Arabella Franco
Millennials are changing the way alcohol is purchased and what is being drunk. They are adventurous drinkers who like to try something new and experiment with a huge diversity of beer styles and taste profiles. They are also more likely to drink craft beer outside the home, at a pub or restaurant.
Millennials are also more likely to be attracted to brands that align with their values, and craft beers fit the bill. They care deeply about their beer, where it comes from, and what it means for their health and the planet. Sustainability is important to them, and they are more likely to buy a product advertised as such.
Millennials are also more likely to seek out flavour-forward options, and they embrace better-for-you products like low-alcohol, no-alcohol, and hard kombucha. They tend to consume alcohol in social settings and group gatherings, opting for ready-to-drink cocktails, flavoured malt beverages, and hard seltzers.
What You'll Learn
Millennials' preference for small, local companies
Millennials are more likely to purchase craft beer from small, local companies because they perceive these beers as being of higher quality and more adventurous in terms of flavour and taste profiles. The story, motivations, and purpose of the company behind the beer are also important to millennials, who appreciate the unique branding and storytelling that comes with craft beer.
The increase in craft beer consumption among millennials may also be due to the fact that there are simply more craft breweries now than there were in the past. A study from the University of Texas at Dallas found that the beer landscape when Baby Boomers were growing up was dominated by a small group of macro breweries, whereas today, many cities across the US have a much wider range of neighbourhood craft breweries to choose from. As a result, millennials have been exposed to a greater variety of craft products at an impressionable age, leading to stronger brand preferences for craft beer over large, mainstream brands.
In addition, millennials are also more likely to be health-conscious and value-driven in their drinking choices. They seek out products that align with their personal values and preferences, such as low-alcohol or no-alcohol options, and are willing to experiment with new products to find what they like. This preference for health-conscious and value-driven products may also contribute to their preference for small, local companies over large brands.
Overall, the preference of millennials for small, local companies in the beer industry presents a challenge to large brands, who are struggling to adapt to the changing drinking preferences of this generation.
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The impact of their consumption patterns on the world
Millennials' consumption patterns have had a significant impact on the world, particularly in the alcohol industry. Their drinking habits have influenced the beer market, with a notable shift towards craft beer and a decrease in sales for large brands. This preference for small, local companies has posed a challenge to established brands, leading to a brewing landscape that is constantly evolving to cater to the demands of this generation.
Millennials are known for their adventurous palates and willingness to experiment with different beer styles and taste profiles. They seek out new and diverse options, which has contributed to the rise in popularity of craft beer. This generation is also more conscious of the impact their consumption has on the planet, prioritizing sustainability and health when making purchasing decisions. As a result, they tend to favour products that align with their values, such as those that are advertised as sustainable or locally sourced. This has forced beer companies to reevaluate their branding and storytelling, as millennials want to know the story, motivations, and purpose behind the beer they are drinking.
In addition, millennials are also driving the demand for alternative packaging options, such as wine-in-a-box or canned wine. They are also more likely to be health-conscious and focused, leading to an increase in the number of non-alcoholic product seekers. This has prompted alcohol companies to expand their offerings to include low-alcohol or no-alcohol options to cater to this growing market.
The impact of millennials' consumption patterns extends beyond the alcohol industry as well. They tend to be more value-driven and seek out products with a clear purpose and strong brand integrity. They are also more likely to be influenced by personal connections, such as the opinions of family and friends, rather than traditional marketing channels. This shift in consumer behaviour has forced companies across various industries to adapt their strategies and rethink how they engage with this generation of consumers.
Overall, millennials' consumption patterns have had a significant impact on the world, shaping not only the alcohol industry but also influencing how companies across various sectors approach their branding, marketing, and product offerings to cater to the unique needs and preferences of this generation.
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The importance of flavour
Flavour is a key factor in the purchasing decisions of younger drinkers. A study by Research & Marketing Strategies and the Business of Drinks podcast found that good flavour was the top purchase driver for Gen Z and millennials, with four in ten respondents expressing a desire for more flavour in their alcoholic drinks.
This is a generation that has had an extensive range of flavours available to them from a young age, so their tastes are more sophisticated and varied. They are also adventurous and keen to try something new, with almost half of those surveyed by DSM drinking craft beer to experiment with different styles and taste profiles.
The most popular beers among millennials include a range of flavour profiles, from the crisp bitterness of Stella Artois to the hoppy-sweet finish of Lagunitas IPA. The latter is made with 43 different hops and 65 various malts, highlighting the importance of flavour complexity for younger drinkers.
The rise of craft beer among millennials can also be attributed to its flavour. A study from the University of Texas at Dallas found that the abundance of choice in the craft beer market explains its popularity with this generation, as they gravitate towards products that align with their values and offer a variety of flavours.
Ultimately, flavour is a critical factor in the purchasing decisions of younger drinkers, and brands that can offer a range of flavour options and flavour complexity will be well-positioned to capture the attention of this generation.
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The influence of social media
Social media has a huge influence on the purchasing decisions of millennials, and this extends to their beer-buying habits. Platforms like Instagram and TikTok have transformed grocery shopping, including alcohol, into an interactive and social experience. In fact, 85% of Gen Z and millennials surveyed said they had bought a grocery product because of something they saw on social media, and 52% said social media has a big impact on the groceries they buy.
User-generated content (UGC) plays a significant role in creating authentic connections between brands and consumers. Everyday users and influencers share content such as recipes, shopping hauls, and product reviews, giving brands organic exposure and encouraging real-time engagement. UGC fosters trust and provides social proof, making it more likely for others to try the featured products.
Millennials are more likely to make a purchase if a product or service is recommended by others. This may be driven by their inherent distrust of brands and traditional advertising. They tend to believe what their peers say and often seek validation from them. A small number of influencers are responsible for the majority of referrals that brands receive via social media. For example, when studying products such as shoes and clothing, it was found that 5% of influencers offering recommendations drove 45% of social influence.
According to Gartner research, 84% of millennials are likely to be influenced to make a purchase based on user-generated content created by strangers. Millennials who become particularly bonded to a brand can even be elevated to the level of brand ambassador influencer.
Social media is a major influencer when it comes to the purchasing decisions of millennials, and this includes their beer choices. Sixty-two per cent of this group state that they are more likely to become brand loyal if a company engages with them sincerely on social media. Not only does brand loyalty drive purchasing decisions, but it also drives those ever-important social media recommendations.
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The role of personal influence
Personal influence plays a significant role in the beer-buying habits of millennials. This generation is known for its adventurous spirit and willingness to try new things, and this extends to their alcohol choices. Millennials are more likely to be open to experimentation and seek out unique and innovative beverages that align with their values. This is reflected in the rise of craft beer popularity among this demographic.
Word-of-mouth recommendations and personal connections are crucial in influencing millennial beer choices. They tend to trust the opinions of their peers and seek out authentic, meaningful experiences. This generation is also known for its strong online presence and engagement with social media, which provides a platform for sharing their favourite products and influencing the choices of others. Social media influencers and online reviews can play a significant role in shaping the preferences and purchasing decisions of millennials.
The influence of personal connections and relationships extends beyond just peer recommendations. Millennials are also interested in the story, motivations, and purpose of the companies behind their beer choices. They want to know that the brands they support align with their values and beliefs. This interest in the "why" behind the beer goes beyond just the product itself and contributes to a sense of self-expression and identity. The beer they drink says something about them and their values, and they are conscious of this when making their purchasing decisions.
Additionally, millennials are known for their health consciousness and awareness of the impact of their choices on the planet. They are more likely to seek out sustainable and health-conscious options, and this extends to their alcohol choices as well. They are willing to pay more for products that are advertised as sustainable or that have ingredients and production methods that align with their health and environmental values. This influence of personal values and beliefs plays a significant role in shaping their beer-buying habits.
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Frequently asked questions
Millennials tend to buy beer through traditional channels, with 46% of channel share coming from grocery stores. However, they are also influenced by social media and the opinions of family and friends.
Millennials are known for their love of craft beer, with an emphasis on flavour and variety. They also tend to buy low-alcohol, no-alcohol, and hard kombucha beverages.
Millennials value the story, motivations, and purpose of the company behind the beer. They also care about sustainability and health, and craft beer is seen as a more sustainable product.
