Reimagining the on-trade: edited occasions, value-seeking and intentionality

Moderation and affordability concerns are causing shifts in consumer behaviour in the on-trade channel, as people reduce their intake and category participation, while also seeking true value both in terms of costs, but also through meaningful experiences, occasions and ABV optimisation.

According to IWSR Bevtrac consumer research conducted in September 2025, on-trade visits in most of the 15 key markets covered are still declining year-on-year, continuing a pattern observed earlier in 2025, and ending the brief rally seen in late 2024.

When people do go out, their on-trade visits are becoming increasingly “edited”, meaning that they are consuming fewer serves and fewer categories per occasion – behaviour that is consistent with the broader, persistent moderation and affordability pressures felt in many markets.

On-trade visits are also facing increased competition, both from at-home occasions driven by affordability, and the rise of alternative spaces for socialising, as forecast by WGSN, the global authority on trend forecasting. Jennifer Creevy, director of food and drink for WGSN, says: ‘At-home occasions are driven by affordability but there is still an opportunity here for brand owners as those consumers are becoming more creative with their at-home bars, seeking newness, quality pours, status-led sips and other experiential elements to show off their skills.’

In terms of alternative spaces, WGSN has forecast the rise of spaces for socialising outside of the traditional on-trade, including cafes, bakeries, hair salons and book shops. “Some consumers, particularly the younger LDA Gen Zs, are seeking occasions with intention, whether it’s meeting up around a shared interest or sports group, and these alternative spaces are facilitating this trend. This is something the traditional on-trade can tap into, it’s about reframing the offer. Consumers should see these venues as facilitating their needs, not simply a place for a drink anymore.”

The rise of intentional meet-ups also plays into the moderation trend, says WGSN. “Consumers are meeting up for a purpose, not necessarily for the actual drink.”

Radius, IWSR’s innovation tracker, agrees that occasions are shifting, pointing out the shift from late-night to daytime drinking occasions. As nightlife is increasingly perceived as too expensive, loud and depleting across generations, consumers are setting boundaries and prioritising event and occasion formats that protect both the moment and the next day, prioritising quality time and meaningful experiences over late night intensity.

“In practice, this shows up as brunch culture, day-clubbing and afternoon DJ sets, and drinks designed for lighter, longer sessions, such as ‘day-caps’ that are low-ABV, built for re-ordering and designed to sustain connection without tipping over into excess,” explains Claudine Ben-Zenou, Radius Editor.

WGSN says wellness is a key factor in terms of on-trade drinking and alcohol in general, across all demographics. “Consumers are more health-conscious than ever and that is manifesting in several ways, including earlier drinking times, more intentional meet-ups and lower ABV sips,” says Creevy.

‘Value’ moves beyond price

Premiumisation is still present in the on-premise, but its meaning is being reframed as consumers seek value, relevance and justification before parting with their money – becoming increasingly selective about precisely when and where they trade up.