As Millennials grow up and settle down, embracing moderation and abstinence in greater numbers, alcohol brands will need to work harder to keep up with this transitioning generation - and perhaps stop thinking of them as one cohesive group - in order to meet their evolving needs.
Millennials are the cohort born between 1981 – 1996, a generation that came of age during times of economic turmoil, resulting in a reduction in disposable income compared to previous generations, compounded by a booming property market that has put home ownership beyond the reach of many. Coupled with the fact that they grew up with the constant information flow of the internet and social media, serving to remind them not only of the challenges they face but also amplifying unfair stereotypes of work-shy avocado-toast-eaters with a sense of entitlement only matched by their love for made.com, it’s little wonder they’ve been labelled “the anxious generation”.
Millennials today are aged anywhere between 29 and 44, which points to a diverse generation of individuals experiencing a range of life stages, from young professionals, house sharing as they work their way up the career ladder to families with growing kids who are nearing the peak of their careers.
Of the Millennials we surveyed, 43% are married, 20% living as married, and 26% are single, never married. Which suggests that, more than any other generation, it would be disingenuous to think about this transitioning cohort as a single homogenous group of lifestyles, attitudes and behaviours.
One consistent theme: Alcohol is a social lubricant
Millennials’ primary association with alcohol is socialising, while around a third associate it with relaxing and fun, suggesting they’re more selective rather than habitual about when they drink.
This is reflected in the fact that they generally consider alcohol to have a more important role in group settings: 75% agree it is important at celebrations like birthdays and weddings, and 68% agree it’s important for socialising. Less than half see it as having an important role in closer settings like bonding with colleagues (where they perhaps want to remain in control), conversations, and spending time with family.
The link between drinking alcohol and social situations is also evident even in their reasons for drinking no and low alcohol drinks: 30% choose to drink them ‘to feel more socially engaged with others who are drinking alcohol’ and 28% ‘to avoid feeling left out in social situations where others are drinking alcohol’ – more than any other generation.
But across many other measures, we see Millennials transitioning away from certain behaviours or adopting others as they grow up and settle down.
Millennials are transitioning away from big nights out
More Millennials are doing more of their drinking at home, with 37% of them drinking at home more than once a week, compared to only 21% of Millennials who drink out of home more than once a week.
When they do go out, only 39% tend to go to more lively establishments, while 34% prefer quieter venues, and 66% agree that they are more likely to visit a bar for the experience than to get drunk.
Among Millennials who have reduced the amount they drink, 30% are socialising less, 12% socialising in different ways, and 15% have discovered new hobbies.
They’re transitioning to more mindful drinking
While 73% of Millennials drink alcohol, they are the generation most likely to drink both alcoholic drinks and non-alcoholic beer, wine and spirits, a generational trend reflected in research by Tesco in the run-up to the festive season in 2020, which revealed that that almost half of 18 to 35-year-olds (‘Zillennials’) were planning to serve no- or low-alcohol drinks at Christmas.
They are also the generation who have cut back the most on the frequency at which they drink, with 38% of them drinking less often than last year, and have increased the frequency at which they drink non-alcoholic drinks the most, with a full 32% drinking non-alcoholic drinks once a week, making them the champions of the sober-curious movement.
Transitioning to new drinks and brands
46% are more experimental with their drinks than they used to be and discover new alcohol brands through a wide variety of sources, primarily through word of mouth, what their friends are drinking, and deals and promotions, though TV and social media advertising also play a role.
They’re also the generation most likely to demand healthier options when out:
Transitioning away from social media
As the transition generation, it’s not surprising that they still exhibit a tendency towards experimentation and discovery, but this is less led by social media and influencers and potentially more about curating their own individual public persona.
How can brands keep up with this transition generation? Change is constant
Millennials are a diverse group – from ‘Sociable Singles’ to ‘Settled Young Families’ – experiencing a range of life transitions, so a blanket ‘generational strategy’ based on broad insights is less likely to connect with individuals within this age group. Understanding the role of your brand in a specific life stage or its role in a night out or social context can help to create more resonant brand communications, activations and new product development.
What role does or could your brand play? Celebrating milestones? Something to unwind at the end of the week? The trusted no-low for long lunches? Something a bit elevated for increasingly rare nights out?
Making a night out an occasion
As Millennials age and take on my responsibilities – whether at work or home – they are going out less than they used to. But they are still sociable and value alcohol as a social lubricant, creating an opportunity for the right brands to play a role in elevating the experience of a night out. With 27% of them regularly drinking cocktails when they go out, and placing more importance on features like the look of the drink and the glass it is served in, this is a generation that responds well to premium and stand-out beverages when out.
How can brands bring an added level of sophistication to their on-trade presence, through unique glasses or serves, garnishings to amplify flavours, and even bar staff merchandise to attract attention?
Taking wellness wherever they go
More than any other generation, Millennials expect healthy options even in their alcohol choices and nights out. Appealing to their wellness goals is an opportunity for certain categories and brands to increase consumption occasions and grow their repertoire by highlighting the intrinsic benefits of typically ‘healthier’ drinks options, like white spirits, and developing new offerings that offer more functional benefits. Brands in the US like White Claw, with its electrolyte-enhanced non-alcoholic variant, and Athletic Brewing, who are doubling down on the nutritional benefits of its non-alcoholic beers, are responding to these demands for healthier drink options when out.
What are the more functional benefits of your product? Can healthier ingredients be included? Can NPD incorporate wellness trends like CBD, electrolytes, and lower calories without losing out on taste? Are there partnership opportunities with restaurant and cafe chains? Outdoor lifestyle brands?
Normalising NoLos
Two thirds of this cohort drink no and low alcohol drinks once or more per week, but only 23% say it’s because they prefer the taste, suggesting there is plenty of opportunity for no-low brands to further develop their offerings and improve on the experience.
How can specialist and craft brands target this audience with taste and quality messaging and also drive trial through innovative sampling and promotions? What are NPD opportunities to develop new tastes and flavours? What can no-low brands and variants learn from alco-pops and ciders who injected excitement and variety into their categories?
This generation are drinking no-lows to feel more socially connected when others are drinking, suggesting there also opportunities to normalise the category – making them the first choice not the responsible choice – for example Tom Holland founded Bero to be discreetly alcohol-free, enabling sober drinkers to attract less attention to the fact they’re not drinking alcohol.
