When people talk about luxury goods, they often mean high-end designer brands and stuff like watches or jewelry. But a new trend has emerged among the younger generation: for people who can't afford traditional luxury items, groceries are becoming the ultimate status symbol.
Recent reports have revealed a remarkable shift in spending habits among Gen Z. According to a McKinsey study conducted in February, groceries topped the list of categories that Gen Z and millennials plan to splurge on, surpassing even dining out and travel. In a Vogue Business survey conducted in June 2023, over half of Gen Z respondents reported purchasing luxury food items within the past year. And earlier this year, a Bank of America study showed that Gen Z customers outspent all other demographics at premium grocery outlets.
Research has found that younger generations are more likely to prioritize health, wellness, and sustainability when it comes to buying food. Their preference for healthier, plant-based, and organic options often results in higher grocery bills. A recent YouGov survey for Whole Foods revealed that 70% of Gen Z is willing to pay more for high-quality food.
Erewhon, an upscale grocery store with 10 locations in Los Angeles County, is at the epicenter of this phenomenon. In 2023, Erewhon made an estimated $171.4 million in profit. According to New York Magazine’s The Cut, many twenty-somethings are working two, even three jobs in order to finance their trips to Erewhon, spending up to $200 a week on high-end groceries. “Even though I’m a starving artist, it’s become my identity,” one person told the site.
For many in Gen Z, splurging on premium groceries is not just about nourishment; it’s about signaling identity. Many young people are turning everyday grocery trips into opportunities for self-presentation online and social media engagement. Andrea Hernández, the author of the newsletter Snaxshot, calls this the new “lipstick effect.” As she told Business Insider, "It's a form of affordable affluence. We're now getting into this phenomenon of food not as a basic need but as a luxury experience."
Erewhon’s $20 smoothies, for example, are packed with superfoods like chlorella, spirulina, collagen, and sea moss, to name a few. They’re marketed not only as a wellness smoothie, but also as content for social media. Couple that with the store's celebrity partnerships, from Hailey Bieber to Bella Hadid, and you’ve got a whole generation of people eager to mirror the lifestyles of their favorite influencers. Thus, the ability to afford such premium products becomes a form of social and economic currency.
Niche health-focused brands have also capitalized on this trend, flooding the market with products that cater to Gen Z's desire for both health and social signaling. Prebiotic sodas like Poppi and Olipop have gained traction, with stars like Kylie Jenner and Camila Cabello backing their products. Their marketing often centers around the drinks’ low sugar content and gut-health benefits. And despite legal challenges like the class-action lawsuit against Poppi for misleading claims, the allure of trendy health beverages nevertheless remains strong.
The beverage landscape is increasingly saturated with products designed to both taste good and look good on social media. Take Liquid Death, a brand that markets canned water with a punk aesthetic; it achieved a valuation of $1.4 billion in March. The brand’s success underscores how Gen Z's food and beverage choices are as much about image as they are about the product itself.
The transformation of food into a luxury item aligns with a broader cultural shift, where what was once reserved for the elite has become more easily accessible. As this generation continues to redefine what luxury means to them, it’s clear that the grocery store is not just a place to shop; it's a canvas for creating a lifestyle that speaks volumes about who they are.
