Table of Contents
Issues in the Market
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- Key themes
- Definitions
- Abbreviations
Insights and Opportunities
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- Differentiation is the key
- Consumers are becoming more taste adventurous
- Females are drinking up
- Online sales channels are an untapped market
Market in Brief
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- Declining alcohol sales
- Key legislative issues needing addressed within the sector
- Beer is the market leader
- Future of the market is bleak
Fast Forward Trends
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- Trend 1: Access all areas
- What it’s about?
- What we’ve seen?
- What next?
- Trend 2: Home of the sense
- What it’s about?
- What we’ve seen?
- What next?
Internal Market Environment
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- Key points
- NI consumption rates continue to decline
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- Figure 1: Alcohol consumption in the last 12 months, NI and RoI, 2007-11
- Irish consumer alcohol consumption decreases with age
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- Figure 2: Alcohol consumption levels by age, in the last 12 months, in NI and RoI, 2011
- Gender gap narrowing
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- Figure 3: Alcohol consumption in the last 12 months, by gender, NI and RoI, 2011, in NI and RoI, 2011
- Legislation impacting on the alcoholic drink market
- Excise duty remains a key issue
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- Figure 4: Composite EU alcohol (combined average for beer, wine and spirit) excise rates relative to Ireland, 2011
- Figure 5: RoI and UK excise rates, 2011
- Excise an issue in UK/NI too
- Government bureaucracy stifling the on-trade
- Drink driving legislation
- On-trade penalty point scheme to support responsible drinking
- Potential social responsibility levy for alcohol retailers
- Need for reform of alcohol licensing
- Reducing alcohol intake a low health priority for Irish consumers
- NI
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- Figure 6: Change to make lifestyle healthier, NI, 2011
- RoI
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- Figure 7: Short term health intentions, RoI, in 2005 and 2011
- The importance of quality marks
- Upcoming pub quality market in NI
- Drink industry contribution to tourism within Ireland
- Growth in festivals within Ireland offers opportunities for on- and off-trade
- Opportunities for alcohol brands with 2012 festivals and events
- Support for local producers grows
- Emergence of the ‘gastro-pub’ offers a new identity for pubs
Broader Market Environment
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- Key points
- Fears of a double-dip recession
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- Figure 8: Economic outlook, RoI and NI, 2009-11
- Unemployment increases in 2011
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- Figure 9: Unemployment rates, RoI and NI, January 2009-Sept 2011
- NI
- RoI
- Consumer Price Index shows increased cost of living in 2011
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- Figure 10: Percentage increase in consumer price commodity group indices, in RoI and UK, October 2011
- Consumer confidence
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- Figure 11: Consumer Sentiment/Confidence Index, UK (inc NI) and RoI, October 2008-October 2011
- NI
- RoI
- Changing demographics
- NI
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- Figure 12: Population, by age, NI, 2008-58
- RoI
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- Figure 12: Population, by age, RoI, 2006-41
- Lack of available finance for the business community
- Tourism within NI and RoI
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- Figure 13: DETNI draft tourism strategy 2012-15 targets
Strengths and Weaknesses
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- Strengths
- Weaknesses
Competitive Context
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- Key points
- Soft drinks are a threat to both the on and off-trade
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- Figure 14: Estimated total value sales of soft drinks – RoI and NI, 2006-16
- Foodservice sales fall
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- Figure 15: Irish commercial foodservice: RoI and NI 2010-15 (at consumer prices)
- Eating in – the new eating out is increasing in popularity
- Cinema attendance shows strong growth
Market Value and Forecast
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- Key points
- On-trade all-Ireland alcohol sales decrease as off-trade increases
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- Figure 16: Alcohol sales, by value and volume, on- and off-trade split, all-Ireland, 2005-16
- 2012 could be a good year for NI on-trade
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- Figure 17: Alcohol sales, by value and volume, on- and off-trade split, NI, 2005-16
- RoI
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- Figure 18: Alcohol sales, by value and volume, on- and off-trade split, RoI, 2005-16
Market Segmentation
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- Key points
- Beer is market leader within the RoI on-trade market
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- Figure 19: On-trade alcohol sales, by segment, RoI, 2011
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- Figure 20: Alcohol sales, by segment, on-trade, RoI 2008-11
- Off-trade sees growth in a number of alcoholic beverage segments
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- Figure 21: Off-trade alcohol sales, by segment, RoI, 2011
- Figure 22: Alcohol sales, by segment, off-trade, RoI 2008-11
- 2011
- On-trade sales in NI mirror that of RoI
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- Figure 23: On-trade alcohol sales, by segment, NI, 2011
- Figure 24: Alcohol sales, by segment, on-trade, NI, 2008-11
- NI off-trade flourishes
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- Figure 25: Off-trade alcohol sales, by segment, NI, 2011
- Figure 26: Alcohol sales, by segment, off-trade, N I 2008-11
- Future of the industry: Increasing trade through better offerings
- Industry help to survive
- Craft beer can aid food tourism
- Off-licences need to be more marketing savvy
Who’s Innovating?
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- Key points
- Beer and wine see the highest level of product development
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- Figure 27: New product launches in the UK and Ireland, by sub category, 2006-11*
- New product launches still remain high in a declining market
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- Figure 28: New product launches in the UK and Ireland, by launch type, 2006-11*
- Premium positioning continues to be the top claim
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- Figure 29: New product launches in the UK and Ireland, by product claim, 2006-11*
- Current innovations within products launched in the alcoholic beverage sector in UK and Ireland
- Craft breweries offer new flavours within the beer market
- New packaging formats to increase consumer interest
- Increased offerings within the pre-mixed drink market
- Innovation within the low alcohol beverage sector is increasing
- Wider marketplace consumer trends (showing applicability to on and off-trade)
- On-trade
- Off-trade
Companies and Products
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- NI
- Botanic Inns Group
- Beannchor Group
- RoI
- Louis Fitzgerald Group
- Capital Bars plc.
- Smith’s Pub Group
- Thomas Read Group
- Supermarkets
- Asda
- Musgrave
- Dunnes
- Sainsbury’s
- Tesco
- Marks & Spencer
- Convenience stores and franchises
- Costcutter
- Henderson Group
- BWG Foods
- Off-licences
- Curley’s
- Next Door
- WineFlair
Channels to Market
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- Key points
- Pub sales continue to fall
- Increased footfall in supermarkets
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- Figure 30: Retailers consumers have shopped most often at in the last month vs. other retailers shopped at in the last month, NI and RoI, August 2011
- Off-licence sales are suffering from off-trade promotions and cheap prices
- Online alcohol sales
The Consumer – Drinking Habits
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- Key points
- Majority of consumers drink 2-3 times a week
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- Figure 31: Frequency of alcohol consumption in NI and RoI, 2011
- Decline in alcohol consumption out-of-home
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- Figure 32: Alcohol consumed outside the home in NI and RoI, 2007-11
- In-home consumption decreases
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- Figure 33: Alcohol consumed in home, NI and RoI 2007-11
- Draught lager is the top performing beer
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- Figure 34: Types of beer drunk in the last 12 months in NI and RoI in 2011
- In-home beer consumption is highest when with friends
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- Figure 35: Occasions where consumers have drunk beer (in the home), NI and RoI, 2011
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- Figure 36: Occasions where consumers have drunk beer (out of the home), NI and RoI, 2011
- Wine consumption highest amongst females
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- Figure 37: Consumers who have drunk bottled wine in the last 12 months, by gender and socio-economic group, NI and RoI, 2010
- In-home wine consumption highest with meals
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- Figure 38: Occasions where consumers have drunk wine (in the home), NI and RoI, 2011
- Out-of-home wine consumption greatest at the evening meal
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- Figure 39: Occasions where consumers have drunk wine (out of the home), NI and RoI, 2011
- White wine is most popular
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- Figure 40: Types of wine drank, by consumers, NI and RoI, 2011
- Vodka consumption is falling
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- Figure 41: Consumption of vodka in the last 12 months, NI and RoI, 2007-11
- Young more likely to drink vodka
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- Figure 42: Consumers who have drunk vodka in the last 12 months, by gender and age, NI and RoI, 2011
- Whiskey increases in popularity with age
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- Figure 43: Consumers who have drunk Irish whiskey in the last 12 months, by gender and age, NI and RoI, 2011
- Cider consumption highest amongst men
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- Figure 44: Consumers who have drunk cider in the last 12 months, by gender and age, NI and RoI, 2011
- Continuing decline in the FAB sector
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- Figure 46: Consumption of pre-mixed spirits, cocktails (ready-made) and alcoholic carbonates in the last 12 months, NI and RoI, 2007-11
Consumer Attitudes Towards Alcohol
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- Key points
- The pub remains a popular activity within Ireland
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- Figure 47: Agreement with selected statements relating to drinking, NI and RoI, 2011
- Irish sentiment for the pub decreases
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- Figure 48: Agreement with the statement “I really enjoy a night out at the pub”, NI and RoI, 2007-11
- Restaurant promotions put even more pressure on pubs
- In-home drinking has levelled off
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- Figure 50: Agreement with the statement “most of my drinking is done at home”, NI and RoI, 2007-11
- Consumers will pay for quality offerings
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- Figure 51: Agreement to statements relating to drink quality, by socio-economic group, NI and RoI, 2011
- Experimentation highest in young consumers
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- Figure 52: Agreement with the statement “I like to try new drinks”, NI and RoI, 2011
Consumer Typologies
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- NI target groups
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- Figure 53: NI target groups according to attitudes towards alcohol, 2011
- Chuggers (30% of respondents)
- Characteristics
- Who are Chuggers?
- Understanding Chuggers
- Uninterested (22% of respondents)
- Characteristics
- Who are Uninterested?
- Understanding Uninterested
- Home Drinkers (20% of respondents)
- Characteristics
- Who are Home Drinkers?
- Understanding Home Drinkers
- No Commitments (15% of respondents)
- Characteristics
- Who are No Commitments?
- Understanding No Commitments
- Pub Lovers (13% of respondents)
- Characteristics
- Who are Pub Lovers
- Understanding Pub Lovers
- RoI target groups
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- Figure 54: RoI target groups according to attitudes towards alcohol, 2011
- Non-engaged (27% of respondents)
- Characteristics
- Who are Non-engaged?
- Understanding Non-engaged
- Social Drinkers (24%of respondents)
- Characteristics
- Who are Social Drinkers?
- Understanding Social Drinkers
- In-home Winers (21% of respondents)
- Characteristics
- Who are In-home Winers?
- Understanding In-home Winers
- Pub Dwellers (16% of respondents)
- Characteristics
- Who are Pub Dwellers?
- Understanding Pub Dwellers
- Beer Lovers (12% of respondents)
- Characteristics
- Who are Beer Lovers?
- Understanding Beer Lovers
Appendix
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- Figure 55: Population projections, NI, by gender, 2006-20
- Figure 56: Population projections, RoI, by gender, 2006-20
- Figure 57: Population projections, by age, NI, 2000-20
- Figure 58: Population projections, by age, RoI, 2000-20
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- Figure 59: Pound to euro exchange rate used (annual average), 2004-13
- Consumer drinking preferences demographic tables – NI
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- Figure 60: Alcohol consumption in the last 12 months, by demographic groups, NI, 2011
- Figure 61: Frequency of alcohol consumption, by demographic groups, NI, 2011
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- Figure 62: Alcohol consumed in home, by demographic groups, NI, 2011
- Figure 63: Alcohol consumed out of home, by demographic groups, NI, 2011
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- Figure 64: Occasions where consumers have drunk beer (in the home), by demographic groups, NI, 2011
- Figure 65: Occasions where consumers have drunk beer (in the home – continued), by demographic groups, NI, 2011
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- Figure 66: Occasions where consumers have drunk beer (out of home), by demographic groups, NI, 2011
- Figure 67: Occasions where consumers have drunk beer (out of home – continued), by demographic groups, NI, 2011
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- Figure 68: Occasions where consumers have drunk wine (in the home), by demographic groups, NI, 2011
- Figure 69: Occasions where consumers have drunk wine (in the home – continued), by demographic groups, NI, 2011
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- Figure 70: Occasions where consumers have drunk wine (out of the home), by demographic groups, NI, 2011
- Figure 71: Occasions where consumers have drunk wine (out of the home – continued), by demographic groups, NI, 2011
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- Figure 72: Occasions where consumers have drunk white spirits (in the home), by demographic groups, NI, 2011
- Figure 73: Occasions where consumers have drunk white spirits (in the home – continued), by demographic groups, NI, 2011
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- Figure 74: Occasions where consumers have drunk white spirits (out of the home), by demographic groups, NI, 2011
- Figure 75: Occasions where consumers have drunk white spirits (out of the home – continued), by demographic groups, NI, 2011
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- Figure 76: Occasions where consumers have drunk dark spirits (in the home), by demographic groups, NI, 2011
- Figure 77: Occasions where consumers have drunk dark spirits (in the home – continued), by demographic groups, NI, 2011
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- Figure 78: Occasions where consumers have drunk dark spirits (out of the home), by demographic groups, NI, 2011
- Figure 79: Occasions where consumers have drunk dark spirits (out of the home – continued), by demographic groups, NI, 2011
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- Figure 80: Alcohol consumption in the last 12 months, by demographic groups, RoI, 2011
- Figure 81: Frequency of alcohol consumption, by demographic groups, RoI, 2011
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- Figure 82: Alcohol consumed in home, by demographic groups, RoI, 2011
- Figure 83: Alcohol consumed out of home, by demographic groups, RoI, 2011
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- Figure 84: Occasions where consumers have drunk beer (in the home), by demographic groups, RoI, 2011
- Figure 85: Occasions where consumers have drunk beer (in the home – continued), by demographic groups, RoI, 2011
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- Figure 86: Occasions where consumers have drunk beer (out of home), by demographic groups, RoI, 2011
- Figure 87: Occasions where consumers have drunk beer (out of home – continued), by demographic groups, RoI, 2011
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- Figure 88: Occasions where consumers have drunk wine (in the home), by demographic groups, RoI, 2011
- Figure 89: Occasions where consumers have drunk wine (in the home – continued), by demographic groups, RoI, 2011
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- Figure 90: Occasions where consumers have drunk wine (out of the home), by demographic groups, RoI, 2011
- Figure 91: Occasions where consumers have drunk wine (out of the home – continued), by demographic groups, RoI, 2011
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- Figure 92: Occasions where consumers have drunk white spirits (in the home), by demographic groups, RoI, 2011
- Figure 93: Occasions where consumers have drunk white spirits (in the home – continued), by demographic groups, RoI, 2011
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- Figure 94: Occasions where consumers have drunk white spirits (out of the home), by demographic groups, RoI, 2011
- Figure 95: Occasions where consumers have drunk white spirits (out of the home – continued), by demographic groups, RoI, 2011
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- Figure 96: Occasions where consumers have drunk dark spirits (in the home), by demographic groups, RoI, 2011
- Figure 97: Occasions where consumers have drunk dark spirits (in the home – continued), by demographic groups, RoI, 2011
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- Figure 98: Occasions where consumers have drunk dark spirits (out of the home), by demographic groups, RoI, 2011
- Figure 99: Occasions where consumers have drunk dark spirits (out of the home – continued), by demographic groups, RoI, 2011
- Consumer attitudes towards alcohol demographic tables – NI
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- Figure 100: Agreement with selected statements relating to drinking, by demographics, NI, 2011
- Consumer attitudes towards alcohol demographic tables – RoI
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- Figure 101: Agreement with selected statements relating to drinking, by demographics, RoI, 2011
- Consumer typologies
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- Figure 102: Agreement with selected statements relating to drinking, by consumer typologies, NI, 2011
- Figure 103: Consumers typologies, by all demographics, NI, 2011
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- Figure 104: Agreement with selected statements relating to drinking, by consumer typologies, RoI, 2011
- Figure 105: Agreement with selected statements relating to drinking, by consumer typologies, RoI, 2011
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