GenZ/Millennial/Latinx Consumers- Hard Kombucha Seltzers

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GenZ/Millennial/Latinx Consumers- Hard Kombucha Seltzers

Psychographic profiles for Millennial, Gen X, and the Hispanic community have been compiled, along with the demographics of hard kombucha drinkers. While compiling the psychographic profiles, special attention was given to details surrounding drinks and food, along with the standard psychographic information. Additionally, marketing insights for the LatinX/bicultural community have been provided at the end of the brief.

Information from the initial research phase has been added to this brief for continuity.

Kombucha Demographic Profile

Age

  • Women, aged 28-45, are the main consumers of this beverage according to FoodDive.
  • Kombucha is appealing to the Millennial and GenX age groups, as they are more conscious of what they are putting into their bodies. More than half of older Millennials drink kombucha (67%). When looking at hard kombucha, the appeal of the drink being healthy while still containing alcohol, is a new concept that is especially attractive to this demographic.

Gender

  • In a survey of over 2,000 people women are the main purchasers of alcoholic kombucha.
  • 51% of hard cider drinkers are male, and 49% are female. Hard kombucha resonates with cider drinkers due to the tart and savory flavor.

Educational Level

Income

  • When looking at the demographics of Humm Kombucha, a non-alcoholic drink, as a proxy, the majority of consumers make $80,000 and above. To cross-reference, the demographics of Angry Orchard were used, and they confirmed income amounts.

Geographical Data

  • More than 80% of sales for hard kombucha are from California.

Race

  • Again, looking at the demographics of Humm Kombucha, the drink is most popular with Caucasian and Asian drinkers. To cross-reference, the demographics of Angry Orchard were used, and they confirmed, but leaned slightly more towards Caucasian drinkers.

Marriage/Family

Millennial Psychographic Profile

Social Media Usage

  • 90.34% are active social media users.
  • 79% of 30-49 year olds use Facebook.
  • 84% of 25-30 year olds use Facebook.
  • 47% use Instagram (30-49 years old).
  • 57% of 25–30 year olds use Instagram.
  • 31% of 25–30 year olds use Twitter.
  • 26% of 30–49 year olds use Twitter.
  • 44% of 25–30 year olds use LinkedIn.
  • 37% of 30–49 year olds use LinkedIn.

Purchasing Habits

  • 87% of Millennials state they regularly drink tea.
  • 31% are drinking less to save money.
  • 68% of 22-44 year olds prefer buying alcoholic beverages with nutritional information clearly explained on the label.
  • 73% state they will spend more for products that are sustainable or have a positive impact.
  • 72% state they would rather spend on experiences than "things".
  • 42% will make at least one impulse purchase per month.
  • "According to Charles Schwab, 60% of millennials agreed that they would buy a cup of coffee that costs more than $4, compared to just 29% of baby boomers."
  • 60% like to try new things.
  • 81% of Millennials in a recent survey felt that a company needed to have a strong mission and a genuine purpose.

Factors When Purchasing

  • Sustainability is important to this generation. Environmental concerns influence their purchasing decisions and push them towards packaging and products that are more environment friendly.
  • They are 2.5 times more likely than the average shopper to be influenced by a mobile app.
  • 47% state the social media influence their decisions.
  • 62% state if a brand engages them on social media, they are more likely to be a loyal customer.
  • 60% state that social advertising is more credible when trying to influence their decisions.
  • 84% state that user generated content influences what they buy.
  • They value authenticity.
  • 80% participate in loyalty programs. They are more likely than any other shoppers to keep shopping with a brand because of rewards.

Product Affinities

  • Only 36% of GenZs stated they had a strong connection to a brand. When looking at older GenZ, this number rises to 46%.
  • According to the Visual Capitalist, the most popular brand for those between the ages of 18-34 are (in order of popularity) PlayStation, Amazon, Target, Disney, Ford, Jeep, Apple, YouTube, XBox, and Nintendo.
  • Another survey, completed by Morning Consult, had different results. Google, Netflix, YouTube, Amazon, Oreo, PlayStation, WalMart, Target, Doritos, and Nintendo rounded out the top ten. In order of ranking, the rest of the top 25 were Chick-Fil-A, Nike, Marvel Studios, Spotify, Instagram, Pizza Hut, Sprite, Dunkin' Donuts, Dollar Tree, Skittles, Subway, Microsoft, Dove, Disney, and IHOP.
  • Since they are more focused on health and wellness than older generations, they are willing to try healthier drink alternatives.
  • They make up the majority of hard cider drinkers.
  • What draws them to alcoholic drinks is less about getting drunk and more about the total experience like flavor, health benefits, and community.
  • 65% state that beverages play an important part in their health and wellness.
  • 55% state, “I like my beverages to do something for me, such as provide energy, nutrients or other benefits.”
  • Kombucha buyers, as a whole, have affinities for healthy brands like Larabar and Earthbound Farm Organic. Tillamook, Kikkoman, On The Border, and Ro-Tel are also popular.

Values/Beliefs

  • Millennials place an emphasis on counting calories, physical attractiveness, and exercise and physical activity.
  • 79% say that family is important in their lives.
  • 53% state that health and wellness is important.
  • 39% state their friends are important.
  • 31% state that spirituality is important.
  • Only 27% feel that their career is important in their life.
  • 68% want to make a difference in the world. More than one-third of Millennials that were interviewed in a recent survey by American Express felt that success was doing work that had a positive impact on society.
  • 75% limit how much they actively drink during most nights out. 59% do so because they do not want to lose control while out in public.
  • According to AdAge, searches for "sober living" on Pinterst are up by 746%
  • 70% of Millennials would rather brag about not consuming alcohol than being drunk.

General Interests

  • YPulse conducted a survey of popular hobbies and the most popular things to do for fun.

Gen Z Psychographic Profile

The average GenZer in the US loves their music and sees it as a vital part of their life. The experiences they have grown up with have made them more pragmatic than Millennials. They value a college education more than the previous generation. They care about the same environmental and social issues like Millennials, but they tend to be more proactive. Diversity is important to this generation. Rightly so, since they are the most diverse generation to date.
  • They have experienced a great recession and now are experiencing a global pandemic. They have watched their parents lose jobs, watched their siblings move back home, and seen the wealth gap grow. Non-discretionary expenses have grown considerably. The cost of an education has soared to new heights. All these things have influenced how they view the world they live in.
  • The oldest of GenZ were 2 years old when Columbine happened. School has never been a safe-haven.
  • Terrorism and war have been embedded into their daily life.
  • A third of Gen Z spirits drinkers state they have taken an extended break from alcohol in the last six months.
  • They comprise 25% of the world population, more than Millennials and boomers.
  • 25% of this generation are Hispanic.

Social Media Usage

  • This generation will use social media to establish relationships or "hook-ups", a key difference from other generations.
  • It is believed that social media has effected long-term relationships because it is so easy to move onto another person.
  • GenZ spends close to 6 hours per day on their favorite platforms. Social media has evolved for them and has turned into a way to stay in touch with family and friends, unlike other generations.
  • The top platforms for 19-25 year olds are Instagram, TikTok, Snapchat, Facebook, and YouTube.
  • Gen Z believes anyone anywhere has the power to break though the social media clutter and become influencers.
  • 95% of Gen-Z uses another device while watching TV, most commonly for social media or to chat with friends.
  • They are 1.5 times more likely to follow a vlogger than other generations.
  • 54% of Gen-Z says social media influences them more than any other marketing channel.
  • More than 80% of Gen Z say they use social media to talk about issues they care about and 87% say they’re likely to share their positive opinion of a company addressing the issues on their social media accounts, according a Cone Communications survey.
  • Gen Z's lower alcohol usage is tied to social media. They want to appear in control and maintain their image in their posts.

Purchasing Habits

  • GenZ expects a seamless interaction with brands across their entire digital experience.
  • Quality is their top consideration, followed by price, accessibility, and trust.
  • 65% want discounts, coupons, and rewards.
  • 56% want a fun in-store experience.
  • Interestingly, high-quality customer service was only desired by 28% of the respondents.
  • 68% of 22-44 year olds prefer buying alcoholic beverages with nutritional information clearly explained on the label.
  • They are "opportunistic" eaters and would rather make a meal out of snacks than a traditional meal.

Factors When Purchasing

  • GenZ does not form an opinion of a company solely based on their products, but on their ethics and social impact. They are drawn to support and work at companies that support the greater good in the areas like education (41%) and healthcare (37%).
  • 68% of those surveyed feel that brands need to promote more progressive values and play a more meaningful role in society.
  • Convenience ranks high with this generation.

Product Affinities

  • 79% will purchase specialty foods.
  • The top ten brands for this generation are Google, Netflix, YouTube, Amazon, Oreo, PlayStation, Walmart, Target, Doritos, and Nintendo.

Values/Beliefs

  • They have a desire for a more sober lifestyle than their older counterparts, making hard kombucha a popular choice.
  • They are focused on "mindful drinking", meaning to drink less, but think more about it.
  • 55% state that having close friends is important. This is comparable to Millennials.
  • GenZ is more open to dating someone who does not look or think like they do when compared to other generations. 80% state they would date outside their race. The majority would date someone with different political or religious views than they have. They overwhelmingly back marriage equality.
  • 88% are positive about their personal future.
  • They will prioritize financial security over personal fulfillment.
  • GenZ prioritizes diversity in race, gender, and orientation more than any other generation.
  • 74% believe that being the same as everyone else is boring.
  • 40% identify as a global citizen, rather than a citizen of their country.
  • 39% of this cohort identify as moderates, 28% as liberal, and 25% as conservative and only 20% are extremely interested in politics. This, again, shows their pragmatic way of viewing things.
  • According to Berenber Research, Gen Z is predicted to drink 20% less than Millennials did at their age. Sobriety has become "hip" and some experts believe that the legalization of cannabis attributes to this belief.
  •  Amnesty International conducted a survey that showed what issues this generation views as the most problematic.

General Interests

  • Streaming is a popular activity. The top picks for the 19-25 age group are Netflix, YouTube, Hulu, Amazon Prime, HBO, and Disney+. They stream an average of 23 hours of video per week.
  • Please refer to the graphic above for Ypulse that shows interests by age.

LatinX Psychographic Profile

Facts & Figures

  • 30% of Millennial household are blended households. Furthermore, 53% of Millennial households are either blended, or non-white or Hispanic of single origin.
  • By 2020, Hispanics will account for over half of all growth in populations, and 85% by 2050.
  • In 2018, the combined family income for Hispanic families was $55,093, and for black families it was $53,105. The US average was $78,646.

Social Media/Internet Usage

  • Millennials Hispanics use Facebook (92%), Twitter (44%), Instagram (49%), and Pinterest (31%).
  • They will use social media to discover a new alcohol brand.
  • LatinX social media users over-index for the amount of time they spend on social media, with 52% spending an hour or per day.

Purchasing Habits

  • Millennial Hispanic families spend $149 per week on groceries. 80% of those shopping trips are conducted with family and friends.
  • 73% of Hispanic Millennials state that their cultural background affects the food and beverages they purchase. Some of their favorite items to purchase are hot sauce (65%), aguas frescas (46%), horchata (42%), and dulce de leche (39%).
  • Hispanic families spend $2,474 on food outside of the home yearly.
  • 92% use coupons. 81% will decide where to shop based on whether they can use smartphone store perks or coupons.
  • Hispanic Millennials are more than twice as likely to purchase Starbucks than to brew coffee at home.
  • Hispanics put an emphasis on drinks and desserts when they are eating out.
  • 46% of Hispanic consumers will ask friends and family for a restaurant recommendation versus 29% of the general population.
  • They are 3 times more likely than others to consider a brand after seeing a video.

Factors When Purchasing

  • While non-Hispanics and Asians view a premium product with craftsmanship, Hispanics view exclusivity as the key attribute of a premium drink. They also correlate an attractive label with a premium product.
  • The high prevalence of chronic disease in the HispanicX community has made them better aware of the health factors and changes in lifestyle that are needed. This has made them more aware of kombucha.
  • 66% of Hispanics pay attentions to online ads, which is 20 points higher than the general population.
  • 64% state that they compare prices.
  • 62% agree that free shipping will attract them to buy.
  • 36% state they will only purchase online if they have a coupon.

Product Affinities

  • 60% of Millennial Hispanics state that they use many of the same foods and beverages that their parents did.
  • Millennial Hispanics prefer beer as their alcoholic beverage of choice (51%). 38% prefer wine, and 32% prefer hard liquor (leaning heavily towards vodka and tequila).
  • When buying premium alcohol, this cohort is more likely to purchase beer.

Values/Beliefs

  • Hispanic families have a strong belief in the American dream.  
  • Hispanic Millennials are overwhelmingly Democrats (42%). 9% are Republican, and 6% are independents.
  • Hispanics dine with their children 42% of the time compared to others who do so 30% of the time.
  • They view their culture as the most important aspect of their identity. 73% agree that it is important to them that their children carry on their traditions.

General Interests

  • 60% of Hispanic Millennials consider themselves "foodies". They are 23% more likely to categorize themselves as a cooking enthusiast.
  • The top cable programs are Major League Baseball, NFL, and WWE.

Marketing to the LatinX & Bicultural Communities

Support Community Values

  • 57% agree that they are more likely to purchase if a brand supports a cause they care about.
  • 43% expect brands to support their causes.
  • 58% are willing to pay more for an environmentally safe product and 53% consider an environmental record of a brand as important.

Use Brand Ambassadors

  • KIA Motors successfully used a brand ambassador to reach this market. Their ambassador shared stories and her daily life all while driving a KIA. They were attempting to reach the professional that was trying to do something different, and this resonated perfectly for the audience.
  • One of the reasons this was successful is that young Latinos want to connect with brands that stand for the same things they do.

Understand the Audience

  • The Hispanic and bicultural is a diverse one and is hard to "paint with a single brush". "Messages that connect with Puerto Ricans in New York probably won’t speak the same way to Guatemalans in California, or Mexicans living in Texas."
  • While this audience has a different heritage, they are also Americans. Therefore, marketing that speaks to them as Americans, while acknowledging their heritage is a best practice.
  • " Focus content by age, culture, heritage, holidays, and other factors that will lend your work authenticity and show a genuine interest in the needs and wants of the people you’re advertising to."
  • Some companies have begun embracing actors with racially ambiguous looks for this reason.

Provide Alternatives in the Language

  • While Hispanic communities are not all the same, they are united by language.
  • With over 40 million Spanish speaking people in the US, taking the effort to acknowledge their language is a good marketing plan. While most of them are bi-lingual (68%), it shows "compassion and dedication" to offer these platforms.
  • Since this is a US dominant audience that is also bi-cultural, consider using "Spanglish". Keep English as the primary language, but integrate Spanish phrases.
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