The research from CGA was revealed in William Grant & Sons’ Market Report 2018, which was launched at One Marylebone, central London, last night (12 July).
The report also found that more than 65% of spirits growth across the on- and off-trade is being driven by gin, although flavoured spiced rum, non-cream liqueurs and American whiskey are also showing strong growth.
The spirits market in the on-trade is now worth £6.3bn, up 4.9% (moving annual total to 24 February 2018), continuing to be driven by premium spirits and consumers trading up to improve their on-trade experience.
Significant growth
Premium spirits - valued at £934m and up 14.6% (moving annual total) - continue to drive significant growth in the on-trade.
Spirits is growing in actual sales at more than double the rate of all other segments (beer, cider, and wine combined).
The on-trade is driving the majority of the spirit sector’s actual sales value growth, but the off-trade is growing at a faster pace year-on-year.
Premiumisation remains a key driver for the spirits market, with premium brands accounting for £239m of incremental value (across both on- and off-trades).
The active-ist consumer
The report also highlighted a new type of customer that operators need to be aware of – 'the active-ist consumer'.
These drinkers are defined by three characteristics:
- Experience optimisers – people who expect brands to help them optimise their health, work-life balance and experiences.
- Impact purchasers – using their wallets and social media presence to drive the social change they expect. They want to consume and enjoy life in a sustainable way.
- Data miners – digitally sophisticated, they value their trusted information sources and demand transparency, alongside a growing expectation of highly engaging and personalised experiences.