Due to millennials’ desire for fresh, organic foods, the preservative rich and canned food demand is decreasing – and grocery stores must adapt because of it. Fresh products on the outer ring of the store are beginning to sell more while center store products are losing steam.
Millennials also want convenience.
In fact, 55% of millennials say that convenience is one of the most important factors when deciding what foods to buy. To accommodate this demand, grocery delivery has been growing in popularity, which in turn reduces the amount of impulse buying that happens in stores.
This preference for convenience and quality has also opened up the market to meal kit delivery companies, like Blue Apron, and grocery delivery services, like Amazon Fresh and Instacart. All of these are possible because the cold supply chain has changed with the millennial-driven demand.
Everything from the food millennials eat to the way that food moves from location to location is rapidly changing:
Food Logistics have morphed to prepare delivery trucks for the “last mile”
Third-party logistics have changed their warehouses and equipment to accommodate an increase in fresh and frozen goods,
Manufacturers must comply with new government agencies and regulations to ensure product traceability.
Let’s take a look at how millennial eating habits have caused such a shift in this industry.