New research from IRI, which recently merged with The NPD Group, reveals elevated at-home beverage alcohol consumption is here to stay.
Despite high inflation concerns, retail price increases for beverage alcohol remain more moderate than other CPG categories.
IRI’s 2022 Midyear Alcohol Update, released in August, highlights that many consumers are opting to celebrate and socialize at home, especially given challenges in the on-premise sector, driven by labor shortages, rising prices and reduced menus.
Insights from the new report can enable beverage alcohol sellers and manufacturers to make better merchandising and promotional activity decisions to enhance the buyer 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 emphasize premium products and products with unique attributes in this space.”
Other key findings from the IRI 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 favorites, interesting flavor 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 outlets, promotions will be an essential strategy in retaining customers.
- Ready-to-drink cocktails are a growth opportunity, but brands need to have a point of differentiation.
- Beverage marketers 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.
Find the full report on IRI’s website here.
For more information om IRI, visit IRIWorldwide.com.
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