Report: Changing drinking habits rock retail liquor market

Assorted Beers in a Flight Ready for Tasting

Shifting drinking habits have been challenging volume growth in Australia’s liquor market, recent study found.

A continuing trend toward premiumisation is one of the many changes that the industry face, according to key findings in the ALSA-IRI State of the Industry Report for 2015, confirming the market’s many challenges. The move to premiumisation reflects consumer behaviour, whereby more discerning, health conscious and moderate Australian drinkers are ‘trading up’ to upscale and specialty options.

ALSA Chief Executive Officer Terry Mott said “Consumers are drinking less quantity in search of better quality, brand and product differentiation, with unique taste profiles, natural flavours and provenance in wine, cider, spirits and beer. Australians are far more health conscious than their parents and grandparents.”

The shifting attitude towards alcohol and health, and trends in population growth are contributing toward the changes in the relationship Australians have with alcohol.

The report Australia’s vibrant, diverse and competitive retail liquor sector generated sales $16.2 billion in 2015. It has also found that spirits and cider are growing in a challenging liquor market.

The latest ALSA-IRI State of the Industry report details the economic and social contribution of the liquor sector in Australia, plus the composition and performance of the Australian Retail Liquor Industry. The report also offers insight into the consumption trends and challenges for liquor retailers with an increasing burden of regulatory issues.

Mott said “More broadly, the findings show retail liquor is a $16 billion industry which is of vital importance to the Australian economy generating $5.2 billion through excise, wine equalisation tax, licence fees, payroll taxes and GST taxes, before personal income tax and company tax. The sector also underpins the employment of 165,500 people.”

 

 

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