Table of Contents
Executive Summary
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- The market
- Steady sales growth in the alcoholic drinks market
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- Figure 1: Total UK value sales of alcoholic drinks, 2010-20
- Companies, brands and innovation
- Diageo leads the way in value but falls behind in volumes
- Flavour innovation driving growth
- The consumer
- 80% of adults drink alcoholic drinks
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- Figure 2: Usage of different types of alcoholic drinks, May 2015
- Almost three quarters do not expect to change how much they drink
- Familiar brands lead the way in the decision-making process
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- Figure 3: Factors in choice of alcoholic drinks brands (any ranking 1-5), May 2015
- Taste trumps brand name when it comes to alcoholic drinks
- Women and Millennials drive interest in low/non-alcohol
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- Figure 4: Attitudes towards alcoholic drinks, May 2015
- What we think
Issues and Insights
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- Utilising social media to build engagement
- The facts
- The implications
- Innovating with flavour creates opportunities but also risks
- The facts
- The implications
- Clearer alcohol content details can tap into consumers’ moderation mindset
- The facts
- The implications
- Tapping into midweek drinking occasions
- The facts
- The implications
The Market – What You Need To Know
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- Steady sales growth in the alcoholic drinks market
- Beer and wine dominate the market
- Alcoholic drink prices continue to rise
Market Size and Segment Performance
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- Steady sales growth in the alcoholic drinks market
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- Figure 5: Total UK value sales of alcoholic drinks, 2010-20
- Beer and still wine dominate the drinks landscape
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- Figure 6: Total UK value sales of alcoholic drinks, by category, 2010-15
- Mixed performance for spirits
Market Drivers
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- Alcoholic drink prices continue to rise
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- Figure 7: RPI indexed annual change for alcoholic drink prices versus all items except housing, 2000-14
- Financial health recovers but remains fragile
- An embattled on-trade industry
- UK consumers continue to cut back on alcohol
- An ageing population could pose a threat
Key Players – What You Need to Know
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- Most top 10 brands grow in a fragmented market
- Diageo leads the way in value but falls behind in volumes
- A strong presence from beer brands in the top 10
- Flavour innovation driving growth
Brand Performance
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- Diageo leads the way in value but falls behind in volumes
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- Figure 8: Leading manufacturers’ shares of alcoholic drink sales in the UK off-trade, 2014/15
- Beer dominates the list of leading alcoholic drinks brands
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- Figure 9: Value sales of the leading alcoholic drinks brands in the off-trade, 2012/13-2014/15
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- Figure 10: Volume sales of the leading alcoholic drinks brands in the off-trade, 2012/13-2014/15
- Hardys races clear in the wine market…
- …while Smirnoff does the same in spirits
Launch Activity and Innovations
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- Beer and cider
- Flavoured fortunes
- The growth of craft
- Lower/non-alcohol opportunities
- Wine
- Spirits and liqueurs
- Flavoured variants are also coming to the fore in spirits
- To age or not to age
- Packaging innovation helps brands to stand out
The Consumer – What You Need To Know
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- 80% of adults drink alcoholic drinks
- 72% of drinkers do so at least once a week
- Almost three quarters expect no change in how much they drink
- Familiar brands lead the way in the decision-making process
- Taste trumps brand name when it comes to alcoholic drinks
- Women and Millennials drive interest in low/non-alcohol
Usage of Alcoholic Drinks
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- 80% of adults drink alcoholic drinks
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- Figure 11: Usage of different types of alcoholic drinks, May 2015
- Most drinks enjoy higher usage at home than out
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- Figure 12: Usage of different types of alcoholic drinks at home and out of home, May 2015
- A quarter of adults stick to only one or two types of alcoholic drinks
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- Figure 13: Repertoire of usage of different types of alcoholic drinks at home and out of home, May 2015
Occasions for Usage
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- 72% of users drink alcohol at least once a week
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- Figure 14: Frequency of drinking alcoholic drinks, May 2015
- Weekend is most popular time to drink alcohol
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- Figure 15: Days on which alcoholic drinks are consumed, by type, May 2015
- Alcoholic drinks are most popular after 6pm
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- Figure 16: Times at which alcoholic drinks are consumed, by type, May 2015
Changes in Alcohol Usage
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- Almost three quarters do not expect to change how much they drink
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- Figure 17: Expected changes in quantity of alcohol consumed, May 2015
- Money, lifestyles changes and health are prompting usage cuts
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- Figure 18: Reasons for expecting to cut back on drinking, May 2015
Choice Factors
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- Habits lead the way in brand choice
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- Figure 19: Factors in choice of alcoholic drinks brands (any ranking 1-5), May 2015
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- Figure 20: Factors in choice of alcoholic drinks brands, ranked 1 and any 2-5, May 2015
- Flavour and premium perceptions are also important in brand choice
- Premium products appeal more to men
- Women drive interest in ‘moderation’ drinks
- Over-55s take most interest in a high ABV
- Ethical drinks appeal most to under-35s
Attitudes towards Alcoholic Drinks
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- Own-brand widely seen to lag behind brands on taste
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- Figure 21: Attitudes towards alcoholic drinks, May 2015
- Taste trumps brand name when it comes to alcoholic drinks
- Many drinkers look for quality over quantity
- Women respond to calorie and alcohol content
- Under-35s like innovation but can struggle with wide choice
- Social aspect of drinking matters most to under-35s
Appendix – Data Sources and Abbreviations
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- Data sources
- Fan chart forecast
- Abbreviations
Appendix – Market Size and Segment Performance
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- Figure 22: Total value sales of different types of alcoholic drinks, 2010-20
- Figure 23: Best- and worst-case forecasts for the UK alcoholic drinks market, by value, 2015-20
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