Table of Contents
Issues in the Market
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- Key themes
- Definition
- Beer
- Cider
- Wine
- Spirits
- Report content
Insights and Opportunities
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- Spreading a health message
- Rejuvenating spirits and liqueurs
- Broadening the appeal of beer and cider
- Going back to your roots
Market in Brief
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- A huge market with winners and losers...
- ... and one where its promotion and sales are in a state of flux
- Consumption of alcohol set to fall overall although some groups are expected to increase their intake
- Prospects for market are mixed
Fast Forward Trends
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- Trend 1: Nomadic Exploration
- What’s it about?
- What we’ve seen
- Implications
- Trend 2: Consumer Protest
- What We’ve Seen
- Implications
Market Themes
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- Key points
- Government looks to foster a culture of responsible drinking...
- ... with the trade seeking to be equally responsible
- Growing health awareness amongst consumers...
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- Figure 1: Attitudes towards alcohol consumption, 2006
- ...results in the rise of the non-drinker
- Although heavy boozers remain
- Premiumisation permeates the drinks market
- An ageing population...
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- Figure 2: Trends in the age structure of the UK population, by age group, 2002-12
- ...and also one that is more affluent
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- Figure 3: Trends and projections in total UK population, by socio-economic, group, 2001-11
- Smoking ban results in winners and losers
- Seasonal and other factors
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Figure 4: Number of NPD launches by sub-category and by claim, 2005-07
- Premium positioning
- Recipes formulations with:
- Functional and healthier alcoholic drinks
- Developments in Packaging
- On-the-go and other convenient formats
- Aesthetic appeal
- Eco concerns
- Ethical sector expands
- Targeting younger consumers and women
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Market Value and Forecast
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- Key points
- Market size
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- Figure 5: UK volume sales of alcoholic beverages, 2002-07
- Figure 6: UK value sales of alcoholic beverages, at current and constant prices, 2002-07
- The future – drivers and restraints
- Forecast of the UK alcoholic drinks market
- Total market
- Alcohol market has peaked
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- Figure 7: UK volume sales and value of alcoholic drinks, 2002-12
- Beer
- Market continuing slow decline
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- Figure 8: UK volume sales and value of beer, 2002-12
- Wine
- Wine demand set to peak in 2010
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- Figure 9: UK volume sales and value of wine, 2002-12
- Cider
- Cider phenomenon to peak in 2008
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- Figure 10: UK volume sales and value of cider, 2002-12
- Spirits & liqueurs
- Market remains stagnant
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- Figure 11: UK volume sales and value of spirits & liqueurs, 2002-12
Segment Performance
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- Key points
- Mixed fortunes for individual segments
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- Figure 12: UK volume sales of alcoholic drinks, by type, 2005-07
- Figure 13: UK value sales of alcoholic drinks, by type, 2005-07
- Beer
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- Figure 14: UK volume sales of beer, 2002-07
- Figure 15: UK value sales of beer, at current and constant prices, 2002-07
- Sub-categories analysis
- Lager
- Ales/stouts
- Cider
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- Figure 16: UK volume sales of cider, 2002-07
- Figure 17: UK value sales of cider, at current and constant prices, 2002-07
- Wine
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- Figure 18: UK volume sales of wine, 2002-07
- Figure 19: UK value sales of wine, at current and constant prices, 2002-07
- Sub-categories analysis
- Red
- White
- Rosé
- Spirits and liqueurs
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- Figure 20: UK volume sales of spirits and liqueurs, 2002-07
- Figure 21: UK value sales of spirits and liqueurs, at current and constant prices, 2002-07
- Sub-categories analysis
- White spirits
- Dark spirits
- Whisky
- Liqueurs
The Future – Winners and Losers
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- Winners
- Specialist beers
- Premium cider
- Premium wine
- Lower alcohol drinks
- Spirits for mixing
- Losers
- Mainstream drinks
- High alcohol Premium beer
- Traditional spirits and liqueurs
Brand Communication and Promotion
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- Key points
- Sizeable spend yet small when compared to the value of the market
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- Figure 22: Main monitored media advertising expenditure on the alcoholic drinks as a percentage of sales, 2003-07
- More buoyant alcohol categories benefit from greatest levels of support
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- Figure 23: Total main monitored media advertising expenditure on alcohol by category, 2005 & 2007
- Major players and rising stars dominate expenditure
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- Figure 24: Total main monitored media advertising expenditure by company, 2005 & 2007
- Retailers dominate advertising spend
- Mass media remains in vogue
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- Figure 25: Main monitored media advertising spend on alcohol, by channel, 2003-07
Channels to Market
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- Key points
- Steady shift towards off-sales as alcohol market stagnates
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- Figure 26: UK volume sales of alcoholic beverages, by distribution channel, 2002-07
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- Figure 27: UK value sales of alcoholic beverages, by distribution channel, 2002-07
- Beer remains on-trade drink yet is under serious threat from off-trade sales
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- Figure 28: UK volume sales of beer, by distribution channel, 2002-07
- Figure 29: UK value sales of beer, by distribution channel, 2002-07
- Growth in cider sales is driven by on-trade
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- Figure 30: UK volume sales of cider, by distribution channel, 2002-07
- Figure 31: UK value sales of cider, by distribution channel, 2002-07
- Off-trade dominates wine consumption
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- Figure 32: UK volume sales of wine, by distribution channel, 2002-07
- Figure 33: UK value sales of wine, by distribution channel, 2002-07
- Mature spirits and liqueurs market dominated by off-trade sales
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- Figure 34: UK volume sales of spirits and liqueurs, by distribution channel, 2002-07
- Figure 35: UK value sales of spirits and liqueurs, by distribution channel, 2002-07
The Consumer- General Trends in Consumption
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- Key points
- Although the incidence of alcohol consumption appears in decline...
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- Figure 36: Trend analysis of alcohol drinkers within that year, 2003-07
- ...those members of the population who are heavy drinkers are increasing
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- Figure 37: Frequency of drnking alcohol in the past 12 months, 2003-07
- Heavy drinkers drink at home
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- Figure 38: Frequency of in-home and out-of-home alcohol drinkers, 2003-07
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- Figure 39: Comparison of Frequency of alcohol consumption in-home and out-of-home, 2007
The Consumer- Alcohol Drinking Behaviour Changes
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- Key points
- People drink less alcohol compared with two years ago
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- Figure 40: How consumer drinking habits have changed over two years, November 2007
- How habits have changed: In home vs out-of-home
- Those that drink less
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- Figure 41: How drinking location has changed over the last two years, by those drinking less than two years ago, November 2007
- Those that drink more
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- Figure 42: How drinking location has changed over the last two years, by those drinking more than two years ago, November 2007
- No single explanation for reducing alcohol consumption
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- Figure 43: Reasons why consumers have cut back alcohol consumption, November 2007
The Consumer – Trends in Consumption by Type of Drink
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- Key points
- A fragmented market where the dominance of beer is waning
- A market in flux with cider the clear winner
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- Figure 44: Trend analysis of netted alcohol types, 2003-07
- Both beer and cider categories have similar customer profiles
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- Figure 45: Beer and cider consumers’ profile, by sex, age and socio-demographic status, 2007
The Consumer – Consumption Changes by Type of Drink
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- Figure 46: How consumption has changed by type of drink, November 2007
- Cider is attracting a young audience
- Beer remains popular with males...
- ...while wine is popular with females
- Spirits have broad appeal
- Liqueurs exhibit some evidence of regional demand
- Whisky
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The Consumer – Attitudes and Behaviour
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- Key points
- Consumer attitudes and drinking habits – now...
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- Figure 47: Consumer attitudes towards drinking habits, November 2007
- ...and in the near future
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- Figure 48: How consumers foresee their drinking behaviour will change over the next two years, November 2007
The Consumer –Further Analysis
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- Key points
- Has beer had its day?
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- Figure 49: How consumption has changed by type of drink, november 2007
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- Figure 50: Overview of changes in consumption by alcohol type over the past two years
- Drinkers profile by category
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- Figure 51: Comparison of Demographic trends between Cider, Beer, Wine, Liqueurs and Whisky drinkers, November 2007
- Beer is losing its appeal with 35+ adults
- Older drinkers are reducing their consumption of wine and spirits/liqueurs
- Consumers are switching from beer to cider and wine
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- Figure 52: Switching habits between beer, cider and lager drinkers in the past 2 years
- Choice within the market leads to diversity
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- Figure 53: Repertoire of alcohol drinkers
- Wine and cider attract ‘new’ loyal drinkers
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- Figure 54: Repertoire of those who drink more compared to two years ago
- Wine is winning the off-trade battle amongst those drinking more
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- Figure 55: Where switchers are drinking
Appendix
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- Abbreviations
- Advertising data
Appendix: The Consumer- General Trends in Consumption
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- Figure 56: Trend analysis of alcohol drinkers by demographic, 2003-07
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- Figure 57: Alcohol drinkers by demographics, 2007
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- Figure 58: Demographics of alcohol drinkers, 2007
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- Figure 59: Demographic trends of in-home alcohol drinkers, 2003-07
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- Figure 60: Demographics of in-home alcohol drinkers, 2007
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- Figure 61: Demographics of out-of-home alcohol drinkers, 2007
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Appendix: The Consumer- Alcohol Drinking Behaviour Changes
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- Figure 62: How consumer alcohol drinking behaviour has changed over the last two years, by gender, age, region, social grade, newspaper readership, income, age of children, Internet usage, supermarket used and TV reception, November 2007
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- Figure 63: How drinking location has changed over the last two years, by those drinking less than two years ago, by gender, age, region, social grade, newspaper readership, income, age of children, Internet usage, supermarket used and TV reception, November 2007
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- Figure 64: How drinking location has changed over the last two years, by those drinking the same or more than two years ago, by gender, age, region, social grade, newspaper readership, income, age of children, Internet usage, supermarket used and TV reception, November 2007
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Appendix: The Consumer – Trends in Consumption by Drink Type
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- Figure 65: Demographic trends of beer drinkers, 2006 versus 2007
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- Figure 66: Demographic trends of cider drinkers, 2006 versus 2007
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Appendix: The Consumer- Consumption Changes by Type of Drink
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- Figure 67: How consumption has changed by type of drink, November 2007
- Cider drinkers
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- Figure 68: How consumption has changed by type of drink – Cider, by gender, by gender, age, region, social grade, newspaper readership, income, age of children, Internet usage, supermarket used and TV reception, November 2007
- Beer
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- Figure 69: How consumption has changed by type of drink – Beer, by gender, by gender, age, region, social grade, newspaper readership, income, age of children, Internet usage, supermarket used and TV reception, November 2007
- Wine
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- Figure 70: How consumption has changed by type of drink – Wine, by gender, by gender, age, region, social grade, newspaper readership, income, age of children, Internet usage, supermarket used and TV reception, November 2007
- Spirits
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- Figure 71: How consumption has changed by type of drink – Spirits, by gender, by gender, age, region, social grade, newspaper readership, income, age of children, Internet usage, supermarket used and TV reception, November 2007
- Liqueurs
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- Figure 72: How consumption has changed by type of drink – Liqueurs, by gender, by gender, age, region, social grade, newspaper readership, income, age of children, Internet usage, supermarket used and TV reception, November 2007
- Whisky
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- Figure 73: How consumption has changed by type of drink – Whisky, by gender, by gender, age, region, social grade, newspaper readership, income, age of children, Internet usage, supermarket used and TV reception, November 2007
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Appendix: The Consumer – Attitudes and Behaviour
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- Figure 74: Consumer attitudes towards drinking habits, by gender, age, region, social grade, newspaper readership, income, age of children, Internet usage, supermarket used and TV reception, November 2007
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- Figure 75: How consumer foresee their drinking behaviour will change over the next two years, by gender, age, region, social grade, newspaper readership, income, age of children, Internet usage, supermarket used and TV reception, November 2007
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Appendix: The Consumer –Further Analysis
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- Figure 76: Alcohol drinkers by product – detailed analysis, November 2007
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- Figure 77: Those who drink alcohol more than two years ago, by demographic
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- Figure 78: Those who drink alcohol less than two years ago, by demographic
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