Consumers Choose to Drink Alcohol Beverages at Home
Premium products and experimentation with ready-to-drink cocktails are key to driving growth.
CHICAGO — According to Information Resources Inc. (IRI) 2022 Midyear Alcohol Update, many consumers are opting to celebrate and socialize at home, especially given challenges in on-premise consumption, driven by labor shortages, rising prices and reduced menus.
The trend toward at-home consumption comes as retail price increases for beverage alcohol remain more moderate than other consumer packaged goods (CPG) categories despite inflation.
"Consumption trends continue to fluctuate with the impact of supply chain challenges and rising inflation, but opportunities for growth remain," said Scott Scanlon, executive vice president of the Beverage Alcohol Vertical, IRI. "This report provides an outlook on the state of the beverage alcohol industry and areas ripe for innovation.
"Consumers are looking to indulge and create entertaining experiences at home, and retailers should emphasize premium products and products with unique attributes in this space," Scanlon added.
The Midyear Alcohol Update report enables retailers and manufacturers to make better merchandising and promotional activity decisions to enhance the shopper experience and drive growth and profitability.
Key findings reveal:
As consumers adopt healthier habits, better-for-you beverage alcohol options and alternative alcohol products continue to gain traction.
New twists on familiar favorites, interesting flavor combinations and contemporary claims are popular with consumers.
Premium beer and wine and super-premium spirits continue to drive growth.
E-commerce remains a viable channel for beer.
Opportunities for growth in the beverage category include:
With increasing inflation and rising competition among retail outlets, promotions will be essential in retaining shoppers.
Ready-to-drink cocktails are a growth opportunity, but brands need to have a point of differentiation.
Marketing should focus on giving consumers options and inspiration for at-home entertaining occasions.
E-commerce is an integral part of a consumer's shopping experience and is important for omnichannel success.
To learn more about IRI’s "Midyear Alcohol Update," click here.
IRI unifies technology, analytics and data to reinvent how people and companies make decisions, take action and optimize performance.
Last week, the company officially merged with The NPD Group, a global provider of market information and advisory services to more than 20 industries.
As reported by Convenience Store News, the merger brings together colleagues across the globe to offer more than 7,000 clients a comprehensive, accurate view of consumer behavior and total retail purchasing and consumption trends across a broad range of industries.
"We are thrilled to merge our two great companies and create an even stronger organization together," said Kirk Perry, president and CEO. "Our combination sets a new standard, raising the bar for innovative technology, rich insights and data-driven advisory services across industries."
"As one company, our world-class team will offer a total store experience and a greater share of consumer wallets and stomachs. The possibilities for our clients, our people and our company are endless," Perry added.
Together, IRI and NPD will provide deep sector knowledge, leading data assets and strategic retail relationships in more than 20 industries, including CPG, softlines, hardlines, beauty, technology, foodservice and food consumption. A unified name and brand for the combined company will be announced at a later date.