Detailed Findings
On-Trade Revival:
Key markets like China, Germany, Italy, Mexico, the UK, and the US are seeing a resurgence in on-trade (bars and restaurants) consumption, particularly among American Millennials.
Scotch, liqueurs, and sparkling wine are benefiting most from this trend.
A renewed focus on premium experiences and diversified offerings is driving growth in these settings.
Market Dynamics:
The global beverage alcohol market is recovering cautiously, with emerging markets (India, Brazil, South Africa) showing robust growth.
Moderation trends dominate mature markets, where consumers are opting to reduce consumption rather than abstain entirely.
No-Alcohol Products Gaining Momentum:
Over 25% of total beverage alcohol (TBA) drinkers have tried no-alcohol products in the past six months, particularly in North America, India, and China.
Germany and Spain have the highest penetration rates (40%), but the category remains price-sensitive.
Premiumisation:
Higher-income consumers sustain demand for premium categories, such as single malt Scotch and Cognac, despite economic pressures.
Premium products are seeing significant growth in emerging markets like India, with a 20%+ increase in typical spend per bottle.
Emerging Market Growth:
India (+4%), Brazil (+4%), and South Africa (+5%) are driving H1 2024 volume growth due to improved economic sentiment and rising on-trade occasions.
India’s growth is bolstered by a confident urban middle class and younger consumers experimenting with new categories.
Consumer Behaviors:
Moderation is reshaping drinking habits globally, with light drinkers becoming the largest group in Europe, North America, and APAC.
Temporary abstinence and reduced intensity are popular strategies, particularly in India, South Africa, and Latin America.
Key Takeaway
The global beverage alcohol market is witnessing a nascent revival in on-trade consumption, while trends in moderation, no-alcohol products, and premiumisation continue to reshape the industry landscape.
Main Trend
The main trend is the revival of on-trade consumption, fueled by premium offerings, growing consumer confidence, and an evolving focus on experiential and social drinking occasions.
Consumer Motivation
Social Connection: Consumers return to bars and restaurants to socialize and enjoy premium experiences.
Wellbeing: Moderation and no-alcohol products reflect a shift toward healthier lifestyles.
Exploration: Younger cohorts in emerging markets are keen to try new categories and premium options.
What is Driving the Trend?
Economic Recovery: Improved consumer confidence in key markets.
Changing Preferences: A shift toward premium, diversified, and no-alcohol options.
Cultural and Social Norms: The social aspect of on-trade drinking is driving its resurgence.
Who are the People?
American Millennials: Over-index for propensity to go out and participate in on-trade occasions.
Urban Middle-Class Consumers in Emerging Markets: Driving premiumisation and experimenting with new categories.
Health-Conscious Drinkers: Seeking moderation or no-alcohol alternatives.
Description of Products/Services
Premium Alcohol: Single malt Scotch, Cognac, and sparkling wine leading growth in premium categories.
No-Alcohol Beverages: Gaining popularity, particularly no-alcohol spirits in the US and Europe.
Diversified Offerings: Innovative and localized options to attract on-trade consumers.
Conclusions
The global beverage alcohol market is entering a phase of recovery and evolution, with on-trade revival, moderation, and premiumisation shaping its future.
Implications for Brands
On-Trade Investments: Focus on experiential and premium offerings to capitalize on social drinking trends.
Moderation and No-Alcohol Products: Expand no-alcohol portfolios to meet rising demand for healthier options.
Target Emerging Markets: Leverage the growing confidence and experimentation of younger urban consumers in regions like India and Brazil.
Implications for Society
Increased adoption of moderation behaviors signals a shift toward responsible drinking.
Growth in no-alcohol products supports broader health-conscious lifestyle trends.
Implications for Consumers
Greater access to premium and no-alcohol options, allowing for a more tailored drinking experience.
Enhanced on-trade experiences focused on socialization and quality.
Implication for Future
The long-term growth of the beverage alcohol market will depend on adapting to moderation trends, supporting no-alcohol innovation, and expanding premium on-trade offerings.
Consumer Trend
Rising demand for experiential, premium, and health-conscious alcohol consumption.
Consumer Sub-Trend
Increased preference for no-alcohol and light-drinking options.
Big Social Trend
The revival of social drinking and experiential on-trade consumption.
Local Trend
Emerging markets like India, Brazil, and South Africa lead in volume growth and premiumisation.
Worldwide Social Trend
Global adoption of moderation and no-alcohol drinking behaviors alongside a return to social drinking occasions.
Name of Big Trend
On-Trade Revival and Moderation Evolution.
Name of Big Social Trend
Premium and Health-Conscious Beverage Experiences.
Social Drive
Economic recovery and evolving drinking habits prioritizing moderation, premium quality, and social connection.
Learnings for Companies to Use in 2025
Invest in on-trade experiences that highlight premium and localized offerings.
Expand no-alcohol portfolios while addressing price sensitivity.
Target emerging markets with premiumized and innovative options.
Strategy Recommendations
Focus on Premium Experiences: Develop offerings tailored for on-trade social and experiential occasions.
Support Moderation: Emphasize no-alcohol and low-intensity products to align with consumer preferences.
Expand in Emerging Markets: Target urban, younger demographics with innovative, premium products.
Final Sentence
The global beverage alcohol market is evolving with a focus on on-trade revival, moderation, and premiumisation, reflecting shifting consumer preferences for social, health-conscious, and quality-driven experiences.
Comentários