CHICAGO -- After years of focusing on millennial consumers and what they mean to convenience-store beverage sales, the next generation—Gen Z—is now getting its close-up. And much like millennials who treasure value, convenience and health, Gen Z consumers’ taste buds are expected to grow up even faster than the generation before them.
“Everybody starts with sweet” as a preference for beverage, said Adrienne Nadeau, senior consultant at Technomic. “But as you age, your sense of taste changes.”
For millennials, that shift came earlier than generations before them. The prime example is the alcohol beverages they chose as they reached legal drinking age.
“[Millennials] did something no previous generation had done before,” said Donna Hood Crecca, another senior director at Technomic. “They didn’t just drink beer; they drank everything.”
The result was a dramatic shift in alcohol sales as both wine and spirits stole share from beer. “The beer industry didn’t own them,” Crecca said. “They got them, but they don’t own them” as with previous generations of college-aged adults.
As Gen Z reaches drinking age, retailers can expect more of the same, according to Technomic research. And the trend will continue to move into other beverage categories, as well.
“Generation Z has complex tastes,” said Nadeau, noting that much of the generation—currently 22 years old and younger—is already drinking coffee or coffee-based drinks.
“Gen Z are the most likely of all generations to visit Starbucks," Nadeau said. "In fact, they are most likely of all generations to anticipate visiting coffee shops more often in the next year."
See a comparison of millennials and Gen Z in the chart below.
Ultimately, research suggests younger generations of consumers will continue to seek out a broader range of beverage styles and flavors. “You’ll see that shift away from sweet sooner than we have with other generations,” Nadeau said.
“This speaks to a need to have a wider variety” of products in your cold vault, Crecca said.
The good news for convenience-store retailers is that Gen Z does appreciate c-stores:
- 74% visit c-stores once a week or more
- 92% visit once a month or more
- 72% buy retail beverages on every visit to a c-store
- 52% visit most often between noon and 5 p.m.
Millennials vs. Generation Z
| Measure | Millennials | Generation Z |
| Born | 1977-1992 | 1993-2012 |
| Current ages | 23-29 | 22 and younger |
| Key characterisitics | Multifaceted and diverse | 47% come from ethnic minority groups |
| Beverage power | A driving force in shaping the beverage market | $250 billion in spending power already |
| C-store habit | 80% visit once a week | The most likely of all generations to visit Starbucks; 74% visit c-stores once a week |
| Beverage habit | 68% say they purchase a packaged beverage every or nearly every c-store visit | 72% said they buy a packaged beverage every c-store visit |
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