CGA by NIQ remains at the forefront of sales measurement and consumer research to deliver critical data and insights that enable industry stakeholders to make informed decisions that bend and flex with this dynamic market.
This article delves into the standout trends that shaped Australia’s On Premise in 2024. From the rise of Ready-to-Drink (RTD) beverages to the increasing popularity of earlier daypart visitation, we explore how these trends influenced consumer behaviour and the industry as a whole. Discover the key factors driving these changes and what they mean for the future of the market.
The rise of mixed drinks and draught cocktails
Consumer preferences for RTDs and draught cocktails surged in 2024. Over half of consumers (51%) encountered draught cocktails and mixed drinks when out. Although 45% believe that while the category is improving, it still falls short of traditional bartender-made products.
Notably, the total number of RTD drinkers increased from 48% in March to 55% in September, with significant growth of RTD drinkers that are among the 55+ age group (from 13% to 22%).
This shift highlights the importance of investment in beyond-beer options to stay competitive, especially in the venue types that RTD drinkers expect to see RTDs, and draught cocktails on offer:
- Nightclubs – RTDs and cocktails 28% respectively
- Bars/late-night bars – RTDs 21% and cocktails 27%
- Hotels – RTDs 19% and cocktails 22%
Forearmed with these insights, drinks brands are better equipped to strategically collaborate with operators, diversify tap lineups, and engage target audiences more effectively.
The growing thirst for RTDs signposts opportunities to innovate and expand product offerings in high-tempo, drink-led venues.
Inflation and tax hikes
Rising inflation and tax-driven price increases created a tough trading environment for the Australian On Premise, with average prices soaring:
- 425ml beer rose by 8% year-on-year and 13.4% since 2022
- 30ml spirit serve saw an 5% increase year-on-year and an 18.8% increase since 2022
These price pressures led to declines in sales volumes, particularly in the spirits category, as consumers looked for better value or opted out of the On Premise altogether.
This scenario calls for drinks brands and suppliers to closely monitor sales trends and pivot strategies to address these challenges. In addition, it’s vital to understand polarised spending between premium and value drinks in order to spot growth opportunities amid ongoing economic uncertainty.
Beer versus spirits
The disparity between beer and spirits sales in 2024 reflected how consumers are adjusting to cost-of-living pressures. In the 12 months to December 2024, beer sales by value grew by +1.2%, while volume dropped by -3.4%.
Spirits, facing harsher tax conditions experienced a sharper decline. Volume sales fell by -10.5% in the 12 months to December 2024. Higher priced spirits like Japanese whiskey (-12.7%) and Mezcal (-16.6%) declined in volume, while slightly lower-priced options such as Gold Rum (-3.8%) and Irish Whiskey (-7.6%) performed better than the broader category.
The data highlights the pressing need for industry stakeholders to analyse pricing strategies and focus on accessible products to meet ever-changing consumer demands.
Early birds get the worm as earlier daypart visitation rises
Another prominent trend in 2024 was consumers opting for earlier dayparts for both eating and drinking out. In fact, almost a quarter (23%) of consumers reported eating earlier (+19pp), and 16% reported drinking earlier (+9pp) compared to 2023.
This shift resulted in a sizeable overlap between eating and drinking occasions, with mid-afternoon drinks sales rising from 20% in 2022 to 23% in 2023, while late night purchases fell from 30% to 23%.
Correspondingly, it presents a valuable opportunity to tap into this trend by promoting drink options to complement food-focused visits and adapting menus to suit earlier dayparts, in turn boosting both customer engagement and sales.
Staying ahead in 2025
It’s imperative for drinks brands, suppliers, and venue operators to keep up with shifting trends and consumer behaviours. After all, understanding and anticipating change is a catalyst for adapting strategies, innovating products, and building stronger connections with consumers.
In 2025, CGA by NIQ will continue to provide essential insights on sales trends, consumer preferences, and market dynamics to help businesses stay ahead of the curve. This paired with NIQ’s market-leading Off Premise data provides you with a Full View of Liquor, allowing you to understand how trends connect across the total liquor landscape.
Our commitment to leading-edge analytics empowers industry stakeholders to identify growth opportunities, strengthen partnerships, and confidently make smarter, data-driven decisions. Ultimately, the future of Australia’s On Premise belongs to those who are prepared. With CGA by NIQ’s insights, you’re ready to lead the way.
Download the full infographic detailing everything covered in this blog to gain deeper insights and stay ahead of the curve, or for more information, get in touch with our expert team here.
