As online grocery subscriptions gain in popularity, Generation Z is leading the charge by a considerable margin.
PYMNTS Intelligence’s “How the World Does Digital” study surveyed more than 67,000 consumers across 11 countries accounting for nearly half the world’s GDP about their digital habits.
The results revealed that 15% of consumers use online grocery subscriptions each week, with that share nearly doubling to 28% for Gen Z. Similarly, a comparable 25% of millennials engage with these services each week. In contrast, only 12% of Generation X and just a 4% share of baby boomers do the same.
As such, Gen Z consumers are 10% likelier than millennials, 133% likelier than Gen X and a whopping 525% likelier than boomers to take advantage of these services.
Businesses are increasingly trying to capture consumers’ grocery subscription spending. In April, Amazon revealed the rollout of a new service available at over 3,500 locations across the U.S. The service offers unlimited free grocery delivery on orders over $35 to Prime members for an extra $9.99 per month, while Electronic Benefits Transfer (EBT) recipients can subscribe for $4.99 per month.
“For customers who prefer to purchase their groceries more regularly — whether ordering delivery or pickup — this new grocery benefit will save them even more time and money on our vast selection of nearly 100,000 grocery items,” Tony Hoggett, senior vice president of worldwide grocery stores at Amazon, commented at the time.
In March, Target launched its new Target Circle 360 paid membership, offering free same-day delivery from the retailer’s on-demand delivery aggregator Shipt, which includes grocery merchants, as well as free two-day shipping from Target.
“The new Target Circle experience was designed to flex and grow with our guests to deliver more value and ease — no matter how they choose to shop with us — so every visit feels personal, rewarding and made just for you,” Cara Sylvester, the retailer’s executive vice president and chief guest experience officer, said in a statement.
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