Millennial retail market set for huge growth

Millennials’ share of the food and grocery retail market will jump to 17 per cent by 2021 from their current share of seven per cent, according to The Nielsen Millennial Report.

Nielsen Director of Marketing Effectiveness John Price says the research shows that retailers, suppliers and manufacturers need to have a better understanding of this lucrative group.

“Millennials are in a constant state of transition as they join the workforce, move into new homes and start their own families,” he said.

“To tap into this growth opportunity, companies must engage with and delight them in a more multifaceted approach than with prior generations.”

As a group, millennials are more educated, connected and demand more from brands and products. Compared with other generations, almost two-thirds will look for organic cues (62 per cent) and sustainably sourced (60 per cent) products, and half will seek out environmentally friendly products (50 per cent) when grocery shopping.

Despite a lower than average income, 40 per cent will pay more for a product if it is consistent with the image they want to convey.

The report also shows millennials to be more connected than ever. On average, they have access to ten connected devices in the home and are fully immersed in both their digital and physical lives.

“To engage millennials well, brands need to be visible and consistent across platforms and marketing channels,” Mr Price said. “Millennials are the new consumer powerhouse. To capitalise on this growth opportunity, companies need to know how their consumer behaviour is unique.”

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