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Jul 21, 2010

Alcohol Profits Up From At-home Consumption: Mintel

PrintAlcohol Profits Up From At-home Consumption: Mintel  

Mintel research has found that more consumers are consuming alcoholic beverages at home instead of in bars or restaurants.

Among drinkers, 90 percent consume alcoholic beverages at home, compared with 77 percent who drink outside the home. Furthermore, those surveyed consume almost twice the amount of drinks at home in an average month than they do in restaurants or bars (10 vs. 5.7).

The nearly $80 billion off-premise alcoholic beverage market has grown 21 percent since 2004 as more consumers cut back on eating out in light of trying economic times. Drinkers are also cutting back in terms of the alcohol they’re purchasing for at-home consumption: 28 percent of respondents who drink alcoholic beverages at home have traded down to less expensive brands than last year to save money.

“In a price-sensitive environment, consumers may shy away from discretionary expenses, like alcohol, to save a few bucks,” said Garima Goel-Lal, senior analyst at Mintel. “About half of those who report drinking alcohol at home are drinking less than they did a year ago, but the market is still enjoying viability.”

While beer enjoys the largest share of market sales (48 percent), wine is the most popular alcoholic beverage consumed off-premise, with 67 percent of those who drink alcohol at home indulging in a glass. Distilled spirits are consumed by 57 percent of respondents, and regular beer by 53 percent.

“The wine market has seen a magnitude of innovations, due largely in part to winemakers’ need to break free from stereotypes that may have been alienating younger users,” noted Goel-Lal. “Recently, we’ve seen an array of packaging innovations, unpretentious labels and food-wine pairings to attract lucrative demographics previously unheeded by wine manufacturers.”

More than two in five respondents who drink alcohol at home (43 percent) said they’re very knowledgeable about alcoholic beverages, with 35 percent gleaning information from magazines or television. Thirty-one percent cited the Internet as their primary source of alcoholic beverage research. More than half of respondents who drink alcohol at home are influenced by promotional or discounted prices of alcoholic beverages.

Chicago-based Mintel is a leading global supplier of consumer, product and media intelligence. More information is available at www.mintel.com.








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