CGA’s unique combination of sales, distribution, outlet and consumer data delivers a 360 degree view of Germany’s On Premise, with powerful insights into opportunities for sales growth.
Here are just ten of the takeaways from the latest research.
1 The On Premise is at the heart of German life
CGA’s data highlights the huge role that restaurants, pubs and bars play in German consumers’ lives. More than four in five (63%) of those surveyed by CGA say they have visited the On Premise in the last three months, and three in five (61%) have gone there at least weekly. A similar number (62%) say they would feel lost or disappointed if they couldn’t eat or drink out. This makes it a vital channel for suppliers—especially as seven in ten consumers say good experiences here have prompted them to buy drinks in the Off Premise too.
2 Ongoing pressure on spending
While the On Premise remains very popular, the cost of living crisis has put pressure on people’s spending. Many people have cut their visitation frequency, and the proportion of people eating out in February was two percentage points lower than in January—partly a result of rising prices and VAT. More than a third (37%) of consumers said they were likely to eat or drink out less frequently in 2024 than in 2023—double the number who planned to go out more often (17%). However, there are still good opportunities for suppliers and operators to substantially grow sales this year—especially if they can tap into people’s ongoing desire to give themselves affordable treats.
3 A sharp focus on value
Cost of living pressures mean 38% of German consumers now feel good value is more important than it was a year ago. But this doesn’t necessarily mean cheap—just worth the cost that is paid. It has also led more consumers to buy fewer drinks but look for higher quality ones when they do spend. Suppliers need to find the right balance of value and quality and earn people’s trust in a brand.
4 Beer still most popular, some spirits fall
Beer remains Germany’s top On Premise category, and exactly half (50%) of consumers drink it while out, with local beers most popular. Interest in spirits has fallen since a post-COVID boom, though premium whiskey and ready to drink options are among the areas of growth. Consumption of cocktails, which meet the desire for treats, remains resilient.
5 Interest in experiential and sporting venues
CGA’s channel research shows new-style venues are challenging traditional ones. Well over half (59%) of Germany’s consumers now visit experience-led venues at least monthly, and the frequency of visits to venues to watch sport is also rising. These trends bring scope for suppliers to collaborate with venues on activations—including during the forthcoming EURO 2024 football tournament.
6 Moderation in alcohol
The no and low alcohol segment is an increasingly important part of the drinking-out landscape. One in eight (13%) consumers took part in Dry January this year, and half (49%) said they would be moderating their alcohol intake throughout 2024. Beer is the most popular segment of the no and low alcohol market, but virgin cocktails are another growth area.
7 More pre-visit planning
Consumers’ paths to purchase are starting earlier than they were before COVID. Online menus, review platforms and social media are three vital pre-visit touchpoints, and more than two in five (43%) consumers now regularly search for some sort of information about a venue before visiting it. Facebook and Instagram are particularly important places for people to browse food and drink trends, making them a powerful place for brands to build equity.
8 Room for in-venue influence
While planning has increased, more traditional influences on purchasing decisions are still vital, because over a third (37%) of consumers haven’t decided what they will drink until they are inside a venue. Staff and menu are powerful factors, and around a third of guests can be swayed by bar staff recommendations (35%) or tasting notes on menus (32%). Guests value experts’ recommendations, and CGA’s Bartender Report found that 82% of staff recommend specific drinks at least once per shift. Suppliers that can leverage bartenders’ support can get a significant head start on competing brands.
9 Visual appeal is vital
As well as helping with planning, social media is a valuable route to post-visit word of mouth—especially in cocktails. Nearly half (45%) of cocktail consumers say documenting their On Premise visits on social platforms is important to them, and providing aesthetically pleasing serves makes people more likely to post. Suppliers and operators that get things right here can win valuable free organic marketing.
10 Nightclubs bring spaces for trial
Suppliers seeking to develop new brands can find some great opportunities in nightclubs. Guests here are 11 percentage points more likely than average to buy multiple brands during a visit, and three in five (58%) say they are likely to try new brands in clubs—much higher than guests in casual dining restaurants (33%).
CGA by NIQ’s powerful range of research sources across Germany’s On Premise provides many more insights into consumers’ habits and preferences, with in-depth analysis of channels, occasions, categories, paths to purchase and much more. To learn more about CGA by NIQ’s unrivalled suite of services and how it can help your business, contact Bilal Kaddouri, CGA Client Solutions Director, Germany, here.
