Table of Contents
Executive Summary
-
- The market
- Alcoholic drink prices continue to rise
- UK consumers continue to cut back on alcohol
- The ongoing rise of craft drinks
- Population changes could also impact the market
- Companies, brands and innovation
- Packaging and design innovation
- Flavour and ingredients
- Partnerships and takeovers
- Craft spirits set for a profile boost
- The consumer
- Consumers are most likely to associate craft drinks with a unique flavour
-
- Figure 1: Consumer definitions of craft alcoholic drinks, any ranking 1-5, November 2015
- Mainstream repertoires are wider than craft ones
-
- Figure 2: Purchase of craft and mainstream alcoholic drinks, November 2015
- Only 24% of beer buyers are willing to spend £4+ on pints of craft beer
- Cost could be a barrier to the growth of craft
-
- Figure 3: Attitudes towards craft alcoholic drinks, November 2015
- 59% of drink buyers think that ‘craft’ needs to be defined
-
- Figure 4: Further attitudes towards craft alcoholic drinks, November 2015
- What we think
Issues and Insights
-
- The ongoing issue of defining ‘craft’
- The facts
- The implications
- Does ‘craft’ growth risk putting family and medium-sized companies out of business?
- The facts
- The implications
- Online is a good fit for craft drink sales
- The facts
- The implications
- Craft needs to convey value for money
- The facts
- The implications
The Market – What You Need to Know
-
- Alcoholic drink prices continue to rise
- UK consumers continue to cut back on alcohol
- The ongoing rise of craft drinks
- Population changes could also impact the market
Market Drivers
-
- Alcoholic drink prices continue to rise
-
- Figure 5: UK excise duty rates for selected alcoholic drinks, 2005-15
- UK consumers continue to cut back on alcohol
- The ongoing rise of craft drinks
- Population changes could also impact the market
Key Players – What You Need to Know
-
- Packaging and design innovation
- Flavour and ingredients
- Partnerships and takeovers
- Craft spirits set for a profile boost
Launch Activity and Innovation
-
- Packaging and design innovation
- Flavour and ingredients
- Partnerships and takeovers
- Craft spirits set for a profile boost
The Consumer – What You Need to Know
-
- Consumers are most likely to associate craft drinks with a unique flavour
- Mainstream repertoires are wider than craft ones
- Only 24% of beer buyers are willing to spend £4+ on pints of craft beer
- Cost could be a barrier to the growth of craft
- 59% of drink buyers think that ‘craft’ needs to be defined
Consumer Definitions of Craft Alcoholic Drinks
-
- Unique flavour most widely seen as mark of craft drink
-
- Figure 6: Factors consumers see as defining a craft alcoholic drink, any ranking 1-5, November 2015
- Five other factors also stand out as key craft signifiers
- Small volumes
- Independently owned and produced
- Only 23% define craft drinks on price grounds
- Younger drinkers respond to NPD and a modern look
- 22% do not know what craft drinks are
Purchase of Craft and Mainstream Alcoholic Drinks
-
- Mainstream drinks repertoires are wider than craft ones
-
- Figure 7: Repertoire of types of craft and mainstream alcoholic drinks bought, November 2015
- Beer performs best for craft purchases …
-
- Figure 8: Purchase of craft and mainstream alcoholic drinks, by type, November 2015
- … with ale/bitter leading the way
-
- Figure 9: Share of all buyers of a drink, who have bought craft variants of the drink, by drink type, November 2015
- Cider follows a similar pattern to lager
- Spirits starting to tap into the craft movement
- Wine lags behind in the craft stakes
How Much Drinkers Are Prepared to Spend on Craft Beer
-
- Only 24% of beer buyers are willing to spend £4+ on a pint of craft beer
-
- Figure 10: How much drinkers are prepared to spend on a pint of craft beer, November 2015
- £2-2.49 can be a lucrative price point in the off-trade for 500ml bottles
-
- Figure 11: How much drinkers are prepared to spend on a 500ml bottle of craft beer for drinking at home, November 2015
Attitudes towards Craft Alcoholic Drinks
-
- Cost could be a barrier to the growth of craft …
-
- Figure 12: Attitudes towards craft alcoholic drinks, November 2015
- … as could the lack of a definition …
- Dedicated ‘craft’ sections could aid choice
-
- Figure 13: An example of Wetherspoon Craftwork display, October 2015
- … while taste does not appear to be a barrier
- More information about taste welcomed
Further Attitudes towards Craft Alcoholic Drinks
-
- 59% of drink buyers think that ‘craft’ needs to be defined
-
- Figure 14: Further attitudes towards craft alcoholic drinks, November 2015
- Craft is only preferred by one in four
- Importance of scale and maker
- Large scale a put-off for some
- Taste trumps maker for most
- Producing drinks on site and in partnership
- Craft drinks in the on-trade
- Role of reviews
- Potential for drinks flights to reduce risk
-
- Figure 15: An example of a beer flight
- Branded glasses in demand
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Back to top