How to appeal to the next generation of consumers

While we can assume that humans will always need to eat and drink in order to survive, the way in which people choose to perform this essential ritual is in a state of constant flux.

New trends such as plant-based, clean label and alcohol-free have taken hold in recent years and look set to remain, and manufacturers have responded accordingly. However, executives and product development leads will also be aware that in these modern times preferences can change quickly and dramatically, with social media and the constant creation of new content playing a disruptive role.

Against this backdrop of continual evolution, innovation and exciting new product development (NPD) is central to success.

Research-based innovation

“Consumer tastes and preferences are constantly evolving and with so many options available on the market, brands must innovate – and quickly – to stay competitive,”​ Gemma Taylor, contract pack manager at beverage firm Clearly Drinks, told Food Manufacture.

“The expansion and diversification of a brand’s portfolio also make it more resilient to the many changes which influence consumer preferences.”​

This was echoed by Jason Winstanley, head of research and insight at meat producer Pilgrim’s Europe, who explained that many consumers are seeking “excitement”​ while searching for new things to try. And creating excitement requires an understanding of the trends that are piquing the public’s interest.

“We have a wide range of data sources that we use to help us understand what is trending and resonating with consumers in the market," ​Winstanley said.

"The insights we generate from this are critical in informing our innovation process."​

He added: "We also purchase third party market data, through both syndicated and more proprietary databases, which allows us to see which categories, sectors, retailers and food service operators are performing well, and crucially what is most important to consumers.”​

Bridge Cheese’s commercial manager Monica Chauhan also allows trends to influence discussions about innovation, but said that conversations need to start with a clear understanding of what a finished product could look like and the existing parameters around flavour, format, volumes and manufacturing processes.

“We have seen more requests for cheese that can be used in unusual ways,” ​she highlighted.

“Our heat-resistant cheese was developed from a brief to create a cheese that was multi-functional across the bakery and fast-food sector. It is a product that can be combined with other ingredients to create fillings or can be bread-crumbed.”​

Chauhan added that innovating on price remains as important than ever and should not come at the expense of pursuing taste and flavour trends.

“Over the last few years, price has been more important than ever and, therefore, much of our innovation has been around developing high quality products that function as the customer needs them to, but at a lower price point,”​ she continued.

While acknowledging the importance of trend analysis in the NPD process, Taylor cautioned that good innovation is dependent on building a team with the necessary knowledge and expertise: “I’ve worked closely with soft drinks manufacturers in the early stages of innovation and found the key to success is having the right skills in the team.​

“To innovate at pace, you need a diverse team of creative thinkers and problem solvers, input from a huge variety of other skilled professionals, and lots of collaboration.”​

Top trends with younger generations

While trend analysis clearly plays a core role in determining the direction of product innovations, it is important that manufacturers draw out the correct lessons from the information at their disposal.

For example, Taylor urged manufacturers to look beyond the food and drink industry and their own category for inspiration. She pointed to Barratt’s fruit salad drink, which tapped into a nostalgia trend which has already driven innovation in the fashion industry.

“Have a look at what’s working well in other markets and see if there is a flavour trend or profile that can be adopted and adapted for your product,”​ Taylor said.

“Bubble gum is another popular flavour which came from confectionary and is now a common flavour found in the drinks market.”​

Mushroom Bureau director, Noel Hegarty, explained that tapping into trends that resonate with Gen Z and Millennials has been crucial in promoting the use of mushrooms within food manufacturing.

“By focusing on emerging trends like the focus on health and wellness, culinary versatility, plant-based diets and sustainability, manufacturers can strategically integrate ingredients into new product lines,”​ he told Food Manufacture.

“Specifically, mushrooms offer a unique combination of versatility, flavour and health benefits, aligning perfectly with the demand for natural, nutrient-dense ingredients. Embracing these trends, therefore, helps create products that not only meet the needs of a health-conscious generation but also stand out in a competitive market.”​

Health, in addition to convenience and sustainability, was also identified as an important concern among Gen Z and Millennials by William Burton, group portfolio and innovation director at frozen fruit and vegetables supplier Ardo.

“We’ve responded by offering on-the-go breakfast solutions like our frozen fruit mixes, perfect for adding to yogurts, oats and smoothies,”​ Burton said.

“These consumers also seek healthier options with reduced sugar and natural ingredients, a trend we address by ensuring our products are both nutritious and indulgent.”​

Meanwhile, Winstanley pointed to research from July 2024 which showed that young adult consumers are more “adventurous” ​when trying new types of cuisine compared with older generations. This, he believes, comes from a place of wanting to replicate experiences they have had while travelling or hope to have in the future.

“The rise of ‘Instagrammable’ food has [also] driven awareness of the importance of colour and texture, as well as taste, as part of the food experience, and younger consumers are often more receptive to this than their older counterparts,” ​he added.

Echoing the research about adventure, Chauhan believes that with social media playing a large role in how younger generations interact with food and the wider world, the “humble cheddar cheese sandwich”​ is no longer a viable lunch option.

Bridge Cheese has also seen a growing interest in cooking from scratch, as more people take hybrid or remote jobs and therefore have more time to spend making dinner.

“Mixing up the humble sandwich with a variety of cheese paired with steaks or choosing a smash burger with a nice smokey cheese are just some of the trends we are seeing,”​ Chauhan said.

“High protein [products also] continue to be at the top of the list, with influencers creating chicken breast rolls filled with cheese and herbs.”​

Avoid throwing the baby out with the bathwater

While gaining loyalty from Gen Alpha, Gen Z and Millennial consumers is undoubtedly important for any forward-thinking F&B manufacturer, it is equally vital you don’t alienate older generations.

According to Mushroom Bureau spokesperson Padraic O'Leary, this requires a balanced approach which emphasises modern trends, consumer education and the versatility of the product.

“Fresh mushrooms offer value, flavour, and health benefits that resonate with health-conscious younger consumers,” ​O’Leary told Food Manufacture.

“Concurrently, informing both new and existing customers about the nutritional benefits and culinary uses of fresh mushrooms fosters deeper appreciation and loyalty. This strategy ensures that we evolve with market trends while staying true to our roots, appealing to both new and long-time customers."​

Taylor also spoke to importance of clear and effective communication, achieved through marketing via multiple channels that appeal to a wide range of consumers and age groups.

“​Make sure you highlight the messages that resonate with your different customer profiles, whether that’s delivering healthy sustainable products or telling the story of your heritage,”​ she said.

Furthermore, Taylor warned against looking at different generations as caricatures based on stereotypes: “Don’t put too much emphasis on putting different generations ‘in boxes’. The trick is to know your customers well, [because] customers have different preferences regardless of their age.”​

Pilgrim’s Europe looks to achieve such a balance by offering a wide range of products that can appeal to all “demographics of consumers and different need states and occasions”.​

Winstanley explained: “It’s important to note that not everybody shops the same category for the same reason – this brings up lots of questions: Are they buying for a meal for tonight, for the weekend, or maybe for entertaining? Are they most concerned with innovative flavours, good animal welfare credentials, or authentic provenance? ​

Answering all these different questions requires the manufacturer to lean on its consumer insights data: “We can understand the different need states specific to a particular category and develop a range of products which meet the demands of a wide variety of shoppers. Through granular analysis of sales data, we are also able to understand whether shopper segments are over or under indexing in their purchase of a particular product or range – this allows us to check that we have got the balance right and adapt if needed.”​

Successfully understanding generational differences, trends and emerging concerns is certainly a challenge for any F&B business during the innovation process. However, in order to remain relevant and competitive, it is a challenge that many firms are already facing up to with some success.

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