Moderation – a trend that has been dominating the beverage alcohol marketplace is due to factors ranging from health to lifestyle choices made by consumers. According to data, there is a growth of 6% in no and low-alcohol volumes across the top 10 markets which means that there are increasing individuals opting to moderate their alcohol consumption or drink less alcohol. The factors causing the same are also the varying legal drinking age but there is evidence that supports even older generations resisting alcohol with the strain on disposable incomes in today’s date as well.
IWSR data suggests that around two-thirds of the consumers are now claiming to moderating their consumption however the 64% is split into Gen Z and Millennials with Gen Z consumers seeing an increase in 70% among Millennials. The no/low-alochol consumers are more among the younger population as compared to the older population. Countries like France, Brazil and Germany have an even distribution amongst people but markets like Australia, Canada, the UK, Spain and the US have evidently displayed this trend.
There are also variations in the way consumers approach the same that have a direct effect on their frequency or intensity of drinking. Many individuals claim that they either drink occasionally or limit their outings so as to resist their consumption. More millennials are increasingly switching between alcohol and no-alcohol products across different occasions ; they are called ‘substituters’ while others, who switch in the same event are called ‘blenders’. When moderating, Gen Z’s prioritise soft drinks while millennials are more likely to choose a beverage that contains low alcohol and amongst boomers, they opt for water to reduce the direct effect.
Alcohol consumption is also a major worry for all consumers due to lower disposable incomes and higher costs of lifestyles, as a result of which ‘Economic Moderation’ has prompted individuals to take action and limit their consumption. As a necessity, income pressures are driving people to prioritise solely on their basic and essential spends. It has been the case for 11 out of 15 top beverage alcohol markets. According to grocery spending in 2023, there is evidence to support that individuals have preferred buying personal care items and fresh produce over alcohol products or those that pose a risk to their health and are expensive.
Alcohol proves to be one of the first items to be discarded from a grocery basket outside Asia, and around Europe, almost all FMCG items are not being used much. In a lot of markets, LDA Gen Z are most likely to work on money-saving methods while almost 40% of consumers of all ages claim to buy alcohol only on promotion. Younger populations are easier targets of moderation because they’re not loyal to one brand and mostly because of their financial limits and pressures.
Anyhow, in any case there remain uncertain yet short-term shifts in behaviour of the consumer population. According to IWSR research and data, 24% of abstainers in the US agree to return to alcohol consumption proving that saving money is not a priority for them. Overall, older consumers are more likely to engage in alcohol-related activities and the younger LDA consumers present clear moderation. Nonetheless, the increasing levels of moderation are not only seen in certain age groups but an altogether adapting technique for people to be more health-conscious. Since individuals are changing their lifestyle habits coupled with the post-pandemic awareness to be healthy and sound, the trend would most likely continue to rise and take over.
