Millenials' Work Culture: Beer On The Job?

Millennials are drinking less alcohol than previous generations, with a preference for wine and craft beer over large, well-known brands. A study by the Wine Market Council found that millennials drank 42% of all the wine consumed in the US in 2015, a 10% increase from two years prior. They are also more likely to experiment with wines from more obscure regions, such as Greece, Portugal, and Chile. When it comes to beer, millennials are driving the craft beer revolution, with a preference for quality, unique experiences, and sustainability. However, it's important to note that millennials are also embracing sobriety, with a significant rise in the popularity of non-alcoholic beverages and sober events.

Millennials are embracing sobriety and non-alcoholic drinks

Millennials are increasingly embracing sobriety and non-alcoholic drinks, with many adopting a "sober curious" lifestyle. This trend is driven by a focus on health and wellness, and a desire for social gatherings that are less focused on alcohol. While some millennials are choosing to abstain from alcohol completely, others are simply looking to reduce their consumption and find alternative ways to socialise.

The "sober curious" movement has gained significant traction online, with millennials, especially females, sharing their alcohol-free journeys and encouraging others to join them. Hashtags such as #SoberCurious, #SoberIsSexy, and #SoberLife have become popular on social media platforms like TikTok and Instagram, with influencers anchoring their online identities around a rejection of alcohol. This online presence has helped to normalise sobriety and provide a sense of community for those looking to cut down on their alcohol intake.

The trend towards sobriety and non-alcoholic drinks is having a significant impact on the beverage industry. Beer sales have been slumping for years, and alcohol brands are taking note of the shift in consumer preferences. Companies are responding by introducing non-alcoholic alternatives, with major brands like Heineken, Guinness, and Sam Adams launching alcohol-free options. The non-alcoholic beverage category is expected to grow rapidly, with sales projected to increase by 25% by 2026.

The rise of the "sober curious" movement among millennials is also reflected in the growing popularity of sober bars, early-morning dance parties, and alcohol-free cocktails. These alternatives provide millennials with social options that fit their lifestyle choices and allow them to connect with others who share their values. It's not just about health, but also about creating meaningful connections and being more present with friends.

While the "sober curious" trend is prominent, it is important to note that millennials are not giving up on alcohol entirely. Many are still interested in craft beer and wine, but they are prioritising flavour, quality, and sustainability in their choices. They are also more likely to view alcohol as a treat or an occasional indulgence rather than a regular part of their social lives. This shift in drinking habits is causing the beverage industry to adapt and offer a wider range of options to cater to the diverse preferences of millennial consumers.

Craft beer is popular with millennials

Millennials also value supporting businesses that align with their values and can make a positive impact on their lives. Craft beer aligns with their desire for "healthier" drinking options that are typically less expensive and have a higher alcohol content than regular beer. This perception of craft beer as a healthier alternative contributes to its popularity among millennials. Additionally, millennials tend to view themselves as adventurous, and craft beer offers them a chance to experiment with different beer styles and taste profiles. The variety of craft beer options allows them to pair their favourite craft beer with new dining experiences, supporting local microbreweries in the process.

The story, motivations, and purpose behind craft beer brands also hold significant weight for millennials. They want to know the history and origin of their beer, and they believe that their choice of beer says something about them as individuals. Craft brewers are particularly adept at storytelling and branding, with beer labels playing a crucial role in influencing the purchasing decisions of this demographic. This emphasis on branding and purpose contributes to the strong connection that millennials feel with their chosen craft beer brands.

Lastly, sustainability is an important factor in millennials' drinking choices. They are more inclined to purchase products advertised as sustainable, and they perceive craft beer as a more sustainable option. This preference for sustainability extends beyond the product itself, as millennials also seek out environmentally conscious packaging and distribution methods, such as wine-in-a-box or canned wine. By embracing sustainable practices, craft beer brands further solidify their appeal to millennials.

Millennials are drinking less than older generations

Millennials are increasingly drinking less alcohol than their older generational counterparts. This is due in part to the fear of losing control when drinking and the influence of social media. They are also more health-conscious and are aware of the negative health implications of excessive alcohol consumption.

A survey of 3,400 Millennials found that 57% would rather go to the gym than to a bar, and 69% find heavy drinking boring. They are also more likely to limit their alcohol intake and moderate their drinking. This trend is also reflected in the drinking habits of Generation Z, who are drinking less per capita than Millennials.

The alcohol industry has had to adapt to these changing preferences, with a rise in the sales of non-alcoholic beers and cocktails. The beverage industry is also seeing a shift, with a focus on craft beer and an emphasis on sustainability and health.

Millennials are also driving a change in the social drinking culture. They are seeking unique and competitive social experiences that incorporate activities such as axe throwing, trivia, and charitable giving. They are also open to trying premium products and are willing to pay more for quality and flavour.

While there is a general trend of reduced alcohol consumption among Millennials, it is important to note that this does not necessarily indicate complete sobriety. Many Millennials are still consuming alcohol but are moderating their intake and seeking a healthier relationship with it.

Millennials are more likely to experiment with wine

While the assumption has been that millennials are driving the demand for beer, the reality is that they are more likely to experiment with wine. Millennials' wine consumption increased during the pandemic quarantine, and they view wine as a social drink, a connector meant to be shared. They see wine as entertaining and engaging. This is in contrast to previous generations, who chose bottles based on various publications and their scoring systems.

Millennials are more likely to turn to technology and social media as their first resource for discovering wines. They are also more likely to be adventurous and try something new. This is reflected in their preference for craft beer, where they can experiment with a huge diversity of beer styles and taste profiles.

Millennials are also more likely to drink wine in social settings, such as bars and restaurants, rather than at home. They are less likely to be frequent wine drinkers, but when they do drink, they are willing to pay more per bottle than older generations. This could be because millennials perceive wine as sophisticated and use it as an image-building function, or because they are less experienced and use price as a risk-reduction strategy.

Millennials also differ from older generations in their preference for white wine, particularly Riesling, Sauvignon Blanc, Semillon, and Chardonnay. They also tend to prefer fruitier styles of red wine, such as Shiraz, over more tannin-heavy varieties.

The wine industry has been slow to adapt to the preferences of millennial consumers, who want wine to be more accessible in terms of price and approachability. They also want to see wine marketed on platforms such as TikTok and Snapchat, rather than being advertised around tasting notes and points, which can make it seem intimidating.

Overall, while millennials may drink beer, they are also interested in experimenting with wine and are driving new trends in the wine industry.

Beer sales are slumping

In 2022, spirit sales amounted to 42.9 percent of the market, while beer accounted for 41.2 percent—its first year in second place. Beer has been losing market share for some time, with Anheuser-Busch InBev (AB InBev)—the conglomerate behind Budweiser, Bud Light, Michelob, and Stella Artois—falling from 46.9 percent of the market to 38.6 percent between 2011 and 2021.

The decline in beer sales is particularly noticeable among craft-beer makers with a regional or national footprint. These breweries, often referred to as taproom breweries, have seen a decrease in sales as consumers opt for hard seltzers, ready-to-drink cocktails, and spirits. The Brewers Association cites industry data that says regional brewers were down 2 percent in 2022.

One factor contributing to the slump in beer sales is the increasing popularity of hard seltzers, such as White Claw and Truly. Hard seltzers now dominate the market, with roughly 85 percent of the market share held by just two brands: White Claw and Truly. Additionally, non-alcoholic drinks are also gaining market share, with the no-/low-alcohol category becoming a billion-dollar market segment.

Another factor is the changing preferences of younger drinkers, particularly millennials and Gen Z. Studies have shown that younger drinkers are less likely to consume beer, with soft drinks and non-alcoholic cocktails often preferred. When they do drink beer, younger drinkers tend to opt for craft beer and care deeply about the quality, story, and sustainability of the product.

The decline in beer sales has had a significant impact on the beer industry, with breweries, particularly those in the middle market, struggling to stay afloat. Some have adapted by diversifying their product offerings to include hard seltzers and spirits, while others have focused on marketing campaigns and partnerships to win back customers.

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