Pinpointing the latest market trends and consumer behaviours will be key to success, and data from CGA by NIQ’s On Premise Measurement (OPM) and On Premise User Survey (OPUS) deliver the expert insights that all stakeholders need. Here are five of the top takeaways from the latest research.
1 Draft takes share from packaged
Draft cider has steadily taken share from packaged products in recent years, and it has gained another 1.3 percentage points over the last 12 months, thanks to a much higher Return on Sale (RoS), and despite increased distribution for bottles and cans.
2 Ongoing premiumisation
With just over half (53%) of total sales by volume, standard cider still dominates the market. But the premium segment has been building its share lately, outperforming the category as a whole. This reflects consumers’ increasing preference for buying fewer but higher quality drinks in the On Premise, and their willingness to pay extra for a good experience, even when their spending is tight.
3 Growth in bars, restaurants and hotels
Pubs remain cider’s most important channel by some distance, with nearly two thirds (63.9%) of all volumes. However, both draft and packaged cider have made notable gains in non-traditional outlets, with draft volumes rising by 9.2% year-on-year in bars, and by 5.4% in both hotels and restaurants. These wins, driven by RoS, emphasise the opportunity to reach cider drinkers outside of their usual venues.
4 Independent sector vital despite closures
The Hospitality Market Monitor from CGA and AlixPartners has tracked a steady decline in independent pubs and bars since the start of the COVID-19 pandemic. Nevertheless, free trade outlets attract 43.5% of cider volumes, and draft has gained 8.0% in sales here year-on-year—double the 4.1% increase in managed outlets.
5 Brand loyalty still strong
Cider is one of the On Premise’s most brand-loyal drinks categories. OPUS data shows three quarters (76%) of cider consumers specify a brand when they order—5 percentage points more than the average consumer. Well over a third (38.4%) of purchasing decisions are influenced by the availability of favourite brands, making it a more significant driver than value (37.8%) and quality (32.2%). With loyalty so important, suppliers need to ensure the right cider brands are stocked in the right outlets.
CGA’s unique fusion of sales measurement and consumer research delivers deep and actionable insights into the cider category, with analysis by channel, segment, serve and much more. Tailored analysis is available to help suppliers optimise assortment and promotional strategies and achieve more growth. To learn more, contact the CGA by NIQ team.
