The millennials and Gen Zs of legal age have often been accused of “killing” an array of industries and institutions. They are drinking less alcohol than any generation before them. Having said that, the reality is that millennials and Gen Zs have also become more health-conscious than previous generations. This has led to a demand for lower-calorie, lower-sugar, and healthier alcoholic beverage options. Gen Z consumers are often more interested in the experience associated with consuming alcohol rather than just the product itself.
That’s not all, they are increasingly concerned about the environment and sustainability. They seek out brands that prioritize eco-friendly practices, including sustainable sourcing of ingredients, environmentally friendly packaging, and reduced carbon footprints.
It’s important to note that the bar industry is dynamic, and consumer preferences can change rapidly. Bars that can adapt to evolving trends and provide exceptional experiences are more likely to thrive in this competitive landscape. Additionally, the impact and expectations for bars can vary significantly depending on local and global economic conditions and public health factors.
“Focusing on Millennials and Gen Z is essential for businesses that want to remain competitive and sustainable in the long run. These generations represent the future of consumer behaviour and will continue to shape markets, industries, and society as a whole,” said Vikrant Nagaonkar, Assistant Restaurant Manager, Dome, Intercontinental Marine Drive.
Understanding their values, preferences, and behaviour is crucial for businesses seeking to thrive in a rapidly changing world. Millennials and Gen Z have diverse drink preferences. He added, “They often favour craft beer, hard seltzers, craft cocktails, wine (including rosé), whiskey, and coffee-infused cocktails. Health-conscious options like non-alcoholic beverages are also popular. These generations appreciate exotic flavors, sustainability, and convenience, often opting for canned cocktails and spiked seltzers. Preferences can vary, so staying up-to-date with evolving trends is vital for businesses targeting Millennials and Gen Z.”
Anurag Godbole, Wine Sommelier and Bar Manager at Nksha added, “It is a great time for the alcohol industry in India. Not just from the manufacturer’s point but from the point of view of customers as well. When I say a great time for the industry, it is because people who are creating wines and alcohol (producers, distillers, brewers) are of the same age as the consumers. Most millennials who are conceptualizing great drinks and Genz are into marketing and branding it. There has been a rise in local gins, whiskeys, and rum. I don’t think there’s one such product that is picking up.
The major consumer demand among the Millennials and Gen Z tends to focus on more premium wines that are produced using environmentally friendly practices. Millennials and Gen Z usually prefer experiencing wine tasting or visiting the wineries to connect with the winemaking process. They have a penchant for a wide variety of wine flavours, with rose, dessert wines, and sparkling wines being particularly popular among them. This has led to a surge in the popularity of these wine styles among younger consumers.
Gokul Kurhade, Winemaker, Chateau Indage told financialexpress.com, “Millennials have a clear understanding of their drink preferences, while Gen Z often needs guidance in exploring the realm of delectable cocktails and alcoholic beverages. Bars are adapting to meet the expectations of Millennials and Gen Z, both generations have one thing in common, they are not only interested in the final product but also in the process of crafting unique cocktails and beverages. Bars are responding by offering a wide range of innovative and artisanal cocktails that appeal to this demographic’s adventurous palate.”
Experienced bartenders and sommeliers play a crucial role in guiding Gen Z, who may be less familiar with alcoholic beverages, toward discovering delightful flavour profiles. Bars that emphasize craft and authenticity are likely to resonate with younger consumers, as they seek experiences that go beyond simply consuming drinks. The younger generation prefers crafted beers from local breweries, reflecting the growing trend in the craft beer industry.
Rose and Sparkling wine have been garnering interest from younger consumers. Furthermore, there is a burgeoning fascination with infused beverages that blend wines, whiskeys, and spirits with inventive flavours and elements. He added, “These options are tailored to the adventurous tastes of Millennials and Gen Z, who are always seeking new and captivating experiences. Moreover, there is a rising interest among these demographics in dessert wines.”
