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Drinking Habits - UK

Published by: Mintel International Group Ltd.

Published: Feb. 1, 2008 - 93 Pages


Table of Contents


Issues in the Market

Definition

Beer

Cider

Wine

Spirits & liqueurs

Consumer research

Abbreviations

Market in Brief

Adrift on a sea of booze?

Wine is more popular than beer

Binge drinking hits the headlines

Goodbye to the traditional pub

Booze while you shop

Living at a premium

Back to the future

Internal Market Environment

Key points

Less can be more

Figure 1: Per capita volume consumption of alcoholic drinks among the UK adult population (15+), by type, 2002-07

UK not Europe’s booziest…but we try harder

Figure 2: Long-term trends in per capita alcohol consumption in Europe, 1970-2005

Drinking is really a middle-aged habit

Figure 3: Alcohol consumption in last 12 months, by age, 2002-07

A nation of softies

Figure 4: UK consumption and expenditure on soft drinks, 2002-06

Alcohol, health and a changing climate

The ‘new war against alcohol’

Binge drinking and social responsibility - Government action

Advertising restrictions?

The price is right

A licence to drink?

No booze without smoke?

Broader Market Environment

Key points

The Peter Pan effect

Figure 5: Structure of the UK population, by age and gender, 2002-12

Favourable employment situation benefits sales

Figure 6: UK workforce and employment, by gender, 2002-12

Binge-drinking is highest in less affluent regions...

Figure 7: Adult population trends, by socio-economic group, 2002-12

…but well-off areas have little to crow about

Buoyant economy since 2002, but outlook is less rosy

Who’s Innovating?

Key points

The UK tops new launches chart

Figure 8: New product launches in alcoholic drinks, by sector, by country, 2007

Wine launches dip notably in 2006

Figure 9: Trends in new product launches in alcoholic drinks in the UK, by sector, 2002-07

Increasing premiumisation

Figure 10: Trends in new premium product launches in alcoholic drinks, by country, 2002-07

New product development - lager

Ales & stouts

Cider

Wine

Spirits & liqueurs

Market Size and Forecast

Key points

Market in volume and value decline

Figure 11: UK volume sales of alcoholic drinks, 2002-12

Figure 12: UK value sales of alcoholic drinks, at current and constant prices, 2002-12

Beer still outselling all other drinks in volume terms

Figure 13: UK volume sales of alcoholic drinks, by type, 2002-12

Premiumisation helps values

Figure 14: UK value sales of alcoholic drinks, by type, in sterling terms, 2002-12

What the future holds

Can ale reinvent itself as cider has?

Cider - a remarkable transformation

Wine packaging is changing - screw tops and boxes are more acceptable

Infrequent spirits buying for in-home drinking concentrated at Christmas

Forecast

Figure 15: UK volume sales of alcoholic drinks and per capita consumption (adults aged 15+), 2002-12

Alcohol market has peaked

Beer market continuing slow decline

Wine demand set to peak in 2010

Cider phenomenon to peak in 2008

Spirits & liqueurs remains stagnant

Factors used in the forecast

Segment Performance

Key points

Beer

The great depression

Figure 16: UK volume sales of beer, 2002-12

Beer accounts for 44% of all alcohol expenditure, but sales are declining

Figure 17: UK value sales of beer, at current and constant prices, 2002-12

Lower-alcohol variants ready for success

Specialities benefit from brand awareness amongst the young

Cider

Sweet taste of success

Figure 18: UK volume sales of cider, 2002-12

Magners revitalises the category

Figure 19: UK value sales of cider, at current and constant prices, 2002-12

Cider sees a resurgence of product development

Successfully attracting younger drinkers, and women

Wine

More accessible and greater choice

Figure 20: UK volume sales of wine, 2002-12

Deep discounting affects value performance

Figure 21: UK value sales of wine, at current and constant prices, 2002-12

Benefiting from the health aware? - red wine takes over half the market

Grocery multiples help shoppers to choose wines more easily

Supermarkets bring champagne to the masses, but sales still peak at Christmas and New Year

Fortified wine also in need of reinvention

Spirits & liqueurs

Changing drinking habits have an adverse effect on demand

Figure 22: UK volume sales of spirits and liqueurs, 2002-12

Figure 23: UK value sales of spirits and liqueurs, at current and constant prices, 2002-12

White spirits form the largest sector - due to popularity with younger drinkers

Again, under-35s hold the key to success

Cocktails also bringing younger consumers to spirits

Market Share

Key points

Continued consolidation

But local brands remain important

Concentrated beer supply, but room for regionals

Cider led by S&N with Magners in second place

Wine is largely unbranded, but brands are making headway

Spirits & liqueurs controlled by three multinationals

Companies and Products

Bacardi-Martini

Constellation Brands

Coors Brewers UK (CBL)

Diageo

InBev UK

Pernod Ricard

Scottish & Newcastle

Brand Communication and Promotion

Key points

Italy and Germany see more drinks advertising than the UK

Figure 24: Main monitored media advertising expenditure on alcoholic drinks, by country, 2005-07

Key multinationals invest the most in their brands

Magners and Bulmer’s brands received most support in 2007

Figure 25: Main monitored media advertising expenditure on alcoholic drinks in the UK, Jan-Sept 2007

Channels to Market

Key points

From pub to home

Figure 26: UK volume sales of alcoholic drinks, by sector, by distribution channel, 2002-07

Food grows in importance to the on-trade

Figure 27: UK volume sales of alcoholic drinks, % share by distribution channel, by sector, 2007

On-trade takes its largest share of volumes (and value) in beer

Low prices attract consumers to the off-trade…

Figure 28: UK value sales of alcoholic drinks, by sector, by distribution channel, 2002-07

…but attract criticism

Figure 29: UK value sales of alcoholic drinks, % share by distribution channel, by sector, 2007

The Consumer - Pan-European Overview

Key points

87% and steady

Figure 30: Alcohol consumption, by country, 2005-07

Brits prefer to drink at home, perhaps with a takeaway

Figure 31: Indexed attitudes towards eating and drinking, by all adults, by country, 2007

Special offers have led to expectations of low prices

Figure 32: Indexed attitudes towards shopping, brands and pricing, by all adults, by country, 2007

The Consumer - Alcohol Consumption in the UK

Key points

The young are not the biggest drinkers, the 35-54s are

Affluence is linked to increased drinking - due to lifestyles rather than prices

Figure 33: Alcohol consumption in last 12 months, by demographic sub-group, 2007

Men prefer beer, women wine

Wine needs to woo the young

Most spirits weighted towards men, except liqueurs and mixables

White spirits have youth appeal, dark spirits less so

Figure 34: Consumption of beer and wine, by type, by demographic sub-group, 2007

Figure 35: Consumption of spirits & liqueurs, by type, by demographic sub-group, 2007

Increased frequency of drinking

Figure 36: Trends in frequency of drinking, 2002-07

Figure 37: Frequency of drinking alcohol, by choice of drink, 2007

Beer gives way to wine and champagne becomes more popular than whisky

Figure 38: Trends in alcohol consumption, by type of drink, 2002-07

Consumer Attitudes

Key points

Home sweet home

Drinkers are open to new products, but wine drinkers are relatively conservative

Figure 39: Attitudes towards eating and drinking, by choice of alcoholic drink, 2007

Room for alcohol within a healthy diet?

Figure 40: Attitudes towards alcohol and health, by choice of alcoholic drink, 2007

Positive environment for premiumisation

Aspirational sparkling wine, champagne and gin drinkers

Figure 41: Attitudes towards shopping, brands and pricing, by choice of alcoholic drink, 2007

Abstract

The UK drinks market is in a long period of transition and is working its way towards a new style of drinking, towards lower-alcohol drinks, longer drinks, drinks targeted at women, towards wine rather than beer, towards taste and ambience rather than session drinking. Meanwhile, the great debate rages on, a debate in which the facts are often missed. TGI Europa research for this report, for example, shows that the middle-aged are heavier drinkers than the young and that the incidence of drinking is generally falling - in France and Germany, whose drinking cultures are often favourably compared to the UK’s, the incidence of drinking continues to rise.

The countries examined within the Consumer Goods Intelligence series of reports are France, Germany, Italy, Spain and the UK.

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