Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Dollar sales of alcohol increase by 3.5% in 2017, rate of growth will slow
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- Figure 1: Total US sales and forecast of alcoholic beverages, at current prices, 2012-22
- Alcohol drinkers are more likely to have decreased alcohol consumption in 2017 than increased
- At-home drinkers primarily seek relaxation
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- Figure 2: At-home drinking occasions, January 2018
- The opportunities
- Wine leads for a relaxing evening at home, pairing with food
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- Figure 3: Correspondence Analysis – Alcohol type per occasion, January 2017
- The majority of home drinkers do so because it’s relaxing
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- Figure 4: Reasons for drinking at home, January 2018
- One in 10 home drinkers drinks multiple types of alcohol when they drink
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- Figure 5: Drinking behaviors – Behavior, January 2018
- What it means
The Market – What You Need to Know
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- Dollar sales of alcohol increase by 3.5% in 2017, rate of growth will slow
- Beer dominates alcohol sales, but wine is growing
- The majority of alcohol is consumed off-premise
- Drinkers are more likely to have decreased consumption in 2017
- Consumer interest in health challenges alcoholic beverage categories
Market Size and Forecast
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- Dollar sales of alcohol increase by 3.5% in 2017, rate of growth will slow
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- Figure 6: Total US sales and forecast of alcoholic beverages, at current prices, 2012-22
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- Figure 7: Total US sales and forecast of alcoholic beverages, at current prices, 2012-22
- Figure 8: Total US sales and forecast of alcoholic beverages, at inflation-adjusted prices, 2012-22
Market Breakdown
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- Beer dominates alcohol sales
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- Figure 9: Total US sales and forecast of alcoholic beverages, by segment, at current prices, 2012-22
- The majority of alcohol is consumed off-premise
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- Figure 10: Best- and worst-case forecast value sales of alcoholic drinks (in home), at current prices, 2012-22
- Figure 11: Total on-premise alcohol consumption, liters per capita, 2010-20
Market Factors
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- Drinkers are more likely to have decreased consumption in 2017
- Consumer interest in health challenges alcoholic beverage categories
- Aging population means a shift in alcohol interest
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- Figure 12: Share of population by age, 2013-23
- Brands need to cater to preference for staying in
- Saturday night
Key Players – What You Need to Know
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- Lighter offerings bring alcohol in closer alignment with interest in health
- Packaging activity contributes to portability/versatility
- Premium positioning drives engagement, higher spend
- Leveraging technology to boost engagement and sales
What’s Working?
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- Lighter offerings bring alcohol in closer alignment with interest in health
- Growth in cans contributes to portability/versatility
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- Figure 13: Alcohol launches, by pack type, 2013-18*
- Premium positioning drives engagement, higher spend
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- Figure 14: Alcohol launches, by leading claims, March 2017-February 2018
- Figure 15: Alcohol launches, by fastest-growing claims share, 2013-18*
What’s Next?
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- Alcohol makes a natural transition
- Cocktails will keep things exciting, customizable
- Leveraging technology to boost engagement and sales
The Consumer – What You Need to Know
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- Wine leads alcohol consumption
- Wine is most popular for drinking at home
- The majority of home drinkers do so because it’s relaxing
- 79% of home drinkers drink on the weekend
- One in 10 home drinkers consumes multiple types of alcohol when they drink
- Two thirds of home drinkers do so while watching TV
Alcoholic Beverage Consumption
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- Wine leads alcohol consumption
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- Figure 16: Alcohol consumption, January 2018
- Women make up the largest share of wine and cocktail drinkers
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- Figure 17: Share of alcohol consumption, by gender, January 2018
- Wine is most likely to retain drinkers as they age
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- Figure 18: Share of alcohol consumption, by age, January 2018
- Wine/cocktails are consumed by a larger percentage of higher earners
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- Figure 19: Share of alcohol consumption, by HH income, January 2018
Consumption Location
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- A higher percentage of consumers drink at home than away from home
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- Figure 20: Alcohol consumption location – Any alcohol, January 2018
- Wine is popular for drinking at home
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- Figure 21: Consumption location, by alcohol type, January 2018
- Youngest respondents are more likely to drink away from home
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- Figure 22: Alcohol consumption location – Any alcohol, by age, January 2018
- Respondents from HHs earning less than $50K are significantly more likely to drink at home
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- Figure 23: Alcohol consumption location – Any alcohol, by HH income, January 2018
Reasons for Drinking at Home
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- The majority of home drinkers do so because it’s relaxing
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- Figure 24: Reasons for drinking at home, January 2018
- Young drinkers like the ease of staying at home
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- Figure 25: Reasons for drinking at home, by age, January 2018
Consumption Occasions
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- At-home drinkers primarily seek relaxation
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- Figure 26: At-home drinking occasions, January 2018
- Sports-focused occasions have the greatest chance of appealing to men
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- Figure 27: At-home drinking occasions, by gender, January 2018
- Older consumers are more likely to pair alcohol with meals
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- Figure 28: At-home drinking occasions, by age, January 2018
- Higher-income earners are more likely to drink alcohol with a meal
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- Figure 29: At-home drinking occasions, by HH income, January 2018
Alcohol Types Associated with Various Occasions
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- Wine leads for a relaxing evening at home, pairing with food
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- Figure 30: Correspondence Analysis – Alcohol type per occasion, January 2017
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- Figure 31: Alcohol type per occasion, January 2017
- Relaxing evening at home
- Beer is strongly associated with casual occasions and sports
- Spirits and sparkling wine have strongest celebration association
- Celebration
Alcohol Behaviors
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- Weeknight/weekend
- The majority of home drinkers drink on the weekend
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- Figure 32: Drinking behaviors – weeknight/weekend, January 2018
- Close to half of men drink alcohol on weeknights
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- Figure 33: Drinking behaviors – weeknight/weekend, by gender, January 2018
- Drinking behaviors
- One in 10 home drinkers drinks multiple types of alcohol when they drink
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- Figure 34: Drinking behaviors – Behavior, January 2018
- Men are twice as likely to drink multiple types of alcohol in a night
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- Figure 35: Drinking behaviors – Behavior, by gender, January 2018
- Younger drinkers are more likely to drink multiple kinds of alcohol
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- Figure 36: Drinking behaviors – Behavior, by age, January 2018
- Black drinkers are open to multiple drink types
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- Figure 37: Drinking behaviors – Behavior, by race, January 2018
Technology and Drinking at Home
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- Two thirds of home drinkers do so while watching TV
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- Figure 38: Technology and drinking at home, January 2018
- Men are more likely to be engaged with tech while drinking at home
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- Figure 39: Technology and drinking at home, by gender, January 2018
- Under 45s are most likely to be engaged with tech while drinking at home
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- Figure 40: Technology and drinking at home, by age, January 2018
- Tech may be a good means of resonating with Black drinkers
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- Figure 41: Technology and drinking at home, by race, January 2018
Hosting a Party/Social Gathering
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- Half of party hosts provide multiple kinds of alcohol
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- Figure 42: Hosting attitudes and behaviors, January 2018
- Men are more likely to be interested in buying alcohol in bulk
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- Figure 43: Hosting attitudes and behaviors, by gender, January 2018
- Younger entertainers are incentivized by bulk purchase options
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- Figure 44: Hosting attitudes and behaviors, by age, January 2018
- Lower-earning hosts are less likely to provide multiple types of alcohol
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- Figure 45: Hosting attitudes and behaviors, by HH income, January 2018
- Alcohol and food pairing can appeal to Asian hosts
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- Figure 46: Hosting attitudes and behaviors, by race, January 2018
- Price incentives and convenience hits the mark for hosts
- Wine leads for party guests
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 47: Total US sales and forecast of beer, at current prices, 2012-22
- Figure 48: Total US sales and forecast of beer, at inflation-adjusted prices, 2012-22
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- Figure 49: Total US sales and forecast of wine, at current prices, 2012-22
- Figure 50: Total US sales and forecast of wine, at inflation-adjusted prices, 2012-22
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- Figure 51: Total US sales and forecast of distilled spirits, at current prices, 2012-22
- Figure 52: Total US sales and forecast of distilled spirits, at inflation-adjusted prices, 2012-22
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