Comparing generational preferences for individual components of sustainability schemes in the Californian wine market

Abstract

Millennials are the largest demographic segment in the USA and have gained market share of high-frequency wine drinkers while Baby Boomers and Gen-X generations share has fallen. This demographic evolution focuses attention on understanding Millennial wine drinkers’ preferences. At the same time the wine industry has seen significant establishment of sustainable certification systems as preferences for sustainability have developed and been recognized as an avenue for product diversification. This paper reports on a discrete choice experiment with the objective of comparing generational preferences for individual components of sustainability schemes active in the Californian Sauvignon Blanc market. We find significant attribute preference differences over age cohorts. Millennial consumers are willing to pay significantly more for sustainability attributes than both Gen-X and Baby Boomers. While Baby Boomers place more emphasis on country-of-origin attributes than either Gen-X or Millennials.