The latest consumer insights research from OAAA and The Harris Poll examines four key product categories and OOH’s impact on consumer behavior related to each. Analysis of the alcoholic beverages category reveals about two-thirds of US adults 21 – 64 years of age have recently noticed an OOH ad for these products. Notice rates are even higher for Millennials (72%), men (74%), urban dwellers in cities over one million in population (78%), and Gen Z (79%).
Further highlighting OOH’s very strong impact with consumers of the alcohol category, The Harris Poll found over three-quarters (77%) of adults who saw an OOH ad took action, with over half of them purchasing alcohol at a retail store.
For additional insights on OOH alcohol ad messages most likely to engage consumers and to discover where shoppers are most likely to buy alcohol, OAAA members can access the full Harris Poll study, along with the supporting Infographics here.
OOH resonance with consumers interested in alcoholic beverages is also reflected in Vivvix ad spend data. From 2019 – 2021, OOH share of total media spend in the category ranged between six and seven percent, but it spiked to a high in 2022 reaching 7.7 percent and totaled $131 million. Vivvix’s definition for the category includes beer and ale; brandy, cognac, cordials, and liqueur; whiskey and other spirits; wine and wine coolers; and non-alcoholic mixes.
Category growth projections for alcoholic beverages in 2023 range widely from two to just over 10 percent for total media. To assist OAAA members with opportunities in this growing category, here are a number of key trends about the sector.
From Kantar, March 2023 research from a survey of 2,000 shoppers:
- Increased drinking is more likely to happen at home (23%), than in bars (16%), or parties/social gatherings (17%).
- 37% of shoppers are replacing other alcoholic beverages with ready to drink/serve mixed drinks.
- Over 40% of shoppers are already buying or interested in fermented beverages with alcoholic content.
- Healthier drinks are a growing trend and are extremely important to the overall satisfaction of over 20% of beverage alcohol shoppers when drinking at bars/restaurants.
- About half (48%) of Gen Z look for inspiration for new alcoholic beverages and recipes on TikTok, while Boomers look for inspiration in friends and family (59%).
- Non-alcoholic beer over indexes among young generations, with 21% of Gen Z and 18% of Millennials purchasing non-alcoholic beer in the past three months.
From Drizly:
- 71% of retailers surveyed said growth in the ready-to-drink (RTD) category has permanently changed how and where they stock their products.
- Nearly 69% of respondents expect to carry more red wine in 2023, ahead of Champagne and sparkling wines (58%) and white wine (44%), driven by an increasingly clout-carrying Gen Z generation expecting to up their purchases of red wine more than any other alcohol segment.
- 64% of retailers surveyed plan to give tequila, the agave-based spirit, more shelf space than any other spirit in 2023, edging bourbon, and 54% of retailers said tequila over-performed their expectations in 2022, outpacing all other spirits.
- 35% of retailers cited craft beer as the top trending adult beverage category for 2023. Style-wise, 60% of respondents singled out IPA for additional cooler and shelf space this year.
- Non-alcoholic (NA) options proliferate across all adult beverage segments, but beer is poised to drive overall NA growth. Nearly 61% of respondents named beer as the non-alcoholic product they’re planning to stock more this year – nearly 30 points ahead of second-place finisher wine. Overall, 18% of retailers surveyed plan to carry more NA beer in 2023.
From Avalara:
- Consumer preference, largely Gen Z and Millennials, has pushed the ready-to-drink (RTD) category to become the fastest growing spirits category of 2022, and it’s expected to increase by $11.6 billion through 2026. RTDs are typically lower in alcohol and feature unique flavors, which is in lockstep with young Gen Z’s unique distinction of being “the least alcohol-consuming generation in history.”
- By 2031, the U.S. is poised to become the world’s largest ecommerce market for alcoholic beverages.
For even more insights on the category, you can join a Kantar webinar on May 11 that will cover:
- How evolving on- and off-premise usage affects alcoholic beverages shopping
- Who’s spending more & less on alcoholic beverages by category
- Why shoppers spend more or less, by category
- Where shoppers buy their alcoholic beverages and what they like, and don’t like, about their experience
Source: Avalara, Drizly, Kantar, OAAA, The Harris Poll
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Published: May 2, 2023