Millennials and Gen Z are reshaping the consumer landscape, driving the next wave of growth through intentional, informed and values-driven choices. Their expectations — around transparency, personalization and experience — are transforming how products are developed, marketed and sold.
This generation is not just buying differently; they’re also redefining what consumption means. Health, authenticity and discovery are at the center of their decisions.
Diets by Choice
Diet-forward innovation has moved from niche to mainstream, and alignment with consumer health goals is now expected. Nearly 40% of Millennials and Gen Z follow a specific diet:
- High-protein (56%)
- Low-carb (42%)
- Gluten-free (35%)
- Plant-based (33%)
- Keto (30%)
Ingredient Transparency
Approximately 90% of younger consumers avoid ingredients such as artificial sweeteners, colors and hormone disruptors. “Clean label” has become the new standard, and authenticity and clarity are non-negotiable.
Omnichannel Discovery
Among Gen Z and Millennials, 80% shop two to three different stores weekly and 30% to 40% frequent natural or local markets. In-store discovery surpasses social media as the #1 way to find new products, though digital remains key, with Gen Z preferring TikTok and Instagram and Millennials using Google, Facebook and YouTube. Winning strategies connect in-store experience with digital storytelling.
Value Discipline
Despite their ideals, Millennials and Gen Z are cost-conscious. They use private label for everyday essentials and brands for self-expression and trust. Price remains a key driver in categories like meat, seafood and dairy.
Personalized Wellness
Health routines are becoming habitual. Millennials and Gen Z are leading VMS (vitamin, mineral, supplement) growth. Usage by Millennial households grew two times faster than total households. Wellness is now personalized, daily and data-informed.
Evolving Health Priorities
Core needs are immune and digestive health. Next-gen consumers focus on skin, stress and reproductive health, reflecting a more holistic view of wellbeing.
Skincare and Mental Health
Skincare is one of the fastest-evolving categories, driven by social media discovery and personalization. Managing stress and anxiety ranks among top wellness goals. Ingredients like magnesium, L-theanine and ashwagandha are fueling innovation.
AI as a Health Partner
AI use is on the rise: 18% of Gen Z and 13% of Millennials use AI chatbots for nutrition and product advice, making personalization accessible and scalable.
Global Inspiration, Local Execution
Younger consumers crave bold, globally inspired flavors and functional benefits. Snacking has become a low-risk testing ground for new tastes and textures. Here’s a breakdown of generational flavor and experience preferences:
- Gen Z: Bold, spicy, experimental
- Millennials: Familiar meets new
- Gen X: Nostalgic, authentic simplicity
- Boomers: Traditional and comforting
The “Salt, Fat, Acid, Heat” Framework
Food is now both fuel and adventure — a balance of health, flavor and culture. The four pillars of salt, fat, acid and heat can serve as a guide toward whitespace opportunity within a certain category to capitalize on shifting consumer preferences.
- Salt: From seasoning to functional hydration (electrolytes, premium inclusions)
- Fat: “Smart fats” like avocado and dairy-based proteins redefine indulgence
- Acid: Fermentation (pickles, sourdough, kimchi) connects flavor with gut health
- Heat: Global spice formats (gochujang, sambal, chili crisp) drive mainstream growth
The Path Forward for Retailers
Millennials and Gen Z represent more than a demographic handoff. They signal a new consumption era defined by transparency, personalization and global influence. To win with next-gen consumers, retailers must:
- Fuse global inspiration with everyday accessibility
- Balance indulgence and functionality across categories
- Bridge physical and digital discovery, integrating in-store experiences with online and AI-driven personalization
This is not a passing trend — it’s the future of consumption. Retailers that align with the intentional, informed and exploratory mindset of these consumers will earn not just purchases, but also long-term trust and loyalty.
Sources
- SPINS surveys: July 2025 Gen Z & Millennial shoppers (n=1,000) and May 2025 total U.S. VMS shoppers (n=1,000).
- Retail Behaviors: SPINS POS data | Total US Natural Expanded & Conventional (powered by Circana), 52 weeks ending 07/13/2025.
- Household Adoption and Spend: SPINS TriLens Panel, Total U.S. — All Outlets.
- Price Dynamics: Price Intelligence, Datasembly Grocery Price Index.
