Millennial

The world has seen the dismay, feat, and rise of Baby Boomers and Generation X. Now, we are at the precise moment where children who are born at the start of the digital age and throughout it has the power to shift the market trend with their decision.

 

Enter the millennials. 

 

So who are they? Are you one of them? And how come retailers and sellers alike, particularly the wineries and wine sommeliers, should stop and take a deep look at how these game-changers are set to dominate the wine industry.

 

As seen in Ad Age in their August 1993 editorial, Generation Y is the first coined term used to describe those who are born between the 1980s to early 2000s. Eventually, the expression Generation Y is replaced by the term ‘millennial’, which is widely used and accepted nowadays.

 

Millennials are those who are born at the time the world is undergoing great, rapid changes. People have become more open to different worldviews, the idea of globalisation, lifestyle changes, and technological advancements. It is said that this generation was also, at one point, called the Boomerang Generation because of their tendency to delay big decisions in life such as marriage.

 

But what does this hold for the wine industry?

The Power of Millennials

It is inevitable that millennials will reshape how the economy works as they become the prime target market in today’s society. As one of the largest generations in history, their point of view and selection process will force companies to review how they do business.

 

Based on records, millennials drank more wines in the past years versus any other generations. In fact, in the United states, they drank nearly half of all the wines just in one year. To back this data, a study conducted by Wine Market Council on 79 million Americans ages 21 to 38, it shows an astonishing result - millennials are known to drink an average of two cases per person. To help you visualise, they drank 159.6 million cases of wines in 2015.

 

In the 2015 Unified Wine Symposium, it was revealed that 33% of Americans drink wine several times per week while the remaining 67% drink wine occasionally. Now, imagine how large the wine demand producers need to supply for America alone.

Penchant for Wines 

There is an ongoing question whether this new wave of wine drinkers are wine snobs. As with everything else, there are several factors as to why millennials have different opinions versus the past generations.  A pleasant surprise, is that they actually appreciate better wines more than what wine producers expect. Previous wine drinkers would take a sip at a certain times of the day, whereas millennials drink wine anytime of the day.

 

Going back to the research shared by QNA, millennials are most likely to live abroad and pursue a better level of education which in turn can affect how potent their purchasing power is and in part will greatly affect the decisions on what wines will satisfy their taste.

 

However, it is also worthy to note that because of several economic upheavals millennials have to face, they have also become wise in choosing which wine would they drink at the moment. But this doesn’t mean that this generation shuns away fine wines. In one of the studies mentioned earlier, about 17% of them have paid over $20 a bottle in the past month. They often search for quality wines with a relatively fair pricing to it. And by relative priced, it meant that a bigger percentage of younger Americans are drinking premium wines.

 

Being digital savvy meant they are used to instant price comparisons, product information, peer reviews, and tasting notes. They heavily rely on getting information fast from their devices. Most of the millennials would share their choices of wine on Facebook, Instagram, or Youtube. As technology becomes easier to use, they have developed a way to respond to social media – millennials want straightforward, simple proposition with more information to boot.

The future of drinking?

 There is no denying that millennials will hold the future of drinking. After all, they will affect how their children and future wine makers understand wine.

 

For them, it is about quality and variety. In order to better understand how millennials, it is better to ask yourself these questions: What is the provenance of the wine and its winemaker? How was the idea conceived? Where is the authenticity factor and sustainability behind the wine?

 

A millennial’s interest in wine is piqued because of the narrative. As shared by iYellow Wine Club founder Angela Aiello, the presence of an emotional connection is important as this group enjoys wine a younger age and tends to explore different wines.

 

There’s no need to classify if they prefer white over red as it was found out they drink everything. According to Wine Market Council, this group is definitely adventurous than old wine drinkers and they are not scared to taste unfamiliar wine brands. In the data gathered by Wine Opinions, 86% of millennials are willing to try a new bottle or wine by the glass.

 

Echoing the same sentiment as that with Aiello, CreativeFeed CEO, Arthur Ceria says “Millennials aren’t drinking their parent’s wine. They want authenticity and to discover new wines”.

 

For a selection of wines that will suit a wine enthusiast’s taste – millennial or not, visit our catalogue.