Who moved the Beer? Consumers are dynamic not static and all food retailers need to look a customer ahead or risk losing relevance with the next generation of consumers according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
I bet that many of you did not know that recent research finds people willing to pay more for CBD-infused, mood-boosting drinks, than they are for yesterday’s beer.
So, new research from consumer insights platform Veylinx suggests that abstinence events like "Dry January" are more than just a social media fad. More than three-quarters of Americans say they've temporarily given up alcohol for at least a month in the past. Almost half (46%) of drinkers are trying to reduce their alcohol consumption right now, and 52% of them are replacing alcohol with non-alcoholic beverages. Consumers identified improving their physical health and mental wellbeing as the main reasons for drinking less.
Veylinx found that more than half of consumers are trying to drink less alcohol and 75% have stopped drinking alcohol for at least a month. Of those, people 52% are replacing alcohol with non-alcoholic beverages.
Using Veylinx's method of testing how much consumers are willing to pay for a product through a real bidding process, the study found that people who currently drink alcohol are willing to pay more for non-alcoholic canned cocktails than non-drinkers, and people who say they want to reduce their alcohol consumption indeed show stronger demand for non-alcoholic cocktails.
Veylinx, which uses behavioral research to measure consumer purchasing habits, tested the fast-growing non-alcoholic canned cocktails market to learn who is buying these drinks and why. The study also measured demand for versions enhanced with functional benefits like mood boosters, detoxifiers and CBD.
So, overall, people who currently drink alcohol are actually willing to pay more for non-alcoholic canned cocktails than non-drinkers. And people who say they want to reduce their alcohol consumption do indeed show stronger demand for non-alcoholic cocktails.
· At premium price points, the disparity between consumers who are trying to drink less and the general population is even more pronounced: demand from these consumers for non-alcoholic canned cocktails is 71% higher at $20 for a four-pack.
CBD, Mood Boosters, and Other Variations
Among the canned non-alcoholic cocktails tested, CBD and mood boost versions perform best, while natural detox and zero-calorie variations lag behind. Adding CBD to a $12 four-pack of non-alcoholic canned cocktails increases demand by 13%, and adding natural mood boosters increases demand by 9%. For men, the CBD-enhanced version is the most popular, driving 16% more demand than a standard non-alcoholic cocktail. The zero-calorie variation generates the most demand among women, outperforming the base version by 14%.
Younger Consumers Driving the Trend
Demographics and consumption habits impact demand: 21-35 year old’s, light drinkers and people who have previously given up alcohol for a month or more show the greatest demand. Younger consumers, in particular, are the most interested in all of the non-alcoholic concepts.
· Demand for non-alcoholic canned cocktails is 48% higher among 21-35 year old’s than over 35s
· Spiking the drinks with CBD boosts demand by 18% among 21-35 year old’s.
· The mood boost version—blended with natural adaptogens and nootropics—drives the highest demand among over 35s, generating 29% greater demand than the standard non-alcoholic version.
· Previous participants in Dry January show 65% greater purchase interest than those who haven't previously taken part.
Taste, Price and a Chance to Try Are Keys
The ability to try before purchase and better taste are the key ways to attract more consumers to the category. Consumers said that their main reasons for not purchasing non-alcoholic drinks are flavor, price, and because they have never tried them before. Aligning with this, added health benefits, ability to try before buying, and better taste were cited as factors that would convince people to buy these drinks in the future. A fifth of consumers want to first try before committing to a purchase.
To download more detailed results from the Non-Alcoholic Canned Cocktail study or for more information about Veylinx, visit https://info.veylinx.com/non-alcoholic-cocktails.
About the research
Unlike typical surveys where consumers are simply asked about their preferences, Veylinx uses behavioral research to reveal how much consumers will pay for a product through a real bidding process. Consumers reveal their true willingness to pay by placing sealed bids on products and then answering follow-up questions about their reasons to buy or not to buy. The research was conducted in October 2022 among U.S. consumers ages 21 and over.
Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Does your messaging look more like yesterday that tomorrow? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.