Millennials’ Eating Habits are Revolutionizing Food Logistics

2021-05-12 18:12:03 admin

Millennials’ Eating Habits are Revolutionizing Food Logistics

Millennials' eating habits are revolutionizing food logistics across the market

Millennials are changing their eating habits, and the market is rapidly evolving to keep up with all 75 million of them. Whether it be what foods they prefer or how they shop, the marketplace is drastically changing to meet new demands.

According to a report by the U.S. Department of Agriculture, millennial households are buying more unprocessed foods, like fruits and vegetables, rather than processed foods, such as pasta and potato chips. Millennials are turning toward food that is healthy, fresh, and organic.

Changing the Game

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.

Grocery Store Changes

Eating habits of millennials' are changing grocery store layouts and strategy

Grocery stores are no strangers to change. From the 1900’s to the 1950’s, big brands dominated the shelves with affordable foods that were full of preservatives and artificial coloring. During the 1950’s, freezers began to rise in popularity, leading to high demand for frozen foods as well.

Millennial’s lean toward healthier food options that omit large amounts of fat, cholesterol, sugar, and carbs. Instead they target organic, fresh, and frozen foods found in the outer ring of the grocery store, which is bad news for an industry that is already plagued by low margins.