On Premise alcohol consumption falls 23% as soft drinks gain popularity

The On Premise is witnessing a marked decrease in alcohol consumption, with a 23% decline in the UK, resulting in a growing appetite for soft drink options, according to CGA by NIQ’s leading OPUS data. Among the 18-24 year old demographic, almost a third (30%) reported drinking less than they did a year ago, with 13% completely abstaining from alcohol. This demographic is also “more health-conscious”, with three quarters striving to lead a healthier lifestyle (74%) and actively seeking to make environmentally conscious choices (73%). However, this reduction in alcohol intake has not negatively impacted younger consumers’ engagement with the On Premise sector. On the contrary, 86% of 18-24 year old consumers have visited the On Premise in the last three months, 60% going out weekly, (over-indexing by +17pp versus the average for all GB consumers). According to CGA, these statistics “accentuate a compelling opportunity for drink brands and venue operators to position themselves as the go-to choice by offering beverages aligning with these values to this health-conscious and environmentally aware generation”. It also stated that in doing so, they are well-placed to not only meet the demand for alcohol alternatives, but also build “long-term loyalty among this highly engaged consumer demographic”. Despite the growing preference for non-alcoholic drinks, the total soft drinks sales performance has remained flat. Although certain segments are showing promise, with a +8% year-on-year (YOY) value increase in bars and bar restaurants and a +2.7% YOY value growth in hotels. The data indicates “untapped potential” for soft drinks during higher tempo occasions, especially among younger consumers who are increasingly adopting “zebra striping” – alternating between alcoholic and non-alcoholic drinks throughout the night. In fact, the report stated that 18-24-year-olds are more likely to choose soft drinks in a bar or late-night setting, over-indexing by +6pp versus the average consumer. The most prominent factors driving brand choice include: Habit – 43% soft drink consumers are creatures of habit, always choosing the same drink categories and/or brands. Brand loyalty – 38% of consumers consistently choose their favourite brand. Value for money – An equal % are motivated by value for money as brand loyalty, which does not necessarily mean the cheapest option. Brand quality – A quarter (23%) prioritise brand quality. Menu recommendations and onsite activations – Promotional activities are particularly effective among 18-24-year-olds, who have strong brand loyalty while also being more open to being influenced, (over-indexing by +9pp versus the average consumer). Violetta Njunina, CGA client director, said: “These evolving consumer preferences in the GB On Premise present an exceptional window for soft drink suppliers and venue operators to flourish by supplying to changing demands. “As moderation becomes a key trend, particularly among younger generations, the ability to offer appealing, high-quality, and health-conscious soft drinks is crucial for success. Suppliers who tap into these insights and align their strategies are better positioned to lead in this new era of beverage consumption.“

On Premise alcohol consumption falls 23% as soft drinks gain popularity

However, this reduction in alcohol intake has not negatively impacted younger consumers’ engagement with the On Premise sector

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