Millennials carry more than their fair share of weight when it comes to FMCG spending - they already shell out more per trip than any other generation.
Therefore, capturing their attention and understanding their spending habits is of growing importance.
According to the latest Nielsen Category Shopping Fundamentals study, as detailed in its recent Millennials on Millennials report, 60% of US consumers’ FMCG decisions are still made at the shelf. However, Millennials are more active on social media than older generations, and this affects the way they look for information as they shop.
But online isn’t just for research. It’s also fast becoming a viable shopping channel - even for fast-moving consumer goods. In fact, Millennials are driving the growth of online shopping for FMCG products, with 61% saying they buy FMCG products online.
Millennials are more likely than other generations to consider e-tailers that offer subscription services. In fact, three out of the five top FMCG categories they buy online are subscription-based.
It’s also important to know how Millennials get online. Notably, they’re highly mobile, and their smartphones are increasingly becoming their go-to devices when it’s time to shop. They make just under 50% of their online purchases from a desktop/laptop, less than all older generations, and they make 40% of their purchases via mobile phone, which is a full 10% higher than Gen-Xers. And despite industry buzz around smart devices, they have yet to catch on with consumers for shopping.
Despite being heavily influenced by on-shelf options, Millennials are much more comfortable searching online and consulting social media when researching products to purchase. They’re also the heaviest adopters of online FMCG purchases and subscription-based services, driving home the importance of keeping up with current trends to remain both relevant and competitive.
Millennials are willing to pay extra for sustainable offerings. When Nielsen surveyed Millennials in 2017 about the importance of corporate social responsibility (CSR) to their purchasing decisions, significantly more Millennials responded by saying that CSR is extremely or very important than the broader population.
And as a result, Millennials are more likely to purchase from socially responsible brands, as 70% indicated that they would be more likely to purchase from a brand if it handled a social issue well.