Glenfiddich owner William Grant & Sons has shed some light on the latest trends driving the UK drinks market in its latest report, which claims consumers are demanding more authenticity and immersive experiences.

Brands should create immersive experiences to capture the attention of consumers

The Trending 2020 report contains analysis and data to highlight what trends are impacting the UK spirits market, which is now worth £11.4 billion (US$14.6bn). Gin is worth over £2bn (US$2.5bn) and if growth continues, it could overtake vodka as the biggest category next year.

Premium spirits (priced above £23) are now worth £1.66bn (US$2.1bn), up 16.3% and now account for 34.3% of all spirits value growth over the last year.

William Grant & Sons’ Trending 2020 report has identified a number of trends including: my identity, my health, my experiences, my expectations and my values.

The report builds on the 2018 Market Report and identifies the rise of the ‘active-ist’ consumer, which is “presenting new challenges for brands”.

William Grant defines this consumer as having a “desire for curated social experiences, greater control of personal data and purpose-driven brand engagement”.

Neil Barker, managing director, William Grant & Sons UK and Ireland, said; “The 2019 active-ist consumers’ demands for control and a stronger voice is rooted in their desire to drive positive social change.

“Significantly, Trending 2020 also reveals that consumers continue to expect the brands they engage with to go the extra mile for them, meaning brands must work harder to establish real connections with customers in the year ahead.

“The challenge for us is to ensure we positively engage with consumers by investing in sustainable, appropriate storytelling and immersive experiences.”

The Scottish group says there is “an upward shift in spending on more meaningful experiences, driving premiumisation in the spirits industry”.

According to the report, nearly nine out of 10 (86%) consumers are likely to treat themselves to small indulgences in the next 12 months. This shows the continued upward trend of premium and luxury brands in key spirits category performance across the on- and off-trade.

Click through the following pages to find out more about the trends in William Grant & Sons’ Trending 2020 report.

My identity

The identify trend is about embracing diversity and transparency and has come to the fore as consumers have “increasingly digitally-directed lives and means of outward self-expression”.

There is also a need for brands to be authentic, with 47% of UK consumers claiming that they would like brands to have a point of view and stand for something.

William Grant also said that there is an “increased consumer desire for anonymity” with questions over the “safety and trustworthiness of the internet a hot topic”.

My health

This relates to the consumer understanding
 of diet and nutrition, which is “becoming more sophisticated”.

William Grant says this trend is driven by “heightened access to information, increasingly proactive approaches to health, raising awareness of mental health and wellbeing and the growing desire for transparency and simplicity”.

Closely linked to the low- and no-alcohol trend, consumers are also looking to understand other products and ingredients that can contribute to ‘mood management’. William Grant also cites the trend for cannabidiol (CBD), which is projected to be worth £1bn (US$1.2bn) in the UK by 2025.

My expectations

The rise of “data-driven personalised services” and the “explosion of ‘third spaces’ for living, working, retail and socialising” is driving the trend for expectations.

Consumers are also interested in “sustainable solutions at the luxury end of the market”.

The “increasing development” of ‘hybrid spaces’ has seen consumers eat and drink in new and innovative places.

My experiences

UK consumers are seeking the “frequent, high-octane occasion” with a focus on food-and-drink pairings. The rise of the ‘immersive world’ is also likely to capture and hold the attention of consumers.

With attention spans shortening, William Grant says “consumers will skip content or communities that aren’t differentiated or ‘story-worthy’” when browsing online.

Furthermore, “increasingly sophisticated home entertainment set ups will mean out-of-home experiences can be translated into many households”. The global market for in-home entertainment rose 16% year-on-year to reach US$55.7bn in 2019 (MPAA, 2019).

My values

In the face of “increasing political and economic turbulence”, William Grant says there is a move towards “purpose-led brands”.

William Grant cited Mediacom 2018 figures that show 60% of people in the UK would pay more to brands that give back to their local community. This signals a move beyond ingredients and locality to “active economic and social contribution”.