Table of Contents
Executive Summary
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- The market
- Tentative value growth expected in 2016
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- Figure 1: Best- and worst-case forecast value sales of the alcoholic drinks market, at current prices, 2011-21
- UK consumers cutting back on alcohol
- Alcoholic drink prices have risen dramatically
- An ageing population could pose a threat to the market
- Companies and brands
- The continued rise of craft
- Flavoured NPD strong
- Adspend on alcoholic drinks is relatively flat
- The consumer
- Beer and still wine are the most popular alcoholic drinks
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- Figure 2: Usage of alcoholic drinks, by location, May 2016
- A quarter of 18-24 drinkers worry about images on social media
- Beer enjoys the most frequent usage
- Sparkling wines as popular as Champagne for special occasions
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- Figure 3: Choice of alcoholic drinks for different occasions, May 2016
- 37% of in-home drinkers spend under £10 weekly
- Only 13% of Brits use online drinks retailers
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- Figure 4: Enticements to use online retailers for buying alcoholic drinks, May 2016
- What we think
Issues and Insights
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- Craft looks set to continue to dominate the industry’s headlines
- The facts
- The implications
- Online drinks retailing has marked potential
- The facts
- The implications
- Beer and cider challenge wine as meal accompaniments
- The facts
- The implications
The Market – What You Need to Know
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- Tentative value growth expected in 2016
- UK consumers cutting back on alcohol
- Alcoholic drink prices have risen dramatically
- An ageing population could pose a threat to the market
- Changes to the socio-economic make-up set to benefit the off-trade
Market Size and Segmentation
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- Tentative value growth expected in 2016
- Forecast
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- Figure 5: Value and volume sales of alcoholic drinks, 2011-21
- Figure 6: Best- and worst-case forecast value sales of the alcoholic drinks market, at current prices, 2011-21
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- Figure 7: Best- and worst-case forecast volume sales of the alcoholic drinks market, 2011-21
- The impact of the EU referendum vote
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- Figure 8: Alternative scenarios for the alcoholic drinks market, 2016-2021
- No immediate impact on consumers’ finances
- The risk of an economic slowdown
- On-premise to feel the heat if consumers hesitate to spend
Market Drivers
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- UK consumers cutting back on alcohol
- New guidelines on alcohol intake
- Alcoholic drink prices have risen dramatically
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- Figure 9: UK excise duty rates for selected alcoholic drinks, 2004-16
- Pub closures remain commonplace
- An ageing population could pose a threat to the market
Key Players – What You Need to Know
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- The continued rise of craft
- Flavoured NPD strong
- Online wine growing in popularity
- Adspend on alcoholic drinks is relatively flat
Launch Activity and Innovation
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- Selected innovation in beer
- The continued rise of craft
- Innovation in spirit beers (‘speers’)
- Selected innovation in cider
- A return to cloudy cider…
- …but flavour innovation remains popular
- Selected innovation in wine
- High hopes for fruit-flavoured wines
- Online wine growing in popularity
- Sparkling wine also sees NPD activity
- Selected innovation in spirits and liqueurs
- Packaging is a common way of innovating
- Flavoured drinks are hitting the sweet spot
Brand Communication and Promotion
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- Adspend on alcoholic drinks is relatively flat
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- Figure 10: Total above-the line, online display and direct mail advertising expenditure on alcoholic drinks, 2012-15
- Figure 11: Above-the line, online display and direct mail advertising spend on alcoholic drinks, by category, 2012-15
- Heineken and Molson Coors slash adspending…
- …while Diageo ramps it up
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- Figure 12: Leading advertisers of alcoholic drinks, by above-the line, online display and direct mail advertising spend, by company, 2012-15
- Figure 13: Leading advertisers of alcoholic drinks, by above-the line, online display and direct mail advertising spend, by brand, 2012-15
- TV still leads the way but appears to be falling out of favour
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- Figure 14: Above-the line, online display and direct mail advertising spend on alcoholic drinks, by channel, 2012-15
- Nielsen Media Research coverage
The Consumer – What You Need to Know
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- Beer and still wine are the most popular alcoholic drinks
- A quarter of 18-24 drinkers worry about images on social media
- Beer enjoys the most frequent usage
- Sparkling wines as popular as Champagne for special occasions
- 37% of in-home drinkers spend under £10 weekly
- Only 13% of Brits use online drinks retailers
Usage of Alcoholic Drinks
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- Beer and still wine are the most popular types of alcoholic drink
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- Figure 15: Usage of alcoholic drinks, May 2016 and May 2015
- Cider’s high penetration belies a category with issues
- Sparkling wine’s popularity bubbling up
- In-home consumption is more popular for most categories
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- Figure 16: Usage of alcoholic drinks, by location, May 2016
- Consumers have wider repertoires when drinking at home
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- Figure 17: Repertoire of usage of alcoholic drinks, by location, May 2016
Alcoholic Drinks and Social Media
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- 20% of under-35s are worried about pictures of them drinking on social media
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- Figure 18: Concern about being pictured with alcoholic drinks on social media websites, May 2016
Frequency of Usage
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- Beer enjoys the most regular usage
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- Figure 19: Frequency of usage of alcoholic drinks among users, by type, May 2016
- Only 53% of cider users drink it weekly
- Weekend and post-6 pm are the most popular times to drink alcohol
Choice of Alcoholic Drinks for Different Occasions
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- Sparkling wines as popular as Champagne for special occasions
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- Figure 20: Favoured choice of alcoholic drink for selected occasions, May 2016
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- Figure 21: Most popular choice of alcoholic drinks for different occasions among men and women, May 2016
- Wine dominates food-led occasions…
- …while beer also dominates several drinking occasions
- Spirits are particularly popular as late-night drinks
Spending on Alcoholic Drinks
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- In-home drinkers are most likely to spend under £10 weekly
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- Figure 22: In-home spend on alcoholic drinks per week and out of home spend on alcoholic drinks per occasion, May 2016
- £10-20 is the spend per occasion for 39% of out-of-home drinkers
Alcoholic Drinks and the Online Channel
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- Only 13% of Brits buy drinks online
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- Figure 23: Usage of online retailers of alcoholic drinks, May 2016
- Half of adults could be wooed by online drinks retailers
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- Figure 24: Enticements to use online retailers for buying alcoholic drinks, May 2016
- Free delivery key to boosting the use of online drinks retailers
- Craft drinks can tap into demand for a wider range online
- Other factors only garner limited interest
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 25: Best- and worst-case forecasts for the total alcoholic drinks market, by value, 2016-21
- Figure 26: Best- and worst-case forecasts for the total alcoholic drinks market, by volume, 2016-21
- Forecast methodology
- Market segmentation
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- Figure 27: Value sales of alcoholic drinks, by category, 2011-16
- Figure 28: Volume sales of alcoholic drinks, by category, 2011-16
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