U.S. consumers
born between 1981 and the mid-2000s are demonstrating measurably different
purchasing decisions than other generations in addition to differences within
the millennial segment, according to a USDA report.
Millennials now
are a larger group than Baby Boomers and their purchasing behavior heavily
influences the current retail landscape, the report
from USDA’s Economic Research Service (ERS) noted. They are
more diverse, have generally higher education levels than previous generations
and will be an important economic driver for years to come. Millennials also
are demanding healthier and fresher food and spending less on food at home than
older generations, the report noted.
This group
makes the least number of visits to grocery stores to buy food for home
compared with Traditionalists (born before 1946), Baby Boomers (born 1946-1965)
and Gen Xers (born 1965-1980), the ERS report found. Millennials also spend the
least on grains, white meat and red meat compared with other demographic
segments and while they spend less on food at home in total, they allocate more
proportionally to prepared foods, pasta and sugar/sweets than any other
generation.
The report also
found differences within the Millennial demographic: those who entered the job
market before the 2007 recession with higher per-capita income were more likely
to eat away from the home. Those who entered the job market after the recession
purchased more food for the home even when they have similar incomes to the
pre-recession millennials, the reports found.
ERS used
statistics from Information Resources Inc., the American Time Use Survey and
the Healthy Eating Module in addition to data from the Current Population
Survey to compile the report.