Millennials and the New Era of Food, Wine & Beer Festivals
Transcription
Millennials and the New Era of Food, Wine & Beer Festivals
Millennials and the New Era of Food, Wine & Beer Festivals Introduction We are in the midst of a new era in the food and beverage industry—and we have millennials to thank for it. At 80 million strong, millennials now account for over one fourth of the total U.S. population and will out number the boomer generation by the end of 2015. They are drinking more alcohol than previous generations and are highly engaged with food and culinary culture. In fact, 50 percent of millennials now refer to themselves as “foodies.”1 But they’re not dining alone. With nearly $1.3 trillion in direct spending power, millennials are increasingly spending their time and money on event-based experiences. In fact, more than three in four millennials (78 percent) would choose to spend money on a desirable experience or event over buying a desirable item, and 55 percent of millennials say they’re spending more on events than ever before—a trend that shows no sign of slowing.2 Within the food and beverage industry, this translates into food, wine, and beer events. Millennials, more than any other generation, actively seek unique, new ways to come together to learn, taste, try, and embrace the latest developments in craft beers, wines, spirits, and local, artisanal foods3, and this presents a growing opportunity for businesses. Food and beverage events not only represent immense growth on Eventbrite, which saw a 47% year-over-year increase from 2013-2014, but it is a market where a fundamental shift is taking place, with new types of events being created that specifically cater to millennial interests. We know that, in general, millennials are attending festivals more than any other generation. Because of millennials’ high attention to brands, product story, discovery, and authenticity, live events offer food and drink companies the opportunity to take advantage of this added market segment and win the hearts and minds of these valuable consumers in the process. Recognizing the incredible growth of and high demand for food and beverage events, Eventbrite sought to dive deeper into the mind of the modern festival-goer in order to better understand who they are and how the millennial audience in particular might differ from older generations. We uncovered valuable information about how social media affects food and beverage brand discovery and loyalty; how food, wine, and beer events— particularly festivals—influence purchasing behavior; and what qualities millennials look for in the events they attend year after year. The following report is a compilation of the findings from an Eventbrite global survey completed by more than 5,000 attendees of at least one festival with a focus on food, beer, or wine that was ticketed on Eventbrite during 2014. The results reveal new and interesting insights about millennials (defined as young adults between the ages of 18 and 33), the food and beverage industry, and how event organizers can use these insights to take their festivals and events to the next level. 1 Source: Distribution Property Solutions, Inc.: Millennials Drive Wine Consumption and Futurecast: Millennial Marketing 2 Source: Eventbrite: Millennials: Fueling the Experience Economy, November 2014 3 Source: Mintel: The Rise of Craft Beer in the US, January 2013 and Highbrow Magazine: How Millennials Reshaped the Wine Industry, October 2014 Food and drink is the key to millennial social life Nothing brings millennials together better than the chance to bond over a glass of beer or wine, or share delicious food, as evidenced by the 80 percent of millennials surveyed who said they attended three or more food, wine, or beer events in the past 12 months, and the nearly half who attended five or more. These events varied from tastings and seasonal parties to special events and pop-ups, to a range of different food, wine and beer festivals of all shapes and sizes. Millennials’ high attendance at these events indicates their yearning for live experiences. Instead of sitting down to a one-course meal at a restaurant with expensive drinks, they are acting as food and craft beverage connoisseurs, seeking tasting experiences with a variety of items served. And events give the “foodie” audience the perfect opportunity to see behind the scenes of the products they eat and drink: eight in ten millennials say they want to know more about how their food is produced than brands typically disclose. Food and beverage events give millennials the perfect opportunity to combine their love of live experiences with their passion for unique, quality food and drink. Food and beverage events attended per year 80% 44% 3 or more events 5 or more events 4 Source: Highbrow Magazine: How Millennials Reshaped the Wine Industry, October 2014 and Futurecast: Millennial Marketing 5 Source: Millennial Marketing: Millennials are the Tastemakers of Food. Millennials love festivals, and they want more of them Who doesn’t want more of a good thing? Of those surveyed were millennials who attended at least one food, wine, or beer festival in the past 12 months. These festival attendees love to go back to events again and again, and they bring friends with them each time. In fact, 97 percent plan to attend the same number—or more—of food and beverage festivals in the coming year, and 40 percent want to attend even more than they did in the past. Young festival-goers aren’t just attending these events for lack of something else to do—they’re genuinely enthusiastic about them. A huge majority of respondents (89%) say that attending these food, wine, and beer festivals is something they look forward to and get excited about, and an impressive two-thirds report that attending these types of events is one of their favorite things to do. So, why all the excitement? Millennials prioritize food and beverage festivals because they offer a chance to connect with friends. Additionally, 59 percent of respondents say that food, wine, and beer festivals give them another way to experience life that they’re looking for, and this experience almost always involves their peers. What’s more, nearly half of millennials say that going to a festival is about being part of the social scene, and nearly two-thirds feel they’ve missed out if they see photos of friends at a festival nearby that they didn’t attend. The bonding experience doesn’t end with the festival, either: about two-thirds of respondents say they love to talk about the event with family and friends afterward. Millennials say food and beverage festivals... 89% 67% 64% 59% 45% Are something they look forward to and get excited about Are one of their favorite things to do 87% Plan to attend the same number of, or more, festivals in the coming year Are something they love to talk about with friends and family afterward Give them another way to experience life that they are looking for Are about being part of the social scene 61% Feel they have missed out when they see pictures of friends at a festival nearby Social media is how millennials make plans We’re living in an age when people rely heavily on social media to stay informed about the latest updates, from gossip to the big event everyone’s going to next weekend. Unsurprisingly, our study reinforced this trend, as millennials in aggregate reported social media as the number one way they find out about food and beverage festivals of all kinds. Many also say that they rely heavily on word-of-mouth buzz (the second most popular answer in aggregate), which takes place both online, on social media, and through direct interaction with others. Of course, the use of technology and social networks doesn’t stop once millennials are at the festival itself—they simply change the content they’re sharing. It becomes much more image-based. Our study found that food festivals in particular are seen as Instagram-worthy, with 85 percent of respondents likely to post pictures online of their favorite moments, and 84 percent likely to post pictures of the food itself. These mouth-watering pictures don’t just show others how great the food was, they also remind attendees of how much they want to relive the experience. Sixty-five percent of millennials reported being likely to follow a winery they encountered and liked at a wine festival, 75 percent say they are likely to follow a brewery from a beer festival they attended, and 79 percent are likely to follow a food purveyor or restaurant on a social network after encountering them at a food festival. Millennials also turn to social media during and after the event During 80% 84% are likely to post pictures online of their favorite moments of food festival-goers are likely to post pictures of the food itself After 79% 75% 65% follow a food purveyor or restaurant on social media follow a brewery on social media follow a winery on social media Top five ways millennials learn about the events they attend Food festivals 83% word of mouth 79% social media 54% daily deal site 51% ticketing website 50% restaurant or local food purveyor website 78% social media 68% word of mouth 53% daily deal site 48% ticketing website 41% event listing sites 78% social media 78% word of mouth 42% brewery or guild website 41% ticketing website 37% daily deal site Wine festivals Beer festivals Festivals increase millennial brand loyalty and purchasing Food and beverage festivals aren’t just a one-time source of revenue: attendees are also more likely to buy a product and spread brand awareness after attending. In fact, festivals are extremely effective in converting attendees into brand evangelists. Millennials love to talk about the products they find at these festivals. Ninety-nine percent of millennials say they are likely to recommend a product they tried and liked at a wine, beer, or food festival to friends and family. Millennials are also more inclined to visit one or more of the wineries, breweries, or food purveyors they encountered at the festival after the event, often bringing friends and family with them. What’s more, the likelihood of their buying the products they loved either during or after the event is strong. Over half of respondents say they are likely to stock up on food, wine, or a beer they loved at the festival if it’s sold on-site. But the impact on purchasing behavior lasts well beyond the festival itself. Sixty percent of millennials say they will buy a food or wine they loved at a local retailer or restaurant after the festival, and 82 percent of millennials say they will frequently or always buy a beer they loved at a local retailer. Even more compelling is the likelihood that they will go out of their way to visit the source of the product: 95 percent are likely to visit a restaurant, food shop, or farm they discovered at a festival; 91 percent are likely to visit a brewery they liked; and 86 percent will visit one of their preferred wineries from the event. If they don’t find the product locally, attendees are willing to do their research: more than 85 percent are likely to search for the winery, brewery, or food purveyor online for additional information, and about 40 percent are likely to sign up for a newsletter offered by a vendor they liked. After attending a food and beverage festival, millennials say they are likely to Engage with you afterward 90% 85% 40% brewery, restaurant, information about vendor’s newsletter or food purveyor a vendor online visit a winery, search for more sign up for a they liked Purchase what they liked 49% 47% 72% if available trip to the vendor shop or restaurant to purchase to purchase buy onsite, 99% make a special go to a local retail Recommend a winery, brewery, restaurant, or food purveyor afterward Beer festivals trump wine and food festivals among millennials Beer festivals in particular are in incredibly high demand among this more experiential generation, especially as the craft beer trend continues to rise. Almost half of millennials (47 percent) rank beer festivals first among their preferred event choices—that is four percent more than Gen X’ers and 16 percent more than boomers. While the survey skewed female (respondents were 59 percent female and 41 percent male), this trend seems to hold across the broader millennial population. Millennials are approaching beer through an authentic lens. These young adults are drawn to craft beers because of the perceived authenticity of the product. Millennials in general are more likely to appreciate locally sourced products and ingredients and are less trusting of big corporations than any other generation. Small microbreweries often align with these values, and millennials feel a greater connection to a brand that comes from their own city. Among those who aren’t beer lovers, an equal number of millennials versus Gen X’ers or boomers prefer food festivals (21 percent). However, millennials are less keen than the older generations when it comes to wine festivals (11 percent of millennials vs. 17 percent of Gen X’ers and 22 percent of boomers). However, it’s worth noting that one fifth of millennial festival attendees said they have no preference for the types of food and beverage festivals they attend but are just looking for any food- or drink-related reason to get out of the house. Types of festivals preferred by generation 21% 21% 19% 21% 11% Millennials (18-33) Gen X’ers (34-50) 17% 47% Food festivals 21% 21% Boomers (51-70) 43% Wine festivals 31% Beer festivals No Preference 25% Millennials are drawn to certain festivals for different reasons Millennials are looking for more than just a general good time when they choose to attend a festival. Often, they’re seeking something more specific—a new or unique way to mix up their daily routine. The biggest attractions of these festivals vary depending on whether they are food-, beer-, or wine-centric. But common across all events is the desire to do something fun, learn something new, and take part in an adventurous experience, all while being exposed to new brands and products. Each type of festival also has its unique draws for attendees. For example, one-third of wine festival attendees reported going to the festival because they wanted to travel somewhere “fun.” Over half of beer festival attendees reported a desire to meet the brewers or the people behind the beer. And food festival attendees are equally interested in meeting the food producers (either restaurateurs or local chefs) and in travelling to a fun location. When deciding which festivals are worth their while, millennials consider both featured entertainment and ticket price as well as whether or not their friends are going. Sixty percent say they are more likely to go to a food, wine, or beer festival if it includes live music as part of the experience. In addition, more than one-third of respondents are more likely to go to a festival they’ve been to before and enjoyed, with the highest loyalty (43 percent) found among beer festivals. Top reasons millennials attend Food festival Wine festival Beer festival Do something fun with friends or family 85% 83% 89% Take part in an adventurous experience 82% 51% 48% Learn something new from an expert 45% 41% 53% Be exposed to new products and companies 95% 87% 96% Meet the producers or people behind the craft/company 42% 30% 55% Travel somewhere fun 40% 32% 51% 30 % Are more likely to go to a food, wine, or beer festival if it includes musical entertainment as part of the experience 41 % consider if they have been there before and enjoyed it as a critical factor in deciding whether to go again They like big festivals, but also seek other formats and themes More than 90 percent of millennials want to attend the big festivals, regardless of whether they feature food, wine, or beer. They tend to prioritize the incorporation of music and entertainment into the event above other concerns. Younger millennials, ages 18–25, are often even more experiential than their older counterparts and are always looking for something extra from their events. For wine festivals, two out of three young millennials prefer events with multiple themes, such as an art-and-wine or film-and-wine festival. Sixty-three percent of young millennial beer festival-goers also choose events based on seasonal themes like Oktoberfest or St. Patrick’s Day. And nearly half of those who attend food festivals say they prefer events that feature a celebrity chef. As millennials mature, their interests and choices evolve to also embrace more niche event environments. Fifty-three percent of wine festival attendees ages 26–33 are looking for a niche experience, versus 41 percent of respondents ages 18–25. Beer festivals experience a similar, though not as drastic, jump in preference for niche beer experiences, from 45 to 51 percent. Interestingly, with food festivals, the preference for niche events is different. millennials seek out events that offer niche food interests, regardless of their age. Millennials want to give their money to a company that stands for more than their bottom line, a trend confirmed by our survey. Admirably, millennials across both age groups who attend food and beverage festivals generally prefer events that benefit a charity or have a charitable component. To attract these socially conscious millennials, consider partnering with a local charity for your next festival, or hosting a donation booth. More than 90% of millennials want to attend the big festivals, regardless of whether they feature food, wine, or beer Millennial preferences for different festival formats Beer Festivals Young millennials (18–25) Older millennials (26–33) Big festivals that bring several breweries together 94% 94% Festivals that are paired with food (i.e,. BBQ and Beer, Bacon and Beer, Brat and Brew) 77% 74% Festivals that benefit a charity or have a charitable component 67% 56% Festivals that feature live musical entertainment 63% 54% Festivals with a seasonal theme (e.g., Oktoberfest, St Patrick’s Day) 63% 56% Niche festivals with a focus on a certain type of beer 45% 51% Wine Festivals Young millennials (18–25) Older millennials (26–33) Big festivals that bring several wineries together 88% 87% Festivals that feature live musical entertainment 67% 62% Festivals with multiple themes, such as Art + Wine, Wine + Film, etc. 67% 60% Festivals that benefit a charity or have a charitable component 55% 61% Niche festivals with a focus on a certain wine region or varietal 43% 53% Festivals hosted by a single winery 29% 37% Food Festivals Young millennials (18–25) Older millennials (26–33) Big festivals that bring together several food purveyors or restaurants 90% 88% Niche festivals that focus on a particular food, region, or cuisine 78% 77% Festivals that benefit a charity or have a charitable component 62% 59% Festivals that include live musical entertainment 58% 53% Festivals that span a week or more and encompass multiple events, programs, or classes 45% 35% Festivals that incorporate some sort of competition or cook-off 42% 38% Festivals that feature a celebrity chef 41% 35% Millennials are willing to pay more for a great experience Ticket price tops the list of millennials’ considerations when choosing to attend festivals, but that doesn’t mean they’re not willing to pay for a great experience. Contrary to the belief among organizers that people only attend some festivals because they’re free, around half of millennials reported that they were willing to spend $36-50 per ticket to a food and beverage festival. In fact, only three percent of respondents reported choosing to attend an event because it was free. On the other hand, 40 percent of millennials agree that they are willing to pay more for an exclusive experience at a festival, such as a VIP tent or a special pouring. It’s important to get the pricing right to attract both a broad audience and those seeking a more niche experience. The sweet spot for ticket pricing Willing to spend $36-50 per ticket 85% 83% 89% Food festivals Wine festivals Beer festivals Willing to spend even more per ticket 82% Food festivals 51% 48% Wine festivals Beer festivals 40% are willing to pay an additional fee for an exclusive experience, such as a VIP tent or a special pouring It’s not all about festivals— millennials attend other events too Millennials are an event-hungry group, attending a range of live experiences from fundraisers and 5k races to networking events and dinners. Respondents have participated in a wide variety of food and beverage industry events beyond festivals: tastings were popular with nearly two-thirds of attendees, and half of respondents reported that they like to attend seasonal parties such as St. Patrick’s Day or Fall Harvest celebrations. Pop-ups are an especially popular and rising trend, particularly in food tourism, as brands tour with new product releases. Festival attendees are also big fans of special brand-organized events. More than a quarter of respondents enjoy new product release events, such as those thrown by wine business owners; more than a third attend special events like pop-ups; and almost half are into destination tours to regions with a high concentration of wineries, breweries, or food purveyors. Why such a variety? Millennials like and want a range of experiences, and they’re more than willing to use their discretionary income to fill their evenings and weekends with a host of cool things to do that involve food, wine, and beer. Sampling trends among millennials indicate that they are more willing than any other generation to try new things. According to research conducted by FutureCast, a marketing consultancy that specializes in millennial trends, 69 percent of millennials consider themselves adventurous. For a millennial, adventure can mean anything from trying a new food to meeting new people at an event—anything goes. Conclusion Millennials love live experiences, and attendees of food, beer, and wine festivals are influenced by these events for months to come. Not only are millennials overwhelmingly more likely to purchase a product they have tried at one of these festivals, but they also spread their brand loyalty to their family and friends, with an incredible 99 percent of those surveyed more likely to recommend a product they had tried. These events are a key resource in your marketing toolkit. Social media is the best way to reach this audience, with more than three out of four millennials finding out about festivals on social media. A strategic ticketing partner is also a must, with almost half of millennials saying they find out about festivals through ticketing websites like Eventbrite. A variety of events is the best way to reach the largest audience—contrary to popular belief, our survey showed that it’s not all about the big festivals anymore, and millennials are willing to pay more for niche experiences. Millennials are actively seeking live experiences in which they can explore their passion for food, beer, and wine—all while surrounded by friends. If you’re in the food and beverage industry, these events are an effective way to attract a new generation of consumers to your brand. By giving millennials something to talk about with their friends, both on and offline, you can create brand enthusiasts who will come back event after event, and seek out your products at all times in between. About Eventbrite Eventbrite enables people all over the world to plan, promote, and sell out events of all kinds. Since 2006, the platform has processed over 200 million tickets and registrations worldwide, totaling more than $3 billion in gross ticket sales. In 2014 alone, the company processed $1.5 billion in gross ticket sales for attendees in 187 countries. The online event ticketing service makes it easy for everyone to discover events and to share the events they are attending with the people they know. In this way, Eventbrite brings communities together by encouraging people to connect through live experiences. Learn more at www.eventbrite.com. © Eventbrite, 2015. All Rights Reserved.