Running head: THE IMPACT OF MILLENNIALS ON THE FOOD INDUSTRY 1

The Impact of Millennials on the Food Industry

Clayton Krichinak

San Diego University for Integrative Studies

Author Note

Paper 2
THE IMPACT OF MILLENNIALS ON THE FOOD INDUSTRY 2

Abstract

Millennials are changing the food industry in an unprecedented way, because of their demand for

convenience, their search for quality and their spending choices. People who are now in their

thirties choose food delivery services via mobile apps rather than cook at home. In parallel with

this, millennials are also more demanding when it comes to food quality, which leads to the

prioritizing of food that is, in many cases, more expensive. These demands have created not only

a new business niche but also whole new business models, like subscription plans that deliver

pre-portioned ingredients to people’s homes, facilitating meal preparation. This says a lot about

the future of the food industry, where only the businesses that keep up with the demands of this

and the future generations will survive.

Keywords: millennial, food, business niche, food apps

THE IMPACT OF MILLENNIALS ON THE FOOD INDUSTRY 3

The Impact of Millennials on the Food Industry

There are countless news articles blaming the millennial generation for killing entire

industries. The fact is that many business models have simply changed over time, and now that

millennials are adults who run households and are raising children, this is particularly evident in

the food industry. Food delivery is now bigger than ever, and most of the orders come from

mobile apps. Virtually every grocery store sells food for those with dietary restrictions or

choices, which is moving money in a considerable way. This is changing the way that even the

biggest fast-food chains advertise and conduct their businesses. Millennials are changing the

food industry in an unprecedented way, because of their demand for convenience, their search

for quality and their spending choices.

The recent rise in food-delivery services is a clear example of these changes. According

to Newcomer (2019), “(The) revenue for Uber Eats grew 149 percent to $1.5 billion in 2018”

(para. 2), and that accounts for only one of the many services available. The combination of the

convenience brought by these services and the possibility to order from one’s mobile phone

attracts the generation that is more connected to the Internet and goes out less. However, not all

food delivered to people’s homes is cooked in a restaurant kitchen. Among the new business

models made possible because of the Internet is the so called meal kit. Meal kit services are

subscription plans that deliver pre-portioned ingredients with recipes and a promise to make the

subscriber’s eating habits easier. Cheng (2018), says that this kind of delivery service is “...one

of the biggest categories in the crowded subscription box industry, and meal-kit companies Blue

Apron and Hello Fresh were ranked among the top five most visited subscription box sites in the

U.S.” (para. 12). This could bring concern to supermarket chains and other companies in

traditional food retail, which might lose a large market share to meal kit subscription services
THE IMPACT OF MILLENNIALS ON THE FOOD INDUSTRY 4

and restaurants that operate in partnership with delivery services. In the future, it could bring

living spaces that are drastically different from the way homes are today. Cheng (2018) states:

“If kitchens become increasingly ‘underutilized,’ the bigger implications could even include

more homes being designed without kitchens” (para. 8).

But whether the food comes from a meal kit or made all the way by their hands,

millennials do, still, cook at home. At least one third of their meals include one item that is

allegedly homemade, according to Cheng (2018). “Even though they want more convenience and

are willing to let go of the more time-consuming meal prep, as millennials start their own

households and have kids, they're still interested in fresh food and want some sort of food prep

involvement” (para. 16). What is considered homemade varies, however, since some people

reportedly said they cooked their own food when they actually microwaved their meal.

Quick preparation and easy-to-make meals are also popular among millennials. There are

those who choose not to cook at home and buy prepared foods instead. Kuhns and Saksena

(2017) comment that when shopping habits were observed, millennials seemed to buy more

prepared foods, pasta and sugary products and than other generations (para. 11). The study also

compared the millennials’ food expenditures to those of previous generations: “Millennials

devoted 13.6 percent of their at-home food expenditures to these three categories, compared with

12.4 percent by Gen X’ers, 11.5 percent by Baby Boomers, and 11.2 percent by Traditionalists.”

(para. 11). In addition to that, the millennial generation expects more when it comes to the

quality of their food. Kuhns and Saksena comment: “Millennials are demanding healthier and

fresher food, including fruits and vegetables, when making food-at-home purchases, and they

place a higher preference on convenience than do other generations” (para. 2).

THE IMPACT OF MILLENNIALS ON THE FOOD INDUSTRY 5

Where their food comes from is a significant concern for the millennial generation.

Presenting data from supermarket chain Whole Foods Market, Dumont (2019) shows that in

2018 millennials spent 14% more on organic food than the previous year. “Members of the

generation were more willing to pay for products with sustainable, environmentally friendly,

organic or natural ingredients” (para. 2). The content of the packaging has also a different weight

for millennials: more than 65% of them say that “transparency in food sourcing is important,

particularly in fresh meat and seafood”, according to Dumont (2019), and about 70% say that

they read labels more closely than in the past (para. 2). Millennials are known as adventurous

eaters, and this generation is more interested in diversified cuisines. Dumont (2019) says that “to

draw millennial shoppers, grocers will need to maintain well-stocked aisles with plenty of spices,

sauces, grains and produce for them to choose from when trying new recipes” (para. 3), which

implies a well known truth: businesses must adapt to the demands of certain demographics.

The food industry has always changed, whether due to advances in technology or the

choices and lifestyles of different generations. It is not different now: the millennial generation

has access not only to information about food but also to ways to acquire that food that previous

generations did not have. This has evidently changed the way the many different food companies

conduct their business. Millennials are changing the food industry in an unprecedented way,

because of their demand for convenience, their search for quality and their spending choices.

Throughout history, businesses that did their research were able to adapt, and emerging

businesses thrived if they kept up with what people demanded at the time. It is the same with the

current times and the profile of the generation that is now spending more money on food than

any other.
THE IMPACT OF MILLENNIALS ON THE FOOD INDUSTRY 6

References

Cheng, A. (2018, June 26). Millennials Are Ordering More Food Delivery, But Are They Killing

The Kitchen, Too? Retrieved from

https://www.forbes.com/sites/andriacheng/2018/06/26/millennials-are-ordering-food-for-

delivery-more-but-are-they-killing-the-kitchen-too/

Dumont, J. (2019, September 10). Whole Foods survey: Millennials still spend more for quality.

Retrieved from https://www.grocerydive.com/news/whole-foods-survey-millennials-still-

spend-more-for-quality/562428/

Kuhns, A., Saksena, M. (2017, December 29). Millennials Devote Larger Shares of Their

Grocery Spending to Prepared Foods, Pasta, and Sugar and Sweets Than Other

Generations. Retrieved from https://www.ers.usda.gov/amber-

waves/2017/december/millennials-devote-larger-shares-of-their-grocery-spending-to-

prepared-foods-pasta-and-sugar-and-sweets-than-other-generations/

Newcomer, E. (2019, April 12). Uber Has a New Growth Story, Just Not a Profitable One.

Retrieved from https://www.bloomberg.com/news/articles/2019-04-12/uber-ipo-filing-

tells-a-growth-story-in-food-delivery