Findings: Alcohol giants like Diageo and Pernod Ricard may shift focus from premiumisation (selling expensive drinks) to cheaper offerings as consumers tighten spending. Premiumisation, once a successful strategy, is now threatened by economic pressure, leading consumers to trade down to less costly alcohol.
Key Takeaway: Consumer demand is shifting away from premium brands due to economic constraints, which may lead to de-premiumisation.
Consumer Motivation: Cost-consciousness due to economic conditions.
Drivers of Trend: Rising interest rates, inflation, and consumer spending squeezes.
Target Audience: Global alcohol consumers across various age groups, particularly those previously interested in premium brands.
Implications for Brands:
Shifting back to cheaper drinks could hurt profit margins and erode companies’ ESG credentials. Marketing cheaper brands may become necessary but could compromise the premium brand identity that has driven growth for years.
Implications for Society:
There may be increased scrutiny on the alcohol industry as a shift toward cheaper drinks could undermine responsible drinking initiatives.
Implications for Future:
Economic pressures will likely lead to a stronger focus on mass-market offerings, but this comes at the cost of profits and long-term premium brand growth.
Consumer Trend:
De-premiumisation: Moving from high-end alcohol consumption to more affordable options.
Consumer Sub Trend:
Cost-conscious alcohol consumption.
Big Social Trend:
Economic-driven shifts in consumer behavior.
Local Trend:
Economic pressures influencing alcohol choices in specific regions (e.g., Latin America, China).
Worldwide Social Trend:
Decreasing demand for premium alcohol globally as inflation bites.
Big Trend Name: "De-premiumisation"
Big Social Trend Name: "Cost-conscious Consumption"
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