Alcoholic Beverage Drinking Occasions - US - March 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Dollar sales of alcohol increase by 3.5% in 2017, rate of growth will slow
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
Figure 2: At-home drinking occasions, January 2018
The opportunities
Wine leads for a relaxing evening at home, pairing with food
Figure 3: Correspondence Analysis – Alcohol type per occasion, January 2017
The majority of home drinkers do so because it’s relaxing
Figure 4: Reasons for drinking at home, January 2018
One in 10 home drinkers drinks multiple types of alcohol when they drink
Figure 5: Drinking behaviors – Behavior, January 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
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
Dollar sales of alcohol increase by 3.5% in 2017, rate of growth will slow
Figure 6: Total US sales and forecast of alcoholic beverages, at current prices, 2012-22
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
Beer dominates alcohol sales
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
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 
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
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 
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?
Lighter offerings bring alcohol in closer alignment with interest in health
Growth in cans contributes to portability/versatility
Figure 13: Alcohol launches, by pack type, 2013-18*
Premium positioning drives engagement, higher spend
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?
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 
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 
Wine leads alcohol consumption
Figure 16: Alcohol consumption, January 2018
Women make up the largest share of wine and cocktail drinkers
Figure 17: Share of alcohol consumption, by gender, January 2018
Wine is most likely to retain drinkers as they age
Figure 18: Share of alcohol consumption, by age, January 2018
Wine/cocktails are consumed by a larger percentage of higher earners
Figure 19: Share of alcohol consumption, by HH income, January 2018
CONSUMPTION LOCATION
A higher percentage of consumers drink at home than away from home
Figure 20: Alcohol consumption location – Any alcohol, January 2018
Wine is popular for drinking at home
Figure 21: Consumption location, by alcohol type, January 2018
Youngest respondents are more likely to drink away from home
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
Figure 23: Alcohol consumption location – Any alcohol, by HH income, January 2018
REASONS FOR DRINKING AT HOME
The majority of home drinkers do so because it’s relaxing
Figure 24: Reasons for drinking at home, January 2018
Young drinkers like the ease of staying at home
Figure 25: Reasons for drinking at home, by age, January 2018
CONSUMPTION OCCASIONS
At-home drinkers primarily seek relaxation
Figure 26: At-home drinking occasions, January 2018
Sports-focused occasions have the greatest chance of appealing to men
Figure 27: At-home drinking occasions, by gender, January 2018
Older consumers are more likely to pair alcohol with meals
Figure 28: At-home drinking occasions, by age, January 2018
Higher-income earners are more likely to drink alcohol with a meal
Figure 29: At-home drinking occasions, by HH income, January 2018
ALCOHOL TYPES ASSOCIATED WITH VARIOUS OCCASIONS
Wine leads for a relaxing evening at home, pairing with food
Figure 30: Correspondence Analysis – Alcohol type per occasion, January 2017
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
 WEEKNIGHT/WEEKEND
The majority of home drinkers drink on the weekend
Figure 32: Drinking behaviors – weeknight/weekend, January 2018
Close to half of men drink alcohol on weeknights
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
Figure 34: Drinking behaviors – Behavior, January 2018
Men are twice as likely to drink multiple types of alcohol in a night
Figure 35: Drinking behaviors – Behavior, by gender, January 2018
Younger drinkers are more likely to drink multiple kinds of alcohol
Figure 36: Drinking behaviors – Behavior, by age, January 2018
Black drinkers are open to multiple drink types
Figure 37: Drinking behaviors – Behavior, by race, January 2018
TECHNOLOGY AND DRINKING AT HOME
Two thirds of home drinkers do so while watching TV
Figure 38: Technology and drinking at home, January 2018
Men are more likely to be engaged with tech while drinking at home
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
Figure 40: Technology and drinking at home, by age, January 2018
Tech may be a good means of resonating with Black drinkers
Figure 41: Technology and drinking at home, by race, January 2018
HOSTING A PARTY/SOCIAL GATHERING
Half of party hosts provide multiple kinds of alcohol
Figure 42: Hosting attitudes and behaviors, January 2018
Men are more likely to be interested in buying alcohol in bulk
Figure 43: Hosting attitudes and behaviors, by gender, January 2018
Younger entertainers are incentivized by bulk purchase options
Figure 44: Hosting attitudes and behaviors, by age, January 2018
Lower-earning hosts are less likely to provide multiple types of alcohol
Figure 45: Hosting attitudes and behaviors, by HH income, January 2018
Alcohol and food pairing can appeal to Asian hosts
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
Data sources
Sales data
Fan chart forecast
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET 
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
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
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