NEW YORK - The new Trouble in Aisle 5 study finds that the traditional food-at-home vertical, which is already facing trouble, is likely to see its challenges accelerate over the next few years, according to global investment bank Jefferies and global business advisory firm AlixPartners.

The root cause of the impending transformation lies in changing demographics. Over the next decade the baton will be passed from one mega-generation to another as Millennials (born between 1982 and 2001) come of age and Baby Boomers (born between 1946 and 1964) enter the next phase of their lives and spending patterns. As a result, established food brands and traditional grocery stores will be pressured at both ends by sets of consumers with very different value equations.

"We envision an environment that will require increased nimbleness and a relentless focus on the consumer for established food manufacturers and retailers, and the potential for rapid growth for new concepts and products," said David Garfield, managing director at AlixPartners and head of the firm??s consumer products practice, in a press release

"Millennials clearly present significant challenges, and food-makers and traditional grocery retailers need to start making changes now to address the emerging needs of this demographic group, as in many ways we??re just in the second inning of this ball game" said Scott Mushkin, managing director and senior equity research analyst covering food and drug retailing and packaged food at Jefferies.

The study found that Millennials have strikingly different attitudes towards consumption than their Baby Boomer parents and grandparents, which will put great pressure on the traditional model of homogeneous brands provided by traditional grocery retailers. "The at-home food industry is just beginning to feel the impact of this major demographic shift as Millennials rise in prominence and Baby Boomers adjust to meet the requirements of age and a fixed income," said Mushkin. "The bottom line for food-at-home industry stalwarts is that big changes are coming, and companies who don??t fully understand those changes risk being marginalized."

"Convenience is king with Millennials ?" they expect to get what they want, when and where they want it, and they know they have options for both products and retailers. The emphasis on convenience represents a dramatic shift from Baby Boomers?? priorities, and it also presents big challenges ?" and opportunities ?" for companies in the food industry," said Garfield.