Where Millennials spend their drinking money

ALCOHOLIC beverages are no longer the only drinks depleting Millennials’ disposable income.

From mocktails and juices to bubble tea and cold coffees, non-alcoholic drinks are sucking up young adults’ cash.

Australian Bureau of Statistics director of health Louise Gates said annual alcohol consumption by Australians was now the equivalent of 9.4 litres each.

“This is the lowest annual figure since 1961-62 and it continues the recent downward trend, which started around 2008-09,” she said.

Bubble tea, a sweet East Asian milk drink containing flavoured tea and grains of tapioca, has been blossoming in popularity.

Bubble tea franchise Chatime Australia’s head of marketing, Tim Paton, said core customers consumed at least three drinks a week, with each one costing about $6.50. “The core age of our tea drinkers are 16 to 24 year olds,” he said.

Franchises such as Gloria Jean’s are also experiencing Millennial-driven revenue growth. Gloria Jean’s Australia’s brand transformation manager, Gary Scigliano, said the standout favourite was Frothy Cappuccino. “Nationally we sell around 150,000 cups of this every week,” he said.

According to The Statistics Portal Australia, annual sales of non-alcoholic drinks total $9.5 billion, with soft drinks the largest segment at $6.9 billion.

Mocktail trends are also on the rise, with bars having to cater to changing tastebuds.

A spokeswoman for Spice Temple in Sydney said 80 per cent of its guests drinking mocktails were Millennials.

“We sell roughly 500 mocktails per week and each of them costs $10,” she said.

The manager of Nour, Carlo Rosso, said the Lebanese restaurant in Sydney attracted many non-drinkers because of religious reasons.

“Therefore we sell quite a lot of mocktails, house-made sodas and juices,” he said.

Growth Tank Australia millennial marketing consultant David Willey said Millennials were being pressured to maintain a nutritious diet in a society that constantly promoted wellbeing.

“However, if there is some theatre to cocktails, Millennials are still happy to pay, especially if it’s Insta-worthy,” he said. Bubble tea is a favourite of 16 to 24 year olds.

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