Changes in consumer behaviour are influencing innovation in the alcoholic beverage industry, a new report from IWSR Drinks Market Analysis has found.
According to the IWSR's annual Global Trend Report, a number of factors, including increased 'sophistication', lifestyle and ethical choices, digital engagement and social experience are contributing to the evolution of the drinks sector, as well as new product development.
Global Sophistication
According to IWSR, the 'global sophistication' of the sector encompasses a number of trends – in developed markets, premiumisation (along with the attitude that 'less is better') has led to a boost for the craft sector, as well as increased focus on localisation.
In developing markets, however, new, entry-level brands are helping consumers discover unfamiliar alcoholic beverage categories.
The global sophistication trend also includes the development of increasingly niche and personalised experiences, which enable curious customers to better connect with their favourite drinks categories (such as subscription clubs, or 'meet the maker' events'), as well as increased education about categories such as wine, particularly in Asia.
Lifestyle and Ethical Choices
Consumer demand for health and wellness has led to a boost in the development of low- and no-alcohol products, as well as products that contain added benefits, such as low-sugar, gluten-free and added vitamins or minerals.
Drinks giant Diageo recently announced its embrace of this trend with the takeover of a majority shareholding in Seedlip, the first distilled non-alcoholic spirits brand, which came through its Distill Ventures accelerator programme.
Consumers also expect drinks brands to attain high standards when it comes to waste reduction, alternative packaging methods, and sustainability practices in general, as well as 'prove their authenticity' when it comes to the challenges facing society.
Digital Engagement
According to IWSR, personalised and interactive marketing campaigns are increasingly important for brands seeking to gain a foothold in today's increasingly crowded market.
In addition, brands are developing customer-facing technologies that enhance engagement, such as smart labels, which are changing the way that consumers interact.
Social Experience and Inclusivity
As well as engaging with consumers on a one-to-one basis, drinks companies are also embracing events, festivals and other interactive social occasions, developing brand-led experiences to further bolster their presence.
In the HoReCa sector, this might include themed cocktails and food and drink parties, for example.
Commenting on the findings of the report, Mark Meek, CEO of IWSR Drinks Market Analysis said, “We’re proud that the global drinks industry relies upon IWSR data and analytics to make informed decisions every day about their companies and brands, but equally important is discerning consumer habits and market forces that are fuelling the industry and driving growth. That is what makes our trends research so valuable and essential to understanding the global drinks business.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
