Detailed Findings:
Value Perceptions Continue to Challenge Spirits:
Consumers are increasingly prioritizing quality over quantity in their drink choices, despite value for money remaining the top motivator.
Beer, particularly lager and stout, benefits from a superior serving experience, which justifies its higher price tag for some consumers.
Spirits, most notably gin and cocktails, continue to struggle with value perception, especially with the persistence of post-lockdown at-home mixing trends.
The market is becoming polarized, making it crucial for operators to rationalize ranges and clearly communicate the value of their spirits offerings.
Beer Dominates – But Can It Maintain Momentum?:
Beer emerged as the standout winner in 2024, with stout experiencing a notable boom driven by pop culture influences, Gen Z preferences, and new trends in mixed shots.
Beer excels during low tempo occasions, aligning with current consumer preferences.
World lagers are set for growth, due to a wide price range that appeals to various budgets.
Cask beer and other sub-categories fighting for share are offered unique opportunities to innovate, such as fresh ale, which has the potential to strike the right balance between premium appeal and shelf life.
Rum and Tequila Top the Spirits Table:
The appetite for spirits is undergoing an evolution, with spiced rum now the second fastest growing category, fueled by pop culture relevance and versatile mixability, especially in Instagram-able cocktails that make the On Premise experience feel more upscale.
White rum continues to be a diverse cocktail base, while tequila rides a global wave of popularity led by the Margarita’s dominance and celebrity-endorsed brands.
Similarly, mixed layered shots have caught the public eye due to their recognizable branding and high ABV appeal for high tempo occasions.
Moderation and Health-Conscious Drinking on the Rise:
Gen Z’s health-conscious habits continue to drive growth in the no/low alcohol category.
The concept of “zebra striping” (alternating between alcoholic and non-alcoholic drinks) is enabling consumers to prolong social outings while managing their spending.
This moderation trend presents opportunities for drinks brands and venues to expand no/low options, meeting the evolving health and wellness demands of consumers.
Game On for Experience-Led Venues:
Socializing remains the leading driver for On Premise visits, and venues offering immersive, experience-led occasions are poised for greater success.
Competitive socializing venues are teeming with consumers seeking fun, high-quality interactive experiences worthy of their hard-earned pounds.
Additionally, longer visitation times in these environments offer hefty revenue opportunities for operators.
Key Takeaway:
Effectively communicating pricing and value for money is crucial in 2025. Operators need to balance entry-level pricing so they don’t alienate cost-conscious consumers, while also offering clear trade-up opportunities.
Key Success Factors of Product Mentioned:
Superior serving experience for beer, particularly lager and stout.
Clear communication of the value of spirits offerings to combat perception challenges.
Innovation in cask beer and fresh ale to balance premium appeal and shelf life.
Versatility and mixability of spiced rum and tequila, boosted by pop culture and celebrity endorsements.
Expansion of no/low alcohol options to meet health-conscious consumer demands.
Creating immersive, experience-led occasions to attract and retain consumers.
Main Trend:
Value-Driven Polarization:
Consumers prioritize quality over quantity, leading to a polarized market where value perception is crucial.
Description of the Trend (Value-Driven Polarization):
Consumers are more discerning about their drink choices, seeking high-quality options even if it means higher prices. This has led to a polarized market where clearly communicating the value of products is essential.
Consumer Motivation:
Value for money.
High-quality experiences.
Health-conscious choices.
Extended social outings.
What is Driving the Trend:
Economic uncertainty.
Post-lockdown at-home mixing trends.
Pop culture influences.
Increasing health and wellness awareness.
What is Motivation Beyond the Trend:
Desire for better drinking experiences.
Management of spending habits.
Focus on health and wellness.
Description of Consumers Article is Referring To:
Age: Primarily Gen Z and Millennials, but also other age groups.
Gender: Both males and females.
Income: Middle to upper income brackets.
Lifestyle: Health-conscious, quality-driven, social, and experience-seeking.
Conclusions:
Adapting to evolving consumer preferences and effectively communicating value is essential for success in the On Premise market in 2025. Brands and venues must innovate and expand their offerings to meet these changing demands.
Implications for Brands:
Focus on emphasizing quality and value in product offerings.
Innovate within product categories to stay relevant and appealing.
Expand the range of no/low alcohol options to cater to health-conscious consumers.
Create immersive, experience-led occasions to attract and retain customers.
Implication for Society:
Shift towards health-conscious drinking habits and moderation.
Increased demand for high-quality, immersive social experiences.
Implications for Consumers:
Greater variety of high-quality drink options to choose from.
More opportunities for prolonged social outings with moderation-friendly choices.
Enhanced experiences at venues offering immersive and interactive events.
Implication for Future:
Continued growth in the no/low alcohol category as health-conscious trends persist.
Emphasis on quality and value in drink choices will likely continue, driving innovation and better consumer experiences.
Consumer Trend:
Quality-Driven Choices:
Consumers seek high-quality drinks and are willing to pay a premium for them, leading to a polarized market focused on quality.
Consumer Sub Trend:
Health-Conscious Drinking:
Growth in no/low alcohol options is driven by consumer focus on health and wellness.
Big Social Trend:
Experience-Led Socialising:
Venues that offer immersive, high-quality social experiences are increasingly popular among consumers.
Worldwide Social Trend:
Economic Sensitivity:
Consumers are more conscious of their spending, seeking value for money in their drink choices.
Social Drive:
Pop Culture Influence:
Trends in the drinks market are heavily influenced by pop culture and social media, driving demand for Instagram-able cocktails and celebrity-endorsed brands.
Learnings for Brands to Use in 2025:
Emphasize quality and value in product offerings.
Innovate within product categories to meet evolving consumer preferences.
Communicate the value of products clearly to consumers.
Create immersive, experience-led occasions to attract and retain customers.
Strategy Recommendations for Brands to Follow in 2025:
Balance pricing strategies to attract cost-conscious consumers while providing premium options.
Expand product ranges to include no/low alcohol options to cater to health-conscious trends.
Invest in creating immersive, experience-led occasions to enhance consumer engagement and satisfaction.
Final Sentence:
By embracing the core trend of value-driven polarization and implementing these strategies, brands can tap into consumer motivations for quality and experience. Brands need to focus on clear communication of value, continuous innovation, and creating memorable, immersive experiences to drive success in 2025.
Final Note:
Core Trend: Consumers prioritize quality and value in their drink choices, leading to a polarized market.
Core Social Trend: Health-conscious and experience-driven socializing is becoming increasingly important.
Core Brand Strategy: Balance pricing and innovate within product categories to meet evolving consumer preferences.
Core Industry Trend: Growth in no/low alcohol options and immersive social experiences.
Core Consumer Motivation: Desire for quality, value, health-conscious choices, and memorable experiences.
By embracing the core trend of value-driven polarization, implementing these strategies, and focusing on consumer motivations for quality and experience, brands can thrive in 2025. Brands need to balance pricing strategies, continuously innovate, and create memorable, immersive experiences to meet evolving consumer preferences and drive success.
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