GENERATION P

CONSUMER TRENDS: IGD

INTRODUCING... GENERATION P

MOVE OVER MILLENNIALS, GENERATION P IS WHERE IT’S AT IF THE LATEST PREDICTIONS FROM IGDARE ACCURATE AND THE OLDER ‘PERENNIAL SHOPPERS’ MARKET COULD OFFER HUGE OPPORTUNITYFOR LOCAL RETAILERS.

BY ANTONY BEGLEY

Millennials have been hogging the limelight for too long and it’s time they stepped aside to make way for Generation P: The Perennial Shoppers. That’s the view of global industry research and training charity IGD, which has just unveiled some new flagship research which appears to show a huge opportunity for retailers who target this sector.

But what exactly is Generation P? Essentially, the group comprises older 50 to 64-year-old shoppers who, according to the research, are surprisingly “digitally savvy, experimental and willing to spend more for quality”. IGD even goes so far as to predict that Generation P is set to drive the international grocery sector up by an incremental $116bn over the next couple of years, creating a $1,460bn opportunity by 2022.

The group already accounts for a chunky 30% of all food and drink spend across three key markets covered by the research: the UK, Singapore and the USA. Generation P, says IGD, is “one age group to invest in for the future”.

Generation P is set to grow in in size and significance over the next two years and IGD’s research has identified opportunities for retailers (and suppliers) to engage with these shoppers.

Simon Wainwright, Director of Global Insight at IGD, says: “This research shows how significant Perennials are to grocery. They are an engaged group of shoppers who are accessible when approached in the right way. Competition is already fierce between retailers looking to find new ways to attract shoppers and Covid-19 has made it hard to chart the future. Having a clear focus on your shoppers and knowing how best to reach them will be crucial to success. That’s why the time is right to focus on this often-overlooked group.”

According to the research, Generation P shoppers in general:

Are increasingly engaged online grocery shoppers. Over half (56%) of Generation P shop online for food sometimes, with a third (33%) predicting they will do more in the future.

Have an affinity with brands that they have grown up with, but also hold private label products in the same high regard. While 67% of these shoppers buy particular brands because they have grown up with them, the same number (68%) indicate that they are also very satisfied with the quality of own-label products, with 58% trusting them as much as brands.

Value convenience and quality over price. A significant 75% of 50-64-year-olds say they are sometimes tempted to spend more on better quality products, and 56% will sometimes spend more on products because they are easier to prepare and cook.

Would like to select products with specific ethical or environmental credentials but tend to prioritise other factors in their purchasing decisions. Looking into the future, over half of Generation P (54%) indicate that issues around the environment will take on greater importance

for them, however 49% admit they will always prioritise factors such as quality and price.

When drilling down specifically into UK data, IGD also noted some interesting trends among the group of UK Generation P shoppers. Compared to the other global markets analysed, they are:

The most likely to buy new and different food and grocery products.

The most likely to cook from scratch.

The least likely to buy prepared foods or eat out.

The most likely to prioritise specific ethical and environmental factors in their shopping such as animal welfare and reducing the amount of packaging.

The most likely to check out offers in store and buy on impulse..

The least likely to plan their shopping trip

Commenting on the opportunities with this age group, Wainwright says: “Perennials have embedded digital and online behaviours which they will carry forward and continue to develop into later life. However, this is a generation that doesn’t go digital purely for the sake of going digital – adoption of new technologies for them is driven by their proven practical benefits, and these have to outweigh those of established interactions and processes, such as traditional ‘analogue’ store-based shopping.

“Perennial shoppers show aspects of being habitual both in how they shop and in having an affinity for products that are familiar to them. In cases where they have grown up with products this affinity clearly can go back decades. However, it is clear that they also continue to evolve in terms of their tastes and choices, showing an ongoing willingness to trial new and different products as well as pragmatic considerations such as balancing quality with value for money.”

WHAT IS GENERATION P?

50 to 64-year-old shoppers

already account for 30% of food and drink spend

digitally savvy

experimental

willing to spend more for quality