There’s no shortage of discussions today about Millennials, particularly when the conversation topic pertains to technology, but there’s moreâ€"much moreâ€"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 knowâ€"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.
Millennials are a key demographic for the alcoholic beverage market, both because of how big the group is as well as how much it may purchase going forward. And as a result, the battle within the alcoholic beverage industry has begun to win over this group’s hearts, minds and wallets.
Tastes within the group, however, vary when it comes to alcoholic beverage preference. 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. As a result of the diverse age range, consumption habits and preferences vary. In looking at the age variations with the total generation, Nielsen expects younger Millennials, particularly those who are newly of LDA, to present more opportunity for bars, restaurants and other on-premise establishments.
Dynamics will shift among older Millennials, particularly as they enter different life stages and establish families. Consequently, older Millennials will, in general, present more of an off-premise opportunity.
So how do marketers reach of-age Millennials in the age of TV everywhere and device proliferation?
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