The changing face of the U.S. consumer: How shifting demographics are re-shaping the U.S. consumer market for wine

Similar documents
Wine Writers Symposium. Meadowood, February 19, 2014

Oregon Wine Board Consumer Study. December 18, 2015

Wine Opinions Vinitaly Survey: Preliminary Findings to Italian Wines and the American Palate

MILLENNIAL CONSUMERS SEEK NEW TASTES, WILLING TO PAY A PREMIUM FOR ALCOHOLIC BEVERAGES. Nielsen Releases Most Comprehensive Study To Date

Chicken Usage Summary

Wine Australia Wine.com Data Report. July 21, 2017

Visitors' survey the results, part 1

Lake County in the Marketplace. Christian Miller Lake County Winegrape Commission Momentum Seminar January 23, 2014

Eating Pattern Recession Part 3. Background. his report provides a unique look at inhome

Wine Trends & the U.S. Consumer Laura Maniec, MS. CVRVV Conference January 10 th & 11 th 2013

Find the wine you are looking for at the best prices.

Update : Consumer Attitudes

Trends. in retail. Issue 8 Winter The Evolution of on-demand Food and Beverage Delivery Options. Content

RESULTS OF THE MARKETING SURVEY ON DRINKING BEER

Emerging Local Food Systems in the Caribbean and Southern USA July 6, 2014

THE GERMAN WINE MARKET LANDSCAPE REPORT JULY 2016

US Chicken Consumption. Presentation to Chicken Marketing Summit July 18, 2017 Asheville, NC

Report Brochure HISPANIC WINE DRINKERS IN THE US MARKET NOVEMBER REPORT PRICE: GBP 1000 EUR 1200 USD 1600 AUD 1700 or 2 Report Credits

Bt Corn IRM Compliance in Canada

2009 Fast Food (QSR) Rewards Programs Consumer Insights

Global sparkling wine market trends. June Peter Bailey. Manager - Market Insights. Wine Australia

THE METEORIC RISE OF ENERGY DRINKS

DISTILLERY REPORT. Prepared for Colorado Distillers Guild

Report Brochure P O R T R A I T S U K REPORT PRICE: GBP 2,500 or 5 Report Credits* UK Portraits 2014

ICC September 2018 Original: English. Emerging coffee markets: South and East Asia

Bottled Water Category Overview

2017 FINANCIAL REVIEW

Traditional Coffee Purchase Drivers

Shopping behaviours of different food and drinks consumption groups 35% 27% 16%

The Grocer: Beer & Cider Research on behalf of The Grocer July 2018

A Comparison of X, Y, and Boomer Generation Wine Consumers in California

Texas Wine Marketing Research Institute College of Human Sciences Texas Tech University CONSUMER ATTITUDES TO TEXAS WINES

SOUTH KOREAN WINE MARKET LANDSCAPE REPORT OCTOBER 2017

Running Head: MESSAGE ON A BOTTLE: THE WINE LABEL S INFLUENCE p. 1. Message on a bottle: the wine label s influence. Stephanie Marchant

More information from: global-online-food-delivery-and-takeaway-marketanalysis-by-order-type

Table of Contents. Contact Information

Awareness, Attitude & Usage Study Executive Summary

Survey for the International Riesling Foundation

Small Winemaker Production and Sales Survey Report November 2017

The following slides collate the insights relating to food and drink only.

Bag In Box Consumer Preferences in the UK. Presented during the Performance BIB meetings in Bristol, England 24 & 25 October 2012

Uruguay Cow Milk Market Production and Fluid Milk Consumption by Volume,

UPPER MIDWEST MARKETING AREA THE BUTTER MARKET AND BEYOND

A Profile of the Generation X Wine Consumer in California

STATE OF THE INDUSTRY 2017 wine sales trends & a deep dive into the Oregon Wine Consumer. Christian Miller Proprietor, Full Glass Research

Customer Survey Summary of Results March 2015

SPARKLING WINE IN THE UK MARKET. September 2018 Report

IMPORTANCE OF LODI WINES IN THE RETAIL CHANNEL AND OPPORTUNITIES FOR GROWTH. Curtis Mann Director of Wine & Beverage Raley s Family of Fine Stores

Breakfast Brief. Gen X

Global Rum Market Insights, Forecast to 2025

JAPANESE WINE MARKET. June Market Data Japan, June 2016, Wines of Germany, Japan

Country Profile: Bakery & Cereals sector in Indonesia

CANADA WINE MARKET LANDSCAPE WINE CONSUMPTION BEHAVIOUR IN QUÉBEC AND ENGLISH-SPEAKING CANADA

The Grocer : Soft Drinks Research on behalf of The Grocer April 2018

Tania Page Interim Sector Head. +44 (0)

The University of Georgia

An update from the Competitiveness and Market Analysis Section, Alberta Agriculture and Forestry.

National Vintage Report 2017

Characteristics, Preferences, and Purchase Drivers of Hispanic Wine Consumers in the U.S.

CARBONATED SOFT DRINKS

THE CHINA WINE MARKET LANDSCAPE REPORT JULY 2016

A typology of Chinese wine consumers.

DETERMINANTS OF DINER RESPONSE TO ORIENTAL CUISINE IN SPECIALITY RESTAURANTS AND SELECTED CLASSIFIED HOTELS IN NAIROBI COUNTY, KENYA

GENERAL DESCRIPTION OF INDUSTRY AND COMPANY

Report Brochure. Mexico Generations Re p o r t. REPORT PRICE GBP 2,000 AUD 3,800 USD 2,800 EUR 2,600 4 Report Credits

Company name (YUM) Analyst: Roman Sandoval, Niklas Podhraski, Akash Patel Spring Recommendation: Don t Buy Target Price until (12/27/2016): $95

Colorado Wine Board Quantitative Wine User Research II. Final Report ~ August 21, 2015

INDIA WINE I NSI DER The Consumer Outlook

Feasibility Study: The Best Chewy Chocolate Brand Name Granola Bar Available at the Denton Wal-Mart.

Study of Selection Behavior of Wine for Different Markets

The Future Tortilla Market: Organic, Ancient Grains, Transitional

RESEARCH UPDATE from Texas Wine Marketing Research Institute by Natalia Kolyesnikova, PhD Tim Dodd, PhD THANK YOU SPONSORS

18 May Primary Production Select Committee Parliament Buildings Wellington

Key trends that will shape future success in the beverage category January Ross Smith Consumer Insight Director

REGIONAL HISPANIC SNACKS

Everclear still IS the NGS category with +95% share! Source(s): IRI Data 26 Weeks Ending 4/9/17 Total US MULO +C Nielsen Total US 7/15/17

Fairtrade Buying Behaviour: We Know What They Think, But Do We Know What They Do?

THE FRENCH WINE MARKET LANDSCAPE REPORT SEPTEMBER 2017

Annika Stensson. Director Research Communications National Restaurant Association Washington, D.C. Restaurant.org/Research.

Consumer Perceptions: Dairy and Plant-based Milks Phase II. January 14, 2019

An update from Competitiveness and Market Analysis Branch, Agriculture and Rural Development.

THE UK WINE MARKET LANDSCAPE REPORT

INFLUENCES ON WINE PURCHASES: A COMPARISON BETWEEN MILLENNIALS AND PRIOR GENERATIONS. Presented to the. Faculty of the Agribusiness Department

THE NETHERLANDS WINE MARKET LANDSCAPE REPORT

WINE OPINIONS PANEL CONSUMER RESEARCH SURVEY RESULTS

Vegetable Imports Approaching 20% of Total

FLAVOUR AND VARIETAL PREFERENCE IN THE AUSTRALIAN WINE MARKET

CATEGORY INSIGHT REPORT

In 2017, the value of Scotch Whisky exports reached a record 4.37 billion.

The Vietnam urban food consumption and expenditure study

Supply & Demand for Lake County Wine Grapes. Christian Miller Lake County MOMENTUM April 13, 2015

KOREA MARKET REPORT: FRUIT AND VEGETABLES

SPARKLING WINE IN THE UK MARKET

Colorado Wine Board Quantitative Wine User Research. Final Report ~ May 24, 2017

The China Wine Barometer (CWB): a look into the future

WHEN IS WINE O CLOCK?

Australian wine: Production, sales and inventory

International Coffee Organization

Trending Now. E f f e c t. The E-commerce. Strategic Insights & Category Management

Albany, GA - Jan 15, the Future of the Peanut Industry -

Transcription:

The changing face of the U.S. consumer: How shifting demographics are re-shaping the U.S. consumer market for wine Prepared by: Wine Opinions LLC for WSET

It is well understood that wine consumption in the U.S. rose dramatically in the 1970s as the first wave of s came into adulthood and started choosing wine over beer or spirits on many occasions. Their strong preference was for white wine, and mainly California wine. Today, more than 30 years later, s still account for the greatest share of wine consumption in the U.S., but that is about to change. Generational Milestones¹ WWII Generation Born between 1910 and 1932 2015 2016 There are now fewer members of the World War II Generation than the population of New Jersey Youngest member turns 84 In the two-year period of 2015 2016, we are seeing significant shifts in the generational composition of the U.S. wine market, which may signal a market evolution in years to come¹. In order to better understand the current market and to anticipate change, Wine Opinions recently conducted a two-part survey of over 2,300 U.S. wine drinkers with the aim of better understanding three things: how the cultural adaptation to wine varies across the generations of U.S. adults; market trends that are primarily generation driven; and how wine drinkers as a group differ in their wine behaviours by gender and age segment. Swing Generation Born between 1933 and 1945 s Born between 1946 and 1964 Generation X Born between 1965 and 1976 Youngest member turns 70 s still account for the greatest share of wine consumption in the U.S. Oldest member turns 50 Oldest member turns 70 Youngest member turns 40 s Born between 1977 and 1994 Youngest member turns 21 igeneration Born between 1995 and 2009 Members of the igeneration are now on the wine market horizon. There are 61 million members of igeneration, and the eldest among them are turning 21 in 2016. Oldest member turns 21 ¹ Generation age ranges from American Generations 8th Edition, population figures from U.S. Census Bureau. 2

This article focuses on the survey results of Wine Opinions consumer panel respondents classified as High Frequency wine drinkers (1,072 completed surveys). These are consumers who say that, on average, they drink wine at least several times a week². High frequency wine drinkers³ While the high frequency segment of wine drinkers represents about 1 in 3 of all U.S. wine drinkers³, they are responsible for most of the wine purchases and are drivers of the market. To perform generational segmentation analysis, Wine Opinions divided the high frequency wine drinker survey respondents into groups conforming to the generational age ranges established in American Generations⁴. In the survey year (2015) this set s as ages 21 38, Generation X as ages 39 50, and s as ages 51 69. Looking at wine consumption by type, there are moderate but significant skews by generation. Of all the wine respondents drink, 62% is red compared to 56% for Generation X and 53% for s. respondents, on the other hand, consume significantly more rose and sparkling wines as a percentage of their total wine consumption than s. ³ Wine Market Council segmentation survey performed by Opinion Research Corporation, June, 2015 ⁴ Data from American Generations 8th Edition 2013, New Strategist Press, LLC Total Consumption by Wine Color and Generation (Average percentage of total consumption by volume among high frequency wine drinkers in survey²) 53% 56% s represent 1/3 of all U.S. wine drinkers 62% 26% 6% 6% Red wine White wine Rose or blush wine Sparkling wines of any kind drink wine on average 2+ times a week 27% 10% 10% 28% 9% 7% 3

wine drinkers are also seen to be driving most of the newly popular wave of sweeter styles of wine, which calls to mind the trend in the early 1980s when inexpensive Lambrusco wines reached a peak of more than 20 million cases in the U.S., driven mostly by the taste preferences of s in their late 20s and early 30s. Among survey respondents, it is s (in comparison to older generations) who exhibit a greater preference for red blend wines, Prosecco, and Moscato or Muscat - all of which were categorized as somewhat sweet styles in the survey. Furthermore, among s themselves, it is mainly the younger cohort (those now in their 20s) who lead this trend in Moscato consumption. Looking at the ratio of imported vs. domestic wine consumed by these high frequency wine drinker survey respondents, there is a decided skew toward domestic wines among s, while imported wine consumption is higher among the younger generations, especially s. Frequent/Occasional Purchase of Somewhat Sweet Styles of Wine by Generation Red Blend wines Prosecco from Italy Moscato or Muscat wines Riesling Port or other dessert wines s s 19% 15% 26% 32% 36% 40% 39% 46% 48% 48% 44% 40% 44% 53% 62% 0 10 20 30 40 50 60 Older respondents are more likely to: consume domestic wines purchase wine recommended by a critic or a wine column Imported Wines as a Percent of Total Wine Consumption 56% 16% 28% 60% 15% 25% s 68% 14% 18% Less than 50% About 50% More than 50% 4

Also of interest are the factors that influence wine shoppers and here, there are also a few notable differences by generation. Many surveys conducted by Wine Opinions in the past have shown that, when considering the purchase of a wine they are not familiar with, the most influential recommendation is a wine-knowledgeable family member or friend. The same result is seen in the high frequency wine drinker survey. Among survey respondents, a recommendation by a wine knowledgeable family member or friend was cited as very influential when purchasing an unfamiliar wine more often by s than the other generations. Also, recommendations from the sales staff at a store were found to be more influential among both s and Generation Xers than among s. In the U.S. market, there has been some recent interest in the sales of wine in cans, most notably the 375ml size can. Survey respondents were asked if they have purchased, or have an interest in purchasing wine in this type of package. While overall purchase rates were low, slightly more s in the survey had purchased wine in a can, and slightly more of them, who had not purchased wine in a can, expressed interest in doing so compared to other generations. Very Influential Factors when Buying an Untried Wine by Generation Recommendation of a wineknowledgeable family member or friend Recommendations from the sales staff at the store A high score on a 100-point scale from a well-known wine critic The wine was recommended in a wine column (print or online) that you recently read The wine has won awards or medals in tasting competitions s s 19% 23% 24% 17% 13% 20% 17% 14% 11% 30% 30% 40% 41% 50% 0 10 20 30 40 50 60 Past 12 Month Wine in a Can Purchase by Generation 14% 32% 54% Younger respondents are more likely to: be influenced by recommendations from family, friends and sales staff have an interest or have purchased wine in a can purchase wine that has won awards or medals in tasting competitions 8% 28% 64% s 5% 74% Have purchased Have not purchased but am interested Have not purchased and have no interest 5

While there were numerous differences among the generations of high frequency wine drinker survey respondents in terms of the types and styles of wines they prefer, many high frequency wine drinkers in the survey are seen as adopters of smartphone and tablet computer apps related to wine. While the usage of Yelp skews somewhat in the survey, other applications used for wine or dining information are evenly spread across generations, with Vivino established as the most frequently found wine app on these devices. The mobile version of Wine.com was reported in the survey as equally spread across generations, while Wine Searcher and the Wine Spectator s Wineratings+ app skewed somewhat to s. Members of the igeneration are now on the wine market horizon. There are 61 million members of igeneration, and the eldest among them are turning 21 in 2016. They are the most ethnically diverse of all generations, and as they enter the wine market, their tastes and behaviours with wine will be scrutinized by wine marketers around the globe. Smartphone/Tablet Wine-Related Apps Penetration by Generation s s Yelp Open Table Vivino Wine.com mobile site Wine Searcher Wine Spectator Wineratings+ The Tasting Guide (Wine Enthusiast) Delectable Hello Vino Corkz Drync Next Glass Corkscrew 4% 4% 6% 10% 9% 8% 7% 6% 4% 2% 8% 10% 9% 15% 15% 20% 20% 22% 24% 26% 27% 30% 29% 33% 29% 36% Most common app amongst s Most common app amongst and s Most common wine app among all generations 5% 4% 3% 0 10 20 30 40 50 60 70 42% 49% 50% 54% 53% 62% 6

Appendix Page 2 Generational Milestones 2015 2016¹ 2015 2016 There are now fewer members of the World War II Generation than the population of New Jersey Youngest Swing Generation member turns 70 Oldest Generation X member turns 50 Youngest reaches legal drinking age Page 3 The oldest reaches 70 years of age The youngest member of Generation X turns 40 First wave of the igeneration reach legal drinking age Total Consumption by Wine Color and Generation (Average percentage of total consumption by volume among high frequency wine drinkers in survey²) Page 4 Frequent/Occasional Purchase of Somewhat Sweet Styles of Wine by Generation Red Blend wines 62% 46% 53% Prosecco from Italy 48% 40% 39% Moscato or Muscat wines 26% 19% 15% Riesling 48% 44% 40% Port or other dessert wines 32% 44% 36% Imported Wines as a Percent of Total Wine Consumption Less than 50% 56% 60% 68% About 50% 16% 15% 14% More than 50% 28% 25% 18% Red wine 53% 56% 62% White wine 27% 28% 26% Rose or blush wine 10% 9% 6% Sparkling wines of any kind 10% 7% 6% ¹ Generation age ranges from American Generations 8th Edition, population figures from U.S. Census Bureau. 7

Appendix Page 5 Page 6 Very Influential Factors when Buying an Untried Wine by Generation Smartphone/Tablet Apps Penetration by Generation Recommendation of a wine-knowledgeable family member or friend Recommendations from the sales staff at the store A high score on a 100-point scale from a well-known wine critic The wine was recommended in a wine column (print or online) that you recently read The wine has won awards or medals in tasting competitions 50% 40% 41% 30% 30% 19% 23% 24% 17% 13% 20% 17% 14% 11% Yelp 62% 49% 42% Open Table 50% 54% 53% Vivino 30% 29% 33% Wine.com mobile site Wine Searcher 26% 27% Wine Spectator Wineratings+ 20% 29% 36% The Tasting Guide (Wine Enthusiast) 20% 22% 24% Delectable 15% 15% 10% Hello Vino 10% 9% 8% Past 12 Month Wine in a Can Purchase by Generation Have purchased 14% 8% 5% Corkz 7% 4% 8% Drync 6% 9% 4% Next Glass 6% 4% 2% Corkscrew 5% 4% 3% Have not purchased but am interested 32% 28% Have not purchased and have no interest 54% 64% 74% 8

Wine Opinions is a leading provider of U.S. wine market research to wine producers, wine marketing companies, and wine trade associations around the globe. wineopinions.com WSET 2016