Premium spirits brands, such as Hennessy and Dom Pérignon, hold sway over Gen Z consumers, according to travel retail analyst Pi Insight. They may drink less than their older counterparts, but when they do indulge, Pi Insight says that Gen Zers lean towards high-quality or prestige brands to make the most of those moments.
A series of new Pi Insight reports, including ‘Gen Z in Travel Retail – Alcohol’, examines how Gen Z travellers respond to different product categories like beauty and luxury when they visit stores. Understanding the needs, wants and expectations of Gen Z travellers is of paramount importance to beverage alcohol brands and retail operators as the global travel retail landscape evolves, according to Pi Insight MD Stephen Hillam.
“We delve into their preferences in duty-free stores worldwide, focusing on the alcohol category,” he explains. “By using this report to inform decision-making, retailers and brands can tailor their offerings to better serve this influential demographic, drive engagement and boost sales.”
Management consultancy McKinsey defines Gen Z as the generation born between 1996 and 2010, so the oldest among them are approaching 30 and the youngest are still in their teens. What they have in common is that they’ve been shaped by the digital age, from shopping online to social media, as well as experiencing climate anxiety and Covid-19 isolation.
Pi Insight took a nationality approach in terms of alcohol and its research identified many other shared threads. As well as being drawn to premium spirits, Gen Zers across nationalities opt for brands that align with their values on sustainability and ‘social good’.
Even where there are contradictions in their own purchasing habits, when it comes to the environment, Gen Zers scrutinise brands and will walk away if not satisfied with their green credentials. Research by ABC Analytics backs this up: 55% of Gen Z consumers are willing to pay more for small-batch spirits, while 63% prefer brands with sustainable practices.
Gen Z in …
… China
The Chinese have long been known as big spenders in GTR, and the country’s Gen Z consumers seem to be a chip off the old block in also taking an interested in premium alcohol, particularly whiskey/whisky and cognac.
Pi Insight suggests that Chinese Gen Zers look for brands with a rich heritage and a reputation for craftsmanship. They also appear to have an interest in flavoured spirits, cocktails and brand stories with cultural significance to China.
“Brands offering fruit-infused spirits and herbal liqueurs are particularly favoured,” says the analyst.
… India
Indian Gen Z alcohol shoppers in GTR exhibit a preference for premium whiskey/whisky brands, a cross-generational favourite. But they, too, are also showing a preference for flavoured spirits, according to Pi Insight.
As more of India’s 1.4bn become middle class, they’re also willing to spend more, with Gen Z travellers showing an interest in wine and champagne. Brands like Sula Vineyards and Chandon are seeing rising demand among this demographic as they seek more sophisticated drinking experiences.
Another positive is that more than 50% of Indian Gen Z shoppers visit the duty-free alcohol aisles to look for new products.
… the UK
British Gen Z consumers are not as keen. Only 43% of them visit the alcohol category at the airport, according to Pi Insight.
When they do visit, the UK’s Gen Zers have a penchant for gin and craft beers, seeking out unique and artisanal options. They’re more likely to be drawn to brands with a strong local identity and tradition.
UK Gen Z shoppers account for about 10% of alcohol sales in GTR, with rising demand for niche spirits. In gin, brands such as Tanqueray and Hendrick’s, for example. are favoured for their distinctive flavours and premium quality.
… the US
American Gen Zers are on par with their UK counterparts – 45% of them visit the liquor section in GTR. However, Pi Insight found that they have more adventurous palates and are willing to explore a range of alcoholic beverages.
They’re particularly drawn to craft brewers and distillers that offer unique flavour profiles such as barrel-aged beers and small-batch spirits. Brands such as Tito’s Handmade Vodka and Bulleit Bourbon fit their demands well.
… Germany
German Gen Z travellers, meanwhile, are known for their discerning taste in alcohol and like premium brands with a focus on quality and craftmanship.
“German Gen Z consumers reflect their desire for authenticity and distinctiveness in their drinking choices by showing a preference for artisanal spirits and brands with a strong heritage,” says the analyst. In GTR, German Gen Zers are increasingly drawn to alternative alcohol products like 0% ABV beer and spirits.
Subsequently, brands like Clausthaler and Seedlip are gaining in popularity, according to the German Duty Free Association.
