Gen Z, Millennials Willing To Spend on Wellness
A new Lifesum report demonstrates that the under-40 crowd is increasingly willing to cut back on perks like Netflix in favor of healthy food
Gen Z and Millennial consumers are prepared to scale back on non-essentials such as Netflix in favor of spending their hard-earned dollars on healthy food, according to new research from Lifesum, a healthy eating app.
The platform’s 2024 State of Healthy Eating and Well-Being Report found that despite increasing living costs, the majority of Gen Z and Millennials are willing to reprioritize spending on fashion (62%) and tech and gadgets (55%) to allocate more of their wallet share to healthier food. Lifesum also found that 37% are willing to cut down on online courses, 36% would ax streaming services such as Netflix and Hulu, followed by 34% who would trim travel spending. Thirty percent would reduce skincare and beauty spending.
“In this era of escalating costs, luxuries become dispensable, but a nourishing, balanced diet does not,” said Signe Svanfeldt, lead nutritionist at Lifesum. “While entertainment and gadgets have their appeal, it’s healthy food that Gen Z and Millennials prioritize in their hectic lifestyles.”
The well-being and healthy eating app points out that for young consumers, healthy eating is now considered an affordable indulgence compared to other experiences, such as traveling.
Here for a Long Time, Not Just a Good Time
Investing in nutrition at a young age can reduce healthcare costs down the line, which looks to be important for those in the 20 – 40 age range; one study suggests that 40% of Gen Z and Millennials expect to live to 100.
“As the cost-of-living crisis continues, health is becoming a significant focus and reflects a growing desire for self-care and responsible spending,” Signe said.
Using food as fuel to hit health objectives is another area that young consumers have embraced, with 73% consuming functional foods to boost energy levels, 61% to improve mental well-being and 40% to stimulate better sleep.
Protein powders may be king of the nutritional aisle, but new products have found their way into consumers’ shopping carts, both in-store and online. From adaptogenic sparkling tonics, “clean caffeine” coffee alternatives, mushroom-infused wellness products for longevity and energy to CBD oils and gummies for recovery and relaxation, startup food and beverage brands are infusing ingestibles with good-for-you nutrients that cater to Gen Z and Millennials.
Knowing that these consumer cohorts are looking to take a bite out of health, brands have begun leaning into ‘Little Treat’ culture, which gained steam on TikTok last year and continues to be in practice.
For those uninitiated, the TikTok trend promotes the idea of buying yourself a little treat, typically a small snack or a special drink, like a Matcha latte. With wellness-conscious consumers on the rise, even those with a sweet tooth can easily find a healthier alternative to their favorite treat with brands like Smart Sweets, Unreal or Justin’s.
Overall, Lifesum’s findings indicate that the stage is set for emerging food and beverage brands to make their mark on an evolving segment of consumers, especially considering that the functional and natural health food market size is projected to increase to $38.5 billion by 2033.
