Millennials (generation with birth years ranging from the early 1980s to the early 2000s) constitute more than 25% of the US population and are exceeding the baby boomer generation by three million. CPG or consumer goods packaged companies are turning their priority and attention to creating products which can cater to this significant population. The significant population of millennials is expected to spend more than $60 billion on CPG in the next decade with demand for mobile, social and personalized experiences when shopping.
According to a study by FutureCast and Barkley US that polled more than 4,000 millennials, only 42% said that they shopped at a local or chain grocery store compared to the 55% of those who were 35 years or older. According to the study, millennials differ from older consumers as they see shopping as a social activity. The study also found that 60% of millennials rate delis as a key criteria compared to less than 50% for older generations. Millennials also want to try different online ordering systems.
In a new study commissioned by Facebook, Nielsen conducted a behavioral and attitudinal survey of adults within their Homescan panel in the US, exploring purchasing behavior across 20 key CPG categories. Using custom fusion methodology, Nielsen linked the survey responses to their TV media and digital panels to explore everything from discovery, trial and purchasing of CPG products to media behaviors across TV, desktop and mobile.
According to the study, there are three distinct shifts which create new CPG needs for millennials:
- When they leave the home; Age group: 15-19 years old
- When they start earning; Age group: 20-24 years old
- When they get married or get into a relationship; Age group: 25-29 years old
According to the study, each life-defining milestone presents new experiences—like learning to do their own laundry, stocking up on paper products or buying their first box of diapers—that create points of entry for consumer packaged goods (CPG) that are new to millennials (18–34-year-olds) but perhaps not new to the market.
Given below are some of the findings from the study:
- 51% of the millennials have a substantial income of more than 50K+ (HHI)
- 50% of the millennials discover new products from sources outside of the store.
- Compared to boomers, millennials are 3.8 times more likely to use Facebook & Instagram to discover new products.
- 57% of the millennials say they enjoy wandering the store looking for new, interesting products.
- Compared to boomers, millennials are 1.6 times more likely to be heavy trailers of new products.
- 51% of observed CPG online transactions in the US are made by the millennials.