Representing 42% of the U.S. population, Millennials and Gen Z have a significant and growing influence on the CPG industry. In this report, SPINS examines who they are, what they look for, and how they are helping shape the mega trends of today and tomorrow.
The next generation of consumer is dialed into their diet
Nearly 40% of Millennials and Gen Z are opting for a specialized diet by choice.
July 2025 SPINS survey of total U.S. Gen Z and Millennial shoppers aged 13-44 (n = 1000) “Do you follow any of the following dietary restrictions?”
Consumers are cutting out unwanted ingredients from their consumption
Nearly 90% of Gen Z and Millennials are actively seeking to eliminate unwanted ingredients, making ingredient transparency and “clean label” claims crucial to product positioning.
Top ingredients actively avoiding:
Brands that proactively reformulate or clearly communicate ingredient integrity will capture the trust and loyalty of younger consumers, who increasingly view ingredient avoidance as central to their lifestyle and purchasing decisions.
Consumers are choosing where they shop with intent
Next generation consumers are seeking higher-quality products, with one in three consumers shopping at natural and organic stores and local farmers’ markets frequently, and Gen Z outpacing Millennials.
Millennials & Gen Z are not sticking to one store for regular household items. 80% of consumers visit 2-3 stores in a typical week.
In-store discovery was the #1 avenue for new product discovery among Millennials (54%) and Gen Z (36%)– beating social media (44%, 29%) and online commercials (37%, 29%).
Younger generations are turning to digital platforms for product discovery. Gen Z is turning to modern platforms like TikTok (57%) & Instagram (54%) to find new products, while Millennials are leaning on more traditional channels like Google (70%), Facebook (69%), & YouTube (69%).
Consumers are leveraging price to drive decisions
Price frequently impacts where younger consumers shop. Prices in Meat, Seafood, & Dairy are most likely to drive retailer choice for Millennials, and Beverage prices for Gen Z. Approximately 68% of Millennials’ retailer choice is influenced by price.
Meat’s Grocery Price Index is 35% higher than in 2019 and has grown by +5 points in the Last 3 months alone. ¹
Hooking millennials with promotions drives new product trial. Among Millennials, 46% identify the sale price as one of the top three purchase motivators. Total shelf price triumphs with the next generation of shoppers focusing more on total shelf price than unit price. Millennials prioritize total shelf price even more than Gen Z.
Splurging for self-care
Younger consumers tend to lean towards private label for everyday essentials, such as pantry staples. There is a higher preference for name brands for lifestyle and self-care products.
Understanding the next generation of consumers is crucial for anticipating what’s next and how brands, retailers, and advertisers can innovate and position themselves to meet consumers where they are. Millennials and Gen Z have continued to demonstrate growing purchasing power and are likely to lead the industry for the foreseeable future.
Sources
¹ Datasembly Grocery Price Index for Meats/Alternative Meats in week ending 8/17/2025, indexed to price from week ending 10/7/20199
https://www.spins.com/data/pos-data/
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Looking for more information? Please contact the SPINS Account Manager for PRESENCE, Hans De Schaaf at hdeschaaf@spins.com.
(847) 277-9500