New research from IRI suggests elevated at-home consumption of alcohol is here to stay, with consumers opting to celebrate and socialise in their homes given the challenges in on-premise, driven by labour shortages, rising prices and reduced menus.
Despite high inflation, retail price increases for alcohol remain more moderate compared to other CPG categories.
IRI’s 2022 Midyear Alcohol Update offer insights on how retailers and manufacturers can make better merchandising and promotional activity decisions to enhance the shopper experience and drive growth and profitability.
“Consumption trends continue to fluctuate with the impact of supply chain challenges and rising inflation, but opportunities for growth remain,” said Scott Scanlon, executive vice president of the Beverage Alcohol Vertical at IRI.
“This report provides an outlook on the state of the beverage alcohol industry and areas ripe for innovation. Consumers are looking to indulge and create entertaining experiences at home, and retailers should emphasise premium products and products with unique attributes in this space.”
Other key findings from IRI’s consumer research revealed:
- As consumers adopt healthier habits, better-for-you beverage alcohol options and alternative alcohol products continue to gain traction
- New twists on familiar favourites, interesting flavour combinations and contemporary claims are popular with consumers
- Premium beer and wine and super-premium spirits continue to drive growth
- E-commerce remains a viable channel for beer
Implications and opportunities for growth include:
- With increasing inflation and rising competition among retail outlets, promotions will be an essential strategy in retaining shoppers
- Ready-to-drink cocktails are a growth opportunity, but brands need to have a point of differentiation
- Marketing should focus on giving consumers options and inspiration for at-home entertaining occasions
- E-commerce is an integral part of a consumer’s shopping experience and is important for omnichannel success
