A resilient and valuable sector

The research provides exceptional insights from 34 countries, incorporating responses from around 27,500 nationally representative On Premise consumers and 525 operators. It shows that while businesses face multiple challenges from rising costs, staffing problems and the cost of living crisis facing consumers, the On Premise is full of great potential for those that understand the latest trends. 

Winning In the On Premise in 2023

REACH flags key steps to successful and future-proofed strategies, including engagement with Generation Z—a cohort that are frequent users of the On Premise, heavily influenced by social media, engaged in ethical issues and ready to experiment in their drinking.

Other crucial dynamics include the spread of global influences, including exciting opportunities in Africa and the rise in Asian influences across the global On Premise. REACH also highlights trends in the competitive spirits category—like tequila overtaking vodka to become the second largest category in the US.

Operator-side REACH research meanwhile reveals the top priorities for operators—including the need for good profit margins in drinks ranging and a desire to improve service and experience for guests. Nearly two thirds (64%) of operators say customer experience is a significant challenge in 2023—which highlights the scope for suppliers to support them with impactful activations, events and staff training.

Following trends to future-proof success

Suppliers can also help operators influence consumers’ decision-making. Well over half (57%) of consumers say they can be swayed by bartenders’ recommendations even if they have already decided what they are going to drink, and the number of people planning their visits out in advance is rising fast—so there is plenty of room for brand owners to disrupt paths to purchase. With nearly half (45%) of consumers regularly searching for venue information online—especially via social media—this influence can start well before people set foot in a pub, bar or restaurant. Celebrity endorsements can be another effective influence on brand choice.  

REACH reveals countless more ways for suppliers to grow brand equity in the On Premise around the world, including via premiumisation and consumer education and by tapping into key occasions like socialising with family and friends and celebrations. Secondary occasions including business meetings and events are also growing in importance, while shifting dayparts open up more new sales prospects. 

CGA by NIQ’s group chief executive Phil Tate said: “COVID and the cost of living crisis have created tough trading conditions for the global On Premise, but it remains full of brilliant opportunities for suppliers and operators that are armed with the best insights and dynamic strategies. Our REACH research is a powerful fusion of global, regional and local intelligence that helps businesses develop the right tactics to protect market share and gain new sales. Investment in understanding consumers better pays off—not just in the months ahead but for years to come. We’re very excited about the future for the On Premise and are here to help its suppliers and operators become even better and more profitable.” 

CGA’s REACH research was carried out in late March and early April 2023 to deliver up-to-the-minute insights into On Premise trends and consumer attitudes. The REACH project combines with CGA’s wide spectrum of On Premise sales and outlet data to provide suppliers with outstanding and actionable intelligence to optimise strategies.