Gen Z Spends More for Snacks

Snacks are the new flex. Gen Zers are splurging on their grocery-store hauls to signal luxury, go viral online, and of course, treat themselves.

The Big Bite: Inflation may be starting to come down, but the cost of living is still out of control. So, young people — who can’t afford things like luxury handbags or nice cars — are looking to things like celebrity smoothies, tinned fish, and breakfast cereal as tastemaker items.

Beneath the Bag: Insider has the scoop on just how much Gen Z is spending on their grocery runs.

• A February McKinsey study found that Gen Zers and millennials plan to splurge more on groceries than on eating out, travel, and fitness.
• A June Bank of America study found that Gen Z spends more at premium grocery stores like Erewhon and Bristol Farms than any other generation.
• The spending is driven by a desire to eat healthier, with a YouGov poll finding that 70% of Gen Zers are willing to pay more for “high-quality foods.”

Last Taste: The uptick in grocery spending has been a boon for grocers — Erewhon made $171 million in profit last year and claimed to make 4x the amount of revenue per store than competitors (driven by digital creators hoping to go viral for their hauls). So, of course, celebrities are also getting in on the action, whether it’s collabing on $19 smoothies at Erewhon, hawking new brands like SmartSweets and Olipop, or launching a Lunchables competitor. With tastes changing, prepare for a massive amount of M&A in the snack space.

Go Tastier: Erewhon, so hot right now.