New data from alcohol industry analysts IWSR finds global spending on alcohol is on the decline in many markets, but consumer confidence in finances and the future is on the rise.
Richard Halstead, COO Consumer Insights, IWSR Drinks Market Analysis, said the cost-of-living crisis has made consumers more selective on how and when they spend on alcohol.
“After the pandemic, at-home drinking is still preferred, but there is a strong motivation to go out, just with less frequency and more mindfulness in alcohol consumption and spending,” he said.
Cutting back on alcohol purchases is partly motivated by the rising cost of household necessities, including meat, fish, poultry and cleaning products, which is most pronounced in the UK, where inflation has been on a sharp incline, but also notable in Germany and Australia.
In these markets, as well as in France and Canada, cutting back on alcohol was the second most popular strategy to save money.
Although consumers are more discerning with their purchases, IWSR reports consumer confidence, especially in Europe, shows signs of improvement following lows of late 2022.
Premium consumption behaviour continues in many markets but is growing more moderately than previously. Moderation as a money-saving strategy is now common, with many consumers choosing to drink better quality less often than down trading.
Mindful consumption has led to category momentum remaining only marginally in positive territory compared to previous data gathered in October 2022.
The report noted Whiskey generally remains more favourable than other categories, except in Australia, where consumer demand has slowed due to adverse economic and tax conditions.
The above data from IWSR is based on consumer surveys conducted in February 2023 across 17 key markets, including Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Netherlands, Poland, South Africa, Spain, Taiwan, the UK, and the US.
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