US On Premise spend set to rise in 2025

CGA’s On Premise Impact Report reveals that plans to increase spend are particularly pronounced among younger demographics, with almost a third of 21-34-year-olds (30%) and 35-54-year-olds (29%) anticipating higher On Premise expenditures in the coming year. 

This optimism reflects broader consumer sentiment, with almost two thirds (65%) of consumers expressing a positive outlook for 2025, up +7pp (percentage points) from August 2024.  

These encouraging figures represent a welcome invitation for industry players to leverage this heightened consumer engagement in the On Premise space. 

The Influence of On to Off Premise 

On Premise venues continue to play a leading role in brand discovery and trial. When consumers try a new drink in a venue: 

• Almost two thirds (63%) are likely to order it again during subsequent visits. 

• 60% actively seek it out for home consumption. 

• Half (50%) make in-store purchases of brands they first tried when out. 

These findings underline the value of On Premise experiences in building brand loyalty and driving Off Premise sales.  

Notably, 18% of consumers purchasing alcohol as gifts during the festive season chose brands they first tried in venues, providing a tangible example of how On Premise trials can extend into seasonal sales. 

Category Specific Trends 

The data also delves into specific drink categories, illustrating consumer preferences for where they first try new products: 

• 71% of cocktail drinkers and more than two thirds (67%) of shot drinkers prefer bars and restaurants for initial trials. 

• The split is more balanced for RTDs, with a third (33%) likely to try RTDs in venues and 60% favoring home settings. 

Interestingly, 21-34-year-olds are most open to exploring RTDs in venues. But they want greater flavor variety and convenience, giving a clear signal to drinks brands, suppliers and operators to adapt their offerings to supply to demand. 

Challenges and Opportunities 

While the optimism for 2025 is encouraging, industry stakeholders must remain agile to navigate potential challenges: 

• 42% of consumers plan to participate in Dry January, reiterating the need for venues to diversify their non-alcoholic offerings. 

• RTDs and other emerging categories present growth opportunities to industry stakeholders who address consumer demands for innovation and accessibility. 

Both suppliers and venues are better equipped to strategize in alignment with consumer expectations by leveraging these insights, in turn ensuring relevance. 

Matthew Crompton, Regional Director – Americas said: “Industry stakeholders looking to maximize their performance need to adopt a more holistic view of consumer trends across various touchpoints. The latest Impact Report highlights why understanding these dynamics is more important than ever. A prime example is the ability to translate On Premise success into Off Premise gains, which will define the next phase of growth in 2025 and beyond. Now is the time for the industry to act on these insights, with optimism high and spending set to increase.” 

CGA’s On Premise Impact Reports help suppliers and manufacturers across food and beverage keep a pulse on the industry by featuring current insights derived from a variety of our best-in-class data tools. December’s consumer Impact Report offers a 360 perspective on consumer behavior, brand performance, and the interplay between On and Off Premise trends, emphasizing the strategic importance of On Premise data for drinks brands, suppliers, and venue operators as the hospitality industry heads into 2025. Click here for more information about how  to access the full Impact Report series, or contact the experts to explore On Premise solutions tailored to your needs