and reactive. They can respond to ‘the next big thing’ in the blink of an eye. The latest trends aren’t five board meetings and six months out of reach – the decision to tap into them can be made almost instantaneously. And that’s perhaps one of the biggest appeals to the sector’s newest wave of shoppers – Gen Z – who are (where they can afford to) feeling the waters in the artisan market, which aligns with many of their values.

Who are Gen Z?

Gen Z (also known as Zoomers) were born between 1997 and 2012, putting them at between 12 and 27-years-old. Chatter is ongoing in the food and drink community about how this generation is impacting the speciality sphere, with these young shoppers (and food and drink entrepreneurs) plucked out as being the driving force behind innovation.

From demanding better ethics and sustainability from brands, to exploring niche flavour profiles they’ve been exposed to on social media, and seeking out experiential shopping – word on the shop floor is they want to know more about food, the way its produced, and its impact on both their own health and the health of the planet.

“Consider Gen Z as game changers,” says Tom Gatehouse, senior trends strategist at Egg Soldiers. “They’re fundamentally embracers of the new and the different, so it’s no surprise that brands positioning themselves as game-changing (be it through philosophy, product application, or indeed flavour profile), are finding success.”

Speaking on McKinsey & Company’s podcast on the topic of Gen Z, leader of marketing, sales, and consumer packaged goods practices, Bo Finneman, said he didn’t think Gen Z would peak for another decade, but that businesses must be mindful of them right now. “We’re really looking at them as the core influencers today that have a really big impact on both Millennials and Gen Xers in terms of what they buy,” he said. “In size, they will definitely reach scale in the next 10 to 15 years, but it’s about their influence today, that’s what’s so important.”

Bo believes there is an ‘authenticity’ to Gen Z, and how they want to breathe new life into what corporate responsibility looks like.

“They’re looking beyond tangible products and actually trying to understand what it is that makes the company tick. What’s its mission? What’s its purpose? And what is it actually trying to build for us as a society?”

Jeremy King, CEO and founder of consumer research platform, Attest, says its annual consumer trends survey revealed Gen Z shoppers tend to have a significantly more positive outlook than other age groups, with 73% stating they feel ‘positive’ or ‘very positive’ He believes they’re spending less cautiously than older counterparts, with 45% of those asked saying they’re happy to shop freely.

Additionally, Attest’s data found, “Gen Z consumers are also significantly more likely to be prepared to pay a premium for environmentally friendly/ethical products. Nearly 76% state they will pay more, versus 59% of shoppers in general. However, besides trying to buy from environmentally friendly brands, Gen Z under-index for other sustainable behaviours, such as recycling and trying to use less single-use plastic.”

Another difference noted, says Jeremy, is the type of messaging Gen Z want to hear from brands. “Motivational messaging is most popular, while other age groups are attracted to humorous brand messaging.”

How are Gen Z shopping?

Matt Smith, at analyst GWI, says many of Gen Z’s most distinctive purchase drivers, compared to the average shopper, revolve around social media – a key touchpoint for them. They are 108% more likely to take recommendations for a product or company online, 101% more likely to use the ‘option to buy’ button on a social network, 70% more attracted to exclusive content or services, 136% more likely to discover new products via vlogs, and 92% more likely than the average consumer to be influenced by sponsored content on podcasts.

Laura Vogen, founder of S’More ‘a’ Licious, says she has noticed a real change in the types of people buying her products, with a skew to a younger, Gen Z audience. “I’ve found that in the past year we have had a lot more of this bracket shopping with us and sharing our products, and there has been a bit of a shift in our consumer base age-wise,” she explains. “I believe Gen Z do spend a lot of time scrolling socials and are very influenced to purchase if they see content on TikTok and Instagram, and especially from content creators with a large following.”

Laura thinks that experience is playing a vital part in their buying decisions as well. “This bracket loves the complete experience with food,” she adds, “which includes the unboxing experience, so packaging is super important, along with an aesthetically pleasing look and good quality produce.”

She has found that, “Gen Z don’t mind spending more on luxury food items and tend to treat themselves to higher end items” which are unique and not “run-of-the-mill”.

How are Gen Z influencing food and drink?

“There’s an energy and playfulness in Gen Z’s approach to disruption,” explains Tom, which he says is important to take note of, particularly when it comes to younger brands from founders within this bracket. “You can see potential even at the smallest industry level,” he adds. “Look at someone like Beanie Bun, a small meat-free burger shop and stall in Newcastle. They’ve launched a plant-based maple mustard mayonnaise into retail – an interesting proposition on its own.

“Then you see the branding. Ultra-simple, yet immediately eye-catching, clearly made with care and creativity. The product itself is named ‘Mmm’ and it’s made of seven base ingredients, including Grade A Canadian maple syrup and Beanie Bun’s house-made aquafaba mayo.”

Tom points to the playfulness in the naming of the product, the sense of individualism in design, consideration of quality, and desire to be as ‘clean’ as possible, as being typical of Gen Z brands emerging today.

“There are plenty of brands over in the USA not only harnessing much of the above elements, but going beyond, to capture the attention of Gen Z and younger Millennials, many of which operate on a larger scale and with a much louder voice,” he continues, picking out Omsom, founded in 2018 by Vietnamese sisters, offering a range of Southeast Asian noodles, sauces and meal kits rooted in cultural authenticity.

Omsom’s mission statement is: “No more diluted dishes, no more cultural compromise. Real deal Asian cuisine and communities are too damn delicious to deny”.

“It’s ‘proud, loud Asian flavours’ include a Thai Larb Sauce, Vietnamese Lemongrass BBQ, and Filipino Sisig Sauce, all of which offer potentially new, exciting flavour experiences,” says Tom, adding the brand has built a strong social media presence that leverages Gen Z-centric topics and cultural cues.

“For brands, finding favour with Gen Z means elements of throwing the rule book out the window, certainly in NPD and brand positioning.”

Statista’s data aligns with Tom’s thoughts, that social media is the main factor separating Gen Z from others. During their lifetime social platforms have become vital information hubs for them, often surpassing search engines as their primary online channels for brand and product research. In 2022, Statista states around a quarter of Gen Z in the US, for example, said the number of ‘likes’ or positive comments on a social post could drive them to make a purchase.

What are Gen Z looking for when they shop?

What we’re seeing, with Gen Z, says Matt, is that they are value driven, and 12% more likely to take up offers or coupons than the average consumer…but, despite this, they are less likely to seek out own-brand products when it comes to treats such as ice cream, where they will actively look for more indulgent options.

GWI’s data on Gen Z, Matt says, also shows they are 48% more likely to look for businesses that offer customisation or personalisation. And when it comes to health, they prefer products with higher protein (32% more), nutritional benefits (24% more), that are organic (21% more) or low carb (12% more).

Zoomers’ buying decisions also take into account wanting to feel healthy, improve their fitness, and gain muscle mass. They are often subscribing to meal kit deliveries to easily meet their goals, accounting, for example, for 16% of Hello Fresh’s customer base.

“Gen Z shoppers are obsessed with balancing delicious meals whilst being affordable and within limited steps,” says Hannah Wheater from The Flava People. “Our seasoning sachets are a perfect example of the way younger consumers over-index in seasoning products. You can create one crave-worthy flavour combination in just one sprinkle.”

This generation are “far more health conscious when it comes to home cooking,” she adds. “They’re looking to use fresh ingredients.” Which plays right into the hands of farm shops and specialist grocers.

7 ways retailers can attract Gen Z shoppers

1. Tom says there’s no ‘right way’ to grab their attention, but it’s “pretty clear that establishing an organic connection between them, your brand and your products yields fruit”.

2. As Gen Z are looking more keenly at ingredient decks, checking for clear messaging and choosing interesting flavour profiles, Hannah says these are all considerations for brands and retailers, who must also up their game digitally to stay ahead of the curve. “Gen Z consumer shopping habits are hugely influenced by digital means,” she says. “Retailers need to be conscious of how they’re marketing to this demographic, and not just scooping them into the same category as other consumer groups.” She says stores should “tweak” their offering and tone of voice through digital marketing efforts.

3. That’s not to say bricks and mortar don’t matter. According to UK POS, 54% of Millennials, and 51% of Gen Z say they are most likely to shop for food and drink in a physical shop, with 81% saying this is because they find being out and about in the ‘real world’ provides relief from the stress of the online world. This poses a golden opportunity for independents, though UK POS adds retailers should not rest their laurels entirely on the products they stock. “They have to offer something more.”

4. UK POS reports Gen Z and Millennials prefer shopping at small, local businesses where they can reach out and make connections. If your business has strong community ties or champions local causes, make sure you shout about what you’re doing.

5. Gen Z are heavy smartphone users. Lean into this and entice them into store with online in-store only deals, loyalty schemes and the opportunity to click and collect.

6. According to Statista, though they value ethics and quality, Zoomers aren’t afraid to sit around and wait for products to land in the ‘yellow sticker’ section, or be discounted. Work out what these shoppers are after in your shop, and see how you can better promote or run offers on products they’re attracted to, to entice impulse buying and build future loyalty.

7. Farm shops and delis need to understand Gen Z and cater to them, says Edward Berry of The Flying Fork. “If you’re only selling traditional cuts of meat, and things they don’t understand, you’ll lose them. Make sure your comms are aimed at them. They are looking for fun, modern messages. They want to know about sourcing and food miles. They will ask more challenging questions. They want an experience. and there’s no reason why independent retail can’t give them those experiences.