Food-to-go opportunity after millennial demand

New product development targeted at millennials – 18 to 24-year-olds – was key to making the most of the food-to-go market, which was estimated to be worth £21bn within four years, said the think-tank. It came as IGD’s latest research found millennials were twice as likely to buy food-to-go products when shopping in convenience stores as over-26s, it added.

IGD shopper insight manager Rhian Thomas said: “We’re forecasting food-to-go to be worth over £21bn by 2021, so there is a great opportunity for retailers and manufacturers looking to take a bigger bite of this market to really think about how they are appealing to this new generation of shoppers.​

‘A sure way to succeed’​

“Manufacturers should continue to innovate to take advantage of this opportunity. Providing products to appeal to all food-to-go occasions, from breakfast to snacking, is a sure way to succeed.”​

The research found 30% of millennials had bought food-to-go products on their last shopping trip, while only 13% of over-26s did. Almost a third of millennials bought food-to-go products at supermarkets, compared with 9% of over-26s, it found.

Millennials were also more interested in alternative food-to-go ranges, including vegetarian and vegan products. Half wanted to see more vegetarian options, while 32% of over-26s did. 41% wanted a greater choice of vegan options, compared with 22% of over-26s.

Almost 40% of millennials wanted to see more dairy-free ranges, compared with 24% of over-26s. Just 22% of over-26s wanted a greater variety of gluten-free food-to-go products, compared with 35% of millennials.

‘Opportunity to continue developing’​

Thomas said: “We’re already seeing that food-to-go specialists and quick-service restaurants are appealing to younger shoppers by focusing on expanded ranges, health, quality and convenience. But, there’s an opportunity to continue developing these areas.​

“Millennials are the shoppers of the future, so creating food-to-go ranges that appeal to them could be a route to significant success. Retailers and manufacturers should therefore work together to meet the dynamic needs of this new generation of shopper.”​

Meanwhile, this year, both Greencore and Greggs have said their food-to-go ranges boosted sales and profits. Greencore said its food-to-go offering boosted revenue to £1.01bn​, while Greggs said growing consumer demand for food-to-go​ helped to raise profits to £80.3M.