Super-premiumisation continued to disrupt the on-trade in 2019 as a resurgence in mainstream brands further polarised the drinks market, CGA analysis has revealed.
According to the Premiumisation: Change, Challenge and Opportunity report, nearly half (47%) of consumers said they were willing to pay more for a better-quality drink, whilst super-premium spirit sales experienced a 21% growth surge in the year to October 2019.
Over the period, drinks prices increased by an average of 2.9%, contributing to the £19bn value of premium drinks categories.
The average number of premium drinks brands in a consumer’s repertoire was 11.1, and premiumisation continued to reshape the beer category too, with 848,000 more people drinking world lager from 2016 to 2019.
Identifying the consumers driving premiumisation, CGA highlighted the ‘business class-seekers’ segment, who spend an average of £251 a month on eating and drinking out, as a lucrative demographic for the premium market.
“From spirits to beer to soft drinks, premiumisation continues to disrupt the on-trade,” said Mark Jackson, senior client manager at CGA.
“But it’s a complex and fast-changing story, and we’ve seen the market diverge substantially over the last year, with examples of growth in both super-premium and mainstream categories. Where the market goes from here remains to be seen, but it’s clear that an understanding of the nuances in consumers’ attitudes to factors like quality, range and price is more crucial than ever in 2020.”
Premiumisation continues to disrupt drinks market
New analysis by CGA has revealed that 47% of consumers are willing to pay more for a better-quality drink, as premiumisation continues to disrupt the on-trade drinks market. Super-premium spirit sales experienced a 21% growth surge last year, and drinks prices increased by an average of 2.9%. With the resurgence of mainstream brands, market polarisation is a trend set to continue, concludes Mark Jackson, senior client manager at CGA, ”it’s clear that an understanding of the nuances in consumers’ attitudes to factors like quality, range and price is more crucial than ever in 2020.”