Entertainment: Why the third space is a first priority to reach Gen Z
- InsightTrendsWorld
- 4 days ago
- 8 min read
Why it is the topic trending:
Rising Popularity of "Third Space" Venues:Â The article highlights the increasing importance of multi-purpose and interactive venues beyond the home and workplace (the "third space") for young adults, particularly Gen Z.
Lucrative Target Demographic:Â Gen Z is identified as a highly valuable consumer group for drinks brands due to their willingness to spend on leisure activities.
Shifting Consumption Habits:Â Younger adults are showing different preferences for where they socialize and spend their leisure time compared to older generations.
Strategic Importance for Brands:Â The "third space" is emerging as a vital channel for brands to reach and engage Gen Z consumers effectively.
Higher Sales Volumes in Third Spaces:Â Data indicates that these venues achieve significantly higher drinks volumes compared to traditional on-premise locations, making them attractive for suppliers.
Overview:Â The article discusses the growing significance of "third space" venues like competitive socializing spots, event spaces, music and food venues, and stadia for reaching Gen Z consumers. A new report from CGA by NIQ reveals that Gen Z adults are frequently visiting these locations for eating and drinking out, often more so than older generations. The report emphasizes the lucrative nature of this demographic and the higher sales volumes in third spaces, urging drinks suppliers to prioritize engagement with these venues to capitalize on opportunities.
Detailed findings:
"Third space" venues include multi-purpose and interactive sites like competitive socializing venues, event spaces, music and food spaces, and stadia.
43% of Gen Z eat or drink out weekly.
Gen Z are very willing to spend money on their leisure activities, with their spending proportion in line with other demographics despite potentially limited income early in their careers.
Nearly half (49%) of Gen Z drinkers in third space venues use them at least weekly, which is 29 percentage points more than Gen X.
Third space venues achieve an average of 19% more drinks volumes per month than traditional On Premise units.
Rachel Weller of CGA by NIQ emphasizes that Gen Z goes out as much as older groups and are a highly lucrative target, making engagement with third space venues critical for drinks brands.
The Third Space Report by CGA by NIQ is based on a survey of 4,000 consumers and provides comprehensive analysis of these venues.
Key takeaway:Â "Third space" venues are a first priority for reaching Gen Z consumers, who frequent these multi-purpose and experience-led locations for their leisure activities and demonstrate a strong willingness to spend on eating and drinking out, making these venues a vital and high-volume channel for drinks brands to target.
Main trend:Â The Rise of the "Third Space" as a Primary Social and Consumption Hub for Gen Z
Description of the trend (please name it): Gen Z's Experiential Oasis. This trend describes the increasing preference and prioritization of "third space" venues by Gen Z as their primary locations for social interaction, leisure activities, and consumption of food and beverages. These venues, offering more than just traditional dining or drinking experiences, are becoming central to Gen Z's social lives and spending habits outside of home and work/study.
What is consumer motivation:Â Gen Z consumers are motivated by the desire for experience-led activities, social interaction in dynamic and engaging environments, and a sense of community that "third space" venues often provide. They are looking for more than just food and drink; they seek an overall leisure experience that is worth spending their disposable income on.
What is driving trend:
Desire for Social Connection:Â Gen Z, having grown up in a digital age, values in-person social interactions and seeks out venues that facilitate these connections.
Preference for Experiential Activities:Â Unlike previous generations who might have prioritized traditional bars or restaurants, Gen Z is drawn to venues offering activities beyond just eating and drinking, such as gaming, live entertainment, or unique events.
Seeking Community and Belonging:Â "Third space" venues can foster a sense of community and shared experience among like-minded individuals.
Willingness to Spend on Leisure:Â Despite potentially limited income, Gen Z prioritizes spending on leisure activities and experiences that they find valuable.
Evolution of Social Outings:Â Traditional notions of "going out" are evolving for younger generations, with a greater emphasis on multi-faceted entertainment and socializing.
What is motivation beyond the trend:Â Beyond immediate entertainment and social connection, Gen Z's preference for "third spaces" might also reflect a desire for unique and memorable experiences that they can share online and with their peers, contributing to their social identity and personal narrative.
Description of consumers article is referring to (what is their age?, what is their gender? What is their income? What is their lifestyle): The article specifically refers to Gen Z (young adults in the early stages of their careers). While gender and income are not explicitly detailed beyond the point that their income might be more limited compared to older groups, it's noted that they are very willing to spend money on their leisure activities. Their lifestyle is characterized by a prioritization of leisure and social experiences, a preference for multi-purpose and interactive venues, and a tendency to eat and drink out weekly at a high rate.
Conclusions:Â "Third space" venues are emerging as critical locations for reaching Gen Z consumers, who are highly active in these environments for their social and leisure activities and represent a lucrative target market for drinks brands due to their willingness to spend on experiences.
Implications for brands:
Drinks Suppliers:Â Must prioritize engagement with "third space" venues to effectively reach Gen Z consumers and capitalize on the higher sales volumes in these locations.
Venue Owners/Operators:Â Should continue to innovate and offer experience-led activities that appeal to Gen Z's desire for more than just food and drink.
Implication for society:Â The shift in socializing habits towards "third space" venues could influence urban development and the types of leisure and entertainment options available in cities and communities.
Implications for consumers:Â Gen Z consumers will likely continue to have a growing array of "third space" venues to choose from, offering diverse and engaging experiences for socializing and leisure.
Implication for Future:Â The importance of "third space" venues for reaching young adults is likely to increase in the future as Gen Z's spending power grows and their preferences continue to shape the leisure and hospitality industries.
Consumer Trend (name, detailed description): The Experience Economy Dominance. This trend describes the ongoing shift in consumer spending from goods to experiences, with younger generations particularly valuing and investing in activities, events, and social outings over material possessions.
Consumer Sub Trend (name, detailed description):Â Multi-Purpose Social Hubs:Â This refers to the increasing popularity of venues that offer a combination of food, drink, entertainment, and social interaction, catering to the multifaceted leisure needs of consumers, especially Gen Z.
Big Social Trend (name, detailed description):Â The Evolving Landscape of Socialization:Â Traditional modes of socializing are being redefined, with a greater emphasis on shared experiences and engaging environments outside of traditional homes or bars.
Worldwide Social Trend (name, detailed description):Â Global Youth Preference for Experiential Spending:Â The tendency for younger generations worldwide to prioritize spending on experiences and social activities over material goods is a global phenomenon.
Social Drive (name, detailed description):Â The Desire for Connection, Experience, and Community:Â Gen Z's preference for "third spaces" is driven by a fundamental human need for social connection, engaging experiences, and a sense of community and belonging.
Learnings for brands to use in 2025 (bullets, detailed description):
Drinks Suppliers:Â Recognize the high engagement and sales potential within "third space" venues for reaching Gen Z.
All Brands Targeting Gen Z:Â Understand that this demographic prioritizes experiences when choosing where to spend their money.
Venue Owners:Â Continuously adapt and innovate to offer diverse and appealing experiences that attract Gen Z.
Strategy Recommendations for brands to follow in 2025 (bullets, detail description):
Drinks Suppliers:Â Develop targeted distribution and sales strategies specifically for "third space" venues. Create compelling marketing messages and innovative activation plans for these locations.
Venue Owners:Â Invest in creating diverse and engaging experiences that cater to the interests of Gen Z, such as interactive games, live music, and themed events.
All Brands:Â Explore partnerships with "third space" venues to create unique and memorable brand experiences for Gen Z consumers.
Final sentence (key concept) describing main trend from article:Â The article highlights the critical importance of "third space" venues in reaching Gen Z, who are actively seeking experience-led social environments for their leisure and consumption habits.
What brands & companies should do in 2025 to benefit from trend and how to do it:Â In 2025, drinks brands and companies should prioritize engaging with "third space" venues to effectively reach Gen Z by:
Developing distribution strategies that ensure their products are readily available in these high-traffic locations.
Creating targeted marketing campaigns that resonate with Gen Z's interest in experiences and the unique atmosphere of "third space" venues.
Exploring potential partnerships and collaborations with these venues to enhance brand visibility and create memorable consumer experiences.
Final note:
Core Trend:Â Gen Z's Experiential Oasis:Â The prioritization of "third space" venues for social and consumption activities.
Core Strategy:Â Targeted Engagement in "Third Space" Venues:Â Prioritizing distribution, marketing, and partnerships within these locations to reach Gen Z.
Core Industry Trend:Â The Growing Importance of Experience-Led Leisure:Â The increasing demand for venues that offer activities beyond traditional food and beverage service.
Core Consumer Motivation:Â Seeking Experience, Social Connection, and Community:Â Gen Z's drivers for choosing "third space" venues.
Final Conclusion:Â The "third space" is not just another option but a central hub for Gen Z's social lives and spending in 2025, making it a critical priority for brands, especially drinks suppliers, to actively engage with these dynamic and high-volume locations.
Core Trend Detailed: Gen Z's Experiential Oasis
Description:Â Gen Z's Experiential Oasis describes the increasing preference and prioritization of "third space" venues by Gen Z as their primary locations for social interaction, leisure activities, and consumption of food and beverages. These venues, offering more than just traditional dining or drinking experiences, are becoming central to Gen Z's social lives and spending habits outside of home and work/study.
Key Characteristics of the Trend (summary):Â Gen Z is increasingly choosing "third space" venues for socializing and leisure due to their interactive nature and the experiences they offer beyond basic food and drink.
Market and Cultural Signals Supporting the Trend (summary):Â High rates of Gen Z eating and drinking out weekly, their strong willingness to spend on leisure, and the significantly higher drinks volumes in "third space" venues compared to traditional ones all support this trend.
How the Trend Is Changing Consumer Behavior (summary):Â Gen Z is shifting their social outings and spending towards multi-purpose venues that offer engaging experiences in addition to food and drinks, moving away from traditional bars and restaurants as their primary leisure destinations.
Implications Across the Ecosystem (For Brands and CPGs, For Retailers, For Consumers, summary):
For Brands and CPGs:Â Drinks suppliers, in particular, need to prioritize engagement and distribution within "third space" venues to effectively reach and capitalize on the spending power of Gen Z.
For Retailers:Â Venue owners and operators should focus on creating and innovating experience-led activities and environments that appeal to the preferences of Gen Z.
For Consumers:Â Gen Z will continue to have a growing variety of dynamic and engaging "third space" venues to choose from for their social and leisure needs.
Strategic Forecast:Â The importance of "third space" venues for reaching young adults is likely to increase in the future as Gen Z's spending power grows and their preferences continue to shape the leisure and hospitality industries.
Final Thought:Â The "third space" is not just another option but a central hub for Gen Z's social lives and spending in 2025, making it a critical priority for brands, especially drinks suppliers, to actively engage with these dynamic and high-volume locations.
