IGD reveals $116bn ‘Generation P’ retail opportunity

Digitally savvy, experimental and willing to spend more for quality, one significant group of shoppers is set to drive the international grocery sector up by an incremental $116 billion opportunity by 2022.

Accounting for 30 per cent of all food and drink spend across three key markets, new research from IGD has joined the term Generation P: the Perennial Shoppers.

Comprising those aged 50 to 64, Generation P is set to grow in size and significance over the next two years, notably in the UK, Singapore and US.

At an international level, Generation P are increasingly engaged online grocery shoppers. Over half (56 per cent) shop online for food sometimes, with a third predicting they will do more in the future.

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

Three quarters of 50 to 64 year-olds said they are sometimes tempted to spend more on better quality products, while 56 per cent will sometimes spend more on products because they are easier to prepare and cook.

More than half of Generation P (54 per cent) also indicate that issues around the environment will take on greater importance for them, however 49 per cent admitted they will always prioritise factors such as quality and price.

In terms of UK Perennials, they are the most likely to buy new and different food and grocery products – compared to those in the US and Singapore.

UK Perennials were the most likely to prioritise specific ethical and environmental factors in their shopping, such as animal welfare (61 per cent versus 50 per cent in US and 37 per cent in Singapore) and reducing the amount of packaging (53 per cent vs. 39 per cent in US and 26 per cent in Singapore).

In the UK, the age group was also most likely to check out offers in store and buy on impulse, and the least likely to plan their shopping trip.

Simon Wainwright, director of global insight at IGD, said: “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.”

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