US drinkers to up their spend in bars
Led by younger demographics, a rise in spending could be on the cards for the US on-trade this year, CGA by NIQ has found.
According to findings from CGA’s On Premise Impact Report, one in four consumers in the US plan to up their spend when visiting on-trade venues this year.
Younger consumers (between 21-34 years old) led the way in this sentiment with 30% planning to increase their spending. In the bracket above, consumers aged between 34 and 55, 30% are expecting an increase in their expenditure.
This follows from data in CGA’s On Premise Measurement Report that revealed spirits in the ‘ultra’ price bracket have “significant growth potential” in the on-trade with consumers loosening their budgets after a “prolonged period of cost pressures”.
Matthew Crompton, CGA by NIQ’s vice-president of on-premise – Americas, said that “industry stakeholders looking to maximise their performance need to adopt a more holistic view of consumer trends across various touchpoints”.
He added that a “prime example is the ability to translate on-trade success into off-premise gains” and that this is what will “define the next phase of growth in 2025 and beyond”.
“Now is the time for the industry to act on these insights, with optimism high and spending set to increase,” Crompton added.
Highlighting areas where spirits brands can take advantage of the on-trade’s influence, CGA said 60% of people that try a new drink at a venue will then try the same drink at home, and 63% are willing to order the drink again in subsequent visits to venues.
In terms of leveraging gifting opportunities, 18% of consumers were shown to be more likely to buy a brand that they first tried on an on-trade visit.
Previously, CGA has found that spirits are gaining share in the US casual dining sector.
Even if optimism is high, CGA noted challenges remain and will need to be navigated – such as the rise in health and wellness within consumer priorities.
For Dry January 42% of consumers planned to abstain from booze, which ‘reiterated the need for venues to diversify their non-alcoholic offerings’.
Moderation techniques such as zebra striping were also identified as trends that will shape consumer behaviours for 2025 by Diageo in its Distilled report.
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