Millennials, Gen Z Poised to Grow Bakery Sales: ABA
American Bakers Association’s (ABA) 2019 study, "Attracting Gen Z and Millennial Customers," delves into the habits, perceptions and relationship that these younger generations have toward commercially baked goods. The results identify key trends that all CPG companies need to consider.
“Understanding these consumers is of paramount interest to all business sectors, not just bakery,” said Robb MacKie, president and CEO of Washington, D.C.-based ABA.
Nearly three-quarters (73 percent) of the consumers in the two generations have purchased bread in the past week, and almost two-thirds (63 percent) have purchased a sweet baked good in the past week. Most eat carbohydrates, and it’s reflected in their purchases, with 75 percent indicating that they're not dissuaded from eating baked products because of a concern about carbohydrates.
“Millennials are now the trend drivers in the baked goods category,” noted Jason Dorsey, president of the Austin, Texas-based Center for Generational Kinetics and the report’s author. “This is true from grocery stores to foodservice. Accurately uncovering, understanding and explaining Millennials at this critical time in their consumer evolution will help to drive the growth of the baked goods category and bust through myths about the generation. The study not only exposed surprising insights but also revealed that baked goods have a promising future with Millennials, as their spending and influence is poised to only increase.”
While Gen Z and Gen Y aren't avoiding baked goods, they are purchasing and consuming fewer of them than they were a year ago, with food waste the top reason influencing purchasing decisions, especially when it comes to bread. Nearly three quarters of consumers are bothered by wasting bread, and having to throw away bread deters future purchases. Additionally, the study found that more than one in five consumers often or always skip buying bread on their next trip to the store after throwing bread away.
“More than half of those surveyed would buy more baked items if they came in smaller portions. This report details even more strategies for businesses to consider when looking to develop products for these consumers,” observed MacKie.