Urban, Millennial, Early Adopters are Setting Alcohol Trends Online

In Distillery by John Temple

eCommerce has rapidly become second nature for millennial consumers over the past several years. So much so that the generation is accustomed to having the ability to get anything they like right at their fingertips. Operating from a different shopping dynamic makes the eCommerce alcohol buyer in the US different from in-store buyers in many ways.

Who is the Drizly consumer?

The Drizly consumer skews slightly male with a 55-45% gender split overall. Broken down by category, Drizly beer and liquor drinkers are more likely to be male (60%), while Drizly wine buyers skew female (54%), mirroring offline trends.

The age of Drizly consumers spans a wide range, but the service is particularly appealing to millennial consumers, as they make up 75% of Drizly’s user base. While the most represented age is 27, the average age of a Drizly shopper skews slightly older, at 33.

Broken down by income, Drizly consumers fall into every bucket along the spectrum. Like the US population itself, the majority of consumers earn $50-75k per household. Notably, Drizly consumers over-index on every income range above $50k, with a particularly meaningful segment in the >$125k range, representing the generally affluent demographic that values the convenience of Drizly’s offering.

City dwellers, where tech savvy, early adopters run rampant, make up the majority of Drizly consumers. In fact, 85% of consumers call urban areas home. The remaining 15% reside in either the suburbs or rural areas, a segment that continues to grow as Drizly expands fulfillment options like in-store pickup and shipping.

What does the Drizly buyer drink?
If someone needs to stock a bar, throw a party, or make a drink, consumers are buying what they desire on Drizly. Beyond beer, wine and liquor, consumers are loading up on extras, including ice, soda, and citrus.

Platform-wide, about 40% of sales sold on Drizly are wine, with liquor coming in at 34% of sales followed by beer at 23%. Distribution varies by market, as certain regions over-index on wine while others show an affinity for liquor. Texans, for example, purchase more liquor than beer or wine while residents of Alberta show a preference for beer. Extras, while only a small portion of a sales basis, make up more than 1 in 10 units sold through the Drizly platform. The ability to select extras plays a key role for many consumers, allowing them to get the ice, mixers, and garnishes they need to complement their drink of choice.

The typical Drizly order is three times larger than the average purchase made in an independent liquor store. Compared to offline purchases where customers pick up one or two items, Drizly consumers are often buying multiple items in their basket and tend to purchase products that are higher priced. Corporate orders are typically the biggest, as consumers need to meet the needs and tastes of an entire office. When it comes to individual consumer, men spend slightly more than women while scheduled and shipping orders have a higher value than those placed for immediate delivery.

As expected, average order value increases for families with higher household incomes, with those making more than $125k spending 10% more per order than the average Drizly consumer.

How does the Drizly buyer shop?

Drizly consumers want to drink and many value Drizly’s ability to let them drink immediately. The typical Drizly order includes ~3-4 items for immediate delivery directly to the consumers. Breaking it down further, 73% of orders contain 3 or fewer items and 85% are set for immediate delivery. Gift orders, which can include a hand-written gift note, make up only 4% of all orders. However, they are a key occasion for many Drizly buyers and carry significant seasonality. Unsurprisingly, gift orders peak in December, when they make up 9% of total order volume.

Orders and deliveries happen around the clock, but peak activity on Drizly depends on the occasion. Scheduled orders occur earlier in the day and are spread throughout the week, with 11AM being the peak time for ordering. On-demand orders, on the other hand, hit their peak at 6PM. Consumers take advantage of the ability to schedule their orders to plan parties and corporate events, increasing the average order value of scheduled orders.

Compared to urban dwellers who prefer immediate delivery, suburban and rural customers are more likely to plan their order in advance.

Similarly, shipping and in-store pickup are more appealing fulfillment methods for suburban and rural consumers, while urban customers choose delivery ~90% of the time.

This is the first of many pieces highlight the trends and habits of the eCommerce alcohol consumer. If you want to learn more about Drizly and how our data could help you reach the growing eCommerce alcohol market, subscribe in the box to the right or click here to request access to our raw datasets.

Source: US Census Bureau