There’s no shortage of discussions today about Millennials, particularly when the conversation topic pertains to technology. But there’s more—much more—to this young consumer group. In fact, now that everyone of this generation is of legal drinking age (LDA), retailers, restaurants and manufacturers have a new and powerful customer that they must get to know—one that now accounts for 24% of the U.S. population.
Not only are Millennials 77 million strong, they will account for almost 30% of total consumer product dollars spent by 2020. So what does that mean for the alcoholic beverage market? In a word, opportunity.
For example, Millennials 21-34 represent about one-fourth of adults 21 and over, but they account for 35% of U.S. beer consumption and 32% of spirit consumption. Comparatively, they represent only 20% of wine consumption.
As a group, the Millennial generation includes consumers born between 1977 and 1995.
MILLENNIALS SHOP DIFFERENTLY
As shoppers, they are more likely to buy natural and organic products (38% more likely) and they are quicker to jump on new trends.
When it comes to retail shopping, Millennials are value-conscious and particular. They look for good deals, primarily online, and won’t think twice about downloading a store coupon from an app on their smartphone or tablet. While they’re deal seekers, Millennials won’t give up quality or taste when it comes to their alcoholic beverage purchases. And as a result, a large percentage say they will not spend their money on mass-market alcoholic beverages. That’s one factor that has led to the growing popularity of craft beverage alcohol products.
BUILDING PRE-STORE BUZZ IS CRITICAL WITH MILLENNIALS
Because of their affection for technology, Millennials are generally more highly engaged in pre-store buzz than older generations.
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