Report: Millennials will pay more for premium products
- A new report by Maru/Matchbox shows millennials are the primary consumer group pushing sustainable and local "premium" offerings into the mainstream, according to Marketwired. This shift is driven by key behaviors: Their passion for premium products, a willingness to pay more for them, more trust of local products, sharing food interests on social media, and deep value of choice and convenience.
- About 61% of millennials expect food to be GMO-free, the report found. There are 68% who will pay more for organic foods because they feel like buying from this category improves their health and the environment.
- "Millennials are discerning consumers, and they are increasingly willing to pay a premium for brands and products that embody their preferences for authenticity, transparency and responsible ingredient sourcing," Matt Kleinschmit, managing director of consumer & shopper insights at Maru/Matchbox, said in the report.
By paying attention to the specific demands of millennials — the United States’ largest living generation — manufacturers can wisely reformulate or reposition existing products and expand product portfolios to meet the growing demand for natural, organic, and otherwise "premium" products.
Companies should also look for opportunities to leverage brand missions, which may include setting company goals to better environmental sustainability, animal welfare or ethical employment. Millennials, and a growing number of consumers in general, are viewing the foods they buy as an opportunity to make a statement about their values. Many are more likely to buy from brands whose values align with their own.
Packaging presents another opportunity for manufacturers to sell their products at premium prices. Iconic packaging designs or those made with sustainable, recyclable or biodegradable materials hold higher value for millennials than traditional plastics and boring designs.
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