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Descartes’ Study Reveals 60% of Consumers Quite/Very Interested in Sustainable Home Delivery Services

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Descartes’ Study Reveals 60% of Consumers Quite/Very Interested in Sustainable Home Delivery Services

Descartes Systems Group (Nasdaq: DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, released findings from its 2023 Home Delivery Sustainability Report: Consumers Expect More! survey, which examined consumer sentiment of retailers’ sustainability practices around their delivery operations. The survey found that only 43% of consumers felt retailers were doing a good job of using sustainable delivery practices. Over 60%, however, indicated they were quite/very interested in environmentally friendly delivery methods. Additionally, 59% said they are willing to act if they’re not satisfied with retailers’ sustainable delivery efforts.

The study of 8,000 consumers across nine European countries, Canada and the United States provides retailers and logistics organizations with critical insights into the importance of sustainability in consumer purchase and delivery decisions and how perspectives vary by age and geography.

“Compared to our 2022 study, consumers are much more interested in the environmental delivery practices of retailers. They’re influenced by these factors when making purchasing decisions and willing to take eco-friendly home delivery options, which are often also lower cost delivery methods for retailers,” said Chris Jones, EVP, Industry at Descartes. “Retailers need to heed these important trends as they provide more ways to differentiate, grow revenue, create greater customer loyalty and reduce delivery costs.”

The study analyzes consumer sentiment around the sustainability of retailers’ delivery operations, how this is impacting purchasing decisions, how consumers evaluate retailer efforts in sustainable delivery, which goods are most impacted by sustainable delivery performance and how consumers want to receive goods. In addition, it delves into the changes in purchasing and delivery decisions that consumers are willing to make to help the environment. Lastly, it provides insight into how the importance of sustainable delivery varies by geodemographic factors, the influence of geodemographics on buyer behavior, the delivery decisions consumers are making, and consumer expectations of retailers’ sustainable delivery efforts for the future. To learn more, read the 2023 Home Delivery Sustainability Report: Consumers Expect More! report.

Learn more about Descartes’ environmental practices at Environmental Impact | Descartes.

food and drink

The Millennials Championing Change in the Food and Drink Industry

Millennials have a great potential to change our culture. For the food and drink industry, change is nothing new. New tastes and influences constantly turn over menus and products that reflect consumer demand. However, young people today are forcing the hand of manufacturers and restaurateurs. Demand for unique, varied, and stimulating food and drink is higher than ever.

Here, Electrix, a provider of electrical junction boxes for food and drink manufacturers, explores the trends that millennials enjoy and how it can help restaurants, bars, and stores get a competitive edge.

Boundary pushing

Millennials thrive on uniqueness, and seeking out new experiences is at the core of food and drink culture for this generation. 72 percent of millennials said that they would prefer to spend money on experiences over material things. Food and drink brands recognizing this shift in behavior are beginning to question whether they are selling a product or selling an experience.

To enjoy unique experiences, millennials will seek out opportunities to try new foods and drinks, exploring flavors that have been traditionally hidden in mainstream culture. In the US, international cuisine has seen accelerated growth. In fact, international cuisine is expected to outpace traditional food categories within the next three to five years, according to the Food Institute.

This is happening because the cuisine offers new experiences. Boundaries must be pushed if opportunities are to be found. This journey begins by finding a unique selling point of food and drink and understanding how to create an experience around it.

No option is not an option

Millennials demand choice, and brands that can offer variety are succeeding with millennial demographics. It shouldn’t be surprising. Young people today are familiar with choice: picking from thousands of movies on Netflix, browsing an expansive selection of nut milk in a local café, or debating how and where to eat their food. The latter has certainly been popularized during the pandemic.

Restaurants have not only seen the opportunity in food delivery, but lockdowns have forced restaurant-quality food to come to the customer, rather than the customer heading to the restaurant.

The trend of home delivery options is expected to grow. While in 2017, restaurant to consumer delivery in the US was valued at $11.5 billion, by 2020 it achieved $15.6 in sales. Projections suggest it will further grow to $18.5 billion by 2024. As home delivery options increase, proactive food and drink businesses that seize the opportunity will similarly experience growth. The choice to eat in, take out, or use delivery services is essential for millennials.

Choice isn’t just about convenience. Food and drink brands should curate offerings that reflect lifestyle choices. Does a food brand offer vegan alternatives or meet any other dietary requirements? Can a bar offer a selection of non-alcoholic drinks? Creating choice is creating inclusivity, and when looking for new food and drink options, this offering will give businesses a competitive edge.

Stimulating all the senses

Food and drink aren’t just for the pleasure of tongues. Today, millennials expect an aesthetics experience that they can share with friends and family on social media. In fact, ‘#Food’ has been tagged over 456 billion times on Instagram. ‘#Drink’ and ‘#Cocktails’ have been tagged over 47 million and 30 million times respectively. Millennials make up the main bulk of Instagram users, with those aged between 18 to 34 making up 62 percent of global users.

One survey found that 69 percent of US millennials in this age range took a photo of their food before eating. So, should those in the food industry be working to make their food look great as well as taste great? Absolutely!

Food and drink that appeals to all the senses are gaining ground, whether in restaurants or on grocery store shelves. Consider social media sensations such as Salt Bae, sprinkling seasoning over steak. The recent trend of baklava, tossing pistachio pastry into the air. Or Martinelli apple juice, which replicates the sound of an apple when the bottle is bitten. Each is exciting, unique, and goes down a storm on social media, building millions of views on platforms such as Instagram and TikTok.

Millennials are forcing the food and drink industry to be more than just connoisseurs of flavor. Value in other aspects must be recognized and actioned to encourage millennials through the door.

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Sources

https://www.cnbc.com/2016/05/05/millennials-are-prioritizing-experiences-over-stuff.html

https://foodinstitute.com/event/the-rise-of-international-cuisine-and-flavors-in-the-us/

https://www.statista.com/forecasts/891082/online-food-delivery-revenue-by-segment-in-united-states

https://www.statista.com/statistics/325587/instagram-global-age-group/

https://www.huffingtonpost.co.uk/entry/study-says-69-of-millennials-take-photos-of-their-food-before-eating_n_58b73078e4b0284854b39105

https://www.tiktok.com/tag/martinelli?lang=en