Generational cohort theory and wine: analyzing how gen Z differs from other American wine consuming generations

Abstract

Purpose The purpose of this paper is to identify the wine consumption preferences and behavior of Gen Z wine consumers in the USA and to determine if and how Gen Z differ from other major generational cohorts in the USA. This study applies the concepts of generational cohort theory to the US wine market to examine similarities and differences between age cohorts and their potential impact on future wine sales. Design/methodology/approach A quantitative survey was conducted with a quota sample of 1,136 US wine consumers located in all 50 states. Data analysis included one-way ANOVA analysis to test the null hypothesis that the generational cohort means are equal. If the test detected at least one mean difference across cohorts, then pairwise comparisons were performed to identify, which groups differed. The Tukey–Kramer method was used for all post hoc tests. Basic descriptive statistics were also calculated. Findings The results show some parallels in terms of similar consumption levels and a higher preference for red wine across all cohorts. However, on the majority of other common wine consumer research topics, Gen Z shows significant differences. Of specific interest, Gen Z consumers report higher levels of preference for sparkling wine than other cohorts; prefers to drink in social situations; are much more interested in labels and package; make decisions based on varietal and alcohol level and are much more engaged on Instagram and Snapchat social media platforms – all pointed to new marketing tactics needed to reach this new consumer segment. Originality/value This is the first empirical wine research study to explore the wine preferences and behaviors of Gen Z in the US market. This is valuable because Gen Z is a very large population of consumers, comprising 32% of the world population (Miller and Wei, 2018) and already represent more than $143bn in buying power (Dill, 2015). They are expected to have a huge impact on consumer products, not only in the USA but also on a global basis. Given that the USA is currently the largest wine market in the world in both volume and value (Wine Institute, 2019; VinExpo, 2018), it is important that research is conducted on this new and powerful generation.

Wine consumption preferences among generations X and Y: an analysis of variability

“…In this sense, level of education and consumption in restaurants are significant for Generation X and level of income, marital status and consumption elsewhere for Generation Y. In terms of theoretical implications, these results also support previous generational cohort studies applied to different areas and confirm that, as noted by Wolf et al (2018) and Thach et al (2020), generational segmentation is appropriate for the wine sector.…”

“…In the literature, the influence of the effects of age, period and cohort on the decision to consume wine have been analysed separately and, to a lesser extent, jointly (Fountain and Lamb, 2011;Gustavsen and Rickertsen, 2018; for wine in particular and Aristei et al, 2008;Kerr et al, 2013; for alcohol consumption in general, among others). However, while some works analyse the behaviour of several generations (Bruwer and McCutcheon, 2017;Chivu-Draghia and Antoce, 2016;Koksal, 2019;Mueller et al, 2011;Teagle et al, 2010;Thach et al, 2020;Wolf et al, 2005Wolf et al, , 2018, most analyse Generation Y (Castellini and Samoggia, 2018;Marinelli et al, 2014;Nassivera et al, 2020;Pomarici and Vecchio, 2014;Velikova et al, 2013Velikova et al, , 2016, especially in terms of preferences regarding wine attributes. Some studies have also pointed out the non-homogeneous nature of wine consumption among Generation Y individuals (Castellini and Samoggia, 2018;De Magistris et al, 2011;Mueller et al, 2011), partly due to the wide age range of the individuals involved and the cultural differences between countries and even within regions of the same country.…”

Identifying wine consumers interested in environmentally sustainable production practices

“…Wineries could promote these uses and uniqueness through appropriate sales channels, one of which is social media. At least 77% of US wine consumers born between 1964 and 2016 reported using Facebook, 68% and 86% of Millennials and Gen Z, respectively, used Instagram, while 83% of Gen Z used Snapchat (Thach et al, 2020). Thus, messages should focus on providing information (e.g.…”

Preferences for eco certified wines in the United States

“…Even though the younger generations show an interest in eco certified products, they often do not have the financial ability to pay for the premiums (Magnusson et al, 2001). Millennials (or the youngest generation currently of drinking age) have a propensity to buy eco certified wines (Galati et al, 2019;Tsakiridou et al, 2006) and it is important to note that Gen Z is starting and will continue to enter drinking age, in the USA (21 years), with a strong purchasing power (Thach et al, 2020). Therefore, we hypothesize that: H1.…”

“…We also believe that additional studies analyzing the perception of eco certified wines, consumer preference and WTP are needed in this research sector. In the future, it would be interesting to reproduce this study when Gen Z is of full drinking age as their impact will be significant (Thach et al, 2020).…”