Millennnials are the driving force behind the demand for new grocery, takeaway and restaurant delivery services, according to research from Attest.
While 50% still visit grocery stores to do their weekly shop, 14% go online and 36% spend sporadically with different grocers throughout the week.
Nearly a quarter of millennials are looking at AmazonFresh to simplify their weekly shop, but a third have not heard of the service and 15% have no intention of using it.
Meanwhile, 59% of the 1,000 millennials surveyed order a takeaway once a week, with 17% ordering twice a week. Over half of consumers nationwide will chose another restaurant if the takeaway is unable to be delivered to their home, rising to 61% for millennials – this demand for delivery represents a £15 billion market opportunity for UK startups.
“Our report shows there are a wealth of new trends and opportunities for continued innovation and growth in the food and drink industry,” said Jeremy King, CEO and founder of Attest. “This is particularly true with more affluent, urban and younger consumers, where trends are evolving faster, with greater values at stake. The winners will be organisations who have the ability to detect, explore and act on each of these evolving consumer needs, at an ever-increasing pace. It’s time for food and drink companies to start evolving at the same pace as their consumers.”
Attest also reported that UK consumers are spending £61.14 on their weekly grocery shop, up from £56.80 spent in early 2016, according to ONS figures. These price increases are impacting consumers, with 21% saying they have already switched from their favourite brand due to price hikes, but 28% would only switch if a price rises more than 10%.
A report by the BRC and Nielsen also highlighted the increase in food prices, with prices up on average 1.4% in June – the highest since January 2014.
Helen Dickinson chief executive of the British Retail Consortium, said: “The fact that the headline number, -0.3 per cent, shows that prices are still down on last year should not be misunderstood. The year on year numbers belie the fact that prices have been heading upwards for the last six months; it’s just that significant deflation in the second half of 2016 means there has been considerable ground to make up in the year on year figures.”
She added: “Although heading upwards, the speed of price increases was checked in June. Food price inflation was steady on last month, albeit in firmly positive territory; whilst varied performances in the non-food categories netted out to a slight reduction in deflation.”