CGA’s REACH research shows three in ten (30%) APAC consumers are drinking less alcohol than they were a year ago—double the proportion (15%) who are drinking more. Numbers drinking less are even higher in countries including Australia (34%), New Zealand (38%) and the Philippines (42%).
Moderation is being driven by lifestyle factors including the prioritisation of wellbeing, with 41% of those drinking less say they are doing so because they are trying to be healthier. This motivation is notably higher in China (52%) and Hong Kong (45%). Pressure on spending, because of the cost-of-living crisis seems to be contributing to reduced intake, with 25% of consumers who have reduced consumption are trying to save money.
However, while some are abstaining completely, the large majority continue to enjoy the unique social occasions of bars and restaurants. Nearly a third (31%) of those who are moderating consumption say they are now only drinking alcohol on special occasions—a figure that is higher in South Korea (38%) and Japan (41%). Meanwhile, 22% of APAC consumers—and 33% of those in New Zealand—continue to drink the same categories when they go out but are making fewer purchases per visit.
Some moderators are turning to soft or hot drinks as alternatives to alcoholic options, but the trend is also creating dynamic new opportunities for suppliers, manufacturers and operators in no and low alcohol categories. A third (32%) of APAC consumers say they have tried a low-alcohol or alcohol-free drink at a bar, restaurant or similar venue, with beer the most appealing category ahead of wine and spirits. Trial of these drinks is especially high in China (48%).
CGA’s REACH research highlights the best ways to attract more consumers towards no or low alcohol drinks. More competitive pricing, creative flavours and serves, menu visibility and recommendations are among the factors most likely to generate extra orders.
James Phillips, CGA by NIQ’s Head of On Premise, APAC, said: “APAC consumers are no longer drinking out of habit—they’re drinking with purpose. The shift toward mindful consumption is not a passing trend, but a cultural reset that’s redefining how, when and why people drink. The key question – is this the new normal in the On Premise? If so, it presents big challenges for suppliers, manufacturers and operators, including the need to cater for moderating guests without alienating core consumers. Brands that can gain a deep understanding of this complex recalibration and adapt nimbly will be the ones that stay relevant in the months and years ahead.”
James Phillips
CGA by NIQ’s consumer research and sales measurement solutions provide many more insights into key On Premise trends across the APAC region, with expert analysis of what they mean for suppliers, manufacturers and operators at category, segment and brand level. Countries covered include Australia, China, Hong Kong, Australia, New Zealand, Taiwan, South Korea, Singapore, Malaysia, Indonesia, Philippines, Japan, Thailand and Vietnam. For more details, contact the CGA by NIQ team.
