When it comes to the confluence of our Digital Lifestyle and Aging of the Population investment themes, this recent article from eMarketer hits the nail on the head:
A June 2018 survey by the International Food Information Council (IFIC) Foundation in collaboration with AARP Foundation shed more light on the digital grocery buying behavior of older adults (those 50 and older). They found lower levels of activity than Bizrate Insights did: 17% of respondents said they had ever bought groceries online and picked up in-store, while 17% had ordered prepared food from a meal delivery service, 16% had bought groceries online for delivery and 10% had ordered from a meal-kit delivery service.
Now, many discount the potential of the Baby-Boomers shopping online, particularly when it comes to groceries. What we always point out in our thematic investment strategies is pain points bring about changes in behavior, and in this case, it will be the lack of mobility many Boomers will confront. Whether they like it not, they will be forced online to order the groceries they need:
The study also found that these shoppers who buy food online fall into two distinct groups: high-income consumers who like convenience and those with mobility issues for which shopping digitally is more of a necessity. In many ways it makes sense that older consumers who may not drive or who may have trouble carrying groceries would take advantage of online grocery delivery if they could. In a June 2018 Adobe survey, more US internet users ages 71 and older had shopped online for groceries in the past year than those ages 53 to 71 (22% vs. 18%).
Lastly, there will be the spillover effect on the younger generations heading online to make sure their friends and family members have the groceries they need. Think about is, what’s easier, heading to the grocery store and shopping for groceries and delivering them to your family member or logging into Amazon Prime and reordering your last shipment?