New research from IRI has found that despite high inflation concerns, retail price increases for beverage alcohol remain more moderate than other CPG categories.
IRI’s 2022 Midyear Alcohol Update highlights that many consumers are opting to celebrate and socialize at home, especially given challenges in on-premise, driven by labor shortages, rising prices and reduced menus.
Insights from the new report can enable retailers and manufacturers to make better merchandising and promotional activity decisions to enhance the shopper experience and drive growth and profitability.
“Consumption trends continue to fluctuate with the impact of supply chain challenges and rising inflation, but opportunities for growth remain,” said Scott Scanlon, EVP of the beverage alcohol vertical, IRI.
“This report provides an outlook on the state of the beverage alcohol industry and areas ripe for innovation. Consumers are looking to indulge and create entertaining experiences at home, and retailers should emphasize premium products and products with unique attributes in this space.”
Other key findings of IRI consumer research revealed:
- As consumers adopt healthier habits, beverage alcohol options and alternative alcohol products continue to gain traction;
- New twists on familiar favorites, flavor combinations and contemporary claims are popular with consumers;
- Beer, wine and spirits continue to drive growth; and
- E-commerce remains a viable channel for beer.
Implications and opportunities for growth include:
- With increasing inflation and rising competition among retail outlets, promotions will be a primary strategy in retaining shoppers;
- Cocktails are a growth opportunity, but alcohol brands need to have a point of differentiation;
- Marketing should focus on giving consumers options and inspiration for at-home entertaining occasions; and
- E-commerce is an integral part of a consumer’s shopping experience and is important for omnichannel success.
IRI unifies technology, analytics and data to reinvent how people and companies make decisions, take action and optimize performance. IRI helps to guide its more than 5,000 clients around the world in their quests to capture market share, connect with consumers, collaborate with key constituents and deliver market-leading growth.
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