The Millennial Wine Consumer

‘If we can understand how consumers choose wine, then we have a much better framework to decide pricing, packaging, distribution, advertising, and merchandising strategies’’ L. Lockshin

Millennial consumers are defined as persons born between 1980 and 2000.

Being raised alongside the evolution of internet they are technologically savvy and use it in almost every aspect of their lives.

Wine producers and retailers are increasingly interested in the Millennials as consumers and various research studies focus on them as a new target group.This will be a short overview of millennials consumer preferences and buying habits for wine.

Why focus on millennials?

Nearly 9/10 millennials live in emerging economies, and Chinese millennials alone outnumber the entire population of the US.¹

Source⁴

Millennial wine buyers represent 42% of total expenditure on wine purchase² and they are on the way to surpassing the Generation X around 2026 to become the top fine-wine–consuming generation³. The overall spending power is estimated to tilt to the millennials by 2020.¹

Social Media

In fact, Generation X (ages 35–49) spends the most time on social media: almost 7 hours per week versus Millennials, who come in second, spending just over 6 hours per week¹.

86% of consumers prefer an authentic and honest brand personality on social networks.⁴

51% of Internet users say they follow some sort of celebrity or influencer account on social media.⁴

35% of heavy users cite special discounts as important, such as access to exclusive offers and coupons.⁴

29% of heavy users actually find supporting their favourite companies or brands somewhat to very important — so they need content that’s easy to find and easy to share on Facebook and Twitter.⁴

Particularly for millennials the use of social media inspires consumers to choose higher price ranges.⁵

Photo by Johan Mouchet on Unsplash

Geographical differences

Main difference in consumption habits are between New World Wineries; Argentina, Australia, Canada, Chile, New Zealand, South Africa and the United States, and Old World Wineries; France, Italy, Germany, Spain and Portugal.

In Old World viticulture is traditional, and is therefore more influenced by attributes such as the wine region and family consumption habits. They are more probable to consider wine purchase by the terroir.

New World millennials are more open towards unfamiliar or new wines or wine styles. Attracted by innovation and unconventionality in taste and packaging, value convenience in wine purchase (order on line delivery).

It is also important to note that in the New World Wineries millennial wine consumption is increasing, as well as countries like China and India, while in the Old World Wineries report a decrease in consumption.

Wine consumer preferences by country

US Millennials

Mainly over 30 they have high purchasing power and the capability to influence family consumption choices.

They participate in various social networks regarding wine, and looking for information on the internet.

They prefer red wine, not too tannic, because of its fruity and sweet features, that go well with most food.

White wine mainly if it is fruity and/or sweet as well.

They report to be influenced by low-prices and promotional offers, however price is not considered as important as quality. Attracted to packaging and labels that are innovative and well-designed, but most choose a wine because of its brand reputation and fame.⁶

Italian Millennials

Represent 11% of the total volume of consumption.

They perceive wine as a social drink, seek information and advice on social media for purchases, and were found to have low brand loyalty. Wine purchases are also influenced by habits rooted in tradition and terroir. Their current interest are in sustainability-oriented wine (ethical labelled or carbon neutral wines)⁶

Indian Millennials

In the past wine was considered as taboo, today it is appreciated more and more by young drinkers.⁶ Approximately 56% of wine consumption is attributed to millennials⁷ and they show positive attitudes toward different types of wine and are desire to increase their wine knowledge and expand the country of origins they consume. Red wine is more popular than white. Imports from the New World are most common to be purchase on the market, South African bottles and Argentinian Malbecs particularly popular among women. Chardonnay, Sauvignon Blanc and Chenin blanc are in abundant demand in India, while Pinot Grigio is increasing in popularity.⁸

French Millennials

Acknowledge that wine is embedded in French culture, perceived as old-fashioned and not exciting for young drinkers. When purchasing wine the experience for them is intricate and intimidating due to a high number of brands and wineries to chose from. They find that labels are often not clear or helpful.

35% of them have already bought wine online. 8/10 believe that it is important to be well informed before buying, and seek that information from friends and family, and increasingly social networks devoted to wines and spirits — 1/4 millennials has already bought a recommended wine on social network, twice as many over the age of 35.⁹

Serbian Millennials

Quality (40.6%) and brand (19.9%) are the most important attributes in wine purchase, followed by price of wine, country of origin, and packaging and label of wine.¹⁰ They seem to favour smaller bottles, especially in bars or restaurant, which is currently not as available as they would wish it to be. They would also prefer clearer and more colourful labels.⁶

South Korean Millennials

The largest increase of wine consumption in the world, 2.7L of wine annually per South Korean adult. Although the wine industry is at an early stage of its development it has shown steady growth in the past decade. Most South Korean drinkers prefer to drink sweet and non-astringent wines.

Today, 64% of South Korean imported wine drinkers consume wine in bars and restaurants, whilst mostly all of them buy wine in off-trade.

They tend to stick to the general norm in the market which is either a French or Chilean red wine, however they are attracted to novelty and wish to diversify their drinking repertoire.

Innovating the wine industry

To sum up, millennials are among the generations with the most varied tastes in wine drinking history; they lack brand loyalty, like sexy labels, look for value, and want to have an enjoyable experience. This consumer segment is favourably inclined towards unfamiliar wines, new wines or new wine styles. Millennials require change and innovation from the wine industry, with expectations of greater variety and uniqueness. They do not aim at consuming high quantities, but rather at having a multi sensorial experience, and they value personal appearance, and wellbeing.

Managerial Implications

A successful strategy should be grounded in the awareness that Millennials are young and dynamic, and they are looking for a wine experience.

In order to use marketing resources more strategically when trying to reach Millennials these are the characteristic that need to be highlighted.

Social Media presence

Millennials rely on fast and easy information so your social network presence should be up to date with frequent post.

39% of heavy social users believe that finding out about products and services is an important reason for using a social network . Millennials also like to share their wine drinking experience so your brand should provide that opportunity .

Millennials rely on fast and easy information so your social network presence should be up to date with frequent post. of heavy social users believe that is an important reason for using a . Millennials also like to share their wine drinking experience so . Increase Recommendations

Since millennials pay more attention to wine recommendations from friends and family your strategy should reflect that. One of the least invasive approaches would be active social media posting to encourage commenting, sharing among friends. Organising promotional events is a great opportunity to increase awareness and engagement for your brand as well — find best practices here.

Since millennials pay more attention to wine your strategy should reflect that. One of the least invasive approaches would be active posting to Organising is a great opportunity to increase awareness and engagement for your brand as well — find best practices here. Ensure Good Placement

Shelf-talkers were identified as highly influential to millennials. Marketers should therefore make them easy to read and visually appealing.

Work with the retailer to properly position them on the right shelf space. Consider using barcodes or QR codes where all information can be accessible by using a smart phone.

were identified as highly influential to millennials. Marketers should therefore make them and Work with the retailer to properly position them on the right shelf space. Consider using where all information can be accessible by using a smart phone. Provide Label Information

Alcohol content , label imagery , and medals won are much more important to Millennials. Consider highlighting the wine appellations and organic designation on the label, with possible wine pairing recommendations.

Marketers may want to reinforce the attitude that there is no wrong wine choice . This would serve to reduce intimidation and take advantage of the variety seeking attitude of Millennials .

, , and are much more important to Millennials. Consider highlighting the and on the label, with possible wine pairing recommendations. Marketers may want to reinforce the attitude that . This would serve to reduce intimidation and take advantage of the . Get website mobile ready

The majority of the population in the developed world owns a smart phone. By 2021, m-commerce will account for 72.9% of the e-commerce.⁵ You should also consider providing more languages on your web page for your international customers to navigate easier. More tips on how wineries should incorporate digital tools here.

PS. The last point could not be stressed enough. With a new type of consumer demand and all the technological advances the digital presence of a winery is crucial for doing business. Whether you just need some pointers or our guidance in full, feel free to message us here at Mineral — we are happy to help with our expertise in the wine sector.