Beer, Wine and Spirit Consumption Preferences: Exploring Consumer Needs and Switching Behavior

Published by: Datamonitor

Published: May. 21, 2007 - 108 Pages

Table of Contents

CHAPTER 1 EXECUTIVE SUMMARY

The hot topic

The future decoded

Action points

CHAPTER 2 THE FUTURE DECODED

Introduction

TREND: Alcohol consumption is flat or decreasing in most Western markets

Alcohol volumes are languishing across Europe and the US

The popularity of the beer category is fluctuating

Spirits are coming back into fashion but this is not reflected in volume growth

Trends in wine consumption vary by country

INSIGHT: Beer consumption is dominated by males in a time of changing consumer perceptions and preferences

Beer remains a male preserve

Midlifers are the core beer volume drinkers while Young Adults account for the most per capita consumption

The popularity of beer declines with age

Falling birth rates represents a threat to future growth prospects in beer

Consumers often turn to beer as a facilitator of social connections

Re-prioritizing family/friend time has grown in importance although consumers are finding it hard to do so in practice

Beer is considered an inherently social product

Beer's sociability drives sales during major sporting events

But discounting is potentially undermining the volume gains being made

Consumers' perceptions of beer are slowly changing after its image became somewhat old-fashioned and stodgy

Young Adults in particular have begun to see beer as old-fashioned

The SAB-owned Fosters brand in the US has been tackling this problem head on with an innovative tack

Consumer perceptions of beer can be shaped by effective marketing

Beer is also fighting against decline in the European brewing stronghold countries by focusing on quality

The reality is that beer drinkers are increasingly seeking out quality and credibility

The premiumization trend seen in many industrialized countries is very much in evidence in the lager market

Consumers are worried about the negative health impact of beer consumption espcially with regard to calories

Consumers are worried about the fattening properties of beer

Low alcohol and low calorie beers have traditionally been viewed as a compromise

The low alcohol market has generally failed to match expectations despite some growth

Uncompromising consumers with specific perceptions of a tasty beer will be difficult to convince

Beer's 'naturalness' is well-aligned with consumer trends

Consumer attitudes towards organic products generally suggests considerable potential for organic beers

The German case highlights scope for brewers to leverage the natural brewing process

Consumers are generally unaware that beer has its own health-boosting credentials

Consumers' propensity to consume beer is affected by seasonality

Beer sales in Italy are strongest in summer

New Product Development is needed to boost winter sales of beer

Launches of seasonal winter beers are bouncing back after decline

INSIGHT: European and US consumers are showing an increased propensity to switch to wine

Wine is gaining preference on more occasions in both Europe and the US

Wine sales in the US are growing from a comparatively small base

Wine consumption in Europe is a more ingrained cultural norm but market growth is nonetheless impressive

Wine retains its sophisticated image and per capita consumption is still dominated by mature consumers

Gender-based value consumption of wine is relatively even

But research has shown that women are less knowledgeable about wine

More sophisticated tastes of older consumers drives an age-consumption correlation

Wine consumption in traditional beer markets is taking off

But long-term problems may lie in wait because of demographic shifts

More sophisticated wine consumption is far from guaranteed by using entry level products such as wine coolers

Economic slowdown would hit wine more than other drinks categories

The wine category has not yet seen a significant premiumization

Wine consumption has become more accessible, rather than quality focused

Growth in volume of the wine market has yet to translate into trading up

Packaging is an important factor influencing wine preferences and perceptions

Women use packaging cues to define product quality more frequently because they are less knowledgeable about wine

Screw tops are gaining favor among consumers although there are country variances

Ease of opening is something that is important to all consumers

Traditional packaging formats are often unappealing for younger age cohorts

Glass bottles are still the preferred wine packaging

Wine consumption is increasingly focused on the home

Restaurant mark-ups are inhibiting further progress of on-trade wine sales

INSIGHT: Spirits are on the rise everywhere

Mature consumers remain the core spirits consumers

Premiumization in spirits is strongest in France and Sweden

Premiumization varies by country and sub-category

Case study: Innovation and joined-up thinking combine to wow consumers

Young Adults prefer offering rather than receiving personal recommendations

Word-of-mouth and viral campaigns must be credible to succeed

Body image health concerns are key to the success of spirits

Spirits are seen as less fattening by image-conscious consumers

If premiumization continues it can help alleviate binge drinking concerns

Premium spirits show the importance of differentiated packaging

The image of spirits is key for Young Adults

INSIGHT: Consumers are changing drinking habits in response to social changes

Consumer health concerns will radically alter the on-trade

Consumers' reaction to smoking bans will polarize the on-trade and offer new opportunities in Europe

Home entertaining is important for US consumers

Home entertaining in Europe is rising among Young Adults

Property market fluctuations will impact home entertaining in the UK and US

Conclusions: implications for manufacturers and retailers

The declining popularity of beer is not as bad as many industry bodies suggest

Wine has been a real success in recent years

Spirits have shown positive growth in recent years across a host of countries

A common goal unites all categories

Channel dynamics are also likely to change in coming years

CHAPTER 3 ACTION POINTS

Introduction

ACTION: Aid moderation with low alcohol content

Recognize that quality perceptions are often shaped by alcohol content

Facilitate frequent non-binge drinking by education and small/resealable formats

ACTION: Use marketing that reflects the changes in the beer market

Target the polarization of the male market

Address seasonality with on-trade only specials

Address seasonality with seasonal winter beers

ACTION: Capitalize on the mass market appeal that increasingly characterizes wine

Improve wine consistency by gradually moving to new bottle closures

Adopt a multi-pronged approach to attract a variety of consumers to wine

The drive to recruit young wine drinkers needs to start here and now

ACTION: Learn the lessons of spirits brands

Categories beyond spirits should heed the trading up lessons

Marketers must work with the key 'gatekeepers' in the value chain

Go clear: fewer congeners may reduce after-effects

CHAPTER 4 APPENDIX

Supplementary data

Research methodology

Definitions

Further readings

How to contact experts in your industry

List of Tables

Table 1: Consumption of alcoholic beverages by category (liters m), US & Europe, 2001-20

Table 2: Beer category sales volume (liters m), US & Europe, 2001-20

Table 3: Beer category (Beer, Cider&Perry, FABs) per capita sales volume (liters/person), US & Europe, 2001-20

Table 4: Beer sub-category sales volume (liters m), US & Europe, 2001-20

Table 5: Beer sub-category per capita sales volume (liters/person), US & Europe, 2001-20

Table 6: Cider & perry sub-category sales volume (liters m), US & Europe, 2001-20

Table 7: Cider & perry sub-category per capita sales volume (liters/person), US & Europe, 2001-20

Table 8: FABs sub-category sales volume (liters m), US & Europe, 2001-20

Table 9: FABs sub-category per capita sales volume (liters/person), US & Europe, 2001-20

Table 10: Spirits category sales volume (liters m), US & Europe, 2001-20

Table 11: Spirits category per capita sales volume (liters/person), US & Europe, 2001-20

Table 12: Wine category* sales volume (liters m), US & Europe, 2001-20

Table 13: Wine category* per capita sales volume (liters/person), US & Europe, 2001-20

Table 14: Beer consumption in value terms (US$ %) by age, gender and country, US & Europe, 20

Table 15: Per capita beer consumption value (US$/person) by age, gender, and country, US & Europe, 20

Table 16: Specialty beer market value (US$ m), US & Europe, 2001-20

Table 17: European and US sales of Premium Lager as % of lager market, by country, 2001-20

Table 18: Low / no alcohol beer market value (US$ m), US & Europe, 2001-20

Table 19: Consumer survey: responses to the question How important is eating organic food and drinks in maintaining a healthy diet?, US & Europe, 20

Table 20: Alcohol content of drinks segments by popular serving measures

Table 21: Still wine consumption in value terms (US$ %) by age, gender, and country, US & Europe, 20

Table 22: Per capita still wine consumption in value terms (US$/person) by age, gender, and country, US & Europe, 20

Table 23: Consumer survey: American trends in home entertaining by gender, age group & household income, 20

Table 24: Consumer survey: European trends in home entertaining by gender, age group & household income, 20

Table 25: Spirits consumption in value terms (US$ %) by age, gender and country, US & Europe, 20

Table 26: Per capita spirits consumption value (US$/person), by age, gender, and country, US & Europe, 20

Table 27: Price Per Unit (PPU) (US$/liter) of spirits, US & Europe, 2001-20

Table 28: Importance of calorie counting to consumers by country, US & Europe, 20

Table 29: Trends in consumer attitudes to smoking, US, 20

Table 30: Trends in consumer attitudes to smoking, Europe*, 20

Table 31: Trends in home entertaining, by gender, age & household income, US, 2005-

Table 32: Trends in home entertaining, by gender, age & household income, Europe*, 2005-

Table 33: Consumer survey: trends in home entertaining by gender, age group & household income, France, 20

Table 34: Consumer survey: attitudes to smoke-free on-trade premises, by gender, age group & household income France, 20

Table 35: Consumer survey: attitudes to smoke-free on-trade premises, by gender, age group & household income, Germany, 20

Table 36: Consumer survey: trends in home entertaining by gender, age group & household income, Germany, 20

Table 37: Consumer survey: attitudes to smoke-free on-trade premises, by gender, age group & household income, Italy, 20

Table 38: Consumer survey: trends in home entertaining by gender, age group & household income, Italy, 20

Table 39: Consumer survey: attitudes to smoke-free on-trade premises, by gender, age group & household income, Netherlands, 20

Table 40: Consumer survey: trends in home entertaining by gender, age group & household income, Netherlands, 20

Table 41: Consumer survey: attitudes to smoke-free on-trade premises, by gender, age group & household income, Spain, 20

Table 42: Consumer survey: trends in home entertaining by gender, age group & household income, Spain, 20

Table 43: Consumer survey: attitudes to smoke-free on-trade premises, by gender, age group & household income, Sweden, 20

Table 44: Consumer survey: trends in home entertaining by gender, age group & household income, Sweden, 20

Table 45: Consumer survey: attitudes to smoke-free on-trade premises, by gender, age group & household income, UK, 20

Table 46: Consumer survey: trends in home entertaining by gender, age group & household income, UK, 20

Table 47: Summary of smoking bans in US & Europe

Table 48: Definitions used in the report

List of Figures

Figure 1: Time series survey data suggests that consumers are finding it difficult to spend more time with family and friends

Figure 2: The sociability of beer is a key selling point, especially for men

Figure 3: Quality, experience orientated marketing campaigns can help to change consumer perception of all alcoholic drinks

Figure 4: Heineken's 'Culture Bière' is an attempt to reinvigorate the image of beer

Figure 5: More than a third of European and US consumers traded up more frequently to higher quality packaged goods for extra indulgence and enjoyment in 2005-

Figure 6: Premium lagers account for a growing share of the lager market in most countries

Figure 7: Launches of low calorie & low carbohydrate beer, US & Europe, 2001-

Figure 8: Launches of reduced alcohol beers, US & Europe, 2001-

Figure 9: Carling's C2 is the best conceived approach yet to the low-alcohol beer category

Figure 10: Volume of beer sales by month, Italy, 2003-20

Figure 11: New product launches of seasonal winter beers, US & Europe, 2001-20

Figure 12: New product launches of seasonal winter beers as % of overall beer launches, US & Europe, 2001-20

Figure 13: Wine is also the fastest-growing category in the US alcoholic drinks market

Figure 14: The wine category has been and will continue to be the best performer in the European alcoholic drinks market

Figure 15: Wine consumption is closely linked to GDP growth in the US

Figure 16: The average price of (still) table wine is growing slowly in the US & Europe

Figure 17: The transition to modern closures in the wine category must be gradual

Figure 18: Balancing quality perceptions and convenience is key to positioning good quality accessible wines

Figure 19: French Rabbit has used environmentalism in its positioning to promote wine cartons

Figure 20: Today's homes are not just shut-off havens; they are used to facilitate connections

Figure 21: Premium packaging is essential but not a long-term advantage

Figure 22: Smoking bans will inevitably impact the on-trade and off-trade

Figure 23: Low alcohol content on its own is not enough

Figure 24: Format variety can facilitate a host of consumption occasions

Figure 25: Polarization of the beer brings both opportunities and threats

Figure 26: Seasonal beers offer many positioning opportunities

Figure 27: Alcohol control states are present across the US

Figure 28: Core wine drinkers in the US are found on both coasts

Figure 29: Roadmap for the future expansion of the wine category in the US

Figure 30: Education is key to protecting future wine sales

Figure 31: Targeting key gatekeepers is vital for on-trade success

Figure 32: Reducing impurities has untapped market potential

Abstract

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 250,000 market research reports, company profiles and country profiles from over 650 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.