Millennials prefer experiences to products, as they become largest working demographic in US
Millennials are expected to become the biggest consumer group within ten years, and in the US they have already becoming the largest working population with 56 milllion working or looking for work, compared with 53 million Generation Xers.
So it’s worth taking a step back and analyzing what this powerful buying demographic are looking for when it comes to wine. Millennial consumers – identified as those born between 1980 and 1996 - are more motivated by experiences than products, according to research by Wine Australia, and it is particularly personalized experiences that tick the millenial’s boxes. This could include bespoke tastings, wine and food matching and vineyard or winery tours offered at the cellar door.
Sparkling wine is hugely popular with this demographic, and consumption is growing at a faster rate than still wine consumption, particularly in the UK and US, two of the world’s largest sparkling wine markets. These markets are dominated by Italian and French wines, though millennials are adventurous and prepared to try new products in the category, presenting significantopportunities for Austrlian sparkling wine.
The millenial generation are also strongly motivated by social and environmental responsibility in the products they seek out. According to Wine Intelligence research, younger consumers are more likely than older ones to seek wines with organic and/or sustainable credentials across most wine markets.
This demographic are less brand loyal than previous generations, “shopping promiscuously” according to Angela Woo, of market researchers Alter Agents – and are motivated to try new, innovative products. IRI has predicted that wine “need to break the shackles of tradition to sustain cultural currency” over the next few years, pointing to new blends, new packaging formats, new labelling and combination of wine with other drinks including cider and spirits.
However, Wine Australia cautious against explicitly marketing your offering as being for millennials, as only 40% of this group actually identifies with it, and are also less likely than previous generations to regard their own in a positive light.