Elevated at-home beverage alcohol consumption is here to stay as consumers will be keeping the party at home, new research from IRI has revealed.
The market researcher’s 2022 Midyear Alcohol Update highlights that many consumers are opting to celebrate and socialise at home, especially given challenges in on-premise, driven by labor shortages, rising prices and reduced menus.
Despite high inflation concerns, retail price increases for beverage alcohol remain more moderate than other CPG categories, the report notes.
“Consumption trends continue to fluctuate with the impact of supply chain challenges and rising inflation, but opportunities for growth remain,” said Scott Scanlon, executive vice president of the Beverage Alcohol Vertical, IRI.
“Consumers are looking to indulge and create entertaining experiences at home, and retailers should emphasize premium products and products with unique attributes in this space.”
Other key findings of the report:
- As consumers adopt healthier habits, better-for-you beverage alcohol options and alternative alcohol products continue to gain traction
- New twists on familiar favorites, interesting flavor combinations and contemporary claims are popular with consumers
- Premium beer and wine and super-premium spirits continue to drive growth
- E-commerce remains a viable channel for beer
With increasing inflation and rising competition among retail outlets, the report suggests that promotions will be an essential strategy in retaining shoppers. Ready-to-drink cocktails are a growth opportunity, but brands need to have a point of differentiation, it adds.