Understanding how buying decisions of younger beer drinkers differ from those of older consumers is a key strategy
Asia Pacific Breweries Singapore (APBS), brewers of global brands such as Tiger Beer, Guinness, Anchor Beer, Heineken, among others, has earmarked US$2.95 million to invest in technology and data analytics in 2024, according to Gerald Yeo, Marketing Director of APBS, in an interview with FoodNavigator-Asia.
Driving the investment in data research is the company’s observation that the purchasing behaviour of younger beer drinkers such as millennials and Gen Zs is markedly different to older age groups. “What we have noticed is that millennials and Gen Zs, driven by a thirst for new experiences, actively seek out novel flavours, turning beer consumption into a journey of exploration,” said Yeo. “Whether it’s discovering a new brew or sharing the latest find with friends, they see beer as more than just a drink, but also a conversation starter and an expression of identity. In contrast, older generations are more hesitant to move out of their comfort zone.”
According to Yeo in the FoodNavigator-Asia report, younger beer drinkers’ purchasing decisions are driven by a variety of factors. Family and peer influence play a significant role, particularly among first-time drinkers with many beginning with sweeter alcoholic beverages, guided by social circles and familial norms. “As they mature, they look for new and exciting flavour profiles that challenge their palate,” said Yeo. “Nevertheless, even as they develop their tastes, there’s a tendency to gravitate back towards familiar favourites when they get older.”
Younger consumers are also more price-sensitive than older beer drinkers, but will pay a premium for the right product. “Despite being mindful of costs, it does not deter them from choosing quality brands, especially when socialising with friends. They prioritise value and are willing to spend on reputable brands. Moreover, eye-catching and disruptive packaging designs capture their attention, creating an important first impression that affects purchase decisions,” said Yeo.
To meet the more experimental needs of younger consumers; to build and maintain brand loyalty; and to stand out amid increasing competition, APBS is actively diversifying its product line-up.
The company has already expanded beyond beer into low- and no-alcohol, flavoured, and less-bitter variants. “In the hunt for growth, beverage companies are experimenting in new categories, blurring the lines of beer, soda, and spirits,” said Yeo. “This has significant implications for the industry as a whole, as it challenges traditional notions of product categorisation, leading to increased competition among companies vying for market share in this evolving landscape.”
