IBISWorld reveals its predictions for popular festive drinks
Industry research company, IBISWorld, has listed prosecco, craft beer and rosé as its picks for the most popular alcoholic drinks this festive season.
The company has also predicted that due to the rise in health consciousness and a decline in per capita alcohol consumption, demand for kombucha and plant-based drinks is also increasing, particularly in the lead up to the warmer months.
IBISWorld Senior Industry Analyst James Thomson, said: “Consumers are anticipated to continue favouring premium and craft alcoholic beverages, particularly small, seasonal batches with a local or regional focus.
“With a warm summer expected, rosé, prosecco and refreshing cocktails are also likely to be in high demand from consumers over the Christmas period.”
He added: “Consumers are moving away from traditional sugary soft drinks and energy drinks as of late. We are seeing a growing demand for organic juices, kombucha, coconut waters and cold-infused teas, as well as the increasing range of probiotic drinks and juices containing functional or plant-based ingredients, such as acai berries, chlorophyll and wheatgrass.
“Increasingly, the trends towards more premium alcoholic beverages and healthier soft drinks are crossing over. Kombucha-based cocktails that contain a lower alcohol content, provide a refreshing alternative to the traditional heavier alcoholic beverages available for consumers at licensed venues.”
IBISWorld also said it expects spending on liquor at the retail level will total $1.6bn in December 2018, an increase of 2.7 per cent over the previous December.
According to Thomson, changing consumer tastes – particularly towards more premium beers and spirits – and a growing emphasis on quality across liquor retailing, have benefited industry operators.
“Christmas is a crucial time for the retail sector with consumer spending during the month of December usually around 35% stronger compared to the rest of the year,” Thomson said.
“The same applies for liquor retailers, with festive feasting expected to drive growth across most core categories.
“While Christmas is a key period for liquor sales, rising health consciousness among Australian consumers is likely to limit alcohol sales.
“As per capita alcohol consumption declines, we are also seeing the range of non-alcoholic beverages targeted at health-conscious consumers expanding rapidly, creating further challenges for liquor retailers,” said Thomson.