It should come as no surprise that millennial shoppers are making a huge impact on the consumer packaged goods industry.

This generation is the first truly digital demographic, changing the shopping landscape in significant ways since the rise of the Internet. A new Accenture report states that the 80 million millennials living in the U.S. are spending approximately $600 billion each year. This is a generation entering the workforce, owning their own homes, and starting families. The CPG industry is wise to embrace and work to appeal to this economically impactful generation – both online and in brick-and-mortar stores.

A significant 89 percent of American millennial customers say access to real-time product availability information influences their shopping choices, and more than half seek out the “cheapest return option.” Customers also want one-on-one, personalized experiences from both retailers and the brands they purchase goods from, and a seamless experience from the online to offline world is critical. Not all millennials are alike, however, and differing demographics can greatly influence purchasing decisions as well as new product launches.

So, what exactly are millennial shoppers purchasing? Time listed 10 of the most commonly bought items among this demographic, which includes grab-and-go convenience store snacks, hot sauce, organic food, energy drinks, and craft alcoholic beverages.

Niche products can be just as successful as mass-marketed goods, and brands shouldn’t only rely on loyal customers and expect them to embrace their new products. In fact, only 12 percent of a brand’s dedicated shoppers will try new products, but loyal customers will spend four times as much on that brand’s existing goods compared to other consumers. Appealing to niche audiences within the millennial demographic requires an understanding of the changing face of today’s shopper. The following information has been gathered by Instantly in its new "The State of CPG” report:

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As illustrated above, multicultural millennials make up a significant part of this key market. More consumers of this generation are interested in ethnic food products, many of which today’s inspiring brands are packaging in kraft stand up pouches. As millennials’ CPG dollar volume is expected to increase 70 percent this year, brands need to get creative about their packaging in order to appeal to new customers. Reaching a small, niche consumer base requires companies to differentiate themselves from competitors, and using new, eco-friendly packaging like kraft stand up zipper pouches can help accomplish this. Today’s savvy shopper also craves transparency and authenticity, so making smart packaging decisions that highlight your product and allow customers to see exactly what they’re getting is essential.

Kraft stand up pouches with window are a great option for packaging both natural and ethnic food products, along with convenient, go-to snacks and drinks that younger shoppers desire. Launching a new product can be risky, but retooling existing items to include more diverse, organic ingredients can help brands best reach both loyal and new audiences. Rethinking the way the product is packaged can have dramatic effects as well. Introducing an existing item that people know and love, and tweaking it by presenting it in protective kraft stand bags, can show off the product in a whole new light.

Creative strategies are needed to convince consumers to try something new, and packaging should always be factored into the mix.

It’s the first thing people see in those crucial three-to-four decision-making seconds at the store, and personalizing your packaging to appeal to smaller audiences can help brands connect with consumers on a whole new level.

Millennial shoppers are ready to spend money and commit themselves to brands that are innovative, offer a personal touch, and aren’t afraid to refresh their goods to meet changing demand. Using attention-grabbing new forms of packaging, like kraft stand up zipper pouch bags, can draw in shoppers both online and on physical shelves. Brand building is key in the consumer packaged goods industry, and while the consumer and the good are both crucial factors to consider, packaging can serve as the link that connects the two and reaches this influential demographic.

(Image Source: Lovely Package)