On Premise alcohol consumption falls 23% as soft drinks gain popularity

The On Premise is witnessing a marked decrease in alcohol consumption, with a 23% decline in the UK, resulting in a growing appetite for soft drink options, according to CGA by NIQ’s leading OPUS data.

Among the 18-24 year old demographic, almost a third (30%) reported drinking less than they did a year ago, with 13% completely abstaining from alcohol.

This demographic is also “more health-conscious”, with three quarters striving to lead a healthier lifestyle (74%) and actively seeking to make environmentally conscious choices (73%).

However, this reduction in alcohol intake has not negatively impacted younger consumers’ engagement with the On Premise sector.

On the contrary, 86% of 18-24 year old consumers have visited the On Premise in the last three months, 60% going out weekly, (over-indexing by +17pp versus the average for all GB consumers).

According to CGA, these statistics “accentuate a compelling opportunity for drink brands and venue operators to position themselves as the go-to choice by offering beverages aligning with these values to this health-conscious and environmentally aware generation”.

It also stated that in doing so, they are well-placed to not only meet the demand for alcohol alternatives, but also build “long-term loyalty among this highly engaged consumer demographic”.

Despite the growing preference for non-alcoholic drinks, the total soft drinks sales performance has remained flat. Although certain segments are showing promise, with a +8% year-on-year (YOY) value increase in bars and bar restaurants and a +2.7% YOY value growth in hotels.

The data indicates “untapped potential” for soft drinks during higher tempo occasions, especially among younger consumers who are increasingly adopting “zebra striping” – alternating between alcoholic and non-alcoholic drinks throughout the night. In fact, the report stated that 18-24-year-olds are more likely to choose soft drinks in a bar or late-night setting, over-indexing by +6pp versus the average consumer.

The most prominent factors driving brand choice include:

• Habit – 43% soft drink consumers are creatures of habit, always choosing the same drink categories and/or brands.
• Brand loyalty – 38% of consumers consistently choose their favourite brand.
• Value for money – An equal % are motivated by value for money as brand loyalty, which does not necessarily mean the cheapest option.
• Brand quality – A quarter (23%) prioritise brand quality.
• Menu recommendations and onsite activations – Promotional activities are particularly effective among 18-24-year-olds, who have strong brand loyalty while also being more open to being influenced, (over-indexing by +9pp versus the average consumer).

Violetta Njunina, CGA client director, said: “These evolving consumer preferences in the GB On Premise present an exceptional window for soft drink suppliers and venue operators to flourish by supplying to changing demands.

“As moderation becomes a key trend, particularly among younger generations, the ability to offer appealing, high-quality, and health-conscious soft drinks is crucial for success. Suppliers who tap into these insights and align their strategies are better positioned to lead in this new era of beverage consumption.“