Introduction
 
Young Adults are a key consumer group for alcohol manufacturers to target and despite a slowing growth rate they will continue to be a vital group in the future. Young Adults spending on alcohol is forecast to increase by 6% over the next five years as they experience rising levels of disposable income, less responsibilities and a desire for experiences.
 

 
Scope
 
Detailed analysis of changes in the Young Adults group and the subsequent impact of these changes on the alcohol occasions in Europe and the US.
 
In-depth quantitative analysis of Young Adults' spending on alcohol by occasion and country to reveal vital changes manufacturers need to understand
 
An extensive review of best practice NPD and marketing campaigns from Europe and the US
 
Detailed action points explaining how to effectively position your brand to target Young Adults' alcohol drinking occasions
 
Highlights
 
The number of alcoholic drinking occasions is set to increase over the next five years in Europe and the US by average CAGRs of 2.0% and 4.2% respectively. Going Out occasions represent 93% of all Young Adults' drinking occasions and these are forecast to grow by 15% over the next five years across Europe and the US, which will drive the market.
 

 
The average Female Young Adults consumes 63% more alcohol each year than the total female average. Young Adult female consumption has increased on average across Europe and the US from 110 litres in 1999 to 148 litres in 2004. This is forecast to continue increasing through 2009 and a permanent increase in female drinking.
 

 
Young Adults are increasingly seeking occasions to celebrate and do not wait for a special occasion such as a birthdays in order to treat themselves. They want to add value to regular events and this leads to trading up and extending occasions. Young Adults are seeking everyday treats and this is changing alcohol consumption occasions.
 

 
Reasons to Purchase
 
Identify key need states that drive Young Adults' consumption of alcohol and how to target the emerging occasions
 
Understand changes in Young Adult lifestyles that will impact their consumption of alcohol over the next five years
 
Learn how to tailor your NPD and marketing campaigns to more accurately target profitable Young Adult alcohol drinking occasions.
 

TABLE OF CONTENTS
 
CHAPTER 1 EXECUTIVE SUMMARY 3
 
Hot topic 3
 
The future decoded 3
 
The growth of the Young Adults group is declining 3
 
Young Adults’ alcohol drinking occasions are forecast to continue increasing 3
 
Young Adult females consume more alcohol than older females 4
 
Repertoire drinking is becoming increasingly important 4
 
Demand-creating need-states define alcoholic consumption occasions 4
 
Relaxed occasions limit Young Adults to comforting drinks 5
 
Action points 5
 
CHAPTER 2 THE FUTURE DECODED 13
 
Introduction 13
 
Defining Young Adults 13
 
TREND: The growth of the Young Adults group is slowing but changing lifestyles will drive alcohol consumption 13
 
The growth of the Young Adults group is declining 13
 
Changes in Young Adults’ lifestyles affect alcohol consumption 14
 
TREND: Young Adults’ alcohol drinking occasions are forecast to continue increasing 15
 
Young Adults are Going Out more often than previous generations 18
 
Young Adults are Entertaining at-Home more often 18
 
Today’s Young Adults are Staying In less often than previously 20
 
TREND: Young Adults are spending more on alcoholic drinks than previously 21
 
Young Adults have more disposable income due to a rise in income and reduced living costs 21
 
Young Adults’ spending on Going Out occasions is growing 21
 
Young Adults are spending more on Entertaining at-Home 22
 
Staying In occasions represent the slowest growth opportunity 23
 
TREND: Alcohol consumption among Young Adult females is rising significantly 24
 
Female Young Adults consume more alcohol than older females 24
 
INSIGHT: Repertoire drinking is becoming increasingly important to consumers 29
 
Need-states and occasions determine Young Adults’ drink choice 29
 
INSIGHT: Young Adults consume alcohol to satisfy their socializing and bonding needs 31
 
Drinking occasions provide bonding opportunities for consumers 31
 
Demand-modifying need-states determine drink choice 31
 
Female social drinking is focused on interaction and sharing 38
 
Young Adult males’ socializing occasions differ from those of women 39
 
INSIGHT: Celebratory occasions represent indulgence, novelty and excess 40
 
Young Adults trade up to higher quality drinks on celebratory occasions 40
 
Young Adults consume shooters on celebratory occasions 41
 
Drinks that are novel or involve a ritual are popular among Young Adults 41
 
Young Adults are turning everyday occasions into celebrations 42
 
INSIGHT: Young Adults drink alcohol to “chill” 42
 
Chilled occasions limit Young Adults to comforting drinks 42
 
INSIGHT: “Having Fun” occasions are popular among Young Adults 43
 
Young Adults are hedonistic in their desire to drink to “let go” 43
 
Young Adults tend to seek experiences on “having fun” occasions 44
 
Consumers seek novelty to maximize “having fun” occasions 45
 
CHAPTER 3 ACTION POINTS 47
 
ACTION: Match new or altered alcoholic drinks to existing occasions 47
 
Introduce new products to target existing occasions 48
 
Alter the packaging to facilitate consumption on existing occasions 48
 
Extend an existing brand to a different occasion 52
 
Target “warming up” pre-Going Out occasions 53
 
ACTION: Target socializing occasions with “shareability” 56
 
ACTION: Alter format of traditional drinks to appeal to new audiences 56
 
Target Young Adult females with feminized versions of drinks 57
 
Create a masculine image for traditionally female drinks 57
 
ACTION: Create experiences to appeal to younger consumers 58
 
Create events to target Young Adults seeking experiences 58
 
Create drinking rituals to add value to the experience 59
 
Sponsor theme nights or events to create positive brand associations 60
 
Target different consumer groups through promotions to widen appeal 62
 
Manufacturers need to introduce novelty drinks to add to the experience 62
 
ACTION: Target Young Adults’ desire to consume premium offerings 62
 
Develop a premium position to differentiate the brand 63
 
ACTION: Promote brands in the on-trade using point-of-sale materials 64
 
ACTION: Educate to create the perfect serve for consumers and provide quality cues 65
 
Work with on-trade establishments to train employees 65
 
Provide quality cues to improve the drinking experience 67
 
CHAPTER 4 APPENDIX 68
 
Definitions 68
 
Research methodology 68
 
References 69
 
News Sources 69
 
Industry Sources 69
 
Government Sources 69
 
How to contact experts in your industry 70
 

 

 
LIST OF TABLES
 
Table 1: Number of Young Adults in Europe and the US (m), 1999 - 2009 14
 
Table 2: Young Adults’ alcoholic drinking occasions (m) in Europe and the US, 1999-2009 17
 
Table 3: Young Adults’ Going Out occasions per person per week, by time of the week, in Europe and the US, 1999 - 2009 18
 
Table 4: Young Adult’s Entertaining at-Home occasions per person per week, by gender, in Europe and the US, 1999 - 2009 19
 
Table 5: Young Adults’ Staying In occasions per person per week, by gender, in Europe and the US, 1999 - 2009 20
 
Table 6: Young Adults’ per head incomes (US$), in Europe and the US, 1999 - 2009 21
 
Table 7: Young Adults’ spending on Going Out by per person occasion, by per person annual spend and total spending (€ / $US), in Europe and the US, 2004 - 2009 22
 
Table 8: Young Adults’ spending on Entertaining at-Home by per person occasion, by per person annual spend and total spending (€/ US$) in Europe and the US, 2004 - 2009 23
 
Table 9: Young Adults’ spending on Staying In, by per person occasion, by per person annual spend and total spending (€/ US$) in Europe and the US, 2004 - 2009 24
 
Table 10: Young Adult women’s per capita consumption of alcoholic drinks (liters / head / year) and as a % of total female per capita consumption across Europe and the US 1999-2009 25
 
Table 11: New ‘feminine’ beverages 28
 
Table 12: Novel shooters appeal to Young Adults on celebratory occasions 41
 
Table 13: Novel alcoholic drinks targeting Young Adults 46
 
Table 14: Little Pink Box of Zinfandel targets female Entertaining at-Home occasions 49
 
Table 15: Pink Pink Fizz targets the “warm-up” occasion 54
 
Table 16: Archers Eden targets the “warm-up” occasion 55
 
Table 17: Sponsor events to gain a positive association 60
 
Table 18: The quality of training is important 66
 
Table 19: Definition of terms 68
 

 

 
LIST OF FIGURES
 
Figure 1: Going Out occasions represent 93% of Young Adults’ alcohol drinking occasions 17
 
Figure 2: How important coolness is to different age groups 34
 
Figure 3: Target Young Adult females’ existing occasions with new products or alter existing products 51
 
Figure 4: Target Young Adult males’ existing occasions with new products or alter existing products 52
 
Figure 5: Companies creating intense experiences for consumers 59
 
Figure 6: Feedback concerning the Barcardi B-Bar 61