Millennial consumers shun ‘mass market’ spirits

The key US millennial market for spirits is consciously shunning “mass market” products in favour of local labels, but younger consumers remain “brand promiscuous”, new research has revealed.

A new report by Nielsen has shed some light on the spending habit of millennials in the US spirits sector

According to Nielsen, millennial consumers (people who reached young adulthood in the year 2000) are a “key demographic” for the alcohol beverage market.

“And as a result, the battle within the alcoholic beverage industry has begun to win over this group’s hearts, minds and wallets,” Nielsen claims.

“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 US beer consumption and 32% of spirit consumption. Comparatively, they reprent only 20% of wine consumption.”

The group’s recent Beverage Alcohol Media Report revaled that a “large percentage” of millennials say they will not “give up quality or taste” and will not “spend their money on mass-market alcoholic beverages”.

A Nielsen survey conducted last year revealed that 34% of millennial spirits drinkers said they equate a higher price with higher quality either all or most of the time.

The demographic was also identified as “fairly brand promiscuous” since such consumers are “interested in trying new things and experimenting”.

Last year, executives for the world’s biggest drinks group Diageo said that despite the rise of the “craft” spirits sector and popularity of independently-owned distilleries, consumers are “not rejecting big”.

To view Nielsen’s Alcohol Beverage Alcohol Media Report in full, click here.