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News
US consumers to prioritise on-premise spend
Research has revealed that US consumers plan to prioritise on-premise spend over the next three months, despite growing cost-of-living concerns.
In CGA by Nielsen IQ’s webinar Alcohol Industry: What’s Now and What’s Next?, hosted on 6 December, it was revealed that 76% of the 15,032 consumers surveyed said they expect to spend more or the same as they have been spending over the next quarter.
Drew Hummel, client solutions director North America, CGA Strategy by Nielsen IQ, said: “While people [who say they expect to spend more] pointed out that they expect the prices of food and drinks to increase, they said the main reasons are going to be that they plan to treat themselves more, and they are going to be celebrating more special occasions.
“This really backs up the idea of the on-premise being an affordable luxury that people had to go a couple of years without, and they’re willing to prioritise it over other things.”
It was found that 31% expect to spend more in bars and restaurants over the next quarter due to an increase in ‘treating’ themselves, with an additional 8% of Tequila drinkers opting to increase spend for this reason.
A further 28% of those anticipating a higher spend over the next three months expect to do so while celebrating ‘more special occasions’.
In addition, 21% said it was because they planned to support local businesses, and 16% said they want to support the hospitality sector.
Also, 21% revealed that on the occasions they would be visiting the on-premise, they expect to consume more drinks, while 19% of those who expect to spend more in the on-premise over the coming quarter said it was because they would opt for more premium drinks brands when out.
Of those who plan to cut back on spending, 20% said they feel on-premise visits for special occasions are more important than alternative experiential expenses, with 18% saying that regular visits to bars and restaurants would be a priority ahead of alternate expenses if disposable income is reduced.
Hummel added: “Among those who say they plan to spend last less, they tend to skew older [25% of those aged 55 and above] but we know this group doesn’t visit the on-premise frequently, and when they do, they, they do spend less relative to these other consumer groups.”
Last week, CGA released a report created in partnership with non-alcoholic drinks brand Crossip, which revealed that bartenders are driving the low-and-no category in the on-trade.