For consumers that are looking to treat themselves to a premium drink, 43% are more likely to switch categories from their usual, as 35% choose a more expensive/premium brand in the same drinks category. However, consumers are demonstrating caution when it comes to trying new drinks, with more than two thirds (67%) preferring to stick to familiar options.
The higher price of premium products is prompting consumers to consider what justifies the cost. Drinks brands must highlight the unique qualities of their products, emphasising ingredients, craftsmanship, and the story behind them to connect with consumers and demonstrate the value of the premium price.
The potential for premiumisation is greatest in fine and formal dining venues, where food and drink pairings play a more significant role, as 57% of consumers stated that they are more likely to choose premium drinks in this venue type.
Food-led occasions such as special celebrations (57%) and romantic meals (46%) showed the highest likelihood for consumers to choose premium drinks, which highlights that a ‘with food’ strategy is fundamental to success for suppliers. This requires close collaboration with venue operators to ensure premium products are showcased in settings where their value is most appreciated.
Tom Graham, Senior Client Success and Insight Manager said: “Drinks brand, suppliers, and operators need to ask themselves how they are activating and educating consumers on their premium portfolios. There are numerous opportunities to engage consumers at the point of sale, through staff training, menu pairings, and experiential events. By staying agile and leaning into the factors that truly define a premium product, industry stakeholders can reap the rewards of responding to these evolving consumer preferences.”
Tom Graham, Senior Client Success and Insight Manager said: “Drinks brand, suppliers, and operators need to ask themselves how they are activating and educating consumers on their premium portfolios. There are numerous opportunities to engage consumers at the point of sale, through staff training, menu pairings, and experiential events. By staying agile and leaning into the factors that truly define a premium product, industry stakeholders can reap the rewards of responding to these evolving consumer preferences.”
CGA by NIQ’s OPUS (On Premise User Survey) provides comprehensive insights into On Premise occasion, channel and category opportunities to enable you to build a winning On Premise strategy.
To learn more about consumer perceptions and interactions with the On Premise in 2024, get in touch with Tom.Graham@nielseniq.com or download more information about CGA’s OPUS (On Premise User Survey) here.
