Premium has driven growth for years, but trade-offs are becoming more deliberate.
NIQ unpacked the latest signals in a recent webinar, ‘The Future of Premium: Navigating Consumer Trade-offs with Confidence.’
The webinar explored:
- Defining “premium” today
- The premium beverage landscape — performance shifts and drivers
- Why premium isn’t dead — where it still outperforms
- Who is the premium consumer
- Planning to win — in‑outlet execution and bartender advocacy
Here are the key premium shifts explored in the webinar:
New realities of Premiumisation
Watch the webinar, now available on-demand
1. The premium segment has been at the forefront of beverage development for many years
Premium products have steadily increased their share of key beverage categories. While volumes of economy beers in the Off Premise have fallen, those of premium and super-premium brands have risen. Meanwhile in the On-Premise, NIQ’s global REACH research highlights consumers’ growing preference for quality over quantity. With a set amount of money, far more people would choose to buy one or two high quality drinks than four or five cheaper ones.
2. It’s not a surprise that premium is under pressure
While the long-term premiumisation trends have been strong, the segment has been under pressure lately. The COVID-19 pandemic disrupted drinking-out for many months, and the positive sentiment that followed the reopening of hospitality was short-lived. On top of that, high inflation has pushed up costs in many key areas, including energy, food and drink. There has been a knock-on effect on consumers’ spending, with a quarter of On-Premise users in the EMEA region now planning to reduce their spend.
3. Premium-plus is gaining share in a number of categories
There have been some notable exceptions to negative trends in premium spirits lately. NIQ’s OPM solution reveals that premium-plus brands have grown their share of sales in tequila, whiskey, liqueurs and brandy in the UK year-on-year, in volume as well as value terms. In Germany, growth in all of these categories has also been much better in the On-Premise than the Off Premise, a reminder that it is in pubs, bars and other licensed premises where people are most likely to trade up their drinks choices.
4. We need to understand the consumer drivers to trade-up
NIQ’s global consumer research stresses how attitudes towards premiumisation vary substantially from country to country. For example, in some places consumers connect premium or luxury drinks with exclusivity, while in others it’s linked to the standard of presentation. Although some premium cues can work in every market, it’s also important to adapt strategies to local preferences.
5. Storytelling is a vital element of the premium-plus brand make-up
What do premium brands need to focus on in their products? Nidal Ramini, Advocacy Director at Brown-Forman, told the webinar that it’s essential to offer quality ingredients with no compromise, alongside first-class craftsmanship. Storytelling, and connecting people to brands on an emotional level, is vital too.
NIQ’s webinar was presented by George Argyropoulos, Managing Director, On-Premise – EMEA at NIQ, Graeme Loudon, Global Customer Success Lead – On-Premise at NIQ, and special guest Nidal Ramini, Advocacy Director at Brown-Forman.
NIQ’s REACH research delivers expert insights into consumers’ latest On-Premise habits in 43 countries around the world. It includes rich analysis of premiumisation trends to help suppliers and operators optimise strategies and seize opportunities in this space.
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