Millennials and Gen Z's trendy new splurge: groceries

Groceries are the hottest new splurge category for Gen Z and millennials.

Younger generations spend more on groceries than other categories, a McKinsey report says.

But all generations are feeling the pinch of inflation at the grocery store.

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Splurging once meant spending money on buzzy restaurants, expensive vacations, and designer clothing. These days, what's considered splurge-worthy falls into a more humble category.

Groceries are shaping up to be a top spending priority for younger generations, a February report from McKinsey & Company found.

The firm asked over 4,000 people, from baby boomers to Gen Zers, about the categories they intend to splurge on this year. Groceries ranked highest for millennials and Gen Zers, outpacing restaurants, bars, travel, beauty and personal care, apparel, and fitness.

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