Beyond alcohol: Consumers hold the future of the industry in their hands

Without doubt, it is consumer behaviours and choices, not necessarily brands, that will determine the future of adult beverages. That’s according to Nick Rich, former Vice President of Insights & Analytics at Carlsberg. With so much disruption on the cards, he argues that consumer research is vital if businesses are to stay in the category race, adapting to shifting trends around health and wellness and ever-increasing variants of low or no-alcohol beverages. 

Such is the rapid rate of modern disruption, that there is no definitive answer for what any category might look like in a decade’s time. But there’s enough clues about the drinks industry to make some strongly informed predictions. Here, Nick outlines three factors he’s seeing rapidly transforming the industry and their potential outcomes.

Disruptor 1 – The peer pressure is off.

Just a few years ago, if someone was out with friends at a bar or restaurant and didn’t want a drink, they may have chosen to keep it discreet. They might order beers for their friends, hiding their low alcohol pint in the mix to avoid drawing attention and facing questions or pressure to join in.

Today, if someone chooses not to drink, there’s no stigma attached to the decision in many peer groups. People are more understanding that there’s a whole host of reasons why someone has made that choice—and that’s now absolutely accepted as the norm. It’s a significant shift when permission changes amongst peer groups allied to their now being a far wider choice for those wishing to abstain: frankly, it blows open the whole industry.

“Today, if someone chooses not to drink,
there’s no stigma attached to the decision in many peer groups.”

How is the industry adapting? One approach is to focus on non-alcoholic options, bringing me to the next exciting factor transforming the industry:

Disruptor 2 – No and low alcohol now taste-match alternatives.

Historically, the taste of non-alcoholic beers and spirits has been lacking, so switching was never an option for many consumers: there’s nothing better than the feeling you get from that first sip of a cold beer on a hot summer’s day. And it’s the presence of alcohol that actually ignites a chemical reaction in your mouth and throat that gives these beverages their bitterness, their bite and crispness. However, after years of perfecting both the biology and chemistry in the brewing and fermentation processes, research scientists and master brewers are making great progress in producing non-alcoholic beers and spirits that are almost identical in taste to their alcoholic twins.

“Once the no-alc taste gap has been bridged, the focus of drinking choice behaviour shifts significantly to the presence of alcohol itself, raising provocative questions about the human relationship with it.”

One of the great joys of my career as an insight professional has been collaborating with scientists to bridge the gap between commercial needs, consumer preferences, and product research and innovation—it’s a hugely exciting intersection where commercials meet science and creativity meets invention. The work being done by brewery labs to craft non-alcoholic and low-alcohol drinks indistinguishable from their counterparts is nothing short of remarkable—creating new flavours, gene-engineering new traits and mixing for new taste profiles.

Once the no-alc taste gap has been bridged, the focus of drinking choice behaviour shifts significantly to the presence of alcohol itself, raising provocative questions about the human relationship with it. Consumers can start to make more conscious decisions about whether they want the effects—and after effects—of alcohol, knowing that all other aspects of the drinking experience have been fulfilled. That brings us neatly to the final factor affecting the industry:

Disruptor 3 – Wellness is winning out.

In our analysis as insight professionals, it’s clear that consumers across every segment are increasingly prioritising healthy living and wellness, impacting every sector from pet care to food. Businesses have to adapt to these evolving demands and understand the role that they play in delivering to them.

The alcohol industry is responding not only by offering low and no-alcohol options but also by exploring the possibilities in fortifying products with vitamins, minerals, and other health-boosting additives. ‘Mood enhancing’ is already looking like a very, very rich territory for exploration and growth in food and beverages, and is only responding to a consistent feedback from consumers that they’re looking for products that are ‘better for me, better for the planet’. 

As an industry, we’ve long sought to understand consumers’ complex, multifaceted relationship with alcohol. Indeed, all industry players are thoroughly committed to supporting and driving a highly responsible culture around alcohol consumption. For legal drinking age consumers, how do factors such as life stage, social circles, in-home drinking moments and out-of-home occasions shape decisions about whether to indulge or choose to wake up with a clear head ready for the gym, work, or childcare?

“As an industry, we’ve long sought to understand consumers’ complex,
multifaceted relationship with alcohol.”

Of course, it’s far more nuanced than that and surveys and interviews continue to provide keen observations and insights to help us make sense. Ultimately, it is consumers who will determine the direction of travel. Now low and no alcohol products are closer to being indistinguishable from their alcoholic variants, we are already looking to observe new choice behaviours and glimpse what the future may hold for the category. Will there even be a distinct alcohol industry, or will it seamlessly merge and blend with the broader beverage sector as health and wellness continues to be such a major consideration?

What’s certain is that the coming years will be fascinating. We can see some consumers really making conscious choices and actively turning against alcohol. Now that peer pressure has eased, even in social situations on a Friday or Saturday night, the decision to drink or not may incur slightly less trade-offs than it once did. For all this change, however, we do also see other consumers as keen as ever to indulge and continue exploring the incredible and ever-growing range of alcoholic beverage options and unique taste experiences that are open to them.

And ‘Cheers!’ to that.

To discuss innovative research options that get to the heart of consumer behaviour, get in touch with the team at Mindlab and to see Nick’s latest thinking on the topic, connect with him on LinkedIn.