Why are Italy On Premise consumers trading up? How can your brand leverage this opportunity?

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CGA by NIQ’s Italy On Premise Consumer Pulse Report September 2024 takes a closer look at the consumer behaviours and premiumisation trends influencing the Italian On Premise market, offering valuable takeaways for drinks brands, suppliers, and venue operators to convert high approval ratings into even higher sales. 

Visitation to On Premise venues remained steady in September compared to August, with daily visitation rates stable year-on-year. Saturdays continue to dominate, with peak activity between 8.00 – 10.00pm and during aperitivo hours.  

In terms of what Italian consumers are drinking, current trends indicate a decline in cocktails, while RTDs (Ready-To-Drink) show promising satisfaction scores for quality and excitement. But overall, beer, aperitifs, and wine remain the most popular choices, alongside hot and soft drinks.  

Reassuringly, more than 80% of consumers expressed their satisfaction with service quality, wait times, venue cleanliness, and their On Premise experience as a whole. 

While this sense of satisfaction doesn’t directly result in the growth of premiumisation, it’s a contributory factor for sales success. But what’s primarily driving consumer demand?  

Nearly half (45%) of consumers are more likely to explore a different drink category than trade up within the same category (36%). When asked what defines a premium drink, over half of consumers cited quality, a third said expert preparation, and almost a third referred to uniqueness to the venue, such as signature serves. Almost half of consumers are most likely to choose premium drinks in night bars (48%) and restaurants (43%), with special occasions (46%) and aperitivo (31%) identified as the prime times they’re inclined to trade up.

CGA’s On Premise insights emphasise the need for drinks brands to go beyond simply labelling themselves as ‘premium.’ This is because consumers seek tangible proof of premium status through quality, innovation, and storytelling. For all these reasons, premium positioning calls for careful crafting of drink-led strategies and tempting food-pairing experiences.  

These insights urge industry stakeholders to refine their strategy by focusing on educating consumers about the value of premium products, delivering experiential touchpoints during high-impact occasions, and measuring success by tracking how premium offerings drive satisfaction and repeat visits. Quick, responsive action based on these measurements is essential for sustained growth. 

Valeria Bosiso, Client Success & Insights Manager – Italy said “The On Premise remains a lively arena for building brand equity and winning consumer loyalty. So, it’s important to bear in mind premiumisation isn’t just about price, but creating memorable experiences worthy of consumers’ investment. In a climate where Italians are increasingly drawn to new drink categories and unique offerings, the opportunity for innovation and, consequently, sales maximisation, is immense.”

OPUS is the leading authority in the hospitality industry, providing unparalleled analytics and thought leadership to help businesses navigate the ever-evolving market landscape. CGA’s in-depth reports and insights empower industry professionals to make informed decisions, drive innovation, and achieve sustained success. 

The monthly On Premise Consumer Pulse report is a fast-turnaround ‘temperature check’ of the channel and the consumers who visit bars and restaurants in Italy. The study looks into their On Premise behaviour over the past month and tests visit intention for the month ahead, touching on hot topics including premiumisation in the On Premise. 

Download the free Consumer Pulse Report September 2024 here or get in touch to find out more about CGA’s consumer research capabilities.