Gen Z is moving away from alcohol, but spirits industry sees opportunity in personalized products
Research suggests Gen Z is moving away from alcohol, but industry players like Diageo believe they can win them over with spirits. GlobalData reveals Gen Z prefers personalized products, like cocktails. David Harris notes a global trend towards fruitier flavors, while spirits like Bourbon and Tequila thrive on brand heritage.
Local factors also influence Gen Z’s spirit preferences, with whisk(e)y popular in India and traditional spirits in Korea and China. Suntory sees potential in American whiskey and RTD products for younger consumers. Diageo recently launched Muck Pit, a tropical brew with rum and hop flavorings, targeting Gen Z’s interest in craft beer-like drinks.
Innovations like Minus 196 vodka seltzers and Captain Morgan’s Muck Pit Brew are aimed at capturing Gen Z’s interest in flavorful, experiential drinks. With a focus on craft beer-like flavors but in a sweeter, tropical profile, these products are designed to appeal to younger drinkers who may not find traditional beers easy to enjoy. Diageo is testing a new spirit-beer hybrid to attract Gen Z. While luxury products priced at $100+ may seem out of reach, younger generations have an aspiration for a taste of the high life. Premium spirits may find success in on-trade settings with Gen Z, who are more financially sensible than previous cohorts. Luxury spirits must be affordable for Gen Z, who are showing interest in mixed drinks but buying fewer due to financial constraints. Companies are making high-end products accessible through smaller pack formats, opening up luxury brands to a generation with less disposable income. Gen Z is more likely to consume alcohol in on-trade settings but with a more measured approach, as social occasions are no longer directly linked to alcohol consumption. Music festivals like Coachella have helped Absolut vodka connect with Gen Z consumers who value creativity and self-expression. Pernod Ricard emphasizes the importance of not being fixated on just one target group, as consumer tastes evolve rapidly between ages 18-25. Brands like Malibu focus on a young mindset rather than a specific age group, catering to a broader audience. While Gen Z currently consumes less alcohol than previous generations, experts predict their consumption will increase as they age, presenting a lucrative opportunity for the spirits industry.
Read more at Yahoo Finance: Gen Z and spirits: a golden opportunity?