Gen Z Is Undeterred by Sky-High Grocery Prices

The cost of groceries has soared in recent years, putting pressure on countless consumers. But one demographic seems undeterred by the sticker price: Gen Z Americans.

The youngest working generation is spending more on groceries than any other, according to Business Insider — not out of necessity, so much as a propensity for premium snacking. 

High Standards and Status Symbols

Gen Z consumers show an outsized willingness to shop at high-end grocery stores, and were slow to trade down to value supermarkets amid post-pandemic inflation, according to a recent Bank of America (BAC) report. Meanwhile, a McKinsey survey found that food topped the list of categories for which younger respondents were willing to spend up. 

What’s driving this trend? For one, consumers today tend to judge food by a different standard. Young shoppers in particular are prioritizing healthier options and embracing more climate-friendly diets that aim to reduce carbon footprint. According to a Whole Foods survey reported by BI, more than half (55%) of Gen Z shoppers are willing to pay more for sustainable groceries.

On top of that, food has evolved into a status symbol among younger generations. Gen Z consumers are increasingly opting for high-quality, health-conscious food and drink purchases over more conventional luxury items. This trend may be good news for grocers and economists alike, as it suggests that consumer spending could be well-positioned to weather these sky-high prices.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

Communication of SoFi Wealth LLC an SEC Registered Investment Advisor

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

SOSS24101602