Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: Market context
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US sales and fan chart forecast of retail alcohol, at current prices, 2015-25
- Figure 2: Total US sales and forecast of retail alcohol, at current prices, 2015-25
- Impact of COVID-19 on online alcohol
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- Figure 3: Short-, medium- and long-term impact of COVID-19 on online alcohol, September 2020
- Opportunities and Challenges
- Re-emergence
- Pandemic props up online alcohol sales
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- Figure 4: Reasons for purchasing alcohol online, by age, July 2020
- Alcohol retailers and brands adjust to new consumer behaviors
- Consumers become bartenders
- Recovery
- Recession dampens future of online alcohol
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- Figure 5: Reasons for not purchasing alcohol online, by financial situation, July 2020
- Online alcohol retailers need to deliver experiences
- Loyalty programs keep core consumers engaged
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- Figure 6: Online alcohol purchase frequency, by alcohol shopping methods, July 2020
- Make alcohol packaging more ecomm-friendly
The Market – Key Takeaways
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- Retail alcohol faces strange market conditions
- Alcohol trends will outlast the pandemic
- Retailers and brands can adjust to the online world
Market Size and Forecast
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- Retail alcohol is pushed and pulled by opposing factors
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- Figure 7: Consumer expenditure on alcohol for off- and on-premise consumption, 2005-2012
- Figure 8: US unemployment rate, January 2007-August 2020
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- Figure 9: Consumer sentiment index, January 2007- August 2020
- Figure 10: Total US sales and fan chart forecast of retail alcohol, at current prices, 2015-25
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- Figure 11: Total US sales and forecast of retail alcohol, at current prices, 2015-25
- Impact of COVID-19 on online alcohol
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- Figure 12: Short-, medium -and long-term impact of COVID-19 on online alcohol, September 2020
- Lockdown
- Re-emergence
- Recovery
- COVID-19: US context
Market Factors
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- Pandemic leads to rapid adoption of online shopping
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- Figure 13: Behaviors adopted due to pandemic, “shopping more online,” by generation, April-August 2020
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- Figure 14: Behaviors adopted due to pandemic, “using curb-side pick-up/click-and-collect more,” by generation, April-August 2020
- Alcohol sales get watered down during recessions
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- Figure 15: Consumer expenditure on alcohol for off- and on-premise consumption, 2005-2015
- Figure 16: US unemployment rate, January 2007-August 2020
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- Figure 17: Consumer sentiment index, January 2007-August 2020
- Drinking behaviors were changing prior to the pandemic
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- Figure 18: Dining out behaviors, by generation, May 2020
- Patchwork of laws complicates the market
- Restaurants respond with alcohol delivery
Market Opportunities
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- Alcohol packaging adapts to delivery
- AI as sommelier
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- Figure 19: New spirit brand discovery, September 2020
- Cater to home mixologists
- Alcohol enthusiasts love exclusivity
Companies and Brands – Key Takeaways
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- Immediate delivery companies experience strong gains but must retain customers
- Experience acts as a differentiator
Competitive Strategies
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- Immediate delivery companies enjoy unexpected success
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- Figure 20: Modelo/Drizly online ad, August 2020
- Deliver experiences not products
- Grocery retailers offer it all
- Tech and delivery go hand-in-hand
The Consumer – Key Takeaways
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- Millennials are core online alcohol purchasers
- Retailers will face challenges attracting new consumers
- Grocery retailers will lead the online alcohol market
- Recommendations can deliver consumers new experiences
Alcoholic Beverage Purchasing Behaviors
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- Beer leads the alcohol market
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- Figure 21: Alcoholic beverage purchases, July 2020
- Alcohol is primarily purchased in-store, but COVID has accelerated adoption of online ordering
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- Figure 22: Alcoholic beverage shopping methods, July 2020
- Millennials blend in-store and online
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- Figure 23: Alcoholic beverage shopping methods, by generation, July 2020
- Barriers exist for rural consumers
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- Figure 24: Alcoholic beverage shopping methods, by area, July 2020
- FMB drinkers are already buying online
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- Figure 25: Alcoholic beverage shopping methods, by alcohol types purchased, July 2020
Channels Shopped for Alcohol
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- Supermarkets fulfill most consumers’ needs
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- Figure 26: Channels shopped for alcohol, any shop, July 2020
- Online ordering can replace small basket shopping occasions
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- Figure 27: Channels shopped for alcohol, any shop, by age, July 2020
Interest in Purchasing Alcohol Online
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- Low interest is driven by older consumers
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- Figure 28: Interest in purchasing alcohol online in the future, July 2020
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- Figure 29: Interest in purchasing alcohol online in the future, by gender and age, July 2020
- Turn drinkers’ interest into clicks
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- Figure 30: Interest in purchasing alcohol online in the future, by alcohol types purchased, July 2020
Willingness to Spend on Delivery
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- Consumers accept that convenience comes at a cost
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- Figure 31: Willingness to spend on delivery, July 2020
- Figure 32: Willingness to spend on delivery, by age, July 2020
- Aggressive deals are necessary to change consumer habits
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- Figure 33: Willingness to spend on delivery, by alcohol purchase method, July 2020
Change in Online Alcohol Purchases
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- Pandemic supercharges the use of online ordering
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- Figure 34: Change in online alcohol ordering, July 2020
- Figure 35: Change in online alcohol ordering, by alcohol purchase method, July 2020
Online Services for Alcohol Purchases: Use and Interest
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- Consumers prefer grocery delivery services
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- Figure 36: Online services for alcohol purchases: use and interest, July 2020
- Grocery retailers should target consumers aged 45 and older
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- Figure 37: Use and interest of online alcohol services, July 2020
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- Figure 38: Use and interest of online alcohol services, July 2020
Online Alcohol Purchase Frequency
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- Opportunity to increase order frequency
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- Figure 39: Online alcohol purchase frequency, July 2020
- Loyalty programs can keep the most active consumers engaged
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- Figure 40: Online alcohol purchase frequency, by alcohol shopping methods, July 2020
Online Alcohol Basket Extras
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- Basket extras enhance the convenience of online shopping
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- Figure 41: Online alcohol basket extras, July 2020
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- Figure 42: Online alcohol basket extras, by alcohol types purchased, July 2020
Reasons to Purchase Alcohol Online
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- Platforms must retain consumers post-COVID
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- Figure 43: Reasons for purchasing alcohol online, July 2020
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- Figure 44: Reasons for purchasing alcohol online, by age, July 2020
- Personalization appeals to online-dominant shoppers
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- Figure 45: Reasons for purchasing alcohol online, by alcohol shopping methods, July 2020
Reasons for Not Purchasing Alcohol Online
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- Consumers flee from fees
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- Figure 46: Reasons for not purchasing alcohol online, July 2020
Occasions for Purchasing Alcohol Online
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- The alcohol industry adjusts to the next normal
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- Figure 47: Occasions for purchasing alcohol online, July 2020
- Bulk up basket size with expenditure-based deals
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- Figure 48: Occasions for purchasing alcohol online, by age, July 2020
- Meal kits can be a soft entry for online alcohol
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- Figure 49: Occasions for purchasing alcohol online, by alcohol shopping methods, July 2020
Online Alcohol Shopping Behaviors
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- Delivery platforms can facilitate exploration
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- Figure 50: Online alcohol shopping behaviors, July 2020
- Parents respond to the convenience of online shopping
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- Figure 51: Online alcohol shopping behaviors, by parental status, July 2020
Online Alcohol Purchase Motivators
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- Mitigate price concerns and provide consumers options
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- Figure 52: Online alcohol purchase motivators, July 2020
- Platforms can shape Gen Z’s future preferences
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- Figure 53: Online alcohol purchase motivators, by generation, July 2020
- Knowledge is power for current online shoppers
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- Figure 54: Online alcohol purchase motivators, by alcohol shopping methods, July 2020
Online Alcohol Attitudes
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- Current users enjoy the simplicity of online ordering
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- Figure 55: Online alcohol attitudes, any agree, July 2020
- Safety will draw consumers in, recommendations will retain them
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- Figure 56: Online alcohol attitudes, any agree, July 2020
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- Figure 57: Online alcohol attitudes, any agree, by generations, July 2020
- Figure 58: Online alcohol attitudes, any agree, by alcohol types purchased, July 2020
- Opportunity to increase orders among multi-channel shoppers
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- Figure 59: Online alcohol attitudes, any agree, by alcohol shopping method, July 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 60: Total US sales and forecast of retail alcohol, at inflation-adjusted prices, 2015-25
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