Despite ongoing economic pressures on consumers and mounting challenges across the global On-Premise, there remains significant potential for drinks brands in the sector.
Graeme Loudon, Global On-Premise Insights Leader at NIQ, draws on insights from the latest REACH study to explain why success will depend on adapting to fundamental shifts in consumer behaviour and what businesses should focus on in the process.
Why fewer visits are creating higher-value occasions
The global On-Premise has been navigating difficult conditions for some time, with global economic pressures affecting both consumers and businesses, compounded by a range of local market factors. Our newly released REACH 2026 – an exclusive study analysing consumer habits and needs across 46 countries – backs up this anecdotal evidence with robust data. Total visits are down 5.0% year on year, which translates into similar declines in the volumes of key categories such as beer and spirits across major markets. Having persisted for some time, it is now clear that these pressures are here to stay.
But REACH brings some encouraging news. There is clear evidence of an enduring global appetite for eating and drinking out. After all, the recently concluded FIFA World Cup showed that the challenge is not persuading people to leave home: when they are given a compelling reason to go out, they respond by filling pubs and bars around the globe. Around three in five consumers still visit the On-Premise every week, a figure driven particularly by younger consumers, with Gen Z being 11 percentage points (pp) more likely than average to do so. Meanwhile, 57% say they would feel lost or disappointed if they could no longer go out. And this enthusiasm is not fading either. More than one in five On-Premise users plan to visit venues more often over the next three months, compared with just 14% who expect to go out less. Despite this appetite, however, volumes fell significantly in the 12 months to April 2026. Combined with people’s desire to go out, this data paints a picture of an On-Premise with strong underlying potential, but one that is no longer driven by frequent visits.
Instead, growth increasingly depends on spend, which is to be on the up. People may be going out less often, but they are making those occasions count. They are concentrating their spending on fewer, higher-value and more intentional experiences, prioritising moments that feel special, that create lasting memories, and that justify the expense. Suppliers and operators that can extend their presence beyond traditional On-Premise settings and tap into these high-engagement occasions have a significant opportunity to drive both reach and volume. To succeed, however, they must ensure they deliver exactly what consumers want, when and where they want it. Businesses cannot wait for the old model to return, they need to adapt to a new definition of going out.
Mindful adaptation
This process of adaptation must also reflect a fundamental shift in consumers’ relationship with alcohol: mindful alcohol consumption, with more than three in five consumers now actively moderating their intake. It is crucial to understand that moderation is not necessarily a negative for the industry. Instead, it should be viewed as an occasion multiplier (in fact, operators are already adapting their offer to meet the needs of these more mindful drinkers).
To capture this opportunity, however, businesses must appreciate just how nuanced this shift in consumer behaviour is. Choosing no and low alcohol is rarely a binary decision. Many drinkers who moderate their imbibing still choose full-strength alcohol for selected occasions (particularly high-energy, celebratory moments) while opting for mid-strength, lower-ABV or alcohol-free alternatives during more relaxed or everyday occasions. So, the broader trend the On-Premise needs to recognise is that moderation is changing how people engage with alcohol, not simply how much of it they consume. Drinkers increasingly want to pace themselves so they can stay out for longer and make the most of the fewer occasions they choose to spend in the On-Premise.
Making controlled enjoyment easy by building a portfolio that caters to this need will be key to unlocking consumer spend. Winning the initial order remains essential, but the real growth opportunity lies in securing the “another one” moment. This can be achieved by offering compelling mid-strength and lower-ABV drinks that allow consumers to pace themselves without stepping away from the occasion, or by integrating alcohol-free options that can be alternated with full-strength serves. Whatever the approach, success depends on recognising how today’s consumers want to manage their drinking while still enjoying the full social experience of going out.
A new premium
Capturing the attention of On-Premise consumers also depends on offering products that align with their evolving definition of a premium experience. Despite continued pressure on disposable incomes, more than half of consumers are still willing to pay more for a better-quality drink. The key question here is what consumers now mean by “higher quality”. The idea of premiumisation interpreted as “less but better” remains relevant, but it has become more nuanced as consumers grow increasingly selective about discretionary spending.
Essentially, quality and premium are no longer defined solely by what is in the glass: the overall drinking experience is now just as important as the product itself. While perceptions of value are inevitably personal, factors such as service, atmosphere and execution all play a significant role in defining them. Premium is no longer simply a product attribute; it is the combination of an exceptional drink and an experience that the venue delivers in the moment.
Overall, drinkers remain willing to trade up, but only when they believe the overall experience justifies the additional spend. For brands and operators, this means delivering not only a high-quality product, but also paying close attention to every aspect of what is delivered alongside it, from flawless execution to creating memorable moments that make the occasion feel worthwhile.
Making it easy
Simplification is another important, yet often overlooked, opportunity for businesses looking to capture consumers’ attention over the coming months. REACH shows that when consolidating their drink choices in the On-Premise, two thirds of people opt for simpler and more accessible drinks, while nearly three quarters prefer options they perceive as more palatable and easy to drink.
This does not mean consumers have lost their appetite for innovation or more complex serves. On the contrary, these continue to play an important role, particularly among higher spenders, who are more likely to seek out unusual drinks and novel experiences. The real lesson is that simplification is about the journey to the drink, not the drink itself. Even complex serves must be easy to understand and order.
Trust plays a role in the process, too. On-Premise users are more likely to choose drinks they know and trust, whether because of their quality, consistency or overall reputation. For brands and operators, building and maintaining trust is therefore a powerful competitive advantage. If a drink is inconsistent between venues, difficult to identify, or fails to deliver the expected quality, that trust can quickly be lost. The challenge is to deliver serves that feel simple and accessible while retaining the premium qualities that consumers value.
While visits and volumes are down across many parts of the On-Premise, pubs, bars and restaurants continue to hold strong appeal around the world. The industry, however, must recognise that consumer behaviour has fundamentally changed, and old habits are unlikely to return. Achieving success requires strategies grounded in robust evidence of consumer needs rather than assumptions based on past behavioural trends. To grow both value and volume, suppliers and operators need to understand this new reality and identify the factors that motivate consumers to go out and invest their hard-earned money in the On Premise experience.
Understand changing On-Premise behaviour
NIQ’s REACH survey offers a comprehensive suite of tools for On Premise businesses to make informed decisions and drive success. It illuminates eating and drinking behaviours, offering valuable in-market insights and benchmarking for targeted consumer outreach enables businesses to address key questions around category, channel, and occasion, and to optimise their sales and marketing strategies.
To explore how NIQ’s research can enhance your strategies or to learn more about NIQ’s consumer insights for brands, operators, and suppliers, get in touch with out experts.
