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Rising costs: consumers change on-trade habits

Just over one in five consumers in Canada plan on reducing their visits to the on-trade for the rest of 2022 because of rising costs, new research suggests.

Calgary Canada
Consumers in Canada said they would visit the on-trade less for the rest of 2022 because of rising costs

The latest study from CGA by Nielsen IQ revealed 22% of on-trade consumers plan to reduce their visits because of inflation and the cost-of-living increases.

However, 72% of consumers plan to continue visiting the on-trade until the rest of the year.

Matthew Crompton, regional director – North America, said: “As the channel battles with another macro-economic crisis, there are many considerations suppliers and operators should have about the nuances of influencing dynamics on Canada’s consumers and how they will behave in the on-premise.

“Approaching a crucial trading period for bars and restaurants, having that understanding and knowledge of how consumers plan to behave will be key, and this hugely valuable research can arm brands with actionable insights to maximise these visits, both in the short and long term.”

Of those questioned, 65% of on-trade consumers said eating and drinking was the treat they most looked forward to. Nearly half (48%) said it was a fundamental activity.

CGA highlighted the importance for brands to understand how their products align with certain channels and occasions in light of the new information.

The Spirits Business explored the state of the on-trade in North America as part of the annual Global Bar Report. The report also named three bars to watch in 2023.

Earlier this week, the Europe portion of the report was published online, also naming three bars in Europe to keep an eye on in 2023.

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