They’ve been dubbed “digital natives” because they’ve never experienced life without the Internet, and they can research and access almost any product they want from the palm of their hand. They’re concerned about the environmental and social impact of purchasing decisions—more so than other generations—and choose brands that support sustainability and ethical practices. And Gen Zs have grown up watching TV cooking shows, so they’re open to trying different foods and exotic flavors.

Of course, not all Gen Z shoppers are alike, and there are strong differences in the Gen Z cohort based on region, background, income level and many other variables. While they have not yet reached their full economic potential, their spending power is already estimated at $360 billion in the United States alone, reports the BBC. They’re a segment of shopper that retailers can’t ignore—and should in fact start catering to. As the purchasing power of these young consumers grows, c-store distributors are sourcing and developing products to help retailers meet their needs.

What Young Consumers Want

Today’s young consumers are avid readers—of food labels. More than previous generations, they’re searching for products containing fewer ingredients and ones that they recognize and perceive as wholesome, and they shy away from synthetic additives or artificial flavors. A survey by the International Food Information Council found that Gen Z prefers products labeled “natural” (46%), products that have “clean ingredients” (34%) and products that are “organic” (28%). Items that are plant-based, carbon neutral and have a small carbon footprint are also desirable.

Gen Z shoppers are looking for nutrient-dense foods, reported Brad Helmer, executive vice president of business development for KeHE, a natural foods wholesaler with 19 distribution centers across North America.

“In general, these consumers are eating more frequently—five to six times a day,” Helmer said. “They’re seeking things that are novel, support their dietary needs for wellness, have clean labels and support their beliefs about the world [regarding cause-related issues and sustainability].”

While U.S. consumers of all ages say they want to consume less sugar, Statista reports that Gen Z is the most likely generation to actually do so, with 29% saying they avoid sugar entirely.

“One of the trends we identified was a ‘wellness wave.’”

Proprietary research by CStoreMaster, a regional distributor based in Alabama, revealed a “significant 11.6% reduction in total sugar per selling unit in the hydration and energy drink categories, so we focus on low-sugar hydration, energy drinks, kombucha and other pro- and prebiotic drinks,” said Sharan Kalva, president of CStoreMaster. “Additionally, we have observed a 3.5% increase in protein per selling unit and a 6.4% reduction in sugar per selling unit.”

Gen Z has distinct eating preferences in other ways as well, said Jon Cox, vice president of retail foodservice for McLane, a Texas-based wholesale supply company. “They’re more accepting of eating food in non-traditional settings—like food trucks and convenience stores—which presents tremendous opportunity for the industry.”

Drink Demands

Younger shoppers think differently about drinks, too. The U.S. Department of Agriculture reports that Americans consumed about 29 gallons of milk per person annually in 1975, but by 2021, that figure had dropped to 16 gallons. Many consumers now buy non-dairy milk alternatives—such as those made from oats or nuts—which have less calories, cholesterol and saturated fats. Plus, many consider plant-based alternatives to be more environmentally friendly, requiring less water to produce and generating a smaller amount of greenhouse gases. Statista forecasts the alternative milk category to grow 9% each year through 2027.

Some analysts have dubbed Gen Z “the sober generation,” because members are consuming fewer alcoholic beverages than previous age groups, Mintel reports. Gen Z has the highest usage of low- and non-alcoholic drinks, peaking at 64% for 18–24-year-olds. Statista Consumer Insight claims that 18-20% of Americans between 21-28 years old say they regularly drink beer, wine or spirits, while Millennials, those born between 1980 and 1994, have a higher alcohol consumption rate for beer (31%) and wine (30%).

Gen Zs will often reach for a functional beverage, which can fit into one of three categories, according to Publicis Sapient, a Boston-based consultancy. The first group contains beverages like green tea, green juice and coffee, which are naturally derived. The next category is enhanced beverages with added ingredients, like vitamins, electrolytes, antioxidants, potassium and even CBD. The third category features drinks that claim to produce a desired outcome, such as smoothies designed to help improve sleep or digestion.

But few consumers are willing to sacrifice flavor for function. Mintel reports that consumers of all ages say the importance of flavor exceeds that of function, with 43% reporting that they’re more likely to try a new drink based on its appealing taste rather than functional benefits.

How They Snack

Rich Products, a multinational food company based in Buffalo, New York, noted the importance of Gen Z consumers and other health-conscious eaters of all generations in its MegaTrend Report, created this year for convenience retailers.

“One of the trends we identified was a ‘wellness wave,’” said Elizabeth Sommer, customer marketing manager for Rich Products. “Consumers are expanding their definition of wellness and considering all six dimensions of wellbeing: physical, emotional, financial, spiritual, social and environmental.”

Sommer also said there’s been an increase in demand for plant-based and gluten-free options. “Currently, c-stores are the No. 1 foodservice outlet for snacks. Operators should consider adding these desirable offerings to accommodate younger consumers,” Sommer said. “According to Datassential, 25% of Gen Z is extremely or very interested in better-for-you pizza options, and 40% of consumers are likely to eat an entirely plant-based pizza or flatbread menu offering.”

To that end, Rich’s has 13 options in its plant-based pizza and flatbread crust line, including cauliflower, broccoli, zucchini and sweet potato options, as well as a gluten-free Detroit-style pizza crust that can be baked straight from frozen. The company also offers vegan cookie dough in four flavors and a seven-inch cauliflower pita pocket for c-store sandwich programs.

In addition to sourcing products, food distributors also have developed their own branded programs to help retailers cater to young adult shoppers.

Gen Z shoppers … are twice as likely as other age groups to purchase 10 or more items on a single store visit.

“Our category managers are always on the lookout for items that meet the needs of various types of consumers,” said Erika Cottrell, chief marketing officer for Harbor Foods, the largest independent distributor on the West Coast. “In addition to items from existing or new vendors, we have our own Mountain Fresh brand, which features a wide variety of meal and snacking solutions.”

Along with fresh grab-and-go foods, Mountain Fresh offers a wide range of snacks—nuts, dried fruits and trail mixes—in resealable stand-up pouches. “The demand for our Mountain Fresh line is growing as consumers become more comfortable with thinking about c-stores for better-for-you options,” Cottrell said.

At McLane, the Central Eats brand provides grab-and-go items, like salads, cut fruit and parfaits, and “our Emerging Brands program allows retailers to search for products by values, such as eco-friendly, handmade, small batch and dietary preferences, including dairy-free, gluten-free, vegan, keto, certified organic and non-GMO,” said Cox.

“We’ve conducted research on generational buying trends and know that Gen Z wants clean products with all natural and real ingredients,” he added. “But product origin and ingredient traceability are also important.” 

Gen Z’s interest in health and whole-body wellness is also prevalent in HBC, said Kristen Thaler, category manager at McLane.

“Aquaphor and Coppertone are popular brands and have products with limited ingredients and that support multiple needs,” she said. “Though not specific to Gen Z and Millennials, overall vitamins and supplements are the top category in health, beauty and wellness.”

Looking Ahead to Alpha

Gen Z shoppers love convenience stores and are twice as likely as other age groups to purchase 10 or more items on a single store visit, according to NACS Convenience Voices data. They are also more likely to use a delivery service, such as 7NOW, DoorDash or Instacart among others, to get c-store products delivered to them.

And you can’t ignore the up-and-coming Gen Alpha generation, comprised of babies born between 2010 and today, who are following in Gen Z’s consumer footsteps. Over the next six years, the spending among the current youngest generation is predicted to grow three times faster than that of previous age groups, according to Circana.

Already those kids are making an impact. Morning Consult surveyed Gen Alpha’s parents (most of whom are Millennials), who said their offspring, aged 14 and under, influence household purchasing decisions, especially in the areas of food and beverage. Plus, more than 80% of parents indicated that their 5 to 12-year-old kids request a specific restaurant “often” or “sometimes.”

Engaging with these young, but influential consumer groups is already paying off.

“We observed a 7.5% increase from Q1 2023 to Q1 2024 in our better-for-you snack category, and we project that by 2027, that category will constitute at least 20% of the entire snack market,” said Kalva of CStoreMaster. “It’s our mission to offer cost-effective, better-for-you options, ensuring that every consumer segment can enjoy healthier choices.”