Tetra Pak has released a major report on millennials, detailing how brands can tailor their packaging to this big-spending demographic.
The packaging supplier has described this 20-35 age group as the largest generational group in history, spending close to $600 billion annually.
Tetra Pak's report, called Packaging up Millennial Success, identifies the six characteristics of millennials:
1. Global.
According to Tetra Pak, millennials are the first globalised generation to have grown up in a world where technology makes 3000 kilometres as close as two. This has elevated the outlook and network of influencers that millennials have to a truly global scale. More than half have friends that live abroad, and 20 per cent have spent time studying or working overseas.
2. Connected.
Millennials are the first digitally native generation. They are more connected and more reliant on digital technology than any other generation and the majority don’t remember a time before mobile internet. Today, more than 84 per cent of millennials own a smart phone and report checking in for updates more than 40 times daily. As a result, they expect brands to be just as connected.
3. Social online and offline.
Millennials are highly social and consistently look to their peers for guidance and recommendations on shopping decisions. Millennials view online social activity as an important supplement to the offline world, with 54 per cent of millennials stating that social networking has helped them to build stronger relationships with friends and family.
4. Hungry for experiences.
Millennials are often regarded as more adventurous, compared to older generations, always on the lookout for new products and services, searching for novelty and fun even in everyday products. For instance, 65 per cent of millennials in the US said they are interested in trying everything from opera to rock-climbing compared to just 39 per cent of other generations. Millennials have a greater interest in travel, which often translates itself into adventurous eating habits, demonstrating how they want to buy an experience rather than a product.
5. Impulse shoppers.
This is a generation characterised by impulse. Whether it’s planning meal and food purchases on a day-by-day basis or deciding to treat themselves to a special purchase, millennials are interested in convenience. They look for food and drink options that are easy, simple to deal with, and fit into ever busier lives. As a result, 41 per cent of millennials are prepared to pay more for products that make their lives easier.
6. Smart consumers.
Millennials are savvy shoppers who are able to navigate the balance between price and value. They’re interested in a healthy and more environmentally friendly lifestyle, with 53 per cent reporting that they would like to do more for the environment but that they don’t know how.
Tetra Pak also reported that millennial consumers are foodies who spend a lot of time shopping for food, with nearly 58 per cent claiming to cook for fun at least once a week, highlighting the need for impulsive and convenient shopping opportunities.
More so than any other age group, millennials are passionate about cooking, and are particularly keen on experimenting with new and different ingredients and flavours. They are increasingly reliant on technologies such as mobiles and tablets to research and buy their groceries.
Although millennials recognise there is a place for indulging, they are predominantly health conscious, with more than half actively avoiding fast food and 63 per cent using food and drink as a way to improve their health. They are conscious of the need to focus on specific ingredients and are most concerned with vitamin deficiency.
In terms of packaging, Tetra Pak reports that millennial consumers care about how the package looks; how easy it is to hold and carry; how easy it is to drink from; whether it can be resealed; and how environmentally friendly it is.
As a sign of the emphasis millennials put on attractive and engaging packaging, Coca-Cola and Nutella’s recent successes with personalised packaging gained the highest levels of engagement with millennials.
