Dive Brief:
- Cross-generational preferences for alcoholic beverage categories continue, but the majority of adult consumers regularly drink beer, wine and spirits products both at home and on premise, particularly at restaurants and bars, according to a recent IRI study.
- Most consumers (60%) visit a store with a particular alcoholic beverage purchase in mind. But 21% of those consumers change their mind while in the store, and half of that group decides to buy a different brand than from their planned purchase.
- Premium drinks, whether beer, wine or spirits, remain an affordable luxury, say more than half of all consumers. But beer continues to be American consumers' choice for at-home alcoholic beverages — particularly younger consumers, nearly three-quarters of whom (73%) prefer beer over wine or spirits.
Dive Insight:
Only about one-fifth of the study's respondents reported changing their mind on a previously decided purchase once they got to the store, which likely indicates the vast majority of consumers have strong brand loyalty. But this is still a significant portion of consumers that manufacturers could lure with innovative packaging, flavors or unique processing methods, such as the amount of time a whiskey or bourbon is aged.
Beer's preference overall, particularly among young people, is positive news for beer manufacturers, which have faced recent reports of spirits outpacing beer's market share gains for the past six years straight. Whiskey and tequila growth remain strong, boosting the overall spirits category, but craft beer growth has also continued. Craft brewers' popularity has since made them attractive acquisition targets for major alcoholic beverage companies. Over time, such deals could alter the dynamic of the beer industry.
Taste also remains an integral part of consumers' alcoholic beverage purchase decisions, with between 73% and 80% of all generations claiming they select alcoholic beverages based on taste rather than price. Manufacturers can appeal to that demand more competitively by using higher-quality ingredients or experimenting with different flavor profiles.