Keeping Young Adults Loyal in Alcoholic Drinks

Table of Contents

• CHAPTER 1 EXECUTIVE SUMMARY
  • The hot topic
  • The future decoded
    • Young Adults account for a shrinking proportion of alcohol spend
    • Young women are altering consumption patterns
    • Drinking is more frequently partnered with mealtimes
    • Tastes have matured, driving changes in drink choice
  • Action points
• CHAPTER 2 THE FUTURE DECODED
  • Introduction
    • Defining Young Adults
  • TREND: Young Adults account for a shrinking proportion of alcohol spend
    • The population of Young Adults is shrinking
    • The per capita spend on alcohol by Young Adults is shrinking
    • The off-trade overall is growing faster than the on-trade
      • Rise of singles in the 25-34 demographic is the key growth driver in the on-trade
      • Young Adults occasions are growing in the off-trade
      • The need for alcohol as a social lubricant will continue to ensure sales in the on-trade
  • TREND: Young women are altering consumption patterns
    • Female lifestyles are changing
      • Rising number of female Young Adults entering tertiary education
      • Young Women are staying single for longer
  • Female social drinking is focused on interaction and sharing
    • The on-trade is witnessing the feminization of venues
    • The off-trade is being driven by growth in the female demographic
      • There is a rise in mixed sex groups
  • TREND: Drinking is more frequently partnered with mealtimes
    • Food occasions have encouraged premium alcoholic drink uptake
      • The on-trade needs to upgrade to prevent negative growth
      • The off-trade is benefiting from an increase in premium product offerings
        • Food occasions have driven wine consumption
        • Young Adults' spend per occasion in the on-trade is decreasing
  • INSIGHT: Age boundaries are blurring and it is no longer sufficient to base marketing on age stereotypes.
    • Young Adults do not like to be labeled
    • The Young Adults group itself consists of two very different groups
      • Students are not necessarily price-led
        • The desire for maturity affects Young Adults' drink choice
  • INSIGHT: Image plays an important role in determining the success of channels
    • Word of mouth is effective in targeting Young Adults
      • Young Adults say they aren't influenced by word of mouth but in fact their behavior is
        • Advertising does not drive consumption upwards
  • INSIGHT: Tastes have matured, driving changes in drink choice
    • The image of beer has been affected by the premiumization trend
    • The image of wine is benefiting from its association with food
      • Young Adults' interest in wine has encouraged manufacturer activity
      • There is further potential to target Young Adults in the wine segment
  • The image of FABs has suffered in recent years
    • The FABs craze peaked later in current growth markets
    • The decline in FABs could reflect a switch to off-trade consumption
    • Young Adults in Germany are put off by higher prices of FABs
    • The slump in demand has led to the disappearance of brands
    • FABs consumption may be swayed by promotional activity
    • FABs can play some role in achieving customer loyalty in later years
  • The image of cider has improved following the introduction of more premium products
    • The UK may provide a good indication of emerging cider trends overall
    • The decline of FABs has had a positive impact on the cider market
    • Cider manufacturers are learning from FABs' mistakes
  • INSIGHT: Interaction between male drinkers is often based around sports
    • Male drinking is characterized by the presence of secondary activities
    • Conformity forms a large part of male drinking
  • INSIGHT: Repertoire drinking is becoming increasingly important
    • Need states and occasions determine Young Adults' drink choice
    • Young Adults are likely to be more experimental than older consumers
  • INSIGHT: Innovations are reflecting changing Young Adult tastes
    • There has been an increase in the number of sweet tasting drinks available on the market
    • Vodka has benefited from its adaptability
      • The opportunity to experiment proves an attractive option
  • INSIGHT: Increased health awareness provides an opportunity in the market
    • Indulgence is more important than health issues
      • Debit and credits behavior allows for indulgences
      • Baby boomers are the key group for health products
  • Consumers recognize the health benefits of wine
  • Future smoking bans are unlikely to negatively impact the market
    • Smoking bans may increase health awareness
    • The link between alcohol and smoking means bans will affect on-trade consumption
    • Smoking bans may encourage smokers to quit
    • The effects of the smoking ban on the on-trade will be minimal
  • Conclusions
• CHAPTER 3 ACTION POINTS
  • Increase the quality of the off-trade offering
    • Enhance premium offerings in the off-trade
    • Encapsulate the benefits of the on-trade into off-trade products
  • Alter the on-trade experience to cater to changing tastes
    • Turn bars into comfortable, convenient 'homes from home'
    • Adjust to an increasingly feminized on-trade environment
  • Associate alcohol with food occasions in Young Adults' minds
    • Build the connection between food and beer
    • Focus wine on informal Young Adult related meal occasions
      • Case Study: Banrock links wine with Aussie BBQ bangers
  • Demystify wine to target Young Adults
    • The wine market needs to address Young Adults drinking preferences
      • Case Study: Constellation Wines - giving wine brands demystified attitude
  • Ensure dual targeting for drinks
  • Target consumers with a premium product, at a competitive price
    • Case Study: Positioning Magners as a premium cider
  • Use event marketing to build brand loyalty
    • Establish a connection with music events
    • Establish long-term sponsorship contracts
  • Create novel products in order to maintain interest
• CHAPTER 4 APPENDIX
  • Supplementary data
    • Young Adults' alcoholic drinks in France
    • Young Adults' alcoholic drinks in Germany
    • Young Adults' alcoholic drinks in Italy
    • Young Adults' alcoholic drinks in the Netherlands
    • Young Adults' alcoholic drinks in Spain
    • Young Adults' alcoholic drinks in Sweden
    • Young Adults' alcoholic drinks in the UK
    • Young Adults' alcoholic drinks in the US
  • Definitions
  • Research methodology
  • Future readings
  • How to contact experts in your industry
  • List of Tables
    • Table 1: Number of Young Adults in Europe and the US (m), 2000-2010
    • Table 2: Number of Young Adults in Europe and the US as a percentage of overall population (%) , 2000-2010
    • Table 3: Young Adults' alcoholic spend per capita (US$), US & Europe, 2000-2010
    • Table 4: Young Adults' alcoholic spend as a percentage of all groups' spend (%), US & Europe, 2000-2010
    • Table 5: Total number of alcoholic drinking occasions (m), US & Europe, 2000-2010
    • Table 6: Total share of alcoholic drinking occasions by occasion type (%), US & Europe, 2000-2010
    • Table 7: Off-trade share of Young Adult alcohol consumption (% volume), US & Europe, 2000-2010
    • Table 8: Young Adults' per capita consumption of alcohol overall (liters of pure alcohol), US & Europe, 2000-2010
    • Table 9: Number of women students in Europe and the US (m), 2000-2010
    • Table 10: Mean age at first marriage - females, Europe and the US, 1990-2010
    • Table 11: Mean average age at time of first childbirth Europe and the US, 2000-2010
    • Table 12: Overall alcoholic drinks values in the off-trade (US$ m), US & Europe, 2000-2010
    • Table 13: Overall alcoholic drinks volumes in the off-trade (Liters m), US & Europe, 2000-2010
    • Table 14: Wine as a percentage of Young Adults alcohol consumption overall (% volume), US & Europe, 2000-2010
    • Table 15: Overall alcoholic drinks values in the on-trade (US$ m), US & Europe, 2000-2010
    • Table 16: Overall alcoholic drinks volumes in the on-trade (Liters m), US & Europe, 2000-2010
    • Table 17: Young Adults' per capita consumption of beer (liters of pure alcohol), US & Europe, 2000-2010
    • Table 18: Young Adults' beer consumption as % of total beer consumption (%), US & Europe, 2000-2010
    • Table 19: Young Adults' per capita consumption of wine (liters of pure alcohol), US & Europe, 2000-2010
    • Table 20: Young Adults' wine consumption as % of total wine consumption (%), US & Europe, 2000-2010
    • Table 21: Young Adults' per capita consumption of FABs (liters of pure alcohol), US & Europe, 2000-2010
    • Table 22: Young Adults' per capita consumption of FABs (liters of pure alcohol), US & Europe, 2003-2005
    • Table 23: Young Adults' FABs consumption as % of total FABs consumption (%), US & Europe, 2000-2010
    • Table 24: Young Adults' per capita consumption of cider (liters of pure alcohol), US & Europe, 2000-2010
    • Table 25: Value of Young Adults overall alcohol spend (US$ m), France, 2000-2010
    • Table 26: On-trade share of Young Adult overall alcohol spend (% value), France, 2000-2010
    • Table 27: Volume of Young Adults overall alcohol consumption (Liters of drinks m), France, 2000-2010
    • Table 28: On-trade share of Young Adult overall alcohol consumption (% volume), France, 2000-2010
    • Table 29: Value of Young Adults overall alcohol spend (US$ m), Germany, 2000-2010
    • Table 30: On-trade share of Young Adult overall alcohol spend (% value), Germany, 2000-2010
    • Table 31: Volume of Young Adults overall alcohol consumption (Liters of drinks m), Germany, 2000-2010
    • Table 32: On-trade share of Young Adult overall alcohol consumption (% volume), Germany, 2000-2010
    • Table 33: Value of Young Adults overall alcohol spend (US$ m), Italy, 2000-2010
    • Table 34: On-trade share of Young Adult overall alcohol spend (% value), Italy, 2000-2010
    • Table 35: Volume of Young Adults overall alcohol consumption (Liters of drinks m), Italy, 2000-2010
    • Table 36: On-trade share of Young Adult overall alcohol consumption (% volume), Italy, 2000-2010
    • Table 37: Value of Young Adults overall alcohol spend (US$ m), The Netherlands, 2000-2010
    • Table 38: On-trade share of Young Adult overall alcohol spend (% value), The Netherlands, 2000-2010
    • Table 39: Volume of Young Adults overall alcohol consumption (Liters of drinks m), The Netherlands, 2000-2010
    • Table 40: On-trade share of Young Adult overall alcohol consumption (% volume), The Netherlands, 2000-2010
    • Table 41: Value of Young Adults overall alcohol spend (US$ m), Spain, 2000-2010
    • Table 42: On-trade share of Young Adult overall alcohol spend (% value), Spain, 2000-2010
    • Table 43: Volume of Young Adults overall alcohol consumption (Liters of drinks m), Spain, 2000-2010
    • Table 44: On-trade share of Young Adult overall alcohol consumption (% volume), Spain, 2000-2010
    • Table 45: Value of Young Adults overall alcohol spend (US$ m), Sweden, 2000-2010
    • Table 46: On-trade share of Young Adult overall alcohol spend (% value), Sweden, 2000-2010
    • Table 47: Volume of Young Adults overall alcohol consumption (Liters of drinks m), Sweden, 2000-2010
    • Table 48: On-trade share of Young Adult overall alcohol consumption (% volume), Sweden, 2000-2010
    • Table 49: Value of Young Adults overall alcohol spend (US$ m), UK, 2000-2010
    • Table 50: On-trade share of Young Adult overall alcohol spend (% value), UK, 2000-2010
    • Table 51: Volume of Young Adults overall alcohol consumption (Liters of drinks m), UK, 2000-2010
    • Table 52: On-trade share of Young Adult overall alcohol consumption (% volume), UK, 2000-2010
    • Table 53: Value of Young Adults overall alcohol spend (US$ m), US, 2000-2010
    • Table 54: On-trade share of Young Adult overall alcohol spend (% value), US, 2000-2010
    • Table 55: Volume of Young Adults overall alcohol consumption (Liters of drinks m), US, 2000-2010
    • Table 56: On-trade share of Young Adult overall alcohol consumption (% volume), US, 2000-2010
    • Table 57: Definitions of terms
    • Table 58: Definitions of drinking occasions
  • List of Figures
    • Figure 1: Different age demographics as a percentage of overall population able to drink (%), Europe, 2000-2010
    • Figure 2: Different age demographics as a percentage of overall population able to drink (%), US, 2000-2010
    • Figure 3: Germany has the highest alcohol consumption among Young Adults
    • Figure 4: Handyman Red is an example of a more contemporary wine
    • Figure 5: Henkell's champagne provides an example of a product which attempts to target the female consumer using sweet tastes
    • Figure 6: Anheuser's fruit-infused beer provides an example of beer manufacturers catering for the sweeter tastes of women
    • Figure 7: An increasing number of draught beer appliances provide an example of how manufacturers are increasing quality in the off-trade
    • Figure 8: Eze Ready to Drink cocktails provide an example of a typically on-trade drink tailored for the off-trade
    • Figure 9: Tikka beer provides an example of a beer product which caters for a specific food type
    • Figure 10: Miller Brewing Company's talking beer cans provide an example of a novel product
    • Figure 11: Russian Roulette developed a drinking experience rather than just a product with the introduction of their vodka-based game