Summary: Soft drinks surge as Gen Z drives moderation revolution
Findings:
There's a notable decrease in alcohol consumption in the On Premise sector, particularly among young adults (LDA to 24).
30% of this demographic report drinking less than a year ago, with 13% abstaining completely.
This group is also more health-conscious and environmentally aware.
Despite reduced alcohol intake, they remain highly engaged with the On Premise sector, visiting frequently.
Soft drink sales are flat overall, but there's growth in bars, bar restaurants, and hotels.
Younger consumers are adopting "zebra striping," alternating between alcoholic and non-alcoholic drinks.
Key factors driving soft drink brand choice include habit, brand loyalty, value for money, quality, and on-site promotions.
Fizzy drinks remain popular, but health trends boost sales of sports drinks, water plus, and juice drinks.
18-24-year-olds are drinking more carbonated soft drinks.
Key Takeaway:
The moderation trend, especially among Gen Z, presents a significant opportunity for brands and venues to offer appealing, high-quality, and health-conscious soft drinks.
Trend:
The trend is towards moderation and healthier choices in the On Premise sector, with a growing demand for non-alcoholic beverages.
Consumer Motivation:
Health consciousness and a desire for a healthier lifestyle.
Environmental awareness and preference for sustainable choices.
Desire for enjoyable social experiences without excessive alcohol consumption.
What is Driving the Trend:
Growing awareness of the negative health effects of alcohol.
Increased focus on wellness and mindful consumption.
The influence of social media and peer pressure.
Who the Article Refers To:
Young adults (LDA to 24)
Drinks brands and venue operators in the On Premise sector
CGA client director Violetta Njunina
Description of Consumers/Product/Service and Age:
Consumers: Primarily young adults (18-24) who frequent the On Premise sector.
Product/Service: Non-alcoholic beverages, particularly soft drinks.
Conclusions:
There's untapped potential for soft drinks in the On Premise sector, especially during high-tempo occasions.
Brands and venues need to understand consumer motivations and preferences to cater to the growing demand for non-alcoholic options.
Successfully tapping into this market can lead to increased sales and long-term customer loyalty.
Implications for Brands:
Develop and promote a wider range of appealing and health-conscious soft drinks.
Focus on brand quality, value for money, and on-site promotions.
Leverage social media and influencers to connect with the younger demographic.
Implication for Society:
Potential for a reduction in alcohol-related harm and a healthier drinking culture.
Encourages a more inclusive and diverse On Premise experience for all consumers.
Big Trend Implied:
The shift towards moderation and mindful consumption, especially among younger generations, is reshaping the beverage landscape. Brands and venues need to adapt to these changing preferences to remain relevant and successful.
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