The demographic cohort, born in the mid-1990s to the mid-2000s, is beginning to emerge as a powerful consumer group.
As a result of this, coffee giant Nescafé believes it is a “crucial time” for brands and retailers to understand what makes them tick if, of course, they are to survive shifting tastes among their client base.
Gen Z demand
In its new Nescafé Azera Nitro-Generation report – which focuses on looking at the future of pubs – more than three quarters (78%) of age group said that the on-trade needs to make itself “more inviting” to customers who don't drink alcohol.
Nestlé channel lead Lynn Little believes publicans “must engage” with Gen Z to ensure its survival and dubbed the age category as the “customers of the future”.
“The pub industry has been hit hard in recent years, trying to retain regular customers and stay afloat,” explained Little.
“As such, we wanted to provide the on-trade with a deeper understanding of what the next generation of customer wants from its local.
“For pubs to stay in business, it’s important to evolve by meeting changing demands – that’s the key focus of the Nescafé Azera Nitro-Generation report.
“With expert industry insight and feedback from Gen Z, it’s a priceless tool to any publican.”
Furthermore, it was revealed that a third want seasonal and interesting non-alcoholic drinks, and one in five are seeking iced or speciality coffees.
While there is positive news that three quarters of Gen Z (77%) visit their favourite watering hole more than once per month (compared to 66% of Gen X) – concerningly, a third (33%) believe that pubs are becoming outdated.
It’s therefore not surprising that a significant majority (85%) of Gen Z said they are “looking for more” from their local, with more than half saying they would be more likely to visit if it offered live music, quizzes, karaoke and video games.
Confirming that 43% of Gen Z are more likely to order coffee in a pub if it offers cold coffee options – the release of the report also coincides with the promotion of Nescafé Azera Nitro coffee to the on-trade.
Generation Z is expected to reach 2.56bn individuals globally by 2020, accounting for 32.8% of the world’s population.