During the interview, Rachel shared actionable insights for drinks brands, suppliers, and venue operators facing a challenging market environment – footfall is down, costs are rising, consumer value perceptions are changing and their behaviour is shifting. Rachel’s expert insights offered a rounded picture, empowering industry stakeholders to adapt and make progress despite ongoing economic uncertainty.
Here’s she expects in the coming year:
1 Value Perceptions Continue to Challenge Spirits
Value for money remains the number one motivator in drink choice. All the same, consumers are increasingly prioritising quality over quantity. Beer, particularly lager and stout, benefits from a superior serving experience, justifying its higher price tag for some. On the other hand, spirits, most notably gin and cocktails, struggle with value perception, especially with the persistence of post-lockdown at-home mixing trends.
It’s evident premiumisation is creating a polarised market. So, it’s crucial for operators to rationalise ranges and clearly communicate the value of their spirits offerings.
2 Beer Dominates – But Can It Maintain Momentum?
Beer emerged as the standout winner in 2024, with stout experiencing a notable boom driven by pop culture influences, Gen Z preferences, and new trends in mixed shots. It also excels during low tempo occasions, aligning with current consumer preferences. World lagers are set for growth, due to a wide price range appealing to various budgets. Cask, and other sub-categories fighting for share, are offered unique opportunities to innovate. For example, fresh ale has the potential to strike the right balance between premium appeal and shelf life.
3 Rum and Tequila Top the Spirits Table
The appetite for spirits is undergoing an evolution, with spiced rum now the second fastest growing category. Its rise is fuelled by pop culture relevance and versatile mixability, especially in Instagram-able cocktails that make the On Premise experience feel more upscale. White rum also continues to be a diverse cocktail base, while tequila rides a global wave of popularity led by the Margarita’s dominance and celebrity-endorsed brands. Similarly, mixed layered shots have caught the public eye due to their recognisable branding and high ABV appeal for high tempo occasions.
4 Moderation and Health-Conscious Drinking on the Rise
Gen Z’s health-conscious habits continue to drive growth in the no/low alcohol category. What’s more, the concept of “zebra striping” (alternating between alcoholic and non-alcoholic drinks) is enabling consumers to prolong social outings while managing their spending. This moderation trend presents opportunities for drinks brands and venues to expand no/low options, meeting evolving health and wellness demands.
5 Game On for Experience-Led Venues
Socialising remains the leading driver for On Premise visits, and venues offering immersive, experience-led occasions are poised for greater success. Competitive socialising venues are teeming with consumers seeking fun, high-quality interactive experiences worthy of their hard-earned pounds. Additionally, longer visitation times in these environments offer hefty revenue opportunities for operators.
Rachel Weller emphasised, “The biggest challenge for the On Premise in 2025 will be effectively communicating pricing and value for money. Operators need to balance entry level pricing so they don’t alienate cost-conscious consumers, while also offering clear trade-up opportunities. Storytelling around product quality and experience is integral to this strategy.”
CGA by NIQ provides a best-in-class suite of research to help On Premise stakeholders understand the latest beverage sales trends and evolving consumer engagement. Our solutions deliver in-depth analysis of channels, occasions, segments, pricing and much more, with bespoke brand level views for supporting individual strategies. To learn more contact the CGA by NIQ team.
