27 August 2024 — Consumers visiting US bars and restaurants are demonstrating a significant shift towards a ‘quality over quantity’ mindset.
The latest insights revealed by CGA by NIQ’s OPUS takes a deep dive into premium beverage consumption. This premiumization trend is particularly prominent in the cocktails, spirits, and beer categories, and offers industry stakeholders a strategic opportunity to favorably position themselves within both the premium and value segments.
A growing number of consumers are gravitating towards high-quality, premium beverages, especially during formal meals and special occasions. With 70% of consumers planning to order premium cocktails or spirits in the next six months, it’s evident that quality is becoming a key factor in drink choices. This trend is further highlighted by the fact that around one-third of cocktail drinkers (31%) and spirit drinkers (34%) are opting for premium options. Even in the beer category, over a quarter of consumers (27%) are choosing premium brands, particularly when dining in a formal dining experience.
This increasing preference for premium beverages suggests consumers view their On Premise visits as affordable luxuries where they can indulge in high-quality drinks unburdened by any notable financial strain. Moreover, the data demonstrates 18% of consumers have been purchasing more premium drinks compared to a year ago, considerably outpacing the 10% who have shifted towards more value-oriented choices.
This trend presents a unique opportunity for drinks brands and suppliers operating in the On Premise sector to meet evolving consumer preferences by offering a balanced portfolio including both premium and value options.
The ability to align with consumer expectations across different occasions, whether it’s a formal meal, a casual outing, or a special celebration, is key to both gaining and retaining market share. Ensuring premium brands are highly visible in-venue and on menus can grab the attention of consumers who are willing to spend more on high-quality drinks. Comparatively, the versatility of cocktails, which are popular across a range of occasions, provides brands and venues with the flexibility to align with different quality levels and price points.
The importance of ranging between premium and value options is further highlighted by the relatively equal distribution of consumption across premium, value, and mixed options. In the past six months, 40% of cocktail drinkers, 38% of beer drinkers and 35% of spirits drinkers have opted for a combination of both premium and value options, demonstrating the need for brands to offer a diverse range of products to match various consumer preferences.
As the demand for premium beverages continues to rise, it is crucial for drinks brands to understand how to leverage this trend in ways aligning with their brand identity and resonating with their target audience. Ultimately, brands can position themselves as essential components of formal dining and special occasions by focusing on quality and appealing to consumers looking for a superior drinking experience.
However, the need for balance cannot be overstated. Offering both premium and value options meets the diverse needs of consumers and ensures brands can appeal to a broader audience, maximizing the scope for success in the On Premise sector as a result.
Matthew Crompton, Vice President – Americas said: “Premiumization is more than just a trend. It’s a reflection of the shifting consumer mindset. This presents brands with an unparalleled opportunity to thrive by offering the right mix of premium and value options to people actively seeking out quality experiences during their On Premise visits. Brands and operators who understand and act on this variation will be better positioned to lead the industry into its next chapter.”
OPUS stands as the leading source for On Premise channel insights, particularly in the complex spirits category, including cocktail and mixed drink preferences. It empowers beverage brands with detailed consumer profiles for competitive market advantage and insight-driven sales conversations. Additionally, OPUS delivers comprehensive brand and marketing insights, offering a 360-degree view of On Premise consumers for refined strategies and meaningful engagement.
To find out more about OPUS’s capabilities and how it can enhance your On Premise strategy, get in touch Matthew Crompton, Vice President – Americas here to find out more.
About CGA by NIQ
CGA by NIQ provides definitive On Premise consumer intelligence that reveals new pathways to growth for the world’s most successful food and drink brands. With more than 30 years of best-in-class research, data, and analytics, CGA by NIQ provides the Full View(TM).
CGA by NIQ works with food and beverage suppliers, consumer brand owners, wholesalers, government entities, pubs, bars, and restaurants to protect and shape the future of the On Premise experience. Using the most complete and clear understanding of measurement and insights, CGA by NIQ provides a competitive edge to guide winning strategies for On Premise businesses.
NIQ was founded in 1923 and is an Advent International portfolio company. For more information, visit NIQ.com or www.cgastrategy.com.
