The UK Spirits Market: What Consumers Drink and Why?




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Product Synopsis

This report provides the results for the 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 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 with the 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, and Liqueurs.
  • 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

  • Specialty Spirits consumption is highest among Older Young Adults, indicating that this age group is more willing to try new, non-traditional spirits than other age groups. However, this age group still records a high number of Non-users, indicating that the Specialty Spirits market is limited to a small consumer base.
  • Unlike Spirits such as Whiskey and Brandy, the penetration rate and consumption frequency of Tequila and Mezcal is considerably higher among younger age groups. As such, Tequila and Mezcal producers should focus on a young target demographic.
  • While Liqueurs are consumed by more women than men, more men consume at a Heavy frequency, indicating that Liqueur producers may increase their sales and profitability with products targeting this gender.

Key Highlights

  • Retail share analysis reveals the top four retailers in the UK account for over 75% of Spirits distributed, with Tesco recording the largest share. 
  • Brand analysis reveals private label penetration by volume in the UK is the highest for Vodka and Gin and Genever, at approximately one-fifth of the market. Private label's share is lowest among Liqueurs and Tequila and Mezcal.
  • Spirits expenditure per capita of UK consumers is the highest for Vodka, followed by Whiskey. The latter, not a traditional drink in the country, has gained favour among young consumer groups.