Millenials and Gen Z: Driving digital-first grocery shopping market

Photos © Adobestock

In 2024, the more home-centric environment drove dollar and volume growth for the fresh produce department at retail. Fresh fruit and vegetable sales reached a record high of $92.3 billion in 2024, according to The Power of Produce, a study from FMI – The Food Industry Association.

The study revealed “very mild produce inflation,” as fresh fruit prices increased 1.8% on a per pound basis, whereas unit prices rose 2.7%. Vegetable prices came down by about 1% on a per unit and volume basis.

Contributing to the $92.3 billion in sales were:

• Berries: $11.9 billion, up 7.4% from one year ago
• Tomatoes: $4.8 billion, up 3%
• Lettuce: $3.5 billion, up 0.5%
• Salad kits: $3.3 billion, up 2.5%
• Peppers: $3.1 billion, up 4.9%
• Cucumbers: $2.1 billion, up 2.6%

These numbers include field and CEA production.

Younger shoppers, particularly millennials and Gen Z, are driving significant shifts in the produce industry, says Rick Stein, vice president of fresh foods for FMI.

“Their preference for convenience, organic options and social media-driven discovery is reshaping how produce is marketed and sold,” he says. “Retailers have a tremendous opportunity to engage this audience through cross-merchandising, variety and seamless integration of digital and in-store experiences. By embracing these trends, we can not only meet their expectations but also cultivate a new generation of lifelong produce consumers.”

With 94% of produce shoppers actively using social media platforms, digital engagement, especially with younger shoppers, is essential.

YouTube is the top source of meal inspiration for both Gen Z (49%) and millennials (51%). TikTok rankings for meal inspo were 44% for Gen Z and 35% for millennials, while Facebook came in at 26% for Gen Z and 39% for millennials. Instagram was equal for the two generations at 34%.

Social media has proven vital for trying new foods as well.

More than half of Gen Z and millennials have discovered new fresh fruits and vegetables through social media, compared to just 11% of baby boomers. More than half of Gen Z and millennials also said they’ve “discovered new ways to enjoy or prepare fresh produce” through social media.

Beyond the screen

Preference for packaged items is far higher among Gen Z and millennials.

“Shoppers do have several ideas to improve pre-packaged satisfaction, including offering portion size variety and carefully weighing functional packaging needs with environmental sustainability,” the study revealed.

Millennials have a keen interest in produce sustainability. They regard fresh produce waste “as an issue and look for tips on shelf-life, storage and alternate ways of using the produce.” They’re also more likely to purchase organic fruits and vegetables and are more likely to want a balanced packaging protection versus waste solution. Millennials have an “above-average interest in knowing where the produce was grown, by whom, how far it traveled and how it was grown.”

More insights from The Power of Produce will be shared in the July/August issue of Produce Grower.

Methodology: The study, conducted in November 2024, provides survey insights from a nationally representative survey of 1,609 grocery shoppers who are 18 years of age or older and consume fresh fruit or vegetables.