Eating Patterns in America: The State of the Consumer
The “typical” U.S. consumer and the households in which they live look very different today than they did 20 years ago. These changes are reflected across the spectrum of eating patterns in America today — who, what, when, where, how and why — and will continue to shape the future of eating in the years to come.
SMALLER HOUSEHOLDS HAVE WIDE-RANGING IMPLICATIONS
Single-person households in the United States are 38 million strong and growing — the highest in history — with 55 percent being adult only. The typical size of an American family is 2.5 persons per household, with more than one-quarter of American households with children headed by single moms.
Smaller households, in many cases, are a long-term choice with many adults choosing not to be married and/or have fewer children. This change in household composition has wide-ranging implications for retailers and manufacturers in terms of marketing, merchandising, new product development, packaging and positioning.
A MULTICULTURAL MOSAIC
By 2044, the U.S. Census Bureau projects more than half of all Americans will belong to a minority group, and by 2060, nearly one in five of the nation’s total population is projected to be foreign-born.
The Hispanic population has surpassed 50 million and accounted for more than half of the 27-million U.S. population increase in the last decade. Hispanics currently represent 18 percent of the total U.S. population. While Hispanics will be a very large and growing group, Asians are one of the fastest-growing ethnic populations, currently representing 8 percent of the U.S. population.
Further, the millennial generation is more diverse than the generations that preceded them, with 44 percent being part of a minority race or ethnic group. Even more diverse than millennials are the youngest Americans — those younger than five years of age. In 2014, this group became majority-minority for the first time, with 50 percent being part of a minority race or ethnic group.
SHRINKING MIDDLE CLASS IS PART OF THE NEW ECONOMIC NORM
The share of the American population that is considered middle income has been shrinking over the last four decades. In the past, those in the middle income group typically moved up into higher income levels, but the opposite is true now.
Declining or stagnant wages coupled with a growing income gap during the past 15 years has resulted in many families slipping out of the middle class.
If past trends continue to hold, it’s unlikely that recovery from the Great Recession will lead to a rebound in the share of adults in middle-income households. Since the middle class has historically fueled spending on everything from housing to cars to food purchasing, a smaller middle class has wide-ranging impact on the economy.
SHIFTING CHANGES CREATE OPPORTUNITIES
This overview presents just a few of the changing consumer dynamics that will shape the retail marketplace in the future — both near and long term.
Convenience store operators need to be aware of changes in consumer behaviors in order to modify their marketing tactics and strategies, and meet the needs and wants of today’s consumers.
If past trends continue to hold, it’s unlikely that recovery from the Great Recession will lead to a rebound in the share of adults in middle-income households. Since the middle class has historically fueled spending on everything from housing to cars to food purchasing, a smaller middle class has wide-ranging impact on the economy.