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How Gen Z is driving F&B product development, trends
Agility, a faster product development cycle and real-time data can help food and beverage businesses keep up with Gen Z’s rapidly evolving food and beverage trends.
3 Min Read
At a Glance
- Gen Z’s reliance on social media and technology is driving rapid changes in food and beverage trends.
- Companies need to be agile to stay ahead of these trends, which prioritize health, sustainability and convenience.
- Data analytics and AI can help track consumer preferences and predict future demand to better meet Gen Z’s evolving needs.
Gen Z is in a league of its own. Born between the late 1990s and early 2010s, the group is considered the first generation to grow up with the internet, winning Gen Z the title of “digital natives.”
For Gen Z, that means using technology, and especially social media, to adopt and shape trends, including food and beverage trends. The Hartman Group reported nearly three-quarters of Gen Z uses TikTok to gather information. Similarly, 55% of Gen Z use social media to find new foods and recipes.
Developing products that keep up with Gen Z-driven trends requires an approach as unique as the generation itself, and one similarly fast paced.
“The change can be really quick and rapid with social media, where something can become a really hot trend very quickly based on different influencers or how it goes to market,” Eric Kroll, principal at Baker Tilly US and head of the firm’s food, beverage and agribusiness practice, explained. “More than ever, food product developers need to stay agile [and] be prepared to pivot really quickly based on consumer feedback [and] competitive pressure.”
A shorter product development cycle is one way food and beverage brands are staying agile. Free AF, for example, is a nonalcoholic beverage brand that uses natural flavors versus dealcoholization to make its drinks. The company’s innovation process typically takes six weeks from concept to pre-commercialization and has yielded 12 drinks in four years.
Producing “quick iterations of different products” is another way to stay agile and capitalize on trends, according to Kroll.
Possibly most critical, however, is using real-time data to stay ahead of trends.
“Fifteen years ago, data wasn’t as readily available, where now you want real-time data versus waiting a week or a month before you can see what’s going on with your product offering,” Kroll said.
Using data analytics can help companies track changes to their consumers’ preferences and purchasing patterns in real time. Going a step further, AI (artificial intelligence) technology, which is increasingly used for a range of functions in the food and beverage industry, can be used to “identify early shifts in purchasing habits and estimate future demand for products,” Kroll added.
3 Gen Z trends to target
While trends tend to rise, fall and evolve, Kroll pointed to three “key areas” where Gen Z is really impacting food and beverage trends.
Health
“The general theme is that Gen Z is just a more health-conscious group and has more thoughts about what they’re putting into their bodies,” Kroll said. Data from McKinsey’s Future of Wellness research shows 56% of Gen Zers in the United States cited fitness as a “very high priority,” compared to 40% overall.
“They look at food as a way to accomplish one of their top goals, which is health,” he explained. “That can include energy or better sleep or even mental health.”
Sustainability
Sustainability is also a priority of Gen Zers that’s impacting the food and beverage space. According to Food Insight, one-third of Gen Z said sustainability had an impact on their buying decisions relating to food and beverage.
Kroll cited environmental issues to consider in product development, including plastic waste, climate change and ethical sourcing of products. Of particular importance is supply chain transparency and how ingredients are sourced, he said, citing the popularity of locally sourced restaurants, which “feeds into what this generation cares about.”
‘On-demand’ convenience
Gen Zers tend to have fast-paced lifestyles and are in busy stages of life, such as attending college or starting their professional careers. In addition, this group was quick to adopt conveniences like online ordering.
“Quick and easy foods are in high demand for this group,” Kroll said. “They want to enjoy their food but want to enjoy it on the go at times.”
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