Older consumers are drinking more — and trading up. That’s not the way it’s supposed to be, according to conventional wisdom. But that’s what’s happening, according to Bourcard Nesin, the beverage analyst at Rabobank. Not only that, he says in a detailed report, but per capita alcohol spending among individuals over 65 has more than doubled over the past 15 years. How did bev/al brands miss this? And yet, miss they did: Most brands still don’t market to people over 45.
Not only that, but for the first time in U.S. history, in 2019 women represented the majority of bev/al consumers under 25. Women are drinking more. Men are drinking less. And the number of women of color that drink alcohol at least once a month has increased 64% over the past 15 years.
And finally, a mystery. Young people under the LDA are drinking less, a lot less. Sixty percent (60%) less, in fact. They are also using drugs less, having sex less. No one knows why.
Older consumers are open to new brands, and consumers over 45 account for half of spending in categories like premium spirits, Nesin says. But most brands don’t market too them.
Nesin sees trouble down the road. Not only are most brands ignoring older drinkers, but they are failing to connect with younger drinkers.
Another problem: In 2004, only 23% of regular drinkers were people of color. Today that number has jumped to 31%, thanks to Asian, Black and Latina women. The population of women of color who regularly use alcohol has increased more than 84% since 2004. Why? May the rise of musicians like Cardi B are changing norms about how women of color are supposed to behave. Or maybe its a result of declining church attendance. Or maybe higher more WOC are attending college.
Now that’s not to say white men don’t account for most alcohol purchased in the U.S.; they do. But — their share is falling quickly. Bottom line: companies need to hire more people of color in order to diversify their workforces and avoid embarrassing gaffes.
Here’s another surprising fact: In 2019, young women wee more likely than young men to use alcohol. “Men still drink way more than women,” Nesin says, adding:
“But over the past 15 years, per capita alcohol consumption among men has been flat or declining, while it has steadily increased among women. This trend is consistent across age, racial, and ethnic groups. Women, for example, account for most of the rising prevalence of alcohol use among older consumers and people of color.
It’s a fascinating — and important — study.