Go beyond mimicking
In 2010, 28 percent of U.S. households were single-person households, according to the U.S. Census Bureau. And contrary to popular belief, this market is not a homogenous one. Instead, it can be separated into two major groups: millennials under the age of 25, and people 50 years old and older.
Citing geographic information system company Esri, Chicago-based Euromonitor Internationals 2013 \"Downsizing Globally: The Impact of Changing Household Structure on Global Consumer Markets\" report states that young singles mostly are well-educated professionals just beginning their careers and living in some of the largest U.S. cities. Older singles, meanwhile, often subsist on low fixed incomes and live in subsidized rented apartments in high-rise buildings.
\"And contrary to what most people think, that image of a young person – just out of college, who is working and living alone – does not make up the majority of single-person households in the U.S.,\" states June Jo Lee, vice president of strategic insights, The Hartman Group, Bellevue, Wash. \"Instead, the majority of single-person households are made up of individuals who are 65 years old or older.\"
Shoppers are experimenting
Regardless of generation, consumers in single-person households as a whole exhibit surprisingly similar shopping habits. The Euromonitor report says single-person households tend to have a steady source of income with no family responsibilities, allowing them a high potential for spending on discretionary items.
Without the responsibility of shopping for multiple individuals, many consumers living in single-person households have the flexibility to cater to their food whims and desires, often allowing them to be more experimental with the brands, flavors and the categories they try, Jo Lee says.
However, when choosing a store brand food or beverage, millennial singles are not interested in purchasing a product that simply mimicks the national brand, states Jim Wisner, president of Libertyville, Ill.-based Wisner Marketing Group. Instead, they are much more interested in small splurges – such as buying a product that has \"entertainment value\" (a new flavor or ingredient, or interesting packaging). Shopping for food is much less a functional excursion than it is a source of fun discovery for singles.
And millennials, more than any other single demographic, crave food variety.
\"They are afraid of being bored with their meal or getting in a food rut,\" Jo Lee says. \"They have the expectation that they need to eat something new for every meal.\"
Older consumers living in single-person households, meanwhile, also are looking to explore a variety of foods and flavor, keeping in mind the healthful options – such as low-calorie and low-sodium, she adds.
Speaking of flavor, Western markets, in particular, have been seeing a trend toward ethnic-style ready meals, the Euromonitor report states, pointing to Mexican and Asian ready meals in the United States as examples. However, millennials are no longer content with a frozen entrée; they are looking to get involved in the preparation process, Jo Lee explains.
Older singles, on the other hand, are not as interested in cooking and are more interested in prepared foods. The Euromonitor report notes that 23 percent of 60-year-old-plus consumers living alone do not want to cook for just one person (compared with 7 percent of those aged 15-29). For that reason, single seniors are a core target market for ready meals.
Convenient packaging formats also have taken center stage, particularly in response to the on-the-go consumption typical among the millennials, the report adds. And demand for cooking aids, ready meals and home-delivered meals has increased as well. This need for quick and convenient food is spurred by the new trend of singles eating alone and while on the go.
They shop frequently
Single-person households tend to have smaller homes – and, thus, smaller kitchens and smaller pantries, states Thom Blischok, chief retail strategist for Booz & Company Inc., which has its North American headquarters in New York. Therefore, retailers looking to cater to this consumer subset will want to consider offering smaller package sizes.
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Wisner adds that singles not only have less space to work with, but in general, also dont stock up on \"essentials.\"
The Euromonitor report also notes that consumers living alone tend to make more frequent visits to small local supermarkets or convenience stores, and buy less during each shopping occasion.
\"Some singles shop as often as twice per day, using their local grocery/drug/dollar store as their pantry,\" Jo Lee says.
And these consumers do so not just because of physical constraints. She adds that they also often worry about wasting food, which equals wasting money. For example, consumers living alone have an especially hard time eating large quantities of produce before it goes bad, so theyre more interested in single-serving portions that can be purchased fresh daily.
This interest points to another problem for single-person households, Jo Lee says: Retailers tend to package items in bulk more than they do in individual sizes so they can offer a better price per serving. Many times, the consumer who lives alone doesnt want to buy large quantities, but he recognizes that the value isnt there for the smaller portions and, therefore, feels penalized.
\"One way to capture singles is to do what the dollar channel has done: Allow consumers to buy small quantities of items without a high price premium,\" Jo Lee recommends.