On-Trade Alcoholic Drinking Trends: Differentiating consumer on-trade drinkingoccasions to capitalize on value generating ...
Consumer dynamics are changing in the restaurant sectorPremiumization is the key way forward for the on-trade in core deve...
INSIGHT: the nature of occasion types dictates consumption patterns and preferences inthe on-tradeCategory consumption pat...
Consumers in emerging markets are the most likely to trade upTrading down behaviors tend to be most prevalent in developed...
and the Middle East and Africa (millions), 2005–15Table: Overall on-trade FAB drinking occasions across Europe, Asia Pacif...
Table: Consumer Survey: changing eating habits at casual dining restaurants in 18countries across Europe, Asia Pacific, th...
Table: Consumer Survey: approach to how alcoholic drinks are chosen when drinking in theoff-trade and on-trade in 18 count...
dining restaurants more frequently than mid-scale or fast food restaurantsFigure: Consumer tendency to visit fine dining r...
Figure: In capitalizing on the female opportunity in the on-trade, alcoholic beveragemanufacturers must consider a wide ar...
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ReportsnReports – On-Trade Alcoholic Drinking Trends: Differentiating consumer on-trade drinking occasions to capitalize on value generating opportunities

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As the off-trade has emerged as the primary channel of engagement between brand and consumers, the on-trade’s role in brand building and in sales generation has had to change. On-trade exclusives; targeting under-represented on-trade demographic groups; harnessing the power of social media; and making the on-trade experience both interactive and experiential will be vital going forward.

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ReportsnReports – On-Trade Alcoholic Drinking Trends: Differentiating consumer on-trade drinking occasions to capitalize on value generating opportunities

  1. 1. On-Trade Alcoholic Drinking Trends: Differentiating consumer on-trade drinkingoccasions to capitalize on value generating opportunitiesReportsnReports.com adds Datamonitor Publishers Market Research Report “On-TradeAlcoholic Drinking Trends: Differentiating consumer on-trade drinking occasions to capitalizeon value generating opportunities’’ to its store.As the off-trade has emerged as the primary channel of engagement between brand andconsumers, the on-trade’s role in brand building and in sales generation has had to change.On-trade exclusives; targeting under-represented on-trade demographic groups; harnessingthe power of social media; and making the on-trade experience both interactive andexperiential will be vital going forward.Browse: On-Trade Alcoholic Drinking TrendsFeatures and benefits Achieve sales growth by identifying how alcohol manufacturers are tapping into underlying consumers trends to drive sales growth Enhance credibility during sales pitches by understanding the differing drivers of on trade drinking globally Stimulate ideation and invigorate brands by learning from best practice examples from the beer, wine and spirits segments Enhance your market positioning and concept development efforts and reduce risk for new product launches and increase the chances of successHighlights The off-trade dominance across most markets presents a dilemma due to the value generation advantages that on-trade sales present and the fact that the traditional routes to market for new products are through that channel. However, marketers must consider that the on-trade still presents the best way to make an impact in the market and achieve brand differentiation (particularly in a controlled bar environment where the product can stand out from the competition), which can be followed by a retail roll-out.Table of contents:OVERVIEWCatalystSummaryEXECUTIVE SUMMARYThere is a contrasting global picture for the fortunes of the on-tradeThe fortunes of LDA–24-year-old consumers is constricting the on-trade’s appealConsumer on-trade needs are becoming increasingly polarizedThe shift to alcohol consumption in moderation is working to the detriment of the on-tradeOlder consumers and female drinkers remain target consumer groups for the on-trade
  2. 2. Consumer dynamics are changing in the restaurant sectorPremiumization is the key way forward for the on-trade in core developed marketsExclusivity, interactivity, and connectivity must be harnessed in the futureTHE FUTURE DECODEDIntroductionOn-trade visits have been harmed by a confluence of trends within individual countriesThe on-trade hits the sweet spot in “experiential” marketingEmbracing experiential marketing is the key to on-trade successCongruency is key to encouraging consumers to pay more for a brandTREND: on-trade alcohol occasions continue to be overshadowed by the off-tradeChina leads in the number of on-trade occasionsBeer occasions are emblematic of the changing fortunes of the on-tradeThe UK has the greatest number of on-trade cider occasionsConsumption of flavored alcoholic beverages is highest in Russia and is growingSpirits occasions are growing fastest in the emerging markets but declining quickest inRussiaKey take-outs and implications: it is vitally important that manufacturers monitor thechanging nature of the on-trade market and selectively tap into the category opportunitiesthat are presentTREND: price is a key factor influencing channel drinking behavior, but not the only oneIn core developed markets, the on-trade is caught in a pincer between rising business costson one hand and low consumer confidence on the otherThe importance of price in alcoholic beverage choice varies significantly from country tocountryIn addition to price, legislation limits the on-trade’s appealContemporary lifestyles mean that consumers have less time to visit the on-tradeKey take-outs and implications: the off-trade’s dominance is here to stay, and the on-tradewill no longer be the primary point of engagement with alcohol brands for consumersTREND: the development of emerging markets is shifting the landscape of the globalalcohol sectorThe economic situation in the emerging economies is very different to that seen in WesterneconomiesPatterns of consumption in emerging markets vary significantly and are influencingdevelopments in core Western marketsKey take-outs and implications: consumer demand is polarized between the core developedmarkets and the emerging markets, and it is imperative for alcohol companies to alignthemselves accordinglyTREND: urbanization is emerging as a key driver of on-trade visitingYounger consumers are migrating to citiesThe process of urbanization is driving the on-trade’s developmentKey take-outs and implications: in capitalizing on the urbanization trend in the on-trade,alcoholic drinks companies must consider a wide number of cultural issues to be truly intouch with the urban consumer
  3. 3. INSIGHT: the nature of occasion types dictates consumption patterns and preferences inthe on-tradeCategory consumption patterns are strongly influenced by national drinking preferencesKey take-outs and implications: understanding the cross-over between the suitability ofalcoholic beverages for different drinking occasions and national drinking preferences is animperative to effectively unlock the opportunities of on-trade occasion-based targetingINSIGHT: restaurants have high visiting rates owing to their wide consumer appeal, butlocal pubs and bars are visited the most regularly, a consequence of the dominance ofinformal frequent occasionsRestaurants are the most important venue type, highlighting the importance of food to theon-trade, although there are some notable exceptions to the ruleRestaurant spend is typically higher value and highly sensitive to the prevailing economicconditionsThe decline in fine dining occasions will detrimentally impact the top end of the alcoholicbeverage sectorThe casual dining element of the market is growing and will exert influence over more mid-priced brandsFast food outlets are subject to slightly different consumer behaviorAlcohol can provide a useful way of differentiating the fast food experienceKey take-outs and implications: it is imperative to have a nuanced understanding of thestructure of the on-trade within individual markets to fully understand and unlock the oftenniche growth opportunitiesINSIGHT: On-trade visiting behavior shows a strong age-related consumption pattern, withLDA–34s the key on-trade consumer groupYounger age groups are declining in importance to the overall population mixYounger consumers are more likely to be unemployed with the onset of the global financialcrisis in developed marketsKey take-outs and implications: one of the key consequences of the reliance of the on-tradeon younger consumers is the necessity to grow the on-trade’s appeal among olderconsumersINSIGHT: The historical legacy of men being the key on-trade visitors continues, despiteefforts to increase its appeal among womenMen are more likely to drink twice a month in the on-trade in most marketsFemale drinkers are more likely to visit restaurants than other venuesKey take-outs and implications: it is imperative for the alcoholic beverage sector as a wholeto have an understanding of the needs of women in the on-tradeINSIGHT: heavy or sessional drinking is a feature of consumer drinking behavior that ismore strongly associated with the on-tradeYounger male consumers are the most likely to “binge” drinkConsumers in South Korea are most likely to consume five drinks or moreKey take-outs and implications: the switch away from heavy drinking behavior isdetrimental to the on-trade but can also open up new target occasionsINSIGHT: there is an element of polarization in consumer spend evident in on-tradepurchase behavior
  4. 4. Consumers in emerging markets are the most likely to trade upTrading down behaviors tend to be most prevalent in developed marketsWhere to target consumers is the key to unlocking polarizing behaviorNational distribution networks often dictate the point at which consumers make their brandchoiceKey take-outs and implications: understanding how the economic situation is influencingconsumer behavior is vital in addressing and anticipating polarizing consumer behaviorACTION POINTSACTION: develop more exclusive on-trade propositions, so that the experience isirrefutably different from the off-tradeLimit the availability of brands or certain variants to the on-trade to drive exclusivityMake on-trade concepts time-limited to achieve “a get it while you can” approach amongconsumersTie in with other areas of consumer leisure spendACTION: make interaction and experimentation a central part of the on-trade experiencefor consumersUse brand ambassadors to encourage younger consumers – core on-trade visitors – toexperimentMake interactivity a key part of the on-trade experienceACTION: develop an on-trade offering that meets the needs of under-representedconsumer groups (with food a central element to that)Closely monitor trends in the food market and develop a significant food offering thatappeals to women and older consumersDevelop new beverage and in-store concepts which have female appealClosely monitor hip urban bars, as they are often the breeding ground for new ideasACTION: harness social media in all its forms to drive footfall into on-trade establishmentsSelect the optimal social media platform based on a campaign’s marketing objectivesHarness social media to target under-represented groupsEmbrace mobile marketing, as it is a perfect fit for on-trade consumptionAlign with the photo-sharing trend to encourage consumers to tag brands in their picturesDevelop an online ordering tool to make takeaway services more accessible for consumersAPPENDIXSecondary SourcesFurther readingAsk the analystDisclaimerLIST OF TABLESTable: Overall on-trade drinking occasions across Europe, Asia Pacific, the Americas, andthe Middle East and Africa (millions), 2005–15Table: Overall on-trade beer drinking occasions across Europe, Asia Pacific, the Americas,and the Middle East and Africa (millions), 2005–15Table: Overall on-trade cider drinking occasions across Europe, Asia Pacific, the Americas,
  5. 5. and the Middle East and Africa (millions), 2005–15Table: Overall on-trade FAB drinking occasions across Europe, Asia Pacific, the Americas,and the Middle East and Africa (millions), 2005–15Table: Overall on-trade wine drinking occasions across Europe, Asia Pacific, the Americas,and the Middle East and Africa (millions), 2005–15Table: Overall on-trade spirits drinking occasions across Europe, Asia Pacific, the Americas,and the Middle East and Africa (millions), 2005–15Table: Total population across Europe, North America, South America, Asia Pacific, and theMiddle East and Africa (millions), 2004–14Table: Urban population as a percentage of total population, by country, 2005 –15Table: Mid-year population of 20–34-year-olds, as a percentage of total population, 2005–15Table: Consumer Survey: level of satisfaction with the general direction of how things aregoing in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East andAfrica, by country, 2010Table: Consumer Survey: level of influence of price on choice of alcoholic beverage in 18countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, bycountry, 2009Table: Consumer Survey: level of influence of health on choice of alcoholic beverage in 18countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, bycountry, 2009Table: Consumer Survey: level of influence of brand name on choice of alcoholic beveragein 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, bycountry, 2009Table: Consumer Survey: level of influence of habit/preferred brand on choice of alcoholicbeverage in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East andAfrica, by country, 2009Table: Consumer Survey: level of agreement with finding it difficult to manage time anddaily obligations in 18 countries across Europe, Asia Pacific, the Americas, and the MiddleEast and Africa, by country, 2010Table: Consumer Survey: preferred alcoholic beverage of choice by occasion in 18 countriesacross Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2011Table: Consumer Survey: preferred alcoholic beverage of choice on having a relaxing drinkin a bar, restaurant, or pub when eating in 18 countries across Europe, Asia Pacific, theAmericas, and the Middle East and Africa, by country, 2011Table: Consumer Survey: preferred alcoholic beverage of choice on having a relaxing drinkin a bar, restaurant, or pub but not when eating in 18 countries across Europe, Asia Pacific,the Americas, and the Middle East and Africa, by country, 2011Table: Consumer Survey: preferred alcoholic beverage of choice on having a high-energynight out with friends in a pub, bar, or restaurant in 18 countries across Europe, AsiaPacific, the Americas, and the Middle East and Africa, by country, 2011Table: Consumer Survey: frequency of venue visiting in 18 countries across Europe, AsiaPacific, the Americas, and the Middle East and Africa, by country, 2011Table: Consumer Survey: twice monthly venue visiting in 18 countries across Europe, AsiaPacific, the Americas, and the Middle East and Africa, by country, by venue type, 2011Table: Consumer Survey: frequency of restaurant visiting accross 18 countries acrossEurope, Asia Pacific, the Americas, and the Middle East and Africa, 2011Table: Consumer Survey: changing eating habits at fine dining restaurants in 18 countriesacross Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2011
  6. 6. Table: Consumer Survey: changing eating habits at casual dining restaurants in 18countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, bycountry, 2011Table: Consumer Survey: changing eating habits at fast food restaurants in 18 countriesacross Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2011Table: Consumer Survey: appeal of fast food outlets selling alcohol in 18 countries acrossEurope, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2011Table: Consumer Survey: appeal of coffee chains selling alcohol in 18 countries acrossEurope, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2011Table: Consumer Survey: on-trade venue visiting in 18 countries across Europe, AsiaPacific, the Americas, and the Middle East and Africa, by age, 2011Table: Consumer Survey: frequency of visiting local pub/bars to drink alcohol in 18countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, bycountry and gender, 2011Table: Consumer Survey: frequency of visiting city center pub/bars to drink alcohol in 18countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, bycountry and gender, 2011Table: Consumer Survey: frequency of visiting restaurants to drink alcohol in 18 countriesacross Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country andgender, 2011Table: Consumer Survey: frequency of visiting sports/leisure venues to drink alcohol in 18countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, bycountry and gender, 2011Table: Consumer Survey: frequency of visiting nightclub venues to drink alcohol in 18countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, bycountry and gender, 2011Table: Consumer Survey: frequency of visiting cafés to drink alcohol in 18 countries acrossEurope, Asia Pacific, the Americas, and the Middle East and Africa, by country and gender,2011Table: Consumer Survey: frequency of visiting KTV/karaoke clubs to drink alcohol in 18countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, bycountry and gender, 2011Table: Consumer Survey: frequency of drinking outdoors in 18 countries across Europe,Asia Pacific, the Americas, and the Middle East and Africa, by country and gender, 2011Table: Consumer Survey: number of alcoholic beverages drunk when alcohol is usuallyconsumed, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle Eastand Africa, 2010Table: Consumer Survey: number of alcoholic beverages drunk on a weekend night whenalcohol is usually consumed, in 18 countries across Europe, Asia Pacific, the Americas, andthe Middle East and Africa, by country, among weekly on-trade drinkers, 2010Table: Consumer Survey: number of alcoholic beverages usually drunk on a weekday nightwhen alcohol is usually consumed, in 18 countries across Europe, Asia Pacific, the Americas,and the Middle East and Africa, by country, among weekly on-trade drinkers, 2010Table: Consumer Survey: changing approach to choosing higher quality drinks whendrinking in the on-trade over the past six months, in 18 countries across Europe, AsiaPacific, the Americas, and the Middle East and Africa, by country, 2010Table: Consumer Survey: changing approach to buying cheaper alcoholic drinks whendrinking in the on-trade in the past six months, in 18 countries across Europe, Asia Pacific,the Americas, and the Middle East and Africa, by country, 2010
  7. 7. Table: Consumer Survey: approach to how alcoholic drinks are chosen when drinking in theoff-trade and on-trade in 18 countries across Europe, Asia Pacific, the Americas, and theMiddle East and Africa, 2011Table: Consumer Survey: approach to how alcoholic drinks are chosen when drinking in theon-trade in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East andAfrica, by country, 2011Table: Consumer Survey: appeal of ethically sourced alcohol in 18 countries across Europe,Asia Pacific, the Americas, and the Middle East and Africa, by country and gender, 2010Table: Consumer Survey: appeal of alcohol-free beverages for adults in 18 countries acrossEurope, Asia Pacific, the Americas, and the Middle East and Africa, by country and gender,2011Table: Consumer Survey: appeal of lower-alcohol versions of existing products in 18countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, bycountry and gender, 2011LIST OF FIGURESFigure: It is imperative to have an understanding of the key drivers of channel consumptionFigure: In capitalizing on opportunities in the on-trade, the alcoholic drinks industry musttap into the growing desire for experiences to be truly in touch with consumersFigure: Price is a more important factor in choice of alcoholic beverage among weekly off-trade drinkers than weekly on-trade drinkersFigure: “Price of a pint – Where does your money go?” in Ireland explains to consumers theelevated prices in the on-trade and how little of the price paid at the till the licenseereceivesFigure: Price is the second-most important factor influencing the purchasing decisions ofconsumers in the alcohol sector, but is low down the list in emerging marketsFigure: Popular stereotypes about smokers’ propensity to consume alcohol are supported byglobal research findingsFigure: Consumers are generally more time-pressed in the emerging economies, althoughthere are certain national exceptionsFigure: The BRIC countries are driving sales in the global alcohol sector, whereas theEuropean and North American markets are respectively declining and stagnantFigure: The generally positive outlook in markets unaffected by recession is very different tothat in other parts of the worldFigure: The Absolut City series and the Carlsberg Copenhagen brand highlight how pertinenturban areas are now in global marketing activities in the alcohol sectorFigure: It is vital to recognize that consumers’ alcoholic beverage drinking patterns areoccasion-drivenFigure: The consumer preference for wine at on-trade meal occasions is greatest in WesternEurope, highlighting the strong cultural associations between food and wine in EuropeFigure: The preference for beer on non-food on-trade occasions is greatest in WesternEurope, highlighting its easy drinking natureFigure: Spirits are most associated with up-tempo on-trade occasions, especially in Indiawhere whisky consumption is notably prevalentFigure: Restaurants are the most likely to be visited at least twice-monthly, whereas localpubs and bars are the most likely to be visited on at least a weekly basisFigure: The propensity to visit restaurants tends to at its hardest in the emerging marketsalthough there are certain national exemptions to the ruleFigure: As a consequence of the global financial crisis, fewer consumers are visiting fine
  8. 8. dining restaurants more frequently than mid-scale or fast food restaurantsFigure: Consumer tendency to visit fine dining restaurants more is greatest in the emergingmarketsFigure: Casual dining is a growth element of the foodservice sectorFigure: India and South Africa stand out as two countries where greater accessibility hasdriven an increase in consumers visiting fast food restaurantsFigure: Consumers in Brazil, India, and China have the greatest preference for coffeeoutlets selling alcoholFigure: Consumers in China and India have the greatest preference for fast food outletsselling alcohol, although interest is also high in Italy, Singapore, and BrazilFigure: Younger consumers aged LDA–34 are the most likely to consume alcoholicbeverages in on-trade venuesFigure: Youth unemployment (15–24) has soared since the onset of the global financialcrisisFigure: Popular gender stereotypes about the propensity to consume alcohol are supportedby global research findingsFigure: Men are more likely to drink in the on-trade than women, although there are certainnational exceptions to the ruleFigure: The importance of restaurants in attracting women to the on-trade is particularlyimportant to the alcoholic drinks industryFigure: The propensity to usually drink five drinks or more is greatest in the on-tradeFigure: Popular gender stereotypes about the propensity to binge drink are supported byglobal research findingsFigure: The propensity to binge drink in the on-trade at the weekend is most notable inSouth KoreaFigure: Although an equal proportion of consumers are trading up and looking for cheaperbrands, there are strong differences both between and within regionsFigure: Consumer attitudes to trading up are at their hardest in emerging marketsFigure: Consumers are most likely to choose cheaper brands in those countries that havebeen negatively impacted by the global financial crisisFigure: Drinkers are more likely to choose what they want to drink when in situ in pubs,bars, and restaurants than in grocery outlets for when drinking at homeFigure: There are strong regional variations as to when in the decision-making hierarchyconsumers actually decide which brands they should chooseFigure: Japanese spirit manufacturer Suntory limits brand distribution to the on-trade tomaintain exclusivity and a high price tagFigure: Developing bar-specific alcoholic beverages can pull consumers into thatestablishmentFigure: On-trade-only variants help create an effective brand architecture that is extremelyinfluential in strategic brand planningFigure: The use of unique packaging stands out as a definitive trend in the differentiation ofon-trade specific variantsFigure: Pop-up bars and restaurants, due to their time-limited nature, create an element ofexclusivityFigure: A number of alcohol brands have developed a strong association with film to connectwith consumers’ wider interests and target lower-tempo, more sophisticated on-tradedrinking occasionsFigure: QR codes provide notable opportunities to entice consumers into on-tradeestablishments and make the experience truly interactive, to encourage experimentation
  9. 9. Figure: In capitalizing on the female opportunity in the on-trade, alcoholic beveragemanufacturers must consider a wide array of lifestyle issues to be truly in touch with femaledrinkersFigure: The appeal of ethical alcohol consumption emphasizes the contrast between maleand female preferences in alcoholic beveragesFigure: Encouraging different drink sizes entices consumers to take a “less of the best”approach to consumption, reaching out to new consumer groupsFigure: Social media, when effectively harnessed, can generate a high return on investmentfor quite a limited initial outlayFigure: Patron Tequila has a web-based club, Patron Social Club, using its own social mediaplatform as part of an added-value-led marketing strategyFigure: Chivas Regal engages consumers by encouraging them to visit bars and check-in togain points redeemable for cocktails made with the brandFigure: Corona Light tapped into the trend for photo-sharing, encouraging those who “like”them on Facebook to share an image with them projected onto a billboard in Times SquareLatest Market Research Reports: North American Fire and Life Safety Market Brazilian Industrial Protective Footwear Market VEGF Inhibition: Therapy-Indicating and Prognostic Biomarkers, 2011 Drug Repositioning: New Technologies, Business Models & Strategies for Successful Development Recycling Equipment Market in Singapore – Singapore recycling equipment marketAbout Us:ReportsnReports is an online library of over 75,000 market research reports and in-depthmarket research studies & analysis of over 5000 micro markets. We provide 24/7 online andoffline support to our customers. Get in touch with us for your needs of market researchreports.Follow us on Twitter: http://twitter.com/marketsreportsOur Facebook Page: http://www.facebook.com/pages/ReportsnReports/191441427571689Contact:Mr. Priyank7557 Rambler road,Suite 727, Dallas, TX 75231Tel: + 1 888 391 5441E-mail: sales@reportsandreports.comhttp://www.reportsnreports.comVisit Our Blog: Market Research Reports

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