Food and drink brands could be in for a £1bn bonanza in the next six months, with Gen Z consumers projected to spend big on both eating out and eating in, although keen pricing is likely to hold the key to unlock the most spend.
That is according to the latest Food & Drink Deep-dive Student Insight Report, which details findings from a comprehensive survey of 8,000 UK students in May by Unidays, the network that enables students and graduates to discover savings.
The main report, published in July, revealed that students were looking to spend £3.6bn in Q4 alone, but this study takes a deep dive into which industries will benefit the most.
It reveals that, on average, students intend to spend more than any other generation on meals out with friends, lunch, takeaways, and coffee breaks, and coming a close second to millennials for date night meals, dinner parties, and drinks with friends.
But as the generation most likely to rank price as the primary driver, students are particularly keen to find offers that help them get what they want for less.
Unidays food, travel, and leisure category lead Sarah Clifford said: “The unique combination of high spending and price sensitivity sets Gen Z apart from other generations.
“Whether it’s groceries, restaurants, fast food, or takeaways, they value lower prices over the ease of buying items in one place or making single transactions. Even those who rated convenience as higher said a student discount of 20% or more would be enough to sway them. It’s no surprise that loyalty schemes are used primarily for discounts and free items.”
Even so, affordability is not the only trend the report highlights. Gen Z is habitual when it comes to food and drink. The vast majority say they typically shop in the same place for groceries (81%), hot drinks (69%), fast food (68%), and takeaways (63%). This suggests Gen Z loyalty is hard-won, but it is worth the effort as it is also the generation most likely to splash the cash on meals and drinks during the winter holidays.
Clifford added: “Brands can’t underestimate the power of a great incentive. Gen Z presents a massive market opportunity but is also the demographic that values support the most.
“Targeting them when they’re young with rewards, deals, and discounts they crave not only gets the word out to build excitement but also keeps them coming back. From revision-cramming caffeine hits and grab-and-go meals to seasonal grocery hauls, tapping into key student moments will help brands win big.”
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