CGA’s exclusive BrandTrack survey shows a third (34%) of consumers are now drinking less alcohol than they were a year ago, compared to just 6% who are drinking more. Another 15% haven’t drunk it at all in the last year, and 3% have stopped over that time.
This trend brings challenges for drinks suppliers and venues—but it also presents some significant opportunities. Understanding the demographics and behaviours of these moderating drinkers and the reasons for their new habits is going to be crucial to meeting their needs and keeping them engaged with pubs, bars and restaurants this year. Here are six insights into this new wave of consumers.
1 Motivated by health and money
Moderation is powered by consumers’ growing interest in their health. Well over a third (38%) of those who are decreasing their alcohol intake are doing so because they are trying to be healthier—a sign of the importance of brands’ wellbeing messages. Money is another big factor, with 25% cutting their intake because they are trying to spend less, and 24% because they are going out less. Other issues include changes in lifestyle (22%) and an aversion to feeling hungover (17%).
2 Exploring other options but not cutting out the On Premise
It’s important to remember that while some consumers are reducing their intake of alcohol, they don’t want to sacrifice their much-loved On Premise visits. More than a quarter (27%) plan to take more breaks from alcohol for longer periods of time, and the same number (27%) intend to drink fewer serves per visit. Sizeable numbers are drinking alcohol only at weekends or certain days, or for special occasions. Brands that can position themselves as high-quality and good-value treats can appeal to this moderating mindset.
3 Gen Z changing attitudes
Some of the most significant evolution in behaviour can be found among Gen Z—though the changes are complex. One in seven (14%) is drinking more alcohol than a year ago—more than double the 6% average among all consumers. However, even more of Gen Z (19%) said they didn’t drink alcohol last year and have continued not to do so—4 percentage points more than average. This generation also over-indexes for drinking soft drinks and no or low alternatives—making them vital targets for marketing and point of sale material.
4 Less-engaged visitors more likely to moderate
While moderation is in evidence across all consumer groups, much of it is being driven by occasional and less engaged On Premise users. More than two in five of those who drink out only monthly (41%) or every two to three months (42%) are drinking less alcohol than they were a year ago—7 and 8 percentage points more than average.
5 New opportunities in soft drinks…
Some moderating consumers are switching from alcoholic categories to soft drinks. Around a quarter (27%) of those who plan to moderate say they will be ordering more soft drinks instead. They include people adopting the ‘zebra striping’ habit of alternating between alcoholic and non-alcoholic drinks. There are clear opportunities for soft drinks brands to take advantage of this trend—especially within Gen Z.
6 … And no or low categories
Potential is also growing in no and low alcohol categories, and there has been a surge of new brands into this space in the last couple of years. REACH reveals that consumer awareness is rising, and around a quarter of them say they find the idea of mocktails (26%) and no or low alcohol beer (25%) appealing. Other responses to moderation include the lowering of the ABV content of drinks. While some consumers are opposed to this idea, nearly three quarters (72%) say they would be just as likely or more likely to purchase a brand if it made this change.
CGA by NIQ’s market measurement and consumer research solutions deliver many more insights into moderating consumers, helping suppliers and venues track trends and preferences and respond with effective sales and marketing strategies. To learn more about the solutions and discuss expert analysis tailored to brand, category or channel requirements, contact the CGA team.
