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Global Consumer Trends and Key Consumer Targets in Alcoholic
Beverages
Sample Pages
Reference Code: CS0608IS
Publication Date: January 2015
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Reasons to buy this report
‘Global Consumer Trends and Key Consumer Targets in Alcoholic Beverages’ provides a comprehensive overview of the
alcoholic beverage landscape, analyzing the regulatory and consumer drivers to identify the best opportunities and
strategies.
Consumer attitudes to drinks The report offers a breakdown of consumers’ view of the
health proposition of five different drinks categories –
carbonated drinks, fruit juice, dairy drinks, bottled water,
and tea and coffee – as well as highlighting which common
drinks ingredients consumers are concerned about.
Future outlook The report provides insight to highlight the "so what?"
implications behind the data, and analysis of how the
need states of consumers within the industry will evolve in
the short-to-medium term future.
Recommended actions Strategic recommendations of how to capitalize on the
evolving consumer landscape are offered, allowing
product and marketing strategies to be better aligned with
the leading trends in the market.
Product innovation examples Examples are provided of innovative international and
country-specific functional drinks product development
within five drinks categories, with analysis of how these
products effectively target the most pertinent consumer
need states.
Identify key consumer targets Key demographic groups driving beverage consumption are
identified. Canadean’s unique consumer data sizes the
percentage of beverage markets that are driven by specific
need states, by age and gender.
Market sizing Beverage market value and volumes are given for leading
countries across the globe. The report highlights which
countries and categories are driving growth and where
growth is stalling.
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Executive Summary: Market Context
Both volume and value growth are being driven by emerging economies such as China and India
Across the alcoholic beverages market there is high growth in all
categories in China, which is also the largest Beer market in terms
of volume. India is also a rapidly expanding market, presenting an
attractive opportunity for investment, with largest for cast growth
across the Beer and Spirits sectors.
In Wine, the US and Europe still account for the largest market
share, yet these developing markets are becoming stagnant, with
some high-consumption countries such as France where the overall
volume of Wine consumed is declining.
Speciality Spirits are the most popular global Spiri ts, followed by
Whiskey and Vodka. Much of the Speciali ty Spirits market is driven
by emerging markets where local and regional alcoholic beverages
remain popular.
In value terms, Spirits is the most valuable market, followed by Beer
and then Wine, with Spirits and Beer both forecast high levels of
growth in the US and China, presenting opportunities for
manufacturers to target these expanding markets.
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Older males are driving the alcoholic beverages market as women are under-consuming across all categories
Men are driving the alcoholic beverage market, and over-
consuming in every category, more so in Beer & Cider and Spirits.
In Beer, it is older consumers who are over-consuming,
specifically men, and marketers should provide products
formulated specifically to encourage consumption among aging
consumer who are more concerned in regards to health into later
life.
Across the Wine market i t is again older consumers who are
driving the market, and as health is more influential in the Wine
category marketers must focus on promoting the beneficial
aspects of consumption to reassure aging consumers, particularly
in emerging economies with high growth and rapidly again
populations. The gender spli t is more even, highlighting
opportunities to target both men and women.
In Spirits it is consumers aged 25-44 who are driving growth, as
they seek products offering superior experiences and enjoyment,
as older consumers limit consumption of stronger alcohol. It is
men who over-consume Spirits, yet there are growing numbers of
female consumers, particularly in emerging economies.
Executive Summary: Consumer Demographics
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Health is becoming increasingly influential across emerging markets Focusing on providing healthier options is essential for growth in
emerging markets. Consumers in China are highly influenced by
health across all alcoholic beverage categories and it is vital that
manufactures respond to the demand for better for you products.
As Wine becomes more popular in Brazi l, consumers, particularly
women, are seeking Wines which promote better health. Marketers
can target this burgeoning market by highlighting the beneficial
aspects of consumption and the link between antioxidants in Red Wine
and overall health.
In more developed markets Health remains a niche motivator of
consumption. However, as consumers become more health-conscious
globally, manufacturers of Beer and Spirits should be prepared to
innovate and provide products meeting the growing desire for healthier
options.
Ultimately, the Health trend will become increasingly influential in
both developed and emerging markets. In these emerging markets
manufactures should focus on better for you options. In more
developed markets, though health is growing in importance, other
concerns will always remain more vital, such as indulgence and value.
Executive Summary: Health in Alcoholic Beverages
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Recreating the on-trade experience is vital to drive at-home consumption
One of the main inhibitors of on-trade consumption is price,
highlighting the necessity to manufacturers of providing lower-priced
offerings to encourage a greater number of consumers to drink
outside of the home.
The biggest challenge faced by off-trade manufacturers and retailers
is to drive the number of consumers drinking in the home. By
recreating the on-trade experience – through improving quality,
memorable positioning, and ensuring that at-home options do not
compromise on the social aspect of drinking – manufacturers can
encourage higher levels of off-trade consumption.
Many consumers are also hesitant to try new drinks out of the home
due to scepticism over taste, and manufacturers' must overcome
these consumer perceptions by promoting the indulgence of new
flavors. Craft offerings are also increasingly popular, and marketers
should ensure that any such products are marketed around the
quality of ingredients and formulation and how this relates to a more
enjoyable overall experience.
Of consumers who rarely sample new drinks out of the home, many
state that there are no new offerings they enjoyed, highlighting
opportunities to encourage consumption through more diverse
ranges of flavors.
Executive Summary: Defending Share of Throat
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Targeting new audiences and occasions
Targeting new audiences and demographics is vital to sustain
and promote growth across the alcoholic beverages market.
Manufacturers must innovate with products that meet evolving
consumer needs such as the growing desire for more indulgent
offerings across the Beer & Cider market.
Manufacturers can also increase consumption by targeting new
occasions via food pairings. By positioning specifically
formulated Beer products to compliment food occasions,
marketers can encourage consumers to choose Beer over Wine
for eating with a meal.
Increasing the number of premium gifting occasions can also be
successful in driving market growth, as can increasing the level
of connection consumers fell to a brand. As the craft movement
is becoming more popular, consumers want products with more
careful formulation and smaller-scale production. Leveraging the
connection to less mass-produced options and exclusivity of
such brands will appeal to consumers seeking innovative and
novel alcoholic beverage options.
Fusion flavors will also become increasingly popular as
consumers seek more unusual and novel tastes, sampling new
and exciting experiences through alcohol.
Executive Summary: Recommended Actions
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Contents
Introduction & Overview
Market Context – Market Volume
Market Context – Market Value
Consumer Demographics
Consumer Analysis – Beer & Cider
Consumer Analysis – Wine
Consumer Analysis – Spirits
Health in Alcoholic Beverages
Defending Share of Throat – Lessons for the On-Trade & Off-Trade
Recommended Actions
Appendix
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Wine: Europe is still the largest market but is becoming stagnant
The Wine market across Europe and the US is
highly developed, thus there is slow growth but a
large consumer-base. Although the market is
somewhat stagnant, positioning products at lower
prices or offering innovation can drive
consumption.
China is a large and growing market and is one
of the most attractive for manufacturers due to its
huge consumer base. Focusing on premiumization
and quality will encourage higher consumption
levels.
Although France has high volume consumption,
the market has shown negative growth from 2009-
2013 at a rate of -12.8%, highlighting the need to
look at growth not just market size. Negative
consumption growth means that positioning is
vitally important and for new products, France may
not present the best opportunity.
Spain also witnessed negative growth, at -3.5%:
recessionary markets will lead to less
consumption, creating opportunities for lower
priced, private label and budget wines.
Country Volume 2013
Million Liters
USA XX
Italy XX
Germany XX
France XX
UK XX
China XX
Argentina XX
Spain XX
Russia XX
Romania XX
Wine market by volume (million liters) in 2013
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Manufacturers should target Older Young Adults and Pre-Mid-Lifers with
more premium offerings
Older Young Adults are over consuming Spirits by XX%, and manufacturers should focus on targeting the growing
desire among this demographic for Spirits which meet their individual taste preferences.
As Individualism is a big concern among 25-34 year olds, marketers can leverage not only the demand for new and
innovative flavors, but the desire to connect to a brand through exclusivity, and less mass-produced and generic
offerings in Spirits, particularly in developed markets.
Early Young Adults
Older Young Adults
Pre-Mid Lifers Mid-Lifers Older
Consumers
XX XX XX XX XX
Across the alcoholic beverages market, Older Consumers are an attractive target for manufacturers. Due to the large
overall size of the demographic, and with life-expectancy rising globally, encouraging consumption among aging
consumers into later life is increasingly important.
In the Beer market, manufacturers must do more to target under-consuming younger demographics, promoting value
through focusing on lower-cost options.
In Wine, marketers can focus on emphasising the social aspects of drinking with friends in both on-trade and off-
trade environments
In Spirits, manufacturers should focus on healthier formulations to appeal to Mid-Life and Older Consumers
concerned with health and quality to encourage higher consumption among a demographic with more disposable
income
Global Spirits over and under-consumption by age-group, 2013
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Changing Lifestages is driving the Lager market while Indulgence is most
influential in Beer & Ale and Cider
Lager: 1. Changing Lifestages XX%
2. Better Value for Money XX% 3. Indulgence XX%
Beer & Ale: 1. Indulgence XX%
2. Personal Space & Time XX% 3. Better Value for Money XX%
Cider: 1. Indulgence XX%
2. Personal Space & Time XX% 3. Experience Seeking XX%
Lager is by far the most popular category in the Beer market, and Changing Lifestages are driving consumption
across this sector, as consumers seek products which meet their lifestage needs. This includes more premium options
for consumers with higher disposable income levels who desire quality products to reflect their connoisseurship. Aging
consumers will seek lower calorie options due to health concerns over consumption into later li fe, and manufacturers
should respond by altering formulation to provide better for you options.
Though Beer & Ale and Cider are smaller categories overall, the craft movement and increasing variety of Ciders is
driving rapid growth in these markets. Indulgence is by far the most influential motivator as consumers seek products
which offer the best tastes and flavors, in two markets which have a vastly diverse range of options. Flavored Cider and
innovative formulations in Beer & Ale are driving the market with novel combinations of indulgent tastes, which are
becoming more popular among women and driving occasions in an under-consuming demographic.
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Manufacturers must diversify their approaches due to differing consumer
needs across the Spirits market
Brandy:
Changing Lifestages XX%
Indulgence XX%
Manufacturers should focus on providing a
variety of indulgent products to meet the lifestage
needs of consumers.
Marketers should promote Indulgence to
encourage consumption among a younger
demographic who are less likely to opt for
Brandy.
Tequila:
Fun & Enjoyment XX%
Indulgence XX%
As Tequila is often consumed as a shot,
manufacturers can leverage the Fun & Enjoyment
associated with drinking with friends.
Drinking Tequila straight is becoming more
popular, and marketers should promote more
indulgent tastes and innovate to provide smoother,
less harsh flavors to encourage consumption.
Gin:
Individualism XX%
Indulgence XX%
The popularity of Gin is increasing, particularly
among a younger demographic, as manufacturers
have attempted to reinvent the image of the drink.
Consumers are seeking Gin which reflects their
individual taste preferences and will seek the latest
innovative flavors in a burgeoning category which
has the potential for large growth.
Rum:
Indulgence XX%
Fun & Enjoyment XX%
Rum is most often consumed with a mixer, and
consumers seek the most indulgent flavors and
drinks combinations.
Consumers are also concerned with Fun &
Enjoyment, and marketers can promote the
enjoyable and social aspect of consumption with
friends, to encourage sales.
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Health is becoming increasingly influential across the alcoholic beverages
market
Although the alcohol market in general will never be a category
driven by the desire for health and wellness, there are many
markets and many sectors where the desire for healthier options is
driving growth. The following section will look at the growing
influence of Health across the alcohol market as a whole, and
analyze which consumers present the most attractive opportunities
for marketers.
By fully understanding which demographics are driven by the desire
healthier options, and through identifying the countries where these
products are most popular, manufacturers can develop entry
strategies around more healthy options.
However, many consumers will not be influenced by Health, and it is
important the manufacturers identify the key areas for growth,
without wasting time and investment on consumers who are
unconcerned with better for you alcohol options.
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Lessons for the off-trade: Memorable positioning and a recreation of the
on-trade experience will drive off-trade sales
To further drive sales in off-trade alcohol retail, manufacturers need to ensure that they stay aware of the latest
developments in the on-trade market, and also innovate to encourage a higher number of occasions. By providing
consumers novel products which offer both value and experience, marketers and manufacturers can encourage
consumption in the home, and take share of throat away from bars.
The Austin Brewery Peacemaker offers a 99 can pack of Beer. Despite its seemingly novel positioning, it
actually meets many of the most essential consumer needs.
• Firstly, the essence of the ‘bulk-buy’ offers value to consumers seeking lower-priced alcohol, and here the
product is much cheaper than buying eighteen 6-packs of beer, saving consumers money
• Secondly, whi le initial transportation may be difficult, the sheer number of cans offers convenience as it
means less return trips to the supermarket, and the long shelf-life means that the product is unlikely to spoil.
• Thirdly, it is positioned to encourage social drinking, aimed at younger consumers for parties and gatherings
with friends, whi le the product itself is memorable due its positioning, and this recall and exposure increases
brand loyalty.
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Focusing on new flavors and craft offerings will drive out-of-home
consumption
Off-trade marketers looking to increase
out-of-home consumption should focus on
providing new and exciting flavors to
consumers.
Craft offerings are also becoming
increasingly popular, and focusing on
smaller-scale production and connection to
a brand will encourage consumers to try
more new offerings out of the home and
lead to brand loyalty.
On-trade manufacturers seeking to gain
share of throat from on-trade offerings
should focus on recreating the on-trade
experience while offering better value.
Many consumers feel that drinking on-
trade is too expensive but do not want to
sacrifice the social aspects of drinking with
friends. Thus marketers should promote
their products as offering value without
compromising on experience.
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Action Points: New ways to target female drinkers
Traditionally, the alcoholic beverage market has
looked to target females through feminine packaging –
usually pink - and sweeter, less harsh flavours. Whilst
women are not always adverse to these colourings
and flavors, a growing number think that such
positioning is outdated and stereotypical.
This does not necessari ly mean that women are
opposed to buying brands offering more ‘feminine’
products, however it does indicate that more subtle
approaches are needed in order to find maximum
success.
As such, manufacturers need to adopt a more
sophisticated approach to targeting females by
combining female-friendly product aspects such as
sweet and fruit-based flavours with more empowering
traits such as promoting strength and independency.
Positioning around social drinking will also help
encourage consumption – for example, moving away
from traditional advertising of women drinking wine at
home and cocktails in bars – as well as showing a
greater number of women drinking beer.
Red Stripe ‘Burst’ is a Rasberry Beer
from Diageo is positioned towards
younger consumers from both
genders. However, the sweet flavor
means it is positioned primarily
towards younger females to
encourage consumption and
acquaint them with the malt flavor
found in classic Red Stripe – creating
brand loyalty and a predilection for
the malt taste of the manufacturer’s
flagship beer.
Vallure Vodka is positioned as a
premium, luxury product, without
employing traditional gender tropes.
The strong prestige image and use of
premium cosmetics influenced gold
packaging targets women in subtler
way than using stereotypical
feminine colours and design, offering
females a more gender neutral
alcohol option.
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Sources and methodology
This report is built on three types of data
ALCOHOLIC BEVERAGES
MARKET DATA • Method: industry partnerships
across the value chain enable a
“brick-by-brick” research
methodology, w ith research built
from brand data upw ards.
• Coverage:
• On-premise and Off-premise
consumption
• Years covered in this report: 2013-
2018
• Four categories:
• Beer & Cider
• Wines
• Spirits
• Flavored Alcoholic
Beverages (FABs)
SURVEY PANEL DATA
• Method: in-depth survey of the
attitudes and consumption habits of
2000 consumers. The survey w as
conducted via our Rew arded
Opinions panel w hich has a reach of
w ell over 100,000 respondents.
• The studies w ere conducted
betw een August and October 2014.
• Coverage:
• UK only
• Years covered in this report:
2014
CONSUMER DATA
• Method: extensive consumption
surveys and consumer group
tracking w hich is fully aligned to
know n market sizing. Consumption
motivations are not mutually
exclusive.
• Fourteen categories:
• Lager
• Beer & Ale
• Cider
• Still Wine
• Sparkling Wine
• Fortif ied Wine
• Brandy
• Gin
• Liqueurs
• Rum
• Speciality Spirits
• Tequila
• Vodka
• Whiskey
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Method Overview: Country Coverage
• Country coverage differs between Market Data and Consumer Data. The Market Data presents a global view of market dynamics, whilst the
Consumer Data analyzes in detail the consumer trends in 10 key countries, but with global implications for how marketers should update their product strategies.
• The Market Data used refers to a global market size of 50 countries.
• Consumer Data used throughout the report is for 10 countries only, but the consumer behaviors tracked reveal global opportunities.
• Survey Panel Data used throughout is for the UK only.
MARKET DATA: 50 COUNTRIES COVERED TO
ANALYZE MARKET DYNAMICS
CONSUMER DATA: 10 KEY COUNTRIES COVERED
IN DETAIL TO IDENTIFY GLOBAL CONSUMER BEHAVIORS
• Argentina • Australia • Austria • Belgium • Brazil • Bulgaria • Canada • Chile • China • Colombia • Czech Republic • Denmark • Egypt • Finland • France • Germany • Greece • Hong Kong • Hungary
• India • Indonesia • Israel (Hot Drinks
only) • Italy • Japan • Malaysia • Mexico • Netherlands • New Zealand • Norway • Peru • Philippines • Poland • Portugal • Republic of
Ireland • Romania • Russia
• Saudi Arabia • Singapore • Slovak Republic • South Africa • South Korea • Spain • Sweden • Thailand • Turkey • Ukraine • United Arab
Emirates • UK • US • Venezuela
• Brazil • China • France • Germany • India • Italy • Russia • Spain • UK • US
• Analyzed through: • 33 Consumer
Groups • 20 Consumer
Motivations
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