Gen Z’s US$12 trillion opportunity: shaping the future of food

As the largest generation in history, Gen Z is rewriting the consumer playbook, and the food industry is no exception. Born between 1997 and 2012, Gen Z is expected to become the wealthiest generation by 2030, with a projected spending power of $12 trillion globally. Research from NielsenIQ highlights how food manufacturers and retailers must adapt swiftly to this digitally native, value-driven cohort, which prioritizes sustainability, health, and authenticity in its purchasing decisions.

NielsenIQ’s report reveals Gen Z’s strong commitment to environmental issues, shaping their food consumption habits. Seventy-seven percent of Gen Z consumers avoid products from countries with poor environmental standards. This environmentally conscious generation actively seeks out brands that align with their values, such as cruelty-free, eco-friendly, and sustainably sourced options. While these values don’t always match actual purchase behaviors—a phenomenon known as the "Say-Do Gap"—Gen Z demonstrates a willingness to pay a premium for sustainability. Products with multiple sustainability claims enjoy a 2.5 times higher sales lift compared to those with a single attribute.

To capture this market, food brands must not only embrace sustainable practices but also communicate them effectively. Transparent storytelling and "stacking" multiple claims, such as carbon-neutral and recycled packaging, can significantly enhance perceived value among Gen Z consumers.

Health consciousness is another hallmark of Gen Z's food preferences. According to NielsenIQ, this generation places a high value on natural, minimally processed ingredients, with 52% seeking nutrients that promote health and 40% prioritizing eco-friendly and sustainable foods. High-protein, low-sugar, and additive-free products resonate strongly with Gen Z. Functional foods like probiotics and protein-rich snacks are experiencing robust growth, driven by Gen Z’s focus on wellness and convenience.

As they enter new life stages, such as early adulthood, Gen Z’s food choices are expected to evolve further. By 2034, this cohort is anticipated to lead demand growth in categories like natural snacks and beverages that support an active lifestyle. The shift from indulgence to health-oriented products underscores a critical opportunity for brands to innovate with nutrient-dense, functional offerings.

Growing up with technology, Gen Z is the first truly digital-native generation. NielsenIQ highlights how online platforms, social media, and peer reviews play a pivotal role in their food purchasing decisions. A significant portion of Gen Z begins their shopping journey online, with 53% having used “buy” buttons on social platforms like Instagram and TikTok. However, brick-and-mortar stores remain important, accounting for nearly 50% of their grocery and mass merchandise purchases. This blend of digital and physical shopping habits makes Gen Z the ultimate omnichannel consumers.

For food brands, investing in seamless online-to-offline experiences is essential. Leveraging retail media networks, influencer marketing, and direct-to-consumer channels will ensure they meet Gen Z where they are, both online and in-store. Engaging Gen Z through interactive and personalized digital content, such as virtual taste tests or AI-driven recipe recommendations, can further strengthen brand loyalty.

NielsenIQ’s findings emphasize that Gen Z's influence on the food sector extends beyond current spending patterns. Their demand for innovation is reshaping product development, with an emphasis on sustainability and wellness. For example, plant-based and alternative proteins are rapidly gaining traction among Gen Z, who view them as healthier and more environmentally friendly options. As this cohort matures, their evolving tastes will likely drive further growth in lab-grown meats, precision fermentation, and other cutting-edge food technologies.

Moreover, Gen Z’s diversity adds another layer of complexity to food innovation. With only 10% of this generation hailing from North America or Europe, brands must consider regional variations in taste, dietary preferences, and cultural norms. Customizing products to reflect these nuances will be critical to capturing Gen Z’s global spending power.

The window of opportunity to win over Gen Z is now. NielsenIQ’s research underscores that this generation’s purchasing power and influence on household decisions are set to define the future of the food industry. To succeed, brands must align their strategies with Gen Z’s core values of sustainability, health, and authenticity, while delivering engaging omnichannel experiences. As Gen Z continues to disrupt traditional norms, the food brands that adapt and innovate today will thrive in the competitive landscape of tomorrow.