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Writer's pictureInsightTrendsWorld

Insight of the Day: Gen Z and Millennial consumers turning to craft for ‘more personal, local experiences

Findings:

  1. Craft Spirits Growth: The craft spirits industry, currently valued at $21.4 billion, is expected to grow to $117.4 billion by 2030, with a CAGR of 28.4% (2024–2030).

  2. Generational Drivers: Millennials and Gen Z are the primary growth drivers due to their purchasing power and preference for personal, local, and authentic experiences.

  3. Market Dynamics: Increased demand, rising disposable incomes, and the growing number of craft distilleries underpin market expansion.

Key Takeaway:

Younger consumers value authenticity, personalization, and locality in their drinking experiences, driving explosive growth in the craft spirits market.

Trend:

  • Primary Trend: Preference for craft and small-batch products.

  • Sub-Trends:

    • Locally sourced ingredients and regional branding.

    • Personalized and experiential consumption.

Consumer Motivation:

  • Desire for unique, authentic experiences over mass-produced products.

  • Interest in supporting local businesses and sustainable practices.

  • Appeal of storytelling and heritage tied to craft brands.

What Is Driving the Trend:

  • Increased disposable income among Millennials.

  • Shift away from mainstream brands toward niche, craft alternatives.

  • Rising number of craft distilleries offering tailored experiences.

Who Are the People Referenced:

  • Millennials and Gen Z consumers driving craft spirits sales.

  • Craft distillers capitalizing on demand for authentic, small-batch production.

Description of Consumers, Products, or Services:

  • Consumers: Younger adults (21–40), urban professionals with disposable incomes, and experience-seekers.

  • Products: Craft spirits such as whiskey, gin, rum, and vodka, focusing on small-batch, locally sourced, and artisanal processes.

  • Services: Experiential offerings, such as tastings, tours, and personalized branding.

Conclusions:

The craft spirits market is set for massive growth, driven by younger consumers' preference for personal, local, and unique experiences, marking a significant shift from mass-market alcohol to niche craft options.

Implications:

For Brands:

  • Focus on storytelling, authenticity, and locality in marketing.

  • Offer experiential opportunities to engage with consumers personally.

For Society:

  • Promotes local economic growth and sustainability.

  • Fosters a deeper connection between consumers and the production process.

For Consumers:

  • Access to high-quality, artisanal products tailored to their preferences.

  • Opportunities to support local producers and explore diverse offerings.

For the Future:

  • Craft spirits will dominate premium alcohol markets, with continued innovation in production and consumer engagement.

Consumer Trend:

  • Craft Personalization: Demand for unique, small-batch spirits with local appeal.

Consumer Sub-Trend:

  • Authenticity and Storytelling: Preference for products with a meaningful backstory and heritage.

Big Social Trend:

  • Localism and Sustainability: Growing focus on supporting local economies and eco-conscious production.

Local Trend:

  • Regional craft distilleries gaining prominence in their markets.

Worldwide Social Trend:

  • A global shift toward small-batch, artisanal products with local authenticity.

Name of the Big Trend Implied:

"Craft Revolution in Spirits."

Name of the Big Social Trend Implied:

"Authentic Local Experiences."

Social Drive:

  • Desire for meaningful connections to products and their origins.

Learnings for Companies to Use in 2025:

  • Engage Millennials and Gen Z: Focus on storytelling and regional branding.

  • Expand Craft Offerings: Diversify product lines to cater to local tastes and preferences.

  • Prioritize Sustainability: Highlight eco-friendly practices and locally sourced ingredients.

Strategy Recommendations for Companies to Follow in 2025:

  1. Invest in Local Distilleries: Build partnerships with regional producers to enhance authenticity.

  2. Create Experiential Marketing: Offer tours, tastings, and hands-on experiences.

  3. Leverage Digital Storytelling: Use social media to highlight brand stories, production processes, and heritage.

  4. Emphasize Sustainability: Use eco-friendly packaging and ingredients to appeal to socially conscious consumers.

Final Sentence (Key Concept):

The craft spirits market is thriving by delivering authentic, local, and personalized experiences that resonate deeply with younger consumers' values and lifestyles.

What Brands & Companies Should Do in 2025 and How:

  • What to Do: Focus on small-batch, authentic, and locally inspired craft spirits.

  • How to Do It: Enhance storytelling, embrace experiential marketing, and prioritize sustainability to connect with Millennial and Gen Z consumers on a deeper level.

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