Abstract
Overview
Introduction
Consumers' alcoholic drinks consumption behaviors are shifting from the flat
on-trade to the off-trade. Home-based occasions are rising with consumers
seeking to bring the favored aspects of on-trade alcoholic drinks consumption
into the home. However, although volume sales are rising, heavy discounting is
limiting value growth and undermining the potential in consumers' openness to
trading up.
Scope
- Insightful analysis of the evolving consumer migration from on-trade to
off-trade alcohol expenditure and the need states and occasions driving this.
- Quantitative data tracking at-home alcoholic drinking occasions by
occasion type and country.
- Detailed action points offering practical strategies based on the trends
and insights analyzed in the report.
- Covering eight core countries across Europe and North America; France,
Germany, Italy, Netherlands, Spain, Sweden, UK and US.
Report Highlights
US consumers' alcoholic drinks purchases account for 72% of total sales.
Europe has a noticeably stronger on-trade, but off-trade sales still account
for 58%. Both European and US consumers' at-home alcoholic beverage occasions
outnumber out-of-home and are exhibiting stronger growth.
Consumers are increasingly less inclined to compromise their quality and
sensory needs when making the choice to stay at home rather than go out and
drink in the on-trade. They desire authentic on-trade drinking experiences
within the comfort and security of their own or their friends' homes.
Consumers, concerned with signs of wider economic uncertainty in the housing
and credit markets, are increasingly likely to adjust their spending, cutting
back further on on-trade occasions. Manufacturers and marketers can respond by
targeting the associated rise in at-home meal occasions and the complementary
relationship between alcohol and food.
Reasons to Purchase
- Learn how to drive value in the at-home drinks market by appealing to
consumers' home-based needs and encouraging uptake of premium products.
- Access a blend of quantitative and qualitative data aggregating the most
compelling and recent research in this increasingly important topic.
- Counter sales volume stagnation and decline by discovering the route to
premiumization within the off-trade/at-home context.
Table of Contents
- Overview
- Executive Summary
- Introduction
- The Future Decoded
- Consumers are increasingly opting to stay in
- Off-trade drinking continues to grow as consumers on-trade consumption
stagnates
- At-home drinking occasions are increasingly diverse
- The ' discount trap' presents a problem for building value from
off-trade sales
- Consumers seek on-trade quality experiences in the home
- Consumers are "front-loading" at home before going out
- Smoking bans are influencing consumers' off-trade drinking behavior
- Attempts to build value in the off-trade may be influenced by the
threatened housing/credit crunch
- Health considerations are changing consumers' at-home alcoholic
drinking behavior
- Action Points
- TABLE OF CONTENTS
- Table of figures
- Table of tables
- THE FUTURE DECODED
- INTRODUCTION: The strategic importance of the off-trade to theindustry
is growing
- TREND: Consumers are increasingly opting to stay in
- Improving and investing in the home encourages consumers to spend more
time there
- Consumers are focusing on the home as a comfortable retreat
- US consumers' favorite summer evenings center around home and
outdoor social activities
- Cocooning has evolved: consumers want to share their homes with
others
- Home entertainment options continue to grow in sophistication
- Take-outs and implications: consumers want products that complement
their home-based needs
- TREND: Off-trade drinking is growing while consumers' on-trade
consumption stagnates
- Off-trade sales in the US lead those in Europe as a share of total
sales
- At-home alcoholic beverage occasions outnumber going out
- Per capita at-home and going out occasions vary significantly from
country to country
- UK consumers drink the most alcohol per on-trade occasion
- Consumers are critical of on-trade value for money
- Price sensitivity plays a role in directing off-trade consumption, but
is far from the only factor
- It is also important to recognize that there are other factors
beyond price driving the trend
- Take-outs and implications: industry players should place increasing
emphasis on the need states of consumers drinking at home
- TREND: At-home drinking occasions are increasingly diverse
- Entertaining at home is a significant sub-trend in at-home alcohol
consumption
- Sports events fuel male at-home drinking behaviors
- Beer is inherently social, both on and off-trade
- Alcohol consumption at home is increasingly allied to meal occasions
- Aging populations will add to the growth in at-home alcoholic beverage
occasions
- Weekend alcoholic drinking occasions increasingly occur in the home
- Take-outs and implications: diverse drinking occasions at home have
untapped potential, particularly with regard to premiumization
- INSIGHT: The "discount trap" presents a problem for building value from
off-trade sales
- Price-based promotions in the off-trade can negatively impact overall
brand equity
- Beer continues to be particularly at risk from cut-price image problems
- Younger consumers are migrating between cheap sub-premium beer and
specialty brews
- Take-outs and implications: a major threat to off-trade value
generation is the continued emphasis on cut price promotion at the expense
of building long term brand equity
- INSIGHT: Consumers want to replicate on-trade quality and experiences in
the home
- Consumers' experiential expectations are high
- Premium-hungry shoppers are looking for the latest on-trade trends on
retail shelves
- Poor on-trade experiences and choices are putting consumers off
frequenting the channel
- The ' insperiences' trend means that alcoholic beverage consumers are
recreating aspects of the on-trade at home with greater regularity
- Insperiences are offering consumers high quality on-trade
experiences with home convenience
- Insperiences and entertaining at-home are tied to the rise of the
kitchen as a prominent social space
- The propensity for consumers to pair alcohol and food is a developing
trend with historical precedent
- Take-outs and implications: it is important to appeal to off-trade
consumers by emphasizing the premium experience that brands can offer in
the comfort of the home
- INSIGHT: Consumers are "front-loading" at home before going out
- Europeans show a higher propensity for front-loading than US consumers
- The growth in front loading among UK consumers is particularly
notable
- Sweden has the lowest per capita occasions of the countries covered
- Germany is experiencing the fastest decline in both quiet drinking
and front-loading occasions
- Take-outs and implications: front-loading is a growth occasion but
presents difficulties for encouraging up-trading
- INSIGHT: Smoking bans are influencing consumers' off-trade drinking
behavior
- Smoking has been linked to higher alcohol consumption among consumers
- Smokers constitute a sizeable share of the drinking demographic
- Smoking bans have impacted on on-trade sales and changed some
consumers' on-trade drinking behavior
- Smoking bans may influence the off-trade behaviors of both smokers and
non-smokers
- Take-outs and implications: smoking bans may not have a fundamental
impact on the balance between on and off-trade alcohol occasionsINSIGHT:
Trading-up in the off-trade may be restricted by the looming housing and
credit crunch
- Consumers may look for economies by staying-in
- Take-outs and implications: the industry must prepare for consumers
tightening their belts and look to the off-trade for opportunities
- INSIGHT: Health considerations are changing consumers' at-home alcoholic
drinking behavior
- Consumers are moderating their alcoholic beverage consumption
- Alcohol choices at home are being influenced by health considerations
- Health and premiumization foster "less but better" approaches to
alcohol consumption
- At-home drinking faces a threat from the so-called "assault on
pleasure"
- Take-outs and implications: health and premiumization are
complementary trends in the alcoholic beverage space in an era of
increasing alcohol disapproval
- INSIGHT: There is evidence that student drinking habits are shifting,
thereby affecting on and off-trade behavior
- Take-outs and implications: industry players must recognize students'
changing priorities
- ACTION POINTS
- ACTION: Ensure the off-trade and on-trade brand positioning is
complementary
- Avoid a disconnection between pricing and marketing messages that
confuses brand identity
- Ensure that your alcoholic beverage brand stands for something: take
ownership of important product trends
- Control the discounting impulse if it threatens brand cach・
- ACTION: Align products more directly with off-trade need states and
occasions
- Capitalize on the fact that relaxation at home connects with
individualism and reward
- Market products that "enable" traditional male events
- Covet the opportunities offered through the home ntertaining occasion
- Facilitate social drinking with products that enable sharing or shared
experiences
- Trusted brands can be allied to front-loading occasions
- ACTION: Adjust portfolios in recognition of the defining consumer trends
shaping preferences
- Recognize that light beers are well placed to capitalize on the
wellness trend
- Help fulfill consumers desire for experimentation and self-expression
- Allow consumers to act on the "less but better" impulse with widened
portfolios that support trading up
- Respond to the "Natural" trend
- Organic credentials will become increasingly important
- ACTION: Take the on-trade to the home through branded events
- Branded ' insperiences' are a rapidly developing opportunity
- Look for new opportunities to offer branded experiences in the
consumers' home
- Align brands with new, popular forms of at-home entertainment
- Co-branding possibilities exist in the home entertainment arena
- ACTION: Emphasize the specific links between alcohol and food
- APPENDIX
- Supplementary data
- Definitions
- Methodology
- Further reading and references
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Off-trade alcoholic beverage sales (% volume), US &
Europe, 2001-2006
- Table 2: Alcoholic beverage occasions (millions), going out and at
home, Europe & US, 2001-2011
- Table 3: Annual per capita alcoholic beverage occasions, going out and
at-home, Europe & US, 2001-2011
- Table 4: US & Europe alcoholic beverages consumption (liters) per
occasion, on and off-trade, 2001-2006
- Table 5: Annual at-home alcoholic beverage occasions (millions), US
& Europe, by type, 2001-2011
- Table 6: Per capita at-home alcoholic beverage occasions, US &
Europe, by type, 2001-2011
- Table 7: Share of alcoholic beverage occasions (%) by type and time of
week, US & Europe, 2001-2011
- Table 8: Staying in: alcoholic beverage occasions (millions), by
sub-type, 2001-2011
- Table 9: Staying in: per capita alcoholic beverage occasions, by
sub-type, 2001-2011
- Table 10: Number of smokers (millions) and as share of adult
population (%), US & Europe, 2001-2011
- Table 11: Overall alcoholic drinking occasions (millions), Europe
& US, 2001-2011
- Table 12: Alcoholic beverage occasions (millions) by type and time of
week, US & Europe, 2001-2011
- List of Figures
- Figure 1: Four key factors motivate consumers to increasingly stay at
home
- Figure 2: US consumers favorite summer evening activities are centered
around the outdoors and home
- Figure 3: Integrated home entertainment systems fuel consumers'
cocooning and hiving behaviors
- Figure 4: The off-trade market in the US is much stronger than in
Europe (2006)
- Figure 5: Consumers are more price-conscious when buying alcohol
on-trade than off-trade
- Figure 6: US alcohol preferences shift with age from beer and FABs
towards "mature" beverages such as wine and whiskey
- Figure 7: UK consumers switch to wine earlier than Americans, peaking
in their late-30s
- Figure 8: The "discount trap" threatens off-trade premium value
generation
- Figure 9: Consumers still experiment with new alcoholic beverages more
in the on-trade than in the home
- Figure 10: Alcoholic ' insperiences' marry on-trade quality, storage
and presentation with off-tradeconvenience and accessibility
- Figure 11: Beer Insperiences bring on-trade serving and presentation
home
- Figure 12: Non-smoking establishments are preferred by the majority of
European and US consumers
- Figure 13: Consumers in the US and Europe are showing a higher
propensity for alcohol moderation
- Figure 14: Health considerations have become an important factor in
alcoholic drink choices
- Figure 15: Stella Artois' s declining brand image in the UK is a result
of a disparity between its upscale positioning and heavy off-trade
discounting
- Figure 16: Coors Light has successfully delivered a unified brand
message on and off-trade
- Figure 17: Magners has changed the face of the UK cider market by
tapping into the individualism and indulgence trends
- Figure 18: Alcoholic drink concepts that emphasize sharing behaviors
- Figure 19: The early success of Heineken Premium Light Lager Beer
highlights consumer preference for ' better-for-me' beers that taste good
and have strong branding
- Figure 20: Case study: Bacardi Bespoke takes the on-trade experience
home
- Figure 21: Co-branding or complementary tie-ins between alcohol and
food evoke the premium experience