Report: In-home Drinking - UK

Issues in the Market
Key themes
Definition
Abbreviations
Market in Brief
The shine comes off the market
- Figure 1: UK total household expenditure on in-home alcoholic drinks*, 1998-2009
The impact of the recession is strictly limited
- Figure 2: How consumers have adjusted in the past year to the recession and cost pressures, April 2009
The recession is changing market segmentation
- Figure 3: UK household expenditure on in-home alcoholic drinks, by sector, at constant 2003 prices, 2005-09
Brands come out on top
New market drivers
- Figure 4: Target groups based on how alcoholic drink consumption has changed in the past 12 months, April 2009
The on-trade/off-trade trade-off
- Figure 5: Segmentation of alcohol drinkers/buyers by switching strategy, April 2009
Background: Factors Driving the Rise of In-home Drinking
Key points
A question of economics
- Figure 6: The price deflator for off-trade alcoholic drinks and all consumer items, (2003-100), 2000 Q1-2008 Q4
Legislation favours in-home drinking...
The smoking ban
Drink driving legislation
Increased alcoholic drink taxes
But could that be about to change?
An ageing population means more drinking at home
- Figure 7: Population breakdown (% of consumers), by age, of in-home drinking, 2004-08
The older population are more valuable to the market
- Figure 8: Most valuable consumers for take home sales of alcohol, (VII) by age, 2006-08
- Figure 9: Total population change, by age, 2004, 2009 and 2014
Retro chic back in vogue
Pre-loading helps drive in-home drinking
The impact of crime?
The rise in ABC1s
- Figure 10: Changes in social grade amongst the UK adult population, 2004-09 and 2009-14
The rise of online purchasers
The Impact of the Recession on In-Home Drinking
Key points
Lessons for the past point to...
- Figure 11: Annualised growth in real alcoholic drinks spend for in-home drinking compared to total real household expenditure, 1984 Q1-2008 Q4
What might happen today
- Figure 12: Share of total household expenditure taken, by alcohol for drinking in-home (real terms), 1984 Q1-2008 Q4
But even in a recession some of life' s luxuries are "essential"
But some trading down is inevitable
And the supermarkets are prospering
But most adults plod along as normal
- Figure 13: How the amount of drinking in-home has changed in the last 12 months, April 2009
Older adults more likely to cut down on drinking at home
- Figure 14: Net percentage increase* of adults who have increased their home drinking in the past year, by age, April 2009
Poorer adults feeling the pinch but...
- Figure 15: Net increase* in adults whohave increased their in-home drinking in the past year, by socio-economic group, ACORN group and tenure, April 2009
Is in-home drinking a stress-buster for some?
Young families and couples cut back
- Figure 16: Net increase* in adults who have cut down on in-home drinking in the past year, by detailed lifestage, April 2009
Out-of-home drinking feels the pinch more than in-home
- Figure 17: Items being cut back on in the recession, February 2009
And some switching in evidence
- Figure 18: Consumer switching behaviour between drinking at home and drinking out of home, April 2009
But is the wine drinker feeling the pinch the most?
- Figure 19: Annualised rate of growth in consumer spending on alcohol for in-home drinking, by type, Q1 2005 to Q4 2008
Bottom end of market hit most by the recession
- Figure 20: The impact of the recession on drinking patterns, April 2009
- Figure 21: Penetration of wine and fortified wine, by socio-economic group, 2008
- Figure 22: Penetration of beer and cider, by socio-economic group, 2008
Pre-mixed spirits and vodka keep their customer bases
- Figure 23: Penetration of spirits and other alcoholic drinks, by socio-economic group, 2008
Market Size
Key points
In-home spending under pressure
- Figure 24: UK total household expenditure on in-home alcoholic drinks*, 1998-2009
- Figure 25: Spending per household on in-home drinks (£ per household in the uk at current prices), 1999-2009
The advance of wine, cider and perry halted
- Figure 26: UK household expenditure on wine, cider and perry for in-home drinking*, 1998-2009
- Figure 27: UK household expenditure on wine, cider and perry for in-home drinking* and share of total in-home spending, 1998-2009
- Figure 28: UK household expenditure on wine, cider and perry through retail shops* (% of value sales), by broad drink type, 2007-08
The spirits market revives
- Figure 29: UK household expenditure on spirits* for in-home drinking, 1998-2009
- Figure 30: UK household expenditure on spirits* for in-home drinking, and share of total in-home spending, 1998-2009
- Figure 31: UK household expenditure on spirits and liqueurs through retail shops* (% of value sales), by broad drink type, 2007-08
Beer' s popularity continues to wane
- Figure 32: UK household expenditure on beer and non-alcoholic beer for in-home drinking, 1998-2009
- Figure 33: UK household expenditure on beer and non-alcoholic drinks for in-home drinking, and share of total in-home spending, 1998-2009
- Figure 34: UK household expenditure on beer and non-alcoholic drinks through retail shops* (% of value sales), by broad drink type, 2007-08
The Consumer -- Competitive Context
Key points
The in-home drinking market -- or markets?
The young favour light, clear drinks
- Figure 35: Popular drinks among consumers aged under 35, 2008
But tastes move to darker drinks as consumers age
- Figure 36: Popular drinks among consumers aged 35-54, 2008
55+ consumers; the dark ages
- Figure 37: popular drinks among consumers aged 55-65+, 2008
Taking the long-view: The rise of the wine drinker
- Figure 38: Index of consumer expenditure on alcoholic drinks sold in the off-trade (at constant 2003 prices, 1964 = 100), 1964-2008
- Figure 39: UK consumer expenditure on alcoholic drinks sold in the off-trade, % by broad sector, 1965-2008
Is cider taking the edge off the wine and lager markets?
- Figure 40: Change in consumer penetration (% points) of in-home drinks, 2006-08
Consumer Usage
Key points
A migration to in-home drinking
- Figure 41: Trends for drinking alcohol in-home and out-of-home (% of drinkers), 2004-08
In-home drinking at saturation point
- Figure 42: Trends for drinking alcohol in-home, 2004-08
Wealthier adults more likely to drink at home...
- Figure 43: Penetration of drinking at home, by socio-economic group and ACORN group, April 2009
...but having children tends to dampen the tendency to drink at home
- Figure 44: Penetration of drinking at home, by age, lifestage and presence of children, April 2009
Asda, Waitrose and Morrisons punching above their weight
- Figure 45: In-home drinkers, by main supermarket, compared to total supermarket share, April 2009
No sign that the gender gap is declining
- Figure 46: The gender gap for heavy alcohol consumption in-home, 2004-08
British and Germans are the heaviest in home drinkers
- Figure 47: Consumption of alcohol in-home for GB vs France, Spain and Germany, 2008
Appendix: The Consumer -- Competitive Context
- Figure 67: Demographics of in-home drinking, by drink type, 2008
- Figure 68: Demographics of in-home drinking, by drink type, 2008 (continued)
- Figure 69: Demographics of in-home drinking, by drink type, 2008 (continued)
Appendix -- Consumer Usage
- Figure 70: Penetration and profile of in-home alcoholic drink consumers, April 2009
- Figure 71: Frequency of in-home alcohol consumption, by demographics, 2008

In-home Drinking - UK - July 2009

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