SPECIAL REPORT: Millennials, Rapidly Becoming the Industry’s Main Target Group
12 Sept 2016 --- Millennials surpassed baby boomers in population for the first time in 2015, making them one-third of the world’s global population, and presumably unlike any other generation. Everything they do, from how they think to what they eat, is drastically different to what has been seen in previous generations. This is evident in their behavior towards food, diet and exercise and the industry have been quick to respond.
Regine Lueghausen, Marketing Director Flavors EAME, International Flavors & Fragrances believes that impactful taste profiles and allowing for flavor experimentation, are building blocks to the road to success, with “you are what you eat” reaching a new dimension, particularly for Millennials.
Lueghausen told FoodIngredientsFirst: “As Millennials long for new experiences and view eating as self-expression, they are open to flavor experimentation and new ethnic cuisine styles. They want to be the first to try and share something new, for instance unexpected flavor combinations (think wasabi flavored popcorn) or exotic ingredients – surprise me!” she notes.
Lueghausen explains how Millennials want their food to taste as unique as they are. Generation Y consumers become co-creators, both in food and non-food. “As an example, a major snack manufacturer invited consumers to submit flavor suggestions online and crowd voting decided on the next variant being launched. This is true for almost every end use: Millennials want to partner with brands,” she adds.
Well-traveled and adventurous millennials today are looking for more authenticity and originality from the food and beverages that they consume.
They are looking for specific and authentic products from all corners of the globe. Their curious flavor palate is open to trying out new taste experiences, which can include combining apparently non-complementary flavors in a single bite, or opening up to unusual textural ideas through layered flavors.
Lueghausen notes: “If manufacturers aim to offer Millennials what they want, choose and shop for, then iconic flavor profiles can have a renewed lifespan, but in new formats or unexpected combinations, e.g. BBQ sauces with alcoholic notes, or spicy cinnamon vodka and ‘Fireball’ drinks in the beverage arena.”
For Lueghausen, nostalgic flavors with a twist allow the consumer to keep one eye in the happy past while, even if translated into unexpected categories, e.g. chewing gum with the taste of a classical dessert like lemon pie.
“Millennials respond to products which cue ‘hand- or home-made quality,’ which explains the renaissance of ice-pops and shaved ice. Craft and artisan concepts are greatly appreciated by this target group, as seen in sodas and lemonades, but also ready meals,” she claims.
At the same time, Millennials are health conscious, as proven by the popularity of coconut water, the success of hummus, green and superfood smoothies, energy drinks providing “natural energy” through plant-based ingredients and infused water as the latest trend.
“Furthermore, Millennial palates appreciate ‘excitement in the mouth,’ through tingling, warming, cooling or extreme sour sensations, flavor changing taste or sweet-savory combinations. Bold flavor profiles, e.g. with heat or spice, or street food inspired variants are also popular,” Lueghausen says.
Street Food
The US food truck phenomenon really kicked in around 2011 and now five years later, the street food scene has absolutely exploded globally and particularly in the interest of Millennials.
It’s not just about the food either; the segment has become synonymous with issues like sustainability, eco-friendly, fairtrade, bio, ethically-sourced, employ-empowered, home-grown ingredients - all major factors that influence millennial spending.
Director of the Nationwide Caterers’ Association and the UK’s StreetFood.org.co.uk, Mark Laurie, explains to FoodIngredientsFirst how modern street food is taking off: “It’s affordable restaurant quality food without the fuss. It all dovetails into this move away from formal dining towards more casual dining and street food is in the vanguard of that; it’s very stripped back, there’s no intimidating wine list, there’s no dress codes, there’s no rules about eating three courses in a particular order, you can eat whatever you like in whatever order you like.”
“And it’s also the social aspect," explains Laurie. "You and a group of friends might like completely different food and you can all go to a street food event and all eat together, whereas you might have a vegetarian so you can’t go out for steak and someone who maybe doesn’t like curry. What it does is free it up and allow people to eat what they want and to really bring out the social side of eating together. It’s as much about connecting with other people as it is the food.”
Consumers, especially the Millennial market, want to tuck into authentic Iraqi and Middle Eastern cuisine on the streets of Boston - the Sheherazad Food Truck - or the perfect paella from Jamon Jamon food truck without stepping foot out of London.
“I think that a lot of the early street food was reimagining fast food dishes and most of that has been done now like hamburgers, hotdogs and to a degree pizzas, so I don’t imagine that products within that scene will grow too much bigger but still providers of those products will continue to thrive,” says Laurie.
KERB is helping the London foodscape do just that - thrive. It brings together a community of street food traders and creates spaces for them to serve up great food to today’s younger generation.
Speaking to FoodIngredientsFirst, head of markets Ian Dodds explains how the London scene has changed: “Generally we're seeing more and more people keen to define themselves by what they eat - for many it's no longer a function but a way of life, with a drive for ever more authentic, rare and new experiences all the time.”
“We're seeing a huge amount of people Instagram their finds, showcasing their eating habits to their followers, keen to 'top' one another’s experiences with something even newer, rarer and unique. A lot of this is about urban discovery and self-identity, and the continued accessibility of food on the street makes for a vibrant, dynamic industry promoted by a growing mass of people keen to get a taste of the new (and be first to do so), and then share this with everyone they know,” says Dodds.
KERB Camden is also seeing more and more niche food groups being engaged including vegan, gluten free and halal. There is no end of choice for Millennial consumers.
Meat Reduction in Millennials
The generation of consumers dubbed ‘Generation Moderation’ or Millennials holds the key to improving global sustainability, which will ultimately safeguard the survival of the planet.
Experts at Plate for the Planet conducted research that found this generation are drastically reducing the amount of meat they consume, or cutting out meat altogether. In fact, nearly 12 percent of millennials avoid animal products. Many do so for environmental and health reasons, but the sharp decrease in meat consumption also spares millions of animals from slaughter.
James Murphy, a social trend analyst and forecaster who conducted the research said: “We found that the younger generation really is culturally in tune with the concept of moderation. To them it’s no longer socially acceptable or amusing to binge drink and eat to excess. Resisting over-indulgence and observing moderation is all about self-respect - keeping their looks and preserving their physiques.”
The research findings highlight that a less and better approach to meat is becoming more popular among a significant proportion of the population. Whether it’s for environmental or health reasons, younger generations are embracing real alternatives to meat, with nearly half (48%) of 16-19 year olds and 40% of 16-24s agreeing that a meat free diet, or one where we eat less meat, and better meat when we do eat it, is better for the environment as it lowers carbon emissions.
The research findings emerge at a time when the high street is starting to respond to consumption changes. For the first time retailers are stocking meat alternatives directly next to their meat equivalents in the food aisles and restaurants are dedicating more space on the menu to meat-free treats.
Sport and Millennials
Sports nutrition can play a major role in helping Millennials achieve their goals. Foods, beverages and supplements that can enhance performance, improve recovery and make exercise more enjoyable will have great appeal to this generation. However, for this unique market segment, meeting the need for increased energy and nutrition is not enough for product success. Manufacturers need to take into consideration the special interests and desires of Millennials when developing products.
Fortitech Premixes’ tech paper “Strategic Nutrition for Millennials” reveals several insights manufacturers should keep in mind when developing products for this target audience:
• They are more open to trying foods made for specific diets including vegan/vegetarian
• Qualities such as “all natural”, organic, and locally-sourced speak to them
• They place importance on foods that keep them full, energize them and are fun to eat
• They are more adventurous with their food choices and will try new things
• They are more open to new flavors and botanical ingredients
• They prefer innovative product forms like gummy supplements, drink powders and chewables or mints over pills
It’s interesting to note that, according to a study by the International Food Information Council, Millennials may not be as healthy as they think they are. For example, they are less likely to have adopted healthful habits, they are less focused on limiting calories, and don’t fully understand the differences in types of fats. Food, beverage and supplement manufacturers need to raise awareness with consumers about nutritional inadequacies in this age group, and the importance of good nutrition as a preventive measure for long-term health.
Forbes coined 2015 as the year of the millennial consumer, and ever since then the industry has been tapping into the demands of this consumer group. One thing is for certain, millennials are a conscious group whose lifestyles and adventurous taste in food will continue to drive innovation through authenticity. The need to be different, healthy and unique is the force behind many of today’s popular trends. Supermarkets and restaurants are also appealing to Millennials by offering them an bespoke eating experience, offering them what they want — fresh, healthy food at a decent price — it has proven to be and will continue to be a success.
by Elizabeth Kenward and Gaynor Selby
