Perennials offer a £1.1 trillion shopping opportunity

Perennial shoppers, comprising those aged 50-64, are set to account for 30 per cent of all food and drink spend across three key markets, new research from IGD has shown.

This tech savvy and experimental group is willing to spend more for quality and could drive the international grocery sector up by an incremental $116 billion over the next couple of years, creating a $1.46 trillion (£1.1 trillion) opportunity by 2022, the study forecasts.

As they are set to grow in size and significance over the next two years, notably in the UK, Singapore and USA, this is the group to invest in for the future, IGD said.

“They are an engaged group of shoppers who are accessible when approached in the right way,” commented Simon Wainwright, Director of Global Insight at IGD.

“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.”

The research has found that UK Perennials are the most likely to buy new and different food and grocery products (42%), the most likely to cook from scratch (69%) and the least likely to buy prepared foods or eat out (15%), presenting several opportunities for both retailers and brands.

Compared to their counterparts in the US and Singapore, they are also most likely to prioritise specific ethical and environmental factors in their shopping such as animal welfare (61%) and reducing the amount of packaging (53%).

While the UK perennials least likely to plan their shopping trip (39%), they are much more prone to check out offers in store and buy on impulse (40%), and when combined together this represents a great window for retailers to increase basket spend.

Gobally, over half (56%) of this generation shop online for food sometimes, with a third (33%) predicting they will do more in the future

While 67 per cent 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 per cent trusting them as much as brands.

They also tend to value convenience and quality over price, with a significant 75 per cent say they are sometimes tempted to spend more on better quality products, and 56 per cent will sometimes spend more on products because they are easier to prepare and cook.

“Perennial shoppers show aspects of being habitual both in how they shop and in having an affinity for products that are familiar to them,” Wainwright commented.

“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.”