Millennials and Gen Z's trendy new splurge: groceries

According to a February report from McKinsey & Company, groceries are becoming a primary spending focus for younger generations.

The report, which surveyed over 4,000 individuals spanning baby boomers to Gen Z, asked about their spending intentions for the year. Millennials and Gen Zers ranked groceries as their top priority, surpassing categories such as restaurants, bars, travel, beauty and personal care, apparel, and fitness.

As millennials start families, they are spending more on themselves, their partners, and their children. This marks a significant change from 2018 when older generations like baby boomers and Gen Xers spent more on groceries than millennials.

Gen Z individuals indicated a preference for high-quality snacks and beverages, leading to higher grocery bills.

For example, a 23-year-old Gen Z respondent shared that they spend approximately $130 on groceries for a week and a half. The bulk of this expense goes towards "fancy sodas and drinks" and "random snacks at Trader Joe's," with an additional $35 allocated for protein bars.

The popularity of Liquid Death, a canned water brand, exemplifies young consumers' willingness to spend on unique food and beverage items. The brand's valuation soared to $1.4 billion following a recent funding round, as reported by Forbes. Investor Peter Pham credited the brand's success to its appeal to younger generations.

Pham explained, "The healthy food-and-beverage space has historically been a stale category filled with boring brands. This creates a lightning-in-a-bottle moment for disruptive brands who know how to tap into culture and talk to Gen Z and digital natives."

All generations are feeling the impact of inflation at grocery stores and across various goods and services. A report from Moody's revealed that the typical American household would need to spend an additional $445 per month to purchase the same goods and services as a year ago.

tastytrade logo+
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.