Aussies Drink Less but Spend More on Alcohol
According to research by company, IBISWorld, Australians are forking out more money, for higher quality liquor brands. Drinkers in Oz are consuming less alcohol overall but are spending more money on quality drinks.
Aussies are developing a more sophisticated palette for alcohol resulting in an increase in revenue, good news for alcohol industry stakeholders. Bars and pubs in particular can expect a spike in alcohol spending over the festive season, with research showing an estimated 20.5 per cent increase in alcohol sales, despite a reduction in the amount of alcohol being consumed.
Stats show a 2.4 per cent dropin alcohol consumption compared to the same time last year but no financial losses are anticipated because consumer’s preference for premium brands will more than make up for the shortfall.
Over 2012-2013, Aussies are expected to spend $33.1 billion on alcohol, with $15.9 billion being spent in pubs and bar, especially in NSW.
New South Wales accounts for almost half of all alcohol spending in the country.
This post on Hopitalitymagazine.com has more:
NSW is cashing in the most pennies for alcohol consumption, accounting for 33.9 per cent of total alcohol spending, with Queensland sitting at 22.4 per cent and overtaking Victoria which sits at 19.3 per cent. Western Australia accounts for 13 per cent.
Spending in pubs and bars is set to increase with IBISWorld anticipating an increase in 2012-13 of 2.6 per cent on last year, which will mean 47.6 per cent of Australians’ total alcohol spending is on-premises.
Beer and cider
While our consumption of beer in general is dropping, Australians are increasingly moving away from traditional full-strength lagers we’ve preferred in the past, instead going for the premium options.
Dobie said, “Once a nation of beer drinkers, beer consumption has declined by 15 per cent over the past decade to now account for 37.1 per cent of total alcohol consumption, while wine and spirits have grown in popularity to account for 25.3 per cent and 17.9 per cent of alcohol consumption respectively.
“Australia’s beer drinking palate is becoming more sophisticated, with a number of European style beers now being produced on our shores. Traditional full-strength lagers such as VB, Carlton Draught and Tooheys are losing market share in favour of cider and premium beer.”
Cider is also enjoying impressive growth outperforming beer, wine, RTDs and spirits with an expected increase of 13 per cent to account for 12.9 per cent of total consumption, up from its current position at seven per cent. Boutique beers are also a growing segment, now accounting for five per cent of total production.
IBISWorld is forecasting that beers will fall to 32.5 per cent of total alcohol consumption and wine will rise to 29.6 per cent.
When it comes to wine, Australians are more than willing to pay for premium brands especially Chardonnay which accounts for fifty per cent of wines consumed. Ready to drink beverages make up most of the revenue from spirits, in fact 64 per cent of spirits are in the form of ready to drink brands. Even in this category a demand for quality, premium products are on the rise, good news for the industry because less alcohol needs to be sold in order to make more money.