Engaging the Next Consumer Generation

From plant-based milk alternatives to a focus on sustainability, Generation Z has gained attention for its food preferences as well as its consumer power. Terrain analysts Ben Laine and Dave Weaber joined The Center for Food Integrity recently for a conversation on how producers can better connect to this incoming consumer generation and leverage the things they’re already doing to align with newer food trends.

‘A New Force on the Food Scene’

Gen Zers, those born between 1997 and 2012, represent one-fifth of the U.S. consumer population and one-third of the global population. They are the fastest-growing economic power, and more than half of them read food labels. That’s all according to The Center for Food Integrity, a nonprofit that seeks to build trust in the food system and help those in the food and ag space better understand consumers.

Gen Zers are the fastest-growing economic power, and more than half of them read food labels.

“Gen Z really is a new force on the food scene,” said Jana McGuire, communications director for The Center for Food Integrity. “They truly are poised to change the face of food. They have unique values, attitudes, behaviors, beliefs, even fears that we've uncovered.”

From Drinking Milk to Eating It

Although Gen Z has made headlines for drinking less milk, the decline in fluid milk consumption has been occurring for decades, highlighted Ben, Terrain’s senior dairy analyst. What has changed, he said, is how people are consuming milk.

“Milk has been going down for basically forever in terms of fluid milk that we drink,” Ben said. “The good thing, though, is that we're consuming more milk total in the form of cheese or yogurt or ice cream.”

“As long as they want to keep consuming dairy, that gives us a chance to keep making it.”

Ben cited recent USDA data that shows Americans are now drinking 100 pounds less milk in a year, per capita, than they were in the 80s. Meanwhile, Americans are eating approximately 22 pounds more cheese. Since a pound of cheese takes about 10 pounds of milk to make, this means U.S. consumers are eating, in cheese form, around 200 pounds more milk.

For producers, it might not matter that more Americans are ordering pizza instead of pouring a glass of milk. “As long as they want to keep consuming dairy, that gives us a chance to keep making it,” Ben emphasized.

Rather than trying to convince incoming generations to change their consumption habits, Ben said producers should focus on what those generations are looking for and move with the trends.

“Keeping an eye on what those consumers are actually asking for and how we can tailor our supply chain from the production level through [to] the processors and the brands to kind of meet them where they're at…that's ultimately all that matters.”

‘Give People What They Want’

Ben noted there are various ways dairy producers and brands can adapt to meet changing consumption preferences.

When consumers wanted less sugar, less fat and more protein in their diet a few years back, the rise of Greek yogurt soon followed.

Apart from tailoring products to meet consumer demand, there’s also an opportunity in rebranding.

“That was a good example of a way that dairy capitalized on that trend,” Ben said. He listed other examples, including whey protein and supplements for a more fitness-focused population.

Apart from tailoring products to meet consumer demand, there’s also an opportunity in rebranding. If you look closely at the label of your favorite recovery shake powder, Ben noted, you may find the ingredients add up to chocolate milk. “It's branded a little differently, but I think that's a chance where dairy, if they set their mind to it, can think of ways that, ‘Hey, we can do this with a cleaner label and give people what they want.’”

‘We Don’t Sell It Well’

Dave, Terrain’s senior animal protein analyst, stressed that it’s important for producers to think about how their consumer engages with their product and what methods and avenues they’re using to get that information — something Jana highlighted as well.

“As you think about communicating with this Gen Z group, it's important to tell those stories about agriculture, about food, not just give facts and science and data,” Jana said. “Because it's about the story; it's about the why behind it.”

"It's important to tell those stories about agriculture, about food, not just give facts and science and data."

With 75% of Gen Z adults on YouTube and 59% on TikTok, according to The Center for Food Integrity, telling stories through video is an important way of connecting with this group. “They gravitate towards stories, regardless of the [social media] channel they’re on,” Jana said.

When it comes to Gen Z’s appetite for meat, Dave emphasized it’s all about quality. “It's not about cheap. It's not about a commodity-kind of product,” he stressed. “It's, is it renewable? Sustainable? Good for the environment? Regenerative? How do we connect those dots and pieces with our business? And it's a lot of things producers are already doing. But we don't sell it well.”

Producers may find there’s a financial opportunity by connecting these generational themes to their business practices. In the case of regenerative agriculture, that could be anything from carbon capture to water development, Dave said.

While many producers are already implementing sustainable practices, they could be missing the mark in how to position those practices to consumers. “There's not a ranch in the West that’s not part of regenerative agriculture,” Dave underscored. “We don't talk about it enough. We talk about conservation and those other kinds of things. We’ve got to get hip with the lingo.”

Consumers are also paying more attention to the quality of fat in their diet, Dave noted, particularly those who are focused on fitness or cholesterol levels. This presents another opportunity for livestock producers, as conjugated linoleic acid, which may offer heart health benefits, is found naturally in animal protein. If consumers are looking for the best fat to consume, along with a great eating experience and protein package, “How do we connect those things together for livestock producers?” Dave said.

Are Today’s Food Trends Here to Stay?

Some Gen Zers are entering adulthood in today’s high-inflation, high-price environment. How does this bode for their food ideals and preferences in the near term and long run?

“People vote with their pocketbook,” Jana noted. “I do think at a time when prices are so high, if someone in that age group wants to eat all organic, they may not be able to eat all organic. They're going to have to make those sacrifices because they just don’t have the money.”

For beef producers, the outlook is still bullish as they continue to focus on delivering the taste and quality that Gen Z wants.

"Long term, the broader trends of wanting more sustainable production and cleaner labels, those kinds of things, are going to continue moving."

Regarding dairy, Ben said companies have invested in different types of milk to meet consumer demand, such as grass-fed and organic, which consumers have been willing to pay more for.

“There is some risk that some of that is going to go by the wayside,” Ben said. “But I think long term, the broader trends of wanting more sustainable production and cleaner labels, those kinds of things, are going to continue moving. If times get tough, there might be a little bit of a shake-up, but I think directionally, we’ve still got to stay focused on those long-term trends.”