Table of Contents
Executive Summary
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- The market
- Recent dip in price of alcoholic drinks
- Increase in real disposable incomes
- Gender divide for drinking of some alcoholic drinks
- UK’s population ageing bodes well for vintage wines
- The consumer
- Alcoholic drinks bought as gifts by six in ten people
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- Figure 1: Types of alcoholic drinks bought as a gift in the last 12 months, July 2016
- Male relatives more likely to be given alcoholic drinks
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- Figure 2: Who people would give alcoholic drink to as a gift, July 2016
- Large supermarkets dominate alcoholic drink gift sales
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- Figure 3: Outlets where alcoholic drinks bought to give as a gift in the last 12 months, July 2016
- Importance of matching drinks to recipient’s likes
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- Figure 4: Most important factors influencing choice when buying alcoholic drinks as a gift, July 2016
- Being seen as a premium brand justifies a higher price
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- Figure 5: Factors most likely to encourage people to pay more for alcoholic drinks as gifts, July 2016
- Alcoholic drinks deemed a good last minute gift option
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- Figure 6: Attitudes towards giving alcoholic drinks as gifts, July 2016
- What we think
Issues and Insights
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- Scope to target alcoholic drinks gifting more at female recipients and a wider range of seasonal gifting occasions
- The facts
- The implications
- Premium brands and standout packaging remain key ways for encouraging trading up to grow drinks gifting sales
- The facts
- The implications
- Suggestions from retailers and greater attention to pre-packaging and in-store displays needed to promote alcoholic drinks as gifts
- The facts
- The implications
The Market – What You Need to Know
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- Recent dip in price of alcoholic drinks
- Increasingly competitive retail landscape
- Increase in real disposable incomes
- Gender divide for drinking of some alcoholic drinks
- Growing population of over-55s who know what they want
Market Drivers
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- Dip in price of alcoholic drinks in competitive retail landscape
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- Figure 7: Consumer price indices for beer, wine and spirits and all items (2006=100), 2006-16
- Big potential market for gift sales as three in four adults drink alcohol
- Gender divide in in-home drinking of some alcoholic drinks
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- Figure 8: In-home drinking of different types of alcoholic drinks in the last 3 months, by gender, July 2016
- Growing number of over-55s who are less likely to buy alcohol as a gift
The Consumer – What You Need to Know
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- Alcoholic drinks bought as gifts by six in 10 people
- Strong interest in buying drinks not already bought as gifts
- Male relatives more likely to be given alcoholic drinks
- Large supermarkets the leading channel for buying drinks as gifts
- Matching alcoholic drinks gifts to recipient likes
- Appeal of packaging important to product choice
- Being seen as a premium brand helps justify higher price
- Unique flavours or being aged for longer can encourage trading up
- Drinks seen as good last minute gift solution
- Strong interest in multipacks of smaller bottles for gifting
Types of Alcoholic Drinks Bought as Gifts
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- Alcoholic drinks bought by six in ten people as gifts
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- Figure 9: Buying of major types of alcoholic drinks as gifts in the last 12 months, July 2016
- Strong interest in buying drinks not already bought as gifts
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- Figure 10: Types of alcoholic drinks bought as a gift in the last 12 months, July 2016
- Room to encourage buying of more types of drink as gifts
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- Figure 11: Number of different types of alcoholic drinks bought as gifts, July 2016
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- Figure 12: Number of different types of alcoholic drinks that people have not given but would be interested in giving as a gift in the future, July 2016
Who People Would Give Alcoholic Drinks to as a Gift
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- Male relatives more likely to be given alcoholic drinks
- Friends are top recipient of alcohol gifts
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- Figure 13: Who people would give alcoholic drink to as a gift, July 2016
- Important for drinks brands to appeal to female gift buyers
- Seasonal occasions are widely leveraged to drive alcohol gifting sales
Where People Buy Alcoholic Drinks as a Gift
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- Large supermarkets are leading channel
- Discounters are growing
- A focus on proving drink quality
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- Figure 14: Outlets where alcoholic drinks bought to give as a gift in the last 12 months, July 2016
- Convenience stores can target last minute gift purchases
- Specialists need to offer something different to appeal
- Online-only retailers well-placed to excel on range
Factors Influencing Choice of Alcoholic Drinks as Gifts
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- Matching alcoholic drinks gifts to recipients’ likes
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- Figure 15: Most important factors influencing choice when buying alcoholic drinks as a gift, July 2016
- Promotions/special offers have big influence on gift buying
- Packaging that stands out can make a difference
- Gift packs appeal to a fifth of buyers
Factors Encouraging People to Pay More for Alcoholic Drinks as Gifts
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- Being seen as a premium brand is important to justify price
- Premium packaging sways one in five to pay more
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- Figure 16: Factors most likely to encourage people to pay more for alcoholic drinks as gifts, July 2016
- Limited editions and customised bottles can add value
- Unique taste can help justify higher price points
- Products aged for longer have premium credentials
- Being an award-winning product not a big reason to trade up
Attitudes towards Giving Alcoholic Drinks as Gifts
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- Drinks are deemed a good option for a last minute present
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- Figure 17: Attitudes towards giving alcoholic drinks as gifts, July 2016
- Highlighting gift ideas in alcoholic drinks sections and online
- Willingness to pay more for drinks if giving to someone else
- Alcoholic drinks gifts that go beyond individual bottles
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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