As a Millennial myself, I can safely vouch for consumers of my age group in that we love wine. Whites, reds, sweet or dry, Millennials like to enjoy a glass — or three, or four — of the good stuff.
But what defines the good stuff exactly?
Rabobank's new report studies the role of Millennials and Gen Xers in driving premiumization in the global wine industry, and the divergent channels that wine marketers are using to pursue these important consumers.
According to the findings, Millennials and Generation X consumers are shaping and changing the global wine market — and wine suppliers and retailers are sensing it.
Wine makers are feeding off the growing appetite for wines beyond just the mainstream, but Rabobank analyst Marc Soccio says many premium wine producers are struggling for growth and profitability. The reason: their capacity to reach out to modern-day consumers are becoming more limited.
Soccio says, "As the high-volume grocery retail channel in particular is becoming the realm of bigger brands and suppliers, smaller brands have little choice but to seek new ways to connect with the pockets of consumers looking to head upmarket."
The report also notes that the sudden rise in some premium-focused emerging markets, like China, is playing a major role in stimulating the global demand for premium (mostly red) wines.
Other key factors noted in the report, include:
- How the changing generational preferences are playing a role in wine consumption worldwide.
- Growth of the grocery retail channel and how retailers are favoring bigger brands, while smaller brands are left to seek new ways to connect with consumers.
- Not all premium wine producers have been able to capitalize on the rising demand of premium wines.
For more information on the report, contact Marc Soccio at Marc.Soccio@rabobank.com.
Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, real estate services, and renewable energy project financing. Founded over a century ago, Rabobank is one of the largest banks in the world, with nearly $1 trillion in assets and operations in more than 40 countries. In North America, Rabobank is a premier bank to the food, beverage and agribusiness industry. Rabobank’s Food & Agribusiness Research and Advisory team is comprised of more than 80 analysts around the world who provide expert analysis, insight and counsel to Rabobank clients about trends, issues and developments in all sectors of agriculture. www.rabobank.com/f&a