Food and drink brands are poised to reap the benefits of a £1 billion spending spree over the next six months, thanks to the purchasing power of Generation Z consumers. A recent Food & Drink Deep-dive Student Insight Report, based on a survey of 8,000 UK students conducted by Unidays in May, sheds light on the spending habits and preferences of this demographic.
The main report, published in July, projected that students were looking to spend a whopping £3.6 billion in the fourth quarter alone. However, the deep-dive study delves deeper into which industries are likely to see the most significant gains from this surge in spending. It reveals that Gen Z students plan to allocate a substantial portion of their budget to meals out with friends, lunch, takeaways, and coffee breaks. They also rank high for spending on date night meals, dinner parties, and drinks with friends, coming in second only to millennials.
Despite their propensity for spending, Gen Z students are keen on finding value for their money. Price is a primary driver for this generation, and they are on the lookout for offers and discounts that allow them to stretch their budget further. Sarah Clifford, the lead for Unidays‘ food, travel, and leisure category, notes that Gen Z values affordability over convenience, with many stating that a student discount of 20% or more would sway their purchasing decisions. Loyalty schemes that offer discounts and free items are particularly appealing to this demographic.
In addition to affordability, the report highlights the habitual nature of Gen Z when it comes to food and drink. The majority of students surveyed indicated that they tend to shop at the same places for groceries, hot drinks, fast food, and takeaways. This loyalty may be hard-won, but it presents a significant opportunity for brands, especially during the winter holidays when Gen Z is more likely to splurge on meals and drinks.
Clifford emphasizes the importance of incentives in capturing the attention and loyalty of Gen Z consumers. Brands that target this demographic with rewards, deals, and discounts tailored to their preferences stand to benefit the most. By tapping into key student moments, such as revision-cramming caffeine hits and seasonal grocery hauls, brands can not only generate excitement but also foster long-term loyalty among Gen Z consumers.
In conclusion, the report underscores the immense market potential presented by Gen Z consumers, who value affordability and support from brands. By understanding and catering to the preferences of this demographic, food and drink brands can position themselves for success in the coming months. With the right incentives and targeted marketing strategies, brands have the opportunity to capitalize on Gen Z’s spending power and establish lasting relationships with this influential consumer group.