This report provides the results for the Beer, Cider and Pre-mixed Spirits market in the UK from Canadean's unique, highly detailed study of consumers' Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.
Introduction and Landscape
Why was the report written?
Marketers in the Beer, Cider and Pre-mixed Spirits market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Beer, Cider and Pre-mixed Spirits market they account for, and which consumer trends drive their behavior.
What is the current market landscape and what is changing?
As consumer confidence increases proportionally to economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008-2009 the retail market has been characterized by an increase in the amount of discounted and own-brand products. Beer and Ale, Cider, Flavored Alcoholic Beverages, Lager, and Low Alcohol Beer and Lager are not considered essential items and therefore consumption patterns have been negatively affected. As economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the medium and heavy frequency bands and the amount of non-users should decrease
What are the key drivers behind recent market changes?
Consumers' uptake of products and the influence of consumer trends are fundamental causes of change in markets - making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.
What makes this report unique and essential to read?
The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.
Key Features and Benefits
- Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Lager, Beer and Ale, Flavoured Alcoholic Beverages, Cider, and Low Alcohol Beer and Lager.
- Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.
- Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling.
- Unique retailer choice data at the product category level, based upon the original survey and then subsequent consumer tracking and modeling.
Key Market Issues
- Cider consumption in the UK declines marginally with age, with the number of Heavy users declining proportionally. Light consumption is most common, highlighting Cider's role as an occasional treat which may be substituted with other alcoholic beverages such as wine and beer.
- The penetration of Flavoured Alcoholic Beverages is low across all age groups, with consumption higher in younger age groups than in older ones. Reasons for this include the occasions during which Flavoured Alcoholic Drinks are consumed, which emphasize on-trade consumption rather than off-trade, and the recent launch of the majority of products, with consumers in older age groups having already established a range of preferred drinks.
- The Better Off wealth group has the largest value share in the UK Beer, Cider, and Pre-Mixed Spirits market, with this segment accounting for almost half of the total market size. This group is followed by the Moderate Income wealth group, indicating a strong potential for mass market products.
- The Beer, Cider, and Pre-mixed Spirits market in the UK is dominated by branded products while private label penetration is minimal, in range of 4-6%.Consumers of alcoholic beverages trend to be very loyal to particular brands, increasing retailers' difficulty in attaining penetration for their products.
- Lager accounts for the largest share of the Beer, Cider, and Pre-Mixed Spirits market in the UK, both in value and volume terms. This is expected to continue in years to come as consumption of Beer, Cider, and Pre-Mixed Spirits is highly habitual.
- Consumer survey results indicate that Indulgence and Personal space and time are the leading trends influencing Beer, Cider, and Pre-mixed Spirits consumption in the UK. Breweries and marketing companies need to consider these behavioral trends in order to effectively reach their target audience.