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Millennials now make up nearly 25 percent of American consumers. With $200 billion in combined spending power, the millennial generation has proven to be disruptive, especially when it comes to their spending habits in relation to food. According to a report issued by Rabobank, the millennial generation represents a multicultural cohort which is health conscious, more experimental in their food choices and willing to spend a greater share of their income on food.
Millennial partialities to food labels such as organic, local, free-range and grass fed have the millennial host averaging roughly $12 per guest for the typical backyard BBQ. For a party of ten, that amounts to over $120. In 2017, millennials will officially represent the age group with the largest spending power, accounting for nearly 30 percent of the U.S. population. "This is, largely speaking, a price inelastic group of purchases, which has massive impact on their food and beverage preferences" says Ross Colbert, Head of Food and Agribusiness Research at Rabobank.
When it comes to grass fed beef, or organic beef in general, beef represented the main driver of barbeque costs due to a 40 percent price increase from 2010 to 2015. Only in 2016 are we starting to see the cost of standard beef drop back down. While the cost of standard beef continues to fall, the grass fed beef more frequently purchased by millennials continues to increase. This does not seem to be an issue for the millennial generation. In fact, almost 70 percent of millennials report that knowing the origin of their grass fed beef and organic meats is important in their purchasing decisions.