This report provides the results for the Spirits market in Italy 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 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 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. Brandy, Whiskey, Rum, Gin and Genever, Vodka, Tequila and Mezcal, Specialty Spirits, and Liqueurs 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: Brandy, Whiskey, Rum, Gin and Genever, Vodka, Tequila and Mezcal, Specialty Spirits, andLiqueurs.
- 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
- Consumption of Gin andGenever is low, with consumption declining as consumers get older. Furthermore, consumption frequency is mostly Light, indicating that Gin andGenever consumption is occasional and producers need to consider strategies to make consumption more habitual.
- Rum consumption in Italy increases with age because of heavy use. As a result, marketing planners are likely to have Older Consumers and Mid-Lifers as their target audience.
- Vodka consumption in Italy is significantly higher among younger consumers. There are few Light consumers in the Early Young Adults age group, suggesting that producers have successfully developed habitual consumption of their products. However, Light consumption is more common than Medium consumption in older age groups. As such, producers need to consider strategies to increase consumption frequency in age groups other than young adults.
- Personal space and time and Quality seeking are key trends affecting consumers' choices of Brandy. As such, Brandy producers need to attach qualities such as connoisseurship to their brands to resonate with consumers.
- While private label penetration is low in most Spirits categories in Italy, it is unusually high for Rum with penetration reaching almost 12%. Retailers need to replicate the winning strategies they have implemented for Rum in other Spirits categories.
- Speciality Spirits accounts for the largest share of the Italian Spirits market in value terms, followed by Brandy and Liqueurs.