Millennials Devote Larger Shares Of Their Grocery Spending To Prepared Foods
by Annemarie Kuhns and Michelle Saksena, USDA ERS
Posted: 2018-01-02 15:47:09 EST

Millennials, those born between 1981 and the mid-2000s, are now the largest living generation—surpassing Baby Boomers—in the United States. Their purchasing behavior greatly influences the current retail landscape, as companies try to accommodate Millennial preferences. Studies have found that Millennials are distinctly different from older generations in that they are more racially diverse, more highly educated, and more internet savvy. Most are early in their working lives and single or just starting their own families. Their grocery shopping habits are likely to change as they age, but current differences from older generations could have implications for future food demand.

Are the food shopping habits of Millennials different from other generations? A new ERS study analyzed a recent year of grocery store data to see how Millennial purchases differ from those of older shoppers. The study found that Millennials, on average, devote less of their food budgets to grocery store (food at home) purchases and make fewer trips to the grocery store than the other generations examined. Millennials are demanding healthier and fresher food—including fruits and vegetables—when making food-at-home purchases, and they place a higher preference on convenience than do other generations.

Millennials and Baby Boomers With Similar Incomes Differ in Their At-Home Food Expenditures

ERS researchers used 2014 data from the private research company Information Resources Inc. (IRI), which track household food-at-home purchases and contain detailed demographic information, including household income. The researchers assigned each household to one of four generational cohorts based on the age of the household head responsible for the grocery shopping:

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