Snackonomics: How to Win Over Generation Alpha

Generation Alpha

Generation Alpha is poised to reshape the snacking industry, and snack bars have emerged as one of their preferred choices. These young consumers, are increasingly healthy- conscious, emphasizing balanced nutrition and convenience. Nearly, 40 % of them aged 2 to 5 are already making independent snack food choices, signalling a future where convenience and indulgence are carefully balanced. Moreover, over 80 % of Gen Alpha parents have reported that their kids specifically request certain food and snack brands, underscoring the influence of these young consumers. Snack constitute a significant portion of their caloric intake, and over 40% of parents desire more snack options tailored to kids aged 3 and older. Here, we delve into the key aspects of Generation Alpha and how to effectively market to this unique demographic.

Introduction

Generation alpha or Gen A terminology was generated from a 2008 survey report conducted by Australian Consulting agency McCrindle Research. Generation Alpha, also known as Gen Alpha, is a remarkable cohort that began its journey in the same year (2010) the first-generation iPad was released in, Instagram took the world by storm, and the word “app” was declared the word of the year. Born to their millennial’s parents, Gen Alpha are considered to be born between 2010 and 2025. They are characterized by their immense size, global connectivity, and access to material resources, promises to leave an indelible mark on the world and live longer than former generations.

A Digital Age Upbringing

Generation Alpha has been raised in an era where screens dominate their daily lives. Referred to as “screenagers,” they spend a significant amount of their time engaged with digital devices. In the United States, for example, tweens aged 8-12 consume an average of 4 hours and 44 minutes of screen time per day for entertainment, a number that surges to an average of 7 hours and 22 minutes for those aged 13. This digital immersion sets the stage for innovative marketing approaches.

A Lifelong Learning Journey

Their formal education is unparalleled in history, with an estimated 1 in 2 Generation Alphas expected to attain a university degree. They are likely to spend more time in education, delaying their entry into the workforce. This delay may place them behind financially, but it also equips them with diverse skill sets. Gen Alphas will find themselves in emerging fields such as cyber-security, app development, and cryptocurrency. They are the quintessential lifelong learners, constantly switching careers and embracing entrepreneurship.

The Aspirations of Gen Alpha

Generation Alpha boasts distinctive aspirations. A staggering 82% can’t wait to have their own money to make independent purchases, and 46% dream of working outdoors when they grow up. They possess a strong desire to contribute positively to the world, with 59% aspiring to work in roles that save lives, and 51% seeking positions where they can leverage technology to make a difference. Notably, a significant 63% aim to work in roles that contribute to saving the planet, with 67% of 6-9-year-olds emphasizing environmental preservation as their primary career goal.

Changing Life Milestones

Compared to previous generations, Gen Alpha’s journey through life will feature delayed milestones in areas such as work, marriage, and parenthood. They may become parents at an earlier age than their predecessors, in part due to a biological limit on rising parental age. Smaller families are expected to become the norm, and the pursuit of both a family and a career will be paramount. This delay in major life events and the extended educational period provides opportunities for marketers.

Digital Natives with a Heart for Good

Despite being digital natives, Gen Alphas prioritize personal connections. They value their digital devices but understand that family and friends are paramount. A notable 66% express a preference for buying from companies committed to doing good in the world. Their affinity for the outdoors also endures, with a desire to equally split their time between indoor and outdoor activities.

Influence of Influencers

Influencers play a pivotal role in shaping Gen Alpha’s preferences. Over half of Gen Alpha respondents express a desire to purchase products endorsed by their favorite YouTube or Instagram influencers. Interestingly, influencers have surpassed family members in influencing children’s buying habits. A significant 14% of Gen Alphas wish for influencers to establish their own retail outlets. This shift necessitates a strategic multichannel approach by brands, focusing on the right channels and fostering seamless transitions from social media to e-commerce platforms. The rise of influencers also calls for robust influencer marketing strategies.

Shopping Preferences

While online shopping has surged, in-store purchases remain influential in the lives of Gen Alpha. They envision a future where technology, such as Programmatic Commerce™, will automate orders based on their preferences. Nearly half of Gen Alphas want their orders delivered by robots or drones. Balancing physical retail experiences with innovative solutions is crucial for brands seeking to engage this demographic. Businesses should also consider the continued digitization of their products and build voice-activated shopping solutions, recognizing that voice technology is gaining prominence. The future may even witness screenless interfaces through brain-computer interfaces (BCIs).

Brand Affinity and Family Dynamics

Generation Alpha demonstrates strong brand affinity, particularly when it comes to their preferences in food and entertainment. Parents report that their children often request their favorite brands in these categories by the age of 7. Apps like TikTok and Snapchat are popular among teens, making influencer marketing on these platforms essential. Gen Alpha’s affinity for food trends, especially those popularized on social media, opens up opportunities for innovation in children’s menus. Diverse and global flavors are becoming more appealing to this generation, reflecting their exposure to a multicultural world.

Parents and Tough Conversations

Parents are instrumental in Gen Alpha’s lives, both as influencers and educators. Many are initiating challenging conversations about issues like race, gender norms, and politics with their young children. They are opening bank accounts for them early, emphasizing the importance of saving for the future and even supporting their children’s education. It is a generation where parental involvement is significant.

A Diverse Palate

Raised by Millennial parents, Gen Alpha’s palates are more adventurous, tuned into social media food trends, and open to global flavors. This sets the stage for more diverse and sophisticated dishes on children’s menus. Sauces, providing opportunities for flavor innovation, are particularly attractive to kids who love to dip their foods.

Tech- Savvy and Entrepreneurial

Coming from Millennial parents, Gen Alpha is growing up in an environment that fosters tech-saviness and entrepreneurship. They are more likely to embrace technology and create their own career paths, setting the stage for a future marked by innovation and change (Romero, 2017).

Conclusion

In summary, Generation Alpha is a unique and influential demographic that is redefining the future. To effectively market to this generation, businesses should adapt to their aspirations, values, and digital immersion while embracing innovation, inclusivity, and sustainability in their strategies. As they grow and develop, Gen Alpha promises to shape the world in their own distinctive way, making them a compelling target audience for businesses worldwide.

References:

Wunderman Thompson Commerce, 2019. Generation Alpha: Preparing for the future consumer

Morning Consult, 2023. A Brand’s Guide to Gen Alpha

McCrindle Research, 2020. Understanding Generation Alpha

Datassential, 2023. The ABCs of Gen Alpha

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