Moderation is reshaping cocktail consumption in Britain, NIQ’s new Mixed Drinks Report reveals – and it brings opportunities as well as challenges for operators and suppliers.
Where mixed drinks can grow in a moderating market
The expert new research provides essential insights to help businesses achieve growth in a big but competitive sector. NIQ’s data shows the On-Premise cocktail market was worth £733m in the 12 months to March, with year-on-year growth roughly in line with inflation at 3.0%. Well over half (56%) of spirits consumers drink cocktails at least weekly, and two in five (40%) are drinking more of them than they did a year ago.
Cocktail consumers go low
However, cocktails are being shaken up by the trend for moderation in alcohol consumption. NIQ’s REACH data has indicated that 44% of all consumers are drinking less alcohol than they were 12 months ago, with the need to save money and improve health the two biggest factors.
However, cocktails are being shaken up by the trend for moderation in alcohol consumption. NIQ’s REACH data has indicated that 44% of all consumers are drinking less alcohol than they were 12 months ago, with the need to save money and improve health the two biggest factors.
This moderation is directly impacting cocktail demand. One effect has been to make people more aware of alcoholic content, and nearly two thirds (64%) say they would like to see more low or medium strength options when they go out. The number rises to 73% among 18- to 34-year-olds – a generation that is particularly conscious of its health and spending.
With cocktail consumers increasingly likely to choose lower strength drinks over higher ones, there is scope for brands to align with the motivations behind moderation. Portfolios also need to be flexible enough to cater for those who wish to move between higher and lower strength drinks over the course of a visit.
Alcohol-free spirits mix things up
The market is also being altered by interest in non-alcoholic spirits. NIQ’s consumer survey found that social acceptance of these alternatives is rising, and 72% of spirits drinkers now feel confident enough to order one. However, fewer people think non-alcoholic spirits have a good range (62%) or like the taste (54%).
There are several other barriers to adoption of alcohol-free spirits. Around a third (35%) of those who don’t yet drink them say they prefer soft drinks, while 34% don’t see what they add to a drink and 22% consider them poor value for money. It’s clear that more work needs to be done to improve the reputation of this segment.
More positively, people who try non-alcoholic cocktails are often converted. Half (51%) of consumers have tried them and would do so again, while only 13% wouldn’t return to them after their experience.
Where and when to win
NIQ’s Mixed Drinks Report highlights ways to capitalise on interest in no and low alcohol cocktails. One is through menus, and restaurant and bar operators are exploring new ways to help drinkers moderate without compromising the quality of their cocktail experiences.
Another is by targeting the right daypart. Some of the biggest recruitment potential lies in lunchtime and mid-afternoon occasions, when guests who typically don’t drink alcohol during the day might be persuaded to try a no or low alternative.
The view from NIQ
“Moderation is reshaping many aspects of the global On-Premise and Britain’s mixed drinks market is no exception. While reduced alcohol consumption can cause some issues for venues and brands, it also brings the chance to broaden cocktail occasions and keep consumers loyal to the category. Understanding moderators’ motivations, delivering the right combination of quality and value and improving visibility will be three of the keys to achieving growth in the no and low space. Our Mixed Drinks Report is the ideal foundation for strategies that embrace moderation as an opportunity rather than a threat.”
Rachel Weller, UK Commercial Lea, BevAl On Trade, NielsenIQ
Understand changing cocktail demand
NIQ’S Mixed Drinks Report provides more essential insights into the attitudes of moderators, helping businesses pinpoint opportunities and optimise brand positioning, serve, pricing, ranging and more. Based on a survey of 1,000 nationally representative spirits consumers, and enhanced with NIQ’s latest sales and stocking data, it delivers analysis of many other major aspects of mixed drinks, with takeaways for increasing habituality, widening occasions and influencing orders with digital tools.
Get in touch with NIQ experts to learn more
