The liquor landscape is being rapidly reshaped by omnichannel strategies that engage consumers across physical and digital channels, and brands that don’t adapt risk getting left behind.
Webinar insights
Insights from NIQ & The Drinks Association webinar
That was one of the top takeaways from an exclusive recent NIQ webinar co-hosted with The Drinks Association, where NIQ’s Industry Insights Lead for Beverage Alcohol Tom Graham revealed how suppliers and operators can meet the needs of a new wave of moderating consumers. Drawing on NIQ’s global REACH, OPUS, OPM and Omnishopper solutions, the webinar provided the sharpest insights yet into one of the most important dynamics of recent times in Australia’s On-Premise and Off-Premise.
Changing habits
The latest REACH research highlights the scale of the moderation trend. Well over a third (38%) of consumers say they drink occasionally but have become more mindful of their consumption, while just over a fifth (22%) used to drink regularly but now choose to drink less.
These attitudes correlate with sales. NIQ’s Omnishopper data indicates that 69% of households have bought liquor in the Off-Premise in the last 12 months – down by 3 percentage points in two years. The average number of liquor shopping occasions has fallen too, from 15.9 per year in 2024 to 14.1 now.
However, it’s important to remember that moderation doesn’t necessarily mean abstention. Most consumers still want to drink, and On-Premise visitation remains healthy, with 32% of Australian consumes drinking out weekly – a year-on-year increase of 3 percentage points. But there’s no doubt that visitors’ habits have changed, and mindful consumption has become the new normal. For brands, the big challenge now is to work out what this means for purchasing decisions.
The why and who of moderation
Consumers moderate their intake for a complex set of reasons, but NIQ’s webinar revealed that two drivers are particularly powerful. One is cost, and well over a third (38%) told REACH they are motivated to drink less alcohol by saving money. The second is wellness, with 33% reducing their intake to improve their health and wellbeing. Many other factors are at play, like a desire to avoid hangovers, improve sleep quality or be better versions of themselves – and all three of these have increased in importance in the last year.
REACH shows how moderation is being led by younger adults. Nearly half (46%) of those aged 18 to 24 say they have become more mindful of their relationship with alcohol – much more than the figure of 30% among those aged 55+. These younger adults are also far more likely to align themselves with the ‘sober curious’ movement.
As well as focusing on their health, 20 and 30-somethings are also watching their spending more closely. These two forces mean that only 27% of 18-24yr olds now drink out weekly –almost half the number of 25-34yr olds, who are showing clear reengagement with going out (50%). Connecting with these younger adults is going to be vital to long-term brand success.
What it means for drinks
Moderation’s impacts on drinks choices are complex, and data at the webinar indicated how they vary from category to category. Spirits consumption has fallen significantly in most channels, and wine has lost share too. In the On-Premise, Ready to Drink (RTD) products have been a major beneficiary, with previous NIQ research showing their sales have jumped by more than a third in just two years.
Soft and hot drinks have also come into sharper focus, and the number of consumers choosing them has risen by 2.3 percentage points in two years. Some of this growth has come from people who are now ‘zebra striping‘ by alternating between alcoholic and soft drinks when they go out.
Dynamics are also evolving in major categories like beer and cocktails. For example, in retail, sales of mid-strength beer have increased by 9.9% in just two years, at the expense of higher-strength alternatives, while demand for no and low alcohol beers continues to surge. Interest in cocktails remains high, but moderation means that drinkers are reducing their repertoires and increasingly prefer tried-and-trusted classics over newer mixes.
How to win in the new normal
While moderation poses challenges to BevAl brands, it brings major potential too. Brands that can prove they meet people’s new needs – to save money, live healthier, sleep better or improve their self-worth – are well placed to win. They also need to show up for big events that bring consumers out, like Anzac Day and the football World Cup. And they must be ready to capitalise on new breeds of socialising occasions, like ‘soft-clubbing’ nights, by rolling out innovation or rethinking the positioning of long-established drinks.
The key is to turn moderation from a challenge into an opportunity, said Tom Graham at the webinar. “The winners over the next five years won’t be the ones fighting moderation – they’ll be the ones monetising it. It’s not about how we make people drink more, but about how we adapt. The brands we see winning in moderation are the ones who make it easier, more convenient and better value for money.”
NIQ’s powerful combination of sales measurement and consumer research provides The Full View™ of Australia’s beverage alcohol market, helping brands and retailers understand what people buy, why they buy it, and what to do next.
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