IDDBA Study: Generations X, Y and Hispanics Poised to Drive Consumption Growth

April 28, 2011
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According to the International Dairy-Deli-Bakery Association's What’s In Store 2011 report, there's a new breed of consumer that's soaking up the spotlight reserved for prime spenders, and, therefore, are key targets for marketers.

The International Dairy-Deli-Bakery Association (IDDBA), Madison, Wis., finds a new breed of consumer is soaking up the spotlight reserved for prime spenders, and, therefore, are key targets for marketers. Key retail demographics are shifting toward Generations X and Y and Hispanics, according to the IDDBA’s What’s In Store 2011 report.
New generations of consumers jump into the driver’s seat
In the post-recession recovery, Generations X and Y are the most qualified consumers to fuel economic growth. Gen X, aged 29-45 years, is 62-million strong, with members in their prime earning (and spending) years. Plus, three-quarters of them have young families.

Gen Y, aged 10-28 years, has 85 million members and most do not have their own households; therefore, they have higher discretionary income. These generations will lead the spending charge, in contrast with Baby Boomers. Though boomers, aged 45-63 years, have 82 million in their ranks, their wealth has decreased significantly, and their mindset is to save rather than spend.

At the same time, Hispanics are the fastest growing ethnic group in the United States. At 50 million, they’re the country’s largest minority. The Top 10 largest U.S. cities have no ethnic or racial majority. America’s diverse melting pot brings with it a new global flavor curve–one that’s part comfort and authentic and yet out-of-the-box, creative and bold. In addition, shifting consumer lifestyles have put more men in the shopping aisles than ever before. In 2010, women became the majority in the workforce. Concurrently, more than 30% of men today are the primary grocery shopper compared with 15% in 1985. Men’s average dollar basket size across all channels increased significantly-especially in grocery-up 56% from $41.67 in 2009 compared to $27.49 in 2004.

More at-home food preparation sways sales as nutritious food tops trends
In general, all groups of consumers are still streamlining household budgets by eating at home more often and packing more lunches. At the same time, the cuisine adorning the kitchen tables and filling lunchboxes has taken a turn for the healthier. Food as a health product, or “food with benefits,” is a strong nutritional trend. These foods often tout whole grains, functional value, natural, organic, pure, simple, clean, low-calorie and sustainable attributes, or highly nutritive calorie qualities.

What's in Store 2011, the 25th anniversary edition, is a 206-page trends report that details consumer and industry trends affecting the dairy case, cheese case, bakery, deli and foodservice supermarket departments. Its 196 tables, developed in cooperation with leading industry firms and associations, include department sales, per capita consumption, consumer preferences and random-weight, UPC and private label sales data. The full report is available from IDDBA for $99 for IDDBA members and $399 for non-members, plus shipping and handling. Along with the book, readers have access to What’s in Store Online featuring up to 53 quarterly updated, downloadable sales tables with random-weight (PLU), UPC and system 2-coded data. In addition, the website offers timely white papers, trends articles and links to all of the businesses that are referenced in the What’s in Store book.

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