A new report by Technomic reveals that Americans are turning to adult beverages in growing numbers, with total volume up 1% to 7.7 million gallons and dollar spending up 3.6% to $199.8 billion, according to its Special Trends in Adult Beverage Report: 2013 State of the Industry report.
“Many factors drove the industry in 2012, but the real driver was and continues to be flavor,” said Eric Schmidt, director of Research at Technomic. “In every category and segment of spirits, wine, and beer, flavor is what attracts consumers and keeps them coming back. The impact is that the lines are blurring somewhat between the categories, making the industry more competitive than ever. This trend will intensify throughout 2013, and product innovation around flavor will continue to play an important role.”
Meanwhile, after years of slumping sales, beer volume grew. “It may be surprising, in light of the slow economic recovery, that the growth in beer occurred in the more expensive segments. Again, product innovation and flavor provided the momentum,” Schmidt said.
Additional trends highlighted in the report include:
- Spirits volume grew 3.2%.
- Wine sales growth slowed slightly, achieving a 2.8% gain to account for 10.5% of the total adult beverage market volume. A range of varietals and styles designed to appeal to consumers seeking sweeter flavor profiles resonated strongly among consumers.
- Beer volume grew 0.7%, with major domestic categories stabilizing somewhat, while crafts, imports, flavored malt beverage and cider each posted gains.
- On-premise dollar growth outpaced off-premise expansion 3.9% to 3.4%, driven by a combination of increased spending in the channel, consumers trading up in some categories and operators raising prices.
“We anticipate many of these trends continuing in 2013, and expect consumers to seek out new flavor experiences, experiment with new products, and explore the various segments of the industry,” said Donna Hood Crecca, Technomic senior director. (NACS: www.nacsonline.com)