Australia's liquor market is evolving, with a trend towards moderation shaping consumer behaviour. The Circana Liquor Outlook Report 2024 predicts the market to reach a value of US $32.2 billion in 2024, with at-home revenue expected to grow annually by 3.9% until 2028. However, retail liquor volumes are declining as more Australians reduce their alcohol consumption.
The cost-of-living crisis has significantly influenced consumption habits, leading to a preference for lower-priced and promotional offerings. This shift is evident in the growth of value-tier price points and the underperformance of premium segments.
In response to these trends, the industry is focusing on price leadership and showcasing value. Categories like beer, cider, and RTDs are experiencing variable growth, with beer enjoying a 3.6% increase. Despite annual value growth, retail liquor is facing challenges due to a reduction in drinking frequency.
Premium segments are witnessing a decline, with craft beer, single malt, and champagne experiencing sales drops. Meanwhile, high-performing brands are blurring traditional category boundaries, with innovative products that blend influences from other categories and generational preferences.
The report also highlights the importance of understanding consumer behaviour and preferences to drive growth in the competitive liquor market. Circana's insights into omni-channel dynamics and shopper intelligence can help brands navigate the evolving landscape.
In conclusion, the Australian liquor market is undergoing significant changes, with moderation and economic pressures shaping consumer choices. Brands that adapt to these changes and offer value-driven products are poised to distil sustainable growth opportunities.
If you want to learn more, please access the full Circana Liquor Outlook Report 2024 here.