A new survey by Lumina Intelligence has revealed promising signs of a modest recovery in the UK on-trade, with both consumer spend and frequency of visits rising in October 2024.
Benchmarking last month against October 2023, Lumina’s Eating and Drinking Out Panel (EDOP) found that “easing financial pressures and stable autumnal weather” had lifted market performance metrics across several key indicators.
According to the report: “Market penetration has increased by 3.4 percentage points to 59.9%, while the frequency of visits climbed by 9% to an average of 1.6 visits per consumer. Average spend per visit also rose significantly by 18.8% year-on-year, reaching £19.35. Together, these figures underscore stronger consumer engagement and heightened activity in the market, driven by growing consumer confidence and the financial flexibility to enjoy social occasions.”
It continued: “This shift in consumer behaviour has also brought about notable changes in where consumers are choosing to visit. Pubs and bars saw an upturn in popularity in October, gaining a 3.3 percentage point increase in visit share to reach 17% of total occasions. This resurgence signals a shift towards social-led gatherings, as consumers return to pubs and bars for drink-focused occasions.”
However, the rise in pub visits was offset by a decline in retail, quick service restaurants (QSR) and coffee shop market share, perhaps indicating a paradigm shift among UK consumers and a renewed focus on collective drinking.
Meanwhile, beer remains the most popular beverage in the on-trade according to the report, commanding a 54% overall market share. Wine and cider are in second and third place, with 30% and 13% respectively. Yet the data suggests that wine and beer are losing ground to cocktails and spirits at dinner, as consumers increasingly eschew a glass of Sauvignon Blanc for a Manhattan.
“The data also notes a year-on-year increase in smaller and more discretionary occasions, particularly drink-only and breakfast outings, reflecting an expanding interest in flexible, informal outings,” the report stated.
“Lumina Intelligence advises suppliers to support operators in broadening their offerings across varied day parts to capture and sustain this renewed consumer interest.”