top of page
Writer's pictureInsightTrendsWorld

Insight of the Day: The evolution of premiumization: Seven CGA insights

  • Findings: The trend of “premiumisation” is prominent in the global on-premise market, with many consumers favoring higher-quality, more expensive drinks over budget options. Key markets include the UK, US, Germany, France, and Canada, where a majority of spirits spending occurs on-premise.

  • Key Takeaway: Premiumisation is driven by consumer preference for quality, ethics, and a growing interest in earlier daypart drinking occasions, presenting both opportunities and challenges for premium brands.

  • Trend: Increasing consumer inclination towards premium brands and higher-quality alcoholic beverages.

  • Consumer Motivation: A desire for quality, unique experiences, and alignment with ethical brand values.

  • What Is Driving the Trend: Millennials’ and European consumers’ preference for quality, affordability concerns amid rising costs, and a shift toward earlier drinking times.

  • Who the Article Refers to: Primarily millennial consumers, as well as on-premise patrons in key global markets.

  • Consumer’s Product/Service Age Range: Targeted largely at millennials and Gen Z (aged roughly 25-40), who show high interest in premium brands.

  • Conclusions: The on-premise space remains crucial for premium brands to establish a loyal customer base, and premium brands can succeed by aligning with consumer values, offering engaging brand experiences, and adapting to affordability concerns.

  • Implications for Brands: To capitalize on premiumisation, brands should emphasize quality, ethically align with consumer values, and employ knowledgeable staff to provide personalized recommendations, especially to millennial consumers.

  • Implications for Society: As more consumers seek premium products, there’s a shift towards quality experiences over quantity, leading to a potentially more selective approach to on-premise consumption.

  • Implications for Consumers: Consumers gain more refined, quality-focused offerings that align with both their taste preferences and personal values.

  • Implications for Future: Expect growth in premium and super-premium products, with a particular focus on brand ethics, quality, and early evening positioning to capture new on-premise moments.

  • Consumer Trend: Premiumisation of on-premise experiences.

  • Consumer Sub-Trend: Ethically conscious, quality-driven consumption.

  • Big Social Trend: Ethical and experiential consumption in hospitality.

  • Local Trend: Premium spirits in European and North American pubs and bars.

  • Worldwide Social Trend: Global rise in quality-driven, ethically minded consumer choices in hospitality.

  • Name of Big Trend Implied by Article: Premiumisation of on-premise alcoholic beverages.

  • Name of Big Social Trend Implied by Article: Conscious and quality-driven consumption.

  • Social Drive: A rising emphasis on aligning purchases with personal ethics and premium quality experiences.

  • Learnings for Companies to Use in 2025: Companies should align their brand values with consumer ethics, focus on staff training for better engagement, and expand premium options for earlier time slots.

  • Strategy Recommendations for Companies to Follow in 2025: To stay competitive, companies should adapt their brand messaging to highlight ethical values, position premium products for earlier drinking occasions, and invest in staff training to improve customer interaction and recommendations. Consider offering tiered product lines that address both premium and medium-quality segments to cater to affordability concerns.

Final Sentence (Key Concept): "The premiumisation trend in on-premise venues shows a growing consumer preference for high-quality, ethically aligned brands, with the on-premise sector positioned as a vital environment for building loyalty and brand value in 2025."

What Brands & Companies Should Do in 2025 to Benefit from Trend and How to Do It: Brands should double down on aligning with consumer ethics, prioritize product quality, and leverage trained staff for authentic engagement with consumers. By positioning premium products at various times and in accessible formats, they can expand reach and cater to shifting consumer preferences.

Comments


bottom of page