Edibles are the new craze among millennials and Gen Z

A new report from McKinsey & Company shows that spending money on groceries appears to be the top spending priority for millennials and Gen Z.

Results from a February 2024 survey of each Baby Boomers and Gen Z found that groceries are the top spending priority among Millennials and Gen Z. This category includes travel, hygiene personal and beauty, restaurants, clothing and fitness. With over 4,000 responses, you possibly can see this variation since 2018, when Baby Boomers and Generation X spent more on groceries than millennials.

Interestingly, the change in spending habits among millennials shouldn’t be solely on account of new parenthood. There can be a very important health element involved. Consumers, on average, anticipate spend more regarding fresh products, meat and dairy products and product categories available in shopping centers, akin to non-perishable food or frozen food. This change is reflected of their shopping habits, as one millennial in Ohio said: “We go to the grocery store more often to buy things that are healthier for us.”

“At the same time, we lower your expenses and spend time together, cooking and eating. So it’s really a win-win.

Gen Z doesn’t appear to mind high grocery bills, selecting more high-quality snacks and drinks. As brands like Liquid Death, a canned water brand, grow in popularity, one Gen Z shopper said “fantastic sodas and drinks” are being added to the bill. The report also shows that fewer consumers switched to cheaper stores and brands in February 2024 in comparison with the end of 2023 due to the use of buy now, pay later services. “I’m going to splurge every now and then. “What I’m most excited about is buying new makeup, new clothes for the new season, and even the opportunity to travel and try new foods,” said a Gen Z shopper from Arizona.

“I definitely think it’s important to have a healthy balance, and spending money helps you enjoy life much more.”

As healthier eating spreads, millennials proceed to eat more meat. According to Millennials spent the most average per purchase lower than $17 per purchase. Gen Xers account for 32% of sales, and Baby Boomers are among the most frequent meat buyers, 53 times a yr.

However, every generation feels the pressure of food inflation. Moody’s report shows that the average American household must spend a further $445 monthly to buy the same goods and services as in 2023.