Despite a decrease in drink-led visits last month, consumers continue to increase the amount they spend in the On Premise, mostly due to higher prices for eating and drinking out. But notably, RTDs have emerged as a category with steady consumption, with 9% (0pp) of those who visited On Premise venues in the past month opting for these convenient pre-mixed drinks.
CGA’s data highlights the popularity of RTDs among younger demographics. * Gen Z (18%) and Millennials (13%) have enjoyed RTDs, with Gen Z demonstrating a considerable shift from traditional spirits to these innovative beverages. Furthermore, RTD drinkers are also more experimental, with over 2 in 5 open to trying new brands and flavours.
These findings signpost a unique opportunity for drinks brands and venue operators to capture market share by leveraging the preferences of younger consumers who value novelty and convenience. So, where do the key opportunities for optimisation exist within the category?
CGA’s data reveals that pre-mixed cocktails (52%) and spirits and mixers (50%) are the most popular RTD categories, suggesting a strong foundation for introducing new, innovative offerings. Moreover, there’s significant potential for growth in On Premise venues, particularly for pre-mixed cocktails, which are preferred by more than a quarter (27%) of consumers in the On Premise. This is despite supermarkets remaining a dominant purchase point, (spirits and mixers at 66% and alcopops at 65%).
These consumer dynamics are crucial tools for brands, suppliers, and operators aiming to tap into the growing willingness among consumers to spend more on quality drinking experiences, in turn compensating for the current decrease in visitation rates. This trend emphasises the importance of introducing high-quality, innovative RTD products catering to evolving tastes and preferences.
Additionally, the key to success lies in leveraging the preferences of younger demographics, particularly Gen Z. Drinks brands can capture these youthful consumers and drive the success of RTD products in the German On Premise by focusing on creating diverse and exciting RTD offerings, and strategically promoting them online and in venues.
Bilal Kaddouri, CGA by NIQ’s Client Solutions Director – Germany, said: “The growing popularity of RTD alcoholic beverages in Germany’s On Premise sector, especially cocktails, offers a tremendous opportunity for industry stakeholders to engage with and maximise this expanding market segment. With consumers increasingly willing to spend more on quality drinking experiences, RTD brands have a key role to play in capitalising on this trend by introducing innovative and appealing products supplying to shifting consumer preferences and tastes.”
You can download the full On Premise Consumer Pulse Report for free here.
CGA by NIQ’s Pulse report offers invaluable insights for suppliers, brands, and operators, delving into consumer behaviour and motivations by keeping a pulse on regular trends in the market.
To learn more about CGA’s suite of capabilities and opportunities for expert tailored analysis in Germany, get in touch with Bilal Kaddouri here.
