Context and overview

At present, Gen Z – individuals, born between 1997 and 2012, make up 30% of the global population, hold $420 USD in yearly spending power and will likely grow to be the largest consumer demographic by 2026 (Byondxr, 2024). 

In terms of hospitality and food, Gen Z are already the largest and fastest growing consumer demographic. Uniquely, Gen Z’s power extends much further than their own sending capabilities and this cohort of individuals wields a large influence on the overall spending habits of all generations. For this reason, understanding the trends and influences of How Gen Z engages with food, drink and dining is essential in predicting the needs of the industry. 

 This executive summary provides an overview of current literature regarding the key food, drink and dining trends among Gen Z. The goal is to provide the industry with insights surrounding how food and drink will evolve with the emergence of this generation.

Key insights 

 Health and Wellness Focus

Raised witnessing yoyo dieting and extreme food practice endured by parents and set by the media, Gen Z is viewing food and drink in much more neutral and measured way. This being said, Gen Z is still seeking foods that enhance their physical and mental well-being whilst opposing the drastic trends which previously bolstered the industry. 

•  65% of Gen Z consumers prefer diets and food choices that focus on long-term health benefits rather than weight loss or short-term fixes (Mintel, 2023).

• Only 22% of Gen Z reported that they had tried a restrictive diet in the past year, compared to 38% of Millennials and 51% of Gen X. (IFIC, 2023)

• 57% of Gen Z say that they focus more on improving their relationship with food than on achieving a specific body image (Food institute, 2022) 

Health still plays an important role in Gen Z’s purchasing choices:

•  41% of Gen Z respondents in the UK consider diet to be an important part of maintaining mental health (YouGov, 2021).

• 74% of Gen Z are more likely to buy products that are perceived as healthy (Nielson, 2023).

• 71% of Gen Z actively seek out snacks that are low in sugar, and 64% look for high-protein options(YouGov, 2022)

Despite an evident shift toward having a measured view on foods influence regarding physical and mental health, health food trends are still heavily popular with a large proportion of gen Z. 

• 72% of Gen Z consumers said they believe gut health is important for overall health, compared to 61% of Millennials and 47% of Gen X (Food institute, 2023)

• Subsequently, 50% of Gen Z report prioritising including gut friendly probiotics into their diets in the form of yogurt, kombucha, and other fermented foods (International Food Information Council, 2023). 

• 37% of Gen Z claim to be very concerned with eating foods that support healthy blood sugar levels(NPD Group, 2023).

• 55% of Gen Z, a higher percentage than any other age groups, are choosing to drink beverages with functional ingredients like adaptogens, electrolytes, or probiotics (Mintel, 2022). 

Sustainability and Ethical Consumption

Sustainability is a core value for Gen Z. younger consumers are favouring brands that demonstrate social and environmental responsibility. Gen Z are even willing to spend more on products which do so. 

• 66% of young people actively seek out brands that align with their environmental values, and 73% are influenced by a business’s sustainability practices when making purchase decisions(Deloitte, 2023)

• Most importantly, 70% of Gen Z are willing to pay more for sustainable products (McKinsey, 2023)

• 61% of UK Gen Z consumers consider ethical sourcing an essential factor when making purchasing decisions. (Food Ethics Council, 2023).

• Moreover, 72% of UK consumers aged 18-24 say they are more likely to choose restaurants and cafés that feature local or sustainably sourced ingredients (Sustain, 2022).

Gen Z’s desire for sustainability does not just extend to farming practices or animal welfare, they are also invested in eco-friendly packaging:

•  66% of Gen Z are willing to pay a premium for products that are part of a circular economy(Ellen MacArthur Foundation, 2022). 

• 68% of UK Gen Z consumers actively avoid products with excessive plastic packaging, with many preferring brands that offer reusable or biodegradable alternatives (YouGov, 2022).

• 54% of UK consumers are more likely to choose a food delivery service that uses sustainable packaging and offers an option to reduce packaging waste (SRA, 2021). 

The affordability of buying sustainably still remains a deciding factor for many young consumers even when their values align with sustainable practices.  

• 58% of UK Gen Z respondents stated that they would buy more sustainable food options if they were more affordable, highlighting the difficult relationship between sustainability and cost (Kantar, 2023). 

• 53% of UK Gen Z consumers would opt for more expensive sustainable meat alternatives, but only if the price difference was not more than 20% higher than conventional products (Food Navigator, 2022).

Plant-Based and Alternative Proteins

There is a significant shift toward plant-based diets, driven by health concerns, ethical beliefs, and environmental awareness. 50% of Gen Z believe that plant-based diets will be the future of food and sustainability (The Good Food Institute, 2022)

•  27% of UK Gen Z identify as flexitarian or vegan, while 60% express an interest in trying more plant-based foods (Mintel, 2022).

• 58% of Gen Z reported buying plant-based food products in the past year, compared to just 47% of Millennials and 33% of Baby Boomers (Plant Based Foods Association, 2022).

•  Moreover, 30% of UK Gen Z consumers have reduced their meat consumption (Mintel, 2022). 

• Furthermore, the global plant-based food market is projected to grow by 27% by the end of 2025, with sales reaching approximately $74 billion (Kantar, 2023)

Despite this interest in and willingness to explore plant-based options, there are a growing number of Gen Z individuals questioning whether plant-based foods and alternative proteins are truly healthy options. Many have growing concerns plant-based foods are marketed to consumers as a healthier alternative but remain a more heavily processed alternative. 

Convenience, Experience and Eating Out

Young people are not be eating out as frequently and 55% of Gen Z said they cook at home more often than dine out (IFIC, 2022). Despite this, Gen Z values convenience and prefers to opt for quick meal solutions that do not compromise on quality.

The role of delivery and ease:

• 63% of Gen Z prefer to order food online, and 78% use food delivery apps regularly (Technomic, 2022).

• 55% of Gen Z would choose a restaurant based on the availability of delivery or takeout options(Doordash, 2023)

• 75% of Gen Z order food online at least once a week, with 40% of those orders coming through delivery apps (Statista, 2022).

Eating out:

• 53% of Gen Z report eating out once a week or less, compared to 35% of Millennials and 22% of Gen X, who report eating out more regularly (Statista, 2023).

• 65% of Gen Z prefer restaurants that offer unique and memorable experiences (NPD Group, 2023) 

• 45% of Gen Z said they choose to go to restaurants for the experience rather than the food itself (KPMG, 2023)

• 59% of Gen Z prefer to dine at fast-casual restaurants, providing healthier and customisable options instead of traditional fast food chains (Technomic, 2023).

• Younger consumers are requiring affordability and value, 52% of Gen Z said that price is one of the most important factors in deciding where to eat out (The Harris Poll, 2022). 

Evolving Drinking Culture

Gen Z is reshaping drinking culture, leaning towards moderation and alternative beverages. Whilst Gen Z are looking for experiences, they no longer associate drinking with being an integral aspect of this socialisation and therefore are opting for alcohol free options. 

Gen Z may be choosing to drink less alcohol but they have not given up socially drinking:

• 50% of Gen Z prefers non-alcoholic drinks when socialising with 46% stating they are fully comfortable doing so (The National Institute on Alcohol abuse and Alcoholism, 2022) (YouGov, 2023). 

• 23% of Gen Z consumers have tried non-alcoholic spirits or cocktails, indicating a shift in drinking preferences (IRI, 2023) 

• As a result, Sales of non-alcoholic beverages surged by 33% from 2020 to 2023 (Mintel, 2023). 

• Young people drinking at least once a week has drop significantly. 31% in 2005 to 17% in 2022with many young people reporting only choosing to drink on special occasions (BSA, 2023)

• The frequency of binge drinking has also decreased, with just 13% of Gen Z reporting binge drinking in the past week in 2022. This rate was 26% in 2007. (Office for National Statistics, 2023).

• 61% of young people are aware of the connection between alcohol consumption and mental health issues, which has contributed to their hesitance to drink excessively (Youth Alcohol Policy Conference, 2019).

When young people are drinking, the types of alcoholic drinks chosen also reflect moderation:

• 35% of Gen Z say they prefer to opt for smaller portions of higher-quality drinks, like craft beers, cocktails, or fine wines (Nielsen IQ, 2023). 

• In 2023, sales of craft beers and premium spirits among Gen Z in the UK saw a 25% increase, according to (Nielsen IQ, 2023)

• 42% of Gen Z report preferring low-ABV (alcohol by volume) beverages (Drinkaware, 2023)

Digital Engagement and Social Media Influence

Gen Z heavily relies on digital platforms for food discovery and engagement, with social media being a primary influence on their purchasing decisions. Not only does social media expose this generation to a range of information regarding their food, but it also has expanded consumer expectations surrounding choice. 

•  60% of Gen Z consumers are exposed to new food products through Instagram and TikTok(Statista, 2023).

• 70% of Gen Z use online reviews and social media to inform their dining choices with 46% having ordered food directly from a social media platform in 2023 (Yelp, 2023).

• 52% of Gen Z prefer ordering via an app or website rather than interacting with a waiter at the restaurant (Toast, 2023).

• 66% of Gen Z prefer paying for their meals via digital wallets or apps, and 44% are more likely to dine at restaurants that offer a convenient mobile ordering experience (Square, 2022).

Recommendations from this review

As the food and beverage landscape evolves, understanding Gen Z’s preferences is essential for companies aiming to thrive in this competitive market. By aligning product offerings with their values of health, sustainability, digital engagement, convenience, and a modern approach to drinking culture, businesses can effectively capture this demographic.

• There is ample opportunity for brands to consider developing functional foods, gut-friendly or plant-based options, personalised food options and products fortified with vitamins and minerals.

• Increase the number of convenience- orientated options available, whether that be snackingoptions, take away or delivery services or digital integrations to improve efficiency. 

• Brands should transparently communicate the health benefits of their products but be cautious to ensure sweeping claims of wellness do not come across as using health as a marketing ploy. 

• Companies must enhance transparency in sourcing and packaging, adopt sustainable practices, and communicate their efforts effectively to resonate with this demographic.

• Food brands and restaurants should consider expanding their plant-based offerings and clearly communicate the benefits of alternative proteins to engage this audience.

• Companies should consider investing in e-commerce platforms, enhance delivery options, and innovate in ready-to-eat meals and snacks.

• Brands and restaurants should develop a diverse range of non-alcoholic and low-alcohol beverages, including flavoured sparkling waters, mocktails, and health-focused drinks. 

Questions for consideration 

There remain many questions for the industry to address as businesses attempt to accommodate Gen Z’s preferences. 

• With the frequency of micro trends and niches within the industry, will the trends emerging have long-term, sustained popularity with young people?

• Is there a significant disconnect between the food and drink wants of Gen Z and older generations or as a collective are we seeing a population wide change in behaviour? 

• As Gen Z ages and grows into their full consumer potential and wealth will we see these trends change? 

Report by Lexie Cook, EP Business in Hospitality. 

If you would like to contact EP Business in Hospitality in regards to this report, please email lexie.cook@epmagazine.co.uk