Pemiumisation remains the key driver in on-trade drinks sales

By Andrew Catchpole

Published: 02 July, 2024

The trend to premium drinking is predicted to continue as consumers continue to drink less but better, according to the latest insights from analyst CGA by NIQ. Moreover, while ‘value-for-money’ remains key, this is about drinks ‘worth the price’, rather than ‘cheap’.

These were the key findings delivered by Christopher Sterling (pictured), client director at CGA by Nielsen IQ, at Imbibe Live on 1 July at a presentation titled ‘Explore the standout trends in the on-trade (2025-2026)’.

Sterling revealed that while total serves in the UK are down -6% YOY, due to ongoing contraction in the marketplace, total value sales have only fallen by -1%.

Read more: Top 50 Sommeliers 2024

A recent survey of >1000 consumers by CGA by NIQ Reach asked respondents how they would tailor consumption if their total bill remained the same across several differing volume options on a visit to the on-trade.

Some 15% said they would opt for ‘one luxury/super premium drink’, with 43% going for ‘two high quality/premium drinks’ and a slightly thirstier 30% saying they would spread their spend over ‘three medium quality drinks’.

Below this mid option, though, just 7% would rather ‘four standard/lower quality drinks’, with an even lower 6% plumping for ‘five value/entry level drinks’.

Within this scenario, and while most consumers are clearly willing to trade up, the focus remains on ‘value-for-money’ at the higher levels. In terms of top purchasing drivers, ‘good value’ topped the list at 33% of responses, with 23% seeking ‘high quality’ as their first cue, and 18% looking for ‘trustworthiness’.

‘From my own country’ was also the key hook for 17%, while ‘healthy’ came in at 15%, and ‘ethically/sustainably produced’ at 10%.

In a separate CGA Business Leaders Survey 2024, health and moderation was predicted to continue to grow, continuing to push up low and no sales across all drinks categories.

Moreover, other takeaways from the Reach survey included 27% of consumers now often ordering ‘new and exciting’ drinks seen on social media, with 49% of consumers having bought a food or drink brands seen on such platforms, plus 41% of consumers now proactively choosing drinks brands that are sustainable.

In addition to offering and flagging premium choices as a “crucial opportunity to drive revenue and profit”, Sterling advised that health, moderation and a focus on sustainability would continue to be important cues in drawing customer spend across the on-trade. And all of this has to be coupled with honing the message as to why it’s “worth paying the cost”, delivering true value-for-money in these more quality conscious times.

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