The exclusive Understanding the Luxury Consumer report delivers a comprehensive overview of this lucrative market, helping suppliers, manufacturers and venue operators meet the latest needs and preferences of high-end drinkers.
The size of the prize
The research highlights the ongoing popularity of luxury drinks, with just under half (47%) of all On Premise consumers saying they would pay more for a better quality drink. This soars to 62% among sprits drinkers—a sign of the huge spend that is available to the right brands.
Why less is more
There are signs that the preference for quality over quantity is still growing. Asked about their likely choices of drinks with a set amount of money to spend, nearly two thirds (64%) of consumers say they would select one or two high quality serves—a year-on-year jump of 6 percentage points and nearly double the 36% who would choose three to five lower quality drinks. This is reinforced by CGA by NIQ’s spirits sales data, which shows premium and super-premium brands now attract 41.1% of all spending in the category.
The prioritisation of premium is particularly entrenched among younger consumers. Nearly three quarters (73%) of 25- to 34-year-olds consider themselves to be a ‘luxury consumer’—far more than the numbers among those aged 55 to 64 (16%) or 65+ (8%).
What luxury consumers want…
Connecting with these luxury consumers isn’t always easy, and CGA by NIQ’s new Luxury Consumer study provides vital insights about what they want from their drinks. It makes it clear that while the quality of ingredients in a drink is important, most consumers remain sharply focused on value for money as well, and they want to be sure they will get a good return on their investment. This makes it essential to execute consistently great serves with the right glassware and high standards of service.
Other common associations with luxury include exclusivity and uniqueness, which makes signature serves an important part of the offer. Emphasising the handcrafted nature of drinks and ensuring elegant design or packaging can signpost luxury as well. Reputation is another paramount factor, as 30% of consumers say their trust of a brand influences their decision to pay more for a better quality drink.
There are more levers to premium sales for suppliers and venues to pull. Around a quarter (24%) of consumers say they are influenced by staff recommendations, which makes bartender advocacy a powerful route to sales. With visibility a factor for nearly as many people (23%), the positioning of brands at the bar is influential too.
… And when they want it
It’s also crucial to engage with luxury consumers on the right occasions. CGA by NIQ’s research highlights the growing importance of event-led visits like special occasions, calendar dates and sports matches, where many consumers will be in the right frame of mind to trade up their drink choices. Relaxed drinks and casual meals—which together account for 41% of all On Premise visits—have luxury potential too, but brands and venues have to work hard to premiumise choices here.
Learn more
CGA by NIQ’s Understanding the Luxury Consumer study delivers many more insights into the dynamic, complex and fast-evolving luxury landscape. Its findings help brands boost their prestige, refine their messaging and attract new premium purchases.
Commercial Leader – UK & Ireland Rachel Weller said: “The luxury end of hospitality provides some of the most lucrative opportunities for brands and venues at the moment. But unlocking spend demands a very strategic approach to targeting and communications, as well as a deep understanding of what people want. The luxury pound is there to be won, but only if businesses can craft compelling stories, build trust and elevate people’s experiences. It’s essential to target the right people in the right places with the right products, and our research is the ideal starting point for achieving luxury trial and trade-ups.”
Commercial Leader – UK & Ireland Rachel Weller said: “
CGA by NIQ provides a best-in-class suite of research, providing On Premise stakeholders with a comprehensive and authentic view of the modern luxury drinks consumer, and enabling a holistic understanding of the behaviours, preferences, and motivations framing purchasing decisions. Contact us to learn more about identifying your luxury consumer here.
