Young shoppers in FMCG: What’s the deal?

Much has been written about the reality of being young in this era: Gen Z – born between 1995 and 2015 – has suffered the most from the COVID-pandemic, the lockdowns and the social isolation, continuing to grow up in a perma-crisis. Insecurity, inflation, the lack of affordable housing, the pressure on public health care and retirement systems, the increase of natural disasters and the climate crisis – just to name the most relevant ones – are affecting the mental state of young people.

It is telling that one third of Gen Z in Europe see mental health issues as one of their key concerns – levels unseen in any other generation –, resulting in a constant clash of self-care, self-realization, escapism and listlessness, chasing purpose and balanced living.

Admittedly, some behaviors of young shoppers are age-inherent, such as the wish for convenience, for discovery, for independence. Beyond that, to what extent do current conflicts influence behavior? Are some behaviors a product of the Zeitgeist? And – how can industry and retail catch these?

With parts of Gen Z still living at home, in the process of completing university or an industrial education, or just starting a career, the youngest set of shoppers in front of the shelves does not appear to be the most appealing target group – at first glance. Currently, they only represent 6% of FMCG value (MAT Q2 ’24, 15 countries). But if we extend the concept of “young” to include millennials, born between 1980 and 1994, we add 29% to that share – representing more than one third of the market.

Needless to say, as this group will grow into maturity, so will their spending patterns and market value. Furthermore, young shoppers have an innate tendency to embrace brands and innovations, hence the business imperative goes without saying.