Gen Z: A Question of Accessibility?

"73% of Gen Z use social media to discover brands," reports Dr. Stephanie Rumpff, Head of Business Development at PricewaterhouseCoopers (PwC) Germany and also a speaker at the Meininger’s Wine Conference. 50% would even shop directly via social media. The COVID-19 pandemic triggered or amplified this rise of social media. Political and ecological activism, a focus on health, and a desire for sustainability and transparency were just some outcomes of this global development, according to Rumpff. Gen Z is reportedly skeptical of traditional institutions and has a feeling of financial distress. Digital marketing is therefore essential to reach Gen Z, according to Rumpff.
 

Simple, yet high-value

Generation Z places great value on peer reviews when making purchase decisions. Authentic experiences and practical use are more convincing to them than polished brand advertising. According to Stephanie Rumpff, 52% of this generation buy products based on recommendations from influencers, that is, so-called multipliers: personalities with a strong presence on social networks and enormous reach to their ‘followers.’ Influencers promote (paid or unpaid) products of all kinds, from cosmetics and clothing to insurance. They are in constant dialogue with their community, an important aspect for successful marketing, Eliah Werner also believes. One must immerse oneself in Gen Z culture and present the product as simply as possible. Too many options and too much information make it difficult to make decisions. "People think simply, and we must embrace this simplicity," says Werner.

If a brand fits the corresponding lifestyle of Generation Z, then they are much more loyal to that brand, emphasizes Stephanie Rumpff. "Brands give people orientation, trust, and a feeling of home," as Eliah Werner puts it. Strong branding is familiar and easy to recognize.

Sustainability and quality are also important values that Gen Z holds in high regard. According to a PwC study on Generation Z, 62% would pay a premium for regional products. "Generation Z values a healthy lifestyle," explains Dr. Christian Wulff, Consumer Markets Leader at PwC. Young people have high expectations: products and services should be fast, intuitive, entertaining, and sustainable. 54% of Gen Zers even proactively seek information to find out if a product was organically grown or produced. This generation is reportedly very interested in drinking high-quality wine and is also willing to spend more for it.
 

Could non-alcoholic options be the answer?

Younger Gen Z consumers who are of legal drinking age have a very different relationship with alcohol than older age groups. They exhibit increasing levels of abstinence, moderation, a willingness to experiment with new categories, and a shift away from traditional, high-volume products.

According to a consumer study by the data research company International Wine and Spirits Record (IWSR), wine has faced significant competition from increasingly adventurous alcohol consumers. "It’s worth noting that Gen Z is still early in their journey into the alcohol beverage market, and their behaviors will need to be tracked over a longer period to see how their tastes develop," opines Richard Halstead, COO Consumer Research at IWSR, however.

A 2024 online survey by pollsters 'YouGov' shows that in Germany, around 50% of Gen Z members do not drink alcohol. This inclination resonates with broader global shifts where the non-alcoholic wine sector is witnessing significant expansion. Market analysts, such as those at Global Growth Insights, indicate a substantial worldwide market value, recently estimated around $1.46bn (approx. €1.29bn) for 2024.

Simplify and rejuvenate

A representative study by Fachhochschule Burgenland (University of Applied Sciences Burgenland)  on generation-specific wine consumer profiles found that Generation Z tends to assess its wine knowledge as rather low compared to other generations. It is recommended, especially in label design, to avoid ‘confusing aspects’ and to focus on visually distinctive accents that give the wine recognition value. An extremely high volume of information impacting Gen Z through their intensive use of social media makes it difficult for companies to stand out from this mass with a marketing message perceived as relevant content, the study notes.

Authenticity and credibility are two important marketing aspects to consider in this context. Influencer marketing can offer a solution here, as it appeals to Generation Z's need for belonging.

When purchasing wine, Gen Z pays attention not only to brand, design, and price, but also to ‘uncomplicatedness.’ Fantasy names offer an alternative to hard-to-pronounce grape varieties and simultaneously support the product's individual recognition value, as described in the study. Targeted ‘image marketing’ should also counter the perception that wine consumption conflicts with a healthy lifestyle. The goal must be to improve this generation's expectations and attitudes towards wine through the targeted provision of information.

According to the generational study, the marketing recommendations are also relevant for other target groups. Eliah Werner also shares this assessment. Marketing that works for the younger generation also appeals to older ones, but not the other way around, emphasizes the young entrepreneur. "You don't have to change or adapt the strategy, just rejuvenate it a bit," says Werner. The key, according to the trend study 'Youth in Germany 2024', is also participation. Generation Z must be given the opportunity to contribute their ideas and actively participate. It is important to communicate at eye level and transparently disclose processes; this builds trust and motivates them to engage long-term.

Gen Z wants it simple. They want it direct and open. They want to participate; they want to share. In marketing, the difficulty often lies in simplifying messages, in expressing a core idea in few words. The younger generation, hit by a wave of information overload, is overwhelmed by a seemingly endless array of offerings and constant comparison. They know everything and, at the same time, nothing. To reach Gen Z, one essentially just needs to address the topics that are already relevant today: offer sustainability, security, transparency, uncomplicated content, and high-quality products. Actually, quite simple, isn't it?