Great Britain & Ireland
Drinks
CGA by NIQ’s research throughout 2023 revealed category changes as a result of the cost of living crisis. “While drinkers aren’t necessarily trading down to more mainstream products, some are telling us that they are drinking less of categories like cocktails and spirits, and more of categories that will leave them with more money in their pockets—like soft drinks or a pint of lager,” says Paul Bolton, CGA by NIQ’s client director. For suppliers, it’s vital to understand dynamics like these and how to play a part in the widening range of occasions, including treats and high tempo visits. To learn more, email paul.bolton@nielseniq.com.
Foodservice
On the foodservice side, big 2023 trends included a move towards mindful food choices including more meat-free options—largely driven by younger demographics—and rising interest in nutritional information. CGA’s Food Insights reports show that while inflationary pressures are pushing up prices in areas like snacking and hot beverages, consumers remain eager to eat out. “There’s still that demand to visit the out-of-home, which is a really positive sign. Cost isn’t the main driver here, but consumers want to feel like they’re getting value for money,” says Andy Hodgson, CGA’s senior business development manager. To learn more, email andrew.hodgson@nielseniq.com.
Hospitality Operators
Hospitality businesses have had a tough few years, with COVID-19, staff shortages, inflationary pressures, changes in consumer behaviour and a host of other issues. But while the Hospitality Market Monitor from CGA and AlixPartners has shown a drop in outlet numbers, this remains a vibrant market with plenty of openings as well as closures, especially on the managed side. “There’s still clear demand for growth and development, and what we’re seeing now is an evolving landscape rather than a diminished one,” says Reuben Pullan, CGA’s senior client manager. In such a competitive and challenging market, CGA’s solutions like the new PubTrack service, fusing data on venues and consumer behaviour, can help suppliers achieve a head start. To learn more, email reuben.pullan@nielseniq.com.
Ireland
Ireland’s cost of living crisis and price rises made consumers more risk-averse in 2023. “We’ve seen consumer repertoires decrease—more than ever they are sticking to what they know, and there’s less cross-category experimentation,” says Sian Brennan, CGA’s client director, Ireland. The upside of this is the chance to embed brand loyalty among core consumers. “It’s so important that the notion of trustworthiness comes across in activations and campaigns. If you can do that successfully, it’s likely that your consumer will stick with you throughout their visits.” To learn more, email sian.brennan@nielseniq.com.
Americas
The US
After a tough few years since the start of COVID, the US market is settling down, says Matthew Crompton, CGA’s regional director – North America. “We believe we’re starting to reach that ‘new normal’ with outlet trends stabilising, but there are some interesting market dynamics.” These include a decline in spirits sales and a polarisation of consumers, between those who want to spend more on premium brands, or less on value-based offerings. “Whenever you’ve got dynamics like these at play, it’s really important to understand the market more, and here at CGA we’ve really tried to help do that”—including through the exclusive OPM service and Impact Reports, which unlock expert analysis of big trends. To learn more, email matthew.crompton@nielseniq.com.
Canada
“2023 was a year of transition for the On Premise channel in Canada,” says Mitch Stefani, CGA’s client solutions director – Americas. Sales data showed ticket counts were broadly in line with 2022, while there were some double-digit increases in velocity over the summer months. As in the US, consumers’ decision-making has become polarised in areas like spend and dayparts. CGA’s insights into Canada’s On Premise will be bolstered in 2024 by the launch of the On Premise Measurement (OPM) solution to help businesses track sales and share. To learn more, email mitch.stefani@nielseniq.com.
Mexico
Mexico’s consumers remained determined to visit the On Premise in 2023, making it one of their top five spending priorities. More than two thirds of them drink beer (70%) and tequila (71%) when they are out, but just over half now choose cocktails, and there is particularly good growth at the premium end of this category. “The On Premise is currently in growth and there are great opportunities for both sales and brand-building,” says Mauricio Castellanos, CGA by NIQ client success leader, Mexico. To learn more, email mauricio.castellanos@nielseniq.com.
Europe
Italy
Italy’s consumers have also been impacted by rising prices, leading to a drop in the frequency of visits. Around a third of consumers say they now go out to eat and drink out less often. However, not all demographics are affected. CGA’s Consumer Pulse research in Italy shows a large segment of Generation Z remain very loyal to restaurants and bars and intend to use them more frequently. “It’s very important for companies to understand where the opportunities for growth lie, especially in times of crisis,” says Daniela Cardacciotto, CGA’s Italy sales leader, On Premise. To learn more, email daniela.cardaciotto@nielseniq.com.
Germany
German consumers’ behaviour shifted in some significant ways in 2023. Beer sales increased slightly, and ready-to-drink cocktails emerged as a mainstream trend. With many people wanting to treat themselves despite price increases, the premium market performed well. “It was a year when the German On Premise was in a very strong recovery mode and showed a good bounce-back from previous years,” says Bilal Kaddouri, CGA by NIQ’s client solutions director. To learn more, email bilal.kaddouri@nielseniq.com.
Asia
South Korea
Trends in South Korea’s On Premise in 2023 included growth in highball drinks sales, though there was a drop in imported beer volumes. “Consumers will continue to come back to the On Premise to enjoy drinks, and the battle between whisky and highball categories will continue,” predicts Jaepil Sohn, CGA by NIQ client solutions director, South Korea. The launch of CGA’s Outlet Index service will add to solutions for South Korea’s On Premise suppliers in 2024. To learn more, email jaepil.sohn@nielseniq.com.
CGA by NIQ is the definitive On Premise measurement, insight and research consultancy that empowers the world’s most successful food and drink brands. With more than 30 years’ experience and best-in-class research, data and analytics, CGA is uniquely positioned to help On Premise businesses develop winning strategies for growth.
Build better On Premise strategies and grow your businesses by making confident decisions with less risk. Armed with the best market data, CGA supply specially tailored analytics, backed up by the most complete and accurate market research provided from the out-of-home sector, measuring every touchpoint from product conception to consumers imbibing in bars and restaurants. To learn more about what CGA by NIQ can do for you contact hello@cgastrategy.com
