EXCLUSIVE: Data Shows Consumption of Alcohol in the Out-Of-Home Market is Declining
Data from the NPD Group has revealed that the number of servings of Alcohol in the out-of-home market is in long-term decline, falling by 23% between YE June 2010 and YE June 2015. This equates to 330 million fewer servings of Alcohol.
In terms of its fit within other beverages, alcohol now accounts for 12% of all beverages served, down from 15% in 2010. Soft Drinks have grown share of beverages from 44% to 50% in the same period, as consumers switch between the two.
Looking at the heartland of alcohol, Chain Pubs, it is clear that the overall trend is common even to areas where alcohol should thrive. Alcohol has lost 6%pts of share of beverages between 2010 and 2015, with Soft Drinks again picking up the slack, growing share by 6%pts. Patrons are clearly switching from alcohol to soft drinks in this channel, and in the market overall.
Consumer attitudes and behaviour have clearly changed in the last five years, and this has been universal across all age groups. It is only the over 65s who have not seen an increased incidence of soft drinks and decreased incidence of alcohol; both have decreased for this more money-conscious demographic.
It is worth noting that visits to the market where alcohol is purchased are much more lucrative to operators than those featuring soft drinks. The average bill per person (or ‘eater cheque’) when alcohol is purchased in £10.71, compared to £5.33 when soft drinks are chosen. A continued decrease in the prevalence of alcohol in the out-of-home market, then, is not generally good news in cash terms.
As Jack MacIntyre, Senior Account Manager at NPD Group commented: “The substantial increase in the cost of alcohol in the out-of-home market – where a pint in London routinely tops the £5 barrier – coupled with the long-standing supermarket strategy of using alcohol as a loss leader, and the introduction of the smoking ban in 2007 has inevitably driven a decline in alcohol consumption outside the home. What is perhaps surprising is that traffic to Chain Pubs has actually increased in this period. This is driven by a cannibalisation of visits from Independent Pubs either closing down or not adapting, and also by Chain Pubs’ successful strategy of outlet refurbishment; with families flocking to these expanded and improved Chain Pubs at all times of the day to enjoy new developments in the menus of these increasingly food-led outlets.”
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The NPD Group provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Sectors covered include automotive, beauty, entertainment, fashion, food / foodservice, home, office supplies, sports, technology, toys, video games, and wireless. For more information, visit www.npd.com and npdgroupblog.com. Follow us on Twitter: @npdgroup.
