The exclusive REACH report delivers analysis of key trends and developments in 38 countries, with responses from around 30,000 On Premise consumers and 600 operators. It reveals that well over a third (37%) of consumers are drinking less alcohol than they were a year ago—nearly triple the number (13%) who are drinking more.
Moderation is particularly apparent among younger adults and more occasional users of the On Premise. In the Gen X group there is a 27 percentage point difference between those drinking less and more alcohol. Among those who visit only monthly, the gap is even wider at 41 percentage points.
However, cutting alcohol intake does not mean that consumers want to reduce their visits to pubs, bars and restaurants. Globally, a quarter (26%) plan to use the On Premise more over the next three months—double the number (12%) who intend to reduce their frequency. Many regulating consumers still want to drink alcohol, but are ordering fewer drinks while out, or saving their purchases for special occasions.
CGA’s REACH research provides in-depth analysis of this key trend around the world, helping suppliers and operators to understand nuances and localise strategies. It shows a particularly sharp drop in intake in Western Europe, where 35% of consumers are drinking less alcohol than they were a year ago, while just 6% are drinking more. There are smaller but still substantial net differences in the Americas, Africa and Oceania, but a contrast in South Asia, where those drinking more alcohol (28%) outnumber those drinking less (19%).
REACH also uncovers the reasons behind moderation, which are led by interest in wellbeing. More than two thirds (68%) of those drinking less alcohol say they are doing so for lifestyle and health-related reasons, while half (50%) cite financial or cost of living constraints.
Reduced alcohol intake brings some challenges for suppliers and venues, and CGA’s On Premise Measurement service has reported a drop in sales volumes for spirits and beer in many territories over the last year. However, it also brings opportunities—especially an increased demand for no and low alcohol alternatives and soft drinks. New sales potential is also emerging in morning and afternoon dayparts, as many consumers choose to eat and drink out earlier.
Charlie Mitchell, head of insights and consumer research at CGA by NIQ, said: “The global trend for moderating alcohol intake will have some seismic impacts on suppliers and operators in the years to come. However, the role of the On Premise in people’s lives isn’t going to lessen—it’s just changing. Discovering exactly why, where and when people are reducing their intake will be crucial to success, and It’s particularly important to understand how consumers are choosing alternatives to alcohol and the occasions on which they still want to drink it. Our REACH research builds the foundations of smart strategies that ensure businesses adapt nimbly to these and other changes in the On Premise around the world.”
REACH reveals many more trends in global On Premise engagement, with takeaways to help all drinks suppliers and brands gain equity. It provides in-depth analysis of preferences, occasions, consumption, categories, purchase-drivers and much more—all focused on increasing trial, loyalty and sales.
Click here to learn more about the REACH research. To watch an exclusive webinar on the findings, led by CGA’s Charlie Mitchell and George Argyropoulos and for top takeaways from the webinar, click here.
To discover how REACH and other CGA solutions can support winning On Premise strategies, and opportunities for country and regional specific analyses, contact the CGA team.
