Understanding Gen Zs as a Consumer Base for Food, FMCG, and Packaging Industry

Gen Z has emerged not just as a new consumer group, but as a market-defining force reshaping the future of the food, FMCG (fast-moving consumer goods), and packaging industries. With a population exceeding two billion and an anticipated global spending power of over USD 4.2 trillion by 2035, Gen Z’s influence extends beyond what they buy—it impacts how products are made, marketed, and delivered. This generation prioritizes values like sustainability, wellness, ethical sourcing, and digital transparency. They expect brands to deliver purpose, personalization, and convenience—all while being visually appealing and socially shareable.

Unlike previous generations, Gen Z's preferences are driven by authenticity and real-time interaction through platforms like TikTok and Instagram. They are heavily influenced by peer validation, short-form content, and creators over traditional advertising. The report outlines how industries must adapt not only to their current preferences but also anticipate the crossover with Gen Alpha to stay competitive. Brands that integrate agility, ethical transparency, and design-led thinking into their core will thrive. Those that fail to evolve will be left behind in a market dominated by speed, experience, and meaning.

Key Highlights:

• Economic Power & Influence
  • Gen Z’s spending power will exceed USD 4.2 trillion by 2035, with major impact in food and FMCG.
  • Nearly 50% of plant-based food category growth is driven by Gen Z alone.
• Values-Driven Consumption
  • 68% of Gen Z choose brands aligned with their personal ethics.
  • Sustainability, transparency, and health functionality are non-negotiable.
  • Willing to pay more for functional foods, clean-label products, and ethical packaging.
• Digital-Native Behavior
  • Discovery is led by short-form videos, influencer content, and algorithmic recommendations.
  • Social media is a commerce channel, not just marketing—content = conversion.
  • Traditional advertising is declining in impact; peer reviews and nano-influencers drive sales.
• Top Growth Categories (2025–2035)
  • Plant-based foods: from USD 38.4B → 70.0B
  • Functional beverages (oat, adaptogenic, fusion): USD 9.7B → 18.3B+
  • Snack packaging: USD 22.8B → 33.6B
  • Reusable food storage: USD 5.9B → 8.7B
• Packaging Evolution
  • Packaging is now a value signal, blending function, sustainability, and aesthetics.
  • Strong growth in smart labels, recyclable pouches, and reusable containers.
  • Packaging-as-a-service and loop models are gaining momentum.
• Experience Economy
  • Dining is no longer about food—it’s a social and visual experience.
  • Growth in smart equipment, modular kitchens, and interactive retail formats.
  • Equipment and display counters designed for aesthetics and content creation.
• Agility as a Competitive Edge
  • Challenger brands (e.g., Oatly, Poppi, Stasher) outpaced legacy players by entering early and aligning with Gen Z values.
  • Fast product refreshes, limited drops, and co-creation with influencers are now expected.
• Operational Pressures
  • Costs are rising across the board: logistics (+21%), packaging (+32%), smart equipment (+43%).
  • The cost of failure is viral—bad brand experiences are quickly exposed and shared.
• Preparing for Gen Alpha
  • Gen Alpha will amplify Gen Z’s preferences.
  • Brands must start designing for cross-generational appeal—especially in food, wellness, and packaging.

Strategic Implications for Brands:

• Embed sustainability, design, and transparency into the core, not as add-ons.
• Treat packaging, logistics, and content as strategic differentiators.
• Invest in modular, flexible systems that can evolve as preferences shift.
• Build with Gen Z, not just for them—co-creation, feedback loops, and authenticity are key.