Nielsen Analysts Find Beer Losing Ground To An Evolving Consumer

, Nielsen Analysts Find Beer Losing Ground To An Evolving Consumer

(Craft brewers have reason to be concerned…very concerned)

Nielsen has just released its off-premise alcohol predictions for 2020 and the prognosis is not great for beer.

According to Danny Brager, Senior Vice President, Beverage Alcohol at Nielsen, the movement towards healthier drinking and convenience will continue this year, affecting every alcohol segment to differing degrees…

Going into 2020, Nielsen expects to see growth in these alcohol segments…, Nielsen Analysts Find Beer Losing Ground To An Evolving Consumer

  • Spirits/cordials that are lower alcohol by volume (ABV)
  • Lower ABV ready-to-drink cocktails
  • Lower ABV and lower calorie IPAs
  • More alternative beverages with no/low sugar and carbs, and low-calorie options
  • A greater selection of non-alcoholic craft beers, with major craft brewers starting to play in this space
  • Active, lifestyle-oriented drinks that tie into consumer interest in their active routines

Here’s some additional takeaways from Nielsen’s off-premise* (to-go sales) alcohol predictions….

Spirits (Not Beer) Will Show the Most Growth

“Spirits have the advantage of a versatile product range with multiple drink types, flavors, styles and mixing opportunities—meeting the desires of the cocktail culture, and appealing to a broad consumer base (age, gender and race/ethnicity).”

 Growth in the Beer Industry Will Focus On Everything but Beer

“Expect to see more acquisitions—particularly by big beer companies—in spirits and some selected growing segments of wine. Brewers of all sizes will invest and innovate in ready-to-drink cocktails—and even traditional spirit products. “

“Beer brands will continue to try to play in the space adjacent to cannabis through products that use hemp and emulate the olfactory experience of cannabis.”

“Craft beer will continue to find success with styles found in more traditional beer segments (e.g., American and Mexican lagers).”

Suppliers and Distributors Will Up E-Commerce Efforts

“While e-commerce sales of alcoholic beverages continue to grow, the industry has struggled to keep up with broader e-commerce expansion in part due to complex alcohol rules and regulations, but 2020 will represent a turning point in the industry’s efforts.”

“Key players will ramp up their investment, recognizing the potential of impulse purchasing declines in mainstream stores as consumers fill more of their overall shopping needs online—and not via a store trip.”

Ready-To-Drink Cocktails Will Boom

“Packaging will focus on the convenience of slim cans and alternative packaging. Consumers will increasingly see traditional cocktails with a twist to make them more interesting.”

“Retailers will continue to focus on convenience, through tactics like prepared cocktail displays, regardless of the alcohol base.

Beer’s Bottom Line: Nielsen’s predictions for beer going forward in 2020 are far from bullish. Expect to see more nonalcoholic beers than ever before, as well as beers with less sugar, fewer calories, and lower alcohol content as more consumers adopt healthier lifestyles…

 

*Off-premise sales mean direct to consumer sales for consumption off the premises of an establishment. These are “to-go” sales of packaged product in establishments like wineries and package stores

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