18/05/2023
Although optimism for the future remains generally downbeat amongst UK beverage alcohol drinkers, there is evidence that the mood is improving.
Latest findings from Bevtrac, IWSR’s ongoing beverage alcohol consumer price sensitivity tracking, show that personal confidence levels have become more positive since September 2022. Although the overall picture remains negative, the percentage of those that believe they will be worse off in a years’ time has halved since last year, as has the number of people who are worried about the year ahead.
UK beverage alcohol consumers are also now more confident that they can pay their bills compared with September last year. Importantly, IWSR’s latest consumer data (based on consumer surveys conducted in February 2023) also shows that UK drinkers are happier than they were in the Autumn of 2022.
“While consumer sentiment has improved from the lows of 2022, beverage alcohol consumers in the UK are still mindful of how they spend their disposable income, and many say that alcohol spending is one of the first to be cut,” says Richard Halstead, COO Consumer Insights, IWSR Drinks Market Analysis. “To balance rising costs, UK alcohol consumers are adapting their lifestyle habits; going out is treated as a more occasional luxury, while the at-home occasion offers opportunities to socialise on a more regular basis,” he adds.
Consumers are responding to the impact of rising inflation in different ways, leading to two key behavioural trends in the UK:
The majority of UK alcohol drinkers still go out, and when they do, they still want to treat themselves. The percentage of people saying that they “won’t drink alcohol in bars and restaurants at all” has fallen by three percentage points between 2022 and 2023. However, many are choosing to go out less often, and find themselves saving up for the occasional big night out slightly more so than they did in 2022. Just under a third of all UK alcohol drinkers expect to use the sector less or not at all; current on-premise usage is net negative.
Meanwhile, anxieties over personal finances, which is especially strong amongst millennials, are driving consumers to cut back on alcohol ahead of expenditure on other household categories. Recalled category momentum is trending negatively for almost all drinks categories in the UK, and buying on promotion is the favoured means of cost-cutting for drinkers – more than double that of not buying alcohol at all. A third of UK alcohol drinkers would rather treat themselves to a better-quality drink at home than go out.
These shifts in consumer behaviour continue to shape the channel share of the UK total beverage alcohol market:
Consumer confidence in the US remains broadly positive
Consumers opt to spend less on beverage alcohol, but confidence in the future is improving
How has Chinese consumer sentiment shifted since the end of lockdown restrictions in 2022?
The above analysis reflects IWSR data from the 2022 data release. For more in-depth data and current analysis, please get in touch.
CATEGORY: All | MARKET: All, Europe | TREND: All, Moderation |