Beverages: Why consumer appetite for premiumisation lives on in the on-premise
- InsightTrendsWorld
- May 27, 2025
- 11 min read
Why it is the topic trending:
Consumer Preference for High Quality: A global survey indicates that two in three consumers prefer high-quality drinks over cheaper alternatives.
Willingness to Pay Extra: A significant 55% of consumers are willing to spend more for premium beverages when they are out.
Shifting Consumption Times: More consumers are visiting on-premise locations earlier in the day compared to the previous year.
Trade-Up Opportunities: Whiskey/whisky, gin, and cocktails present strong opportunities for premium drink choices in Asian markets.
On-Premise Channel Preference: The choice between wet-led (primarily drinks) and food-led establishments for premium drinking experiences varies across countries.
Overview:
The CGA by NIQ article explores the resilience of consumer appetite for premiumization within the on-premise (bars, restaurants, etc.) beverage market in 2025, despite financial pressures. Global research reveals that a majority of consumers prioritize high-quality drinks and are willing to pay a premium for them. The article delves into shifting consumption patterns, highlighting that more consumers are venturing out earlier in the day. It also identifies key beverage categories with strong trade-up potential in specific regions and notes the differing consumer preferences for wet-led versus food-led venues when seeking premium drinking experiences. Despite inflation potentially narrowing the opportunity for trade-ups, premiumization remains a significant driver in the on-premise sector.
Detailed Findings:
Global Consumer Preference: Two-thirds of consumers worldwide favor high-quality drinks over cheaper alternatives.
Willingness to Pay: 55% of consumers globally are willing to pay extra for premium beverages in on-premise locations.
Shift in Consumption Timing: 19% of consumers are visiting on-premise establishments earlier in the day in 2025 compared to 2024, with nearly one in four premium drinkers following this trend.
Premium Categories in Asia: In several Asian markets, whiskey/whisky, gin, and cocktails offer significant opportunities for consumers to trade up to more premium options.
Channel Preference Variation: Consumer preference for wet-led or food-led on-premise channels for high-end drinking experiences differs from country to country.
Impact of Inflation: Inflation has caused some consumers to reduce their overall spending.
Key Success Factors of Product (Trend):
Meeting Consumer Demand for Quality: The fundamental desire of consumers for better quality experiences and products, even in their drinks.
Occasion-Based Indulgence: The on-premise environment often represents a treat or social occasion where consumers are more willing to spend on premium options.
Brand Perception and Experience: Premium drinks are often associated with higher quality ingredients, craftsmanship, and an enhanced overall experience.
Social Signaling: Choosing premium beverages can be a way for consumers to signal status or celebrate an occasion.
Venue Atmosphere and Service: The overall ambiance and service quality of on-premise locations contribute to the perception and enjoyment of premium drinks.
Consumer appetite for premiumization is high in on-premise locations for several reasons:
Seeking Higher Quality: Consumers often desire drinks made with better ingredients and superior craftsmanship when they are out.
Indulging and Treating Themselves: Visiting bars and restaurants is frequently seen as a leisure activity or a special occasion, leading consumers to be more willing to spend on premium options as a treat.
Social Connection and Experience: Enjoying higher-quality drinks in a social atmosphere enhances the overall experience of being out with friends or colleagues.
Exploring New Flavors and Categories: Premium beverage menus often feature unique and innovative cocktails or spirits that consumers are interested in trying.
Signaling Status and Taste: Choosing premium drinks can be a way for individuals to express their personal taste and, in some social contexts, signal a certain status.
Brand Perception and Experience: Premium drinks are generally associated with a higher quality of ingredients, meticulous preparation, and an overall enhanced experience that consumers are willing to pay for.
Key Takeaway:
Despite economic pressures, a strong consumer desire for high-quality beverages and a willingness to pay more for premium options persist in the on-premise market in 2025. Understanding shifting consumption times, regional preferences for premium categories, and preferred venue types will be crucial for businesses in this sector to capitalize on this enduring trend.
Main Trend:
The Enduring Appeal of Premium On-Premise Beverages
Description of the Trend (please name it):
Resilient Premiumization: This trend highlights the continued strong consumer demand for premium beverages consumed in on-premise locations, even in the face of economic challenges. It underscores the idea that for many consumers, the experience and quality associated with high-end drinks in bars and restaurants remain a priority, indicating a resilient segment within the broader beverage alcohol market.
What is Consumer Motivation:
Seeking Higher Quality: A fundamental desire for drinks made with better ingredients and craftsmanship.
Indulging and Treating Themselves: The on-premise is often associated with leisure and occasions where consumers are more willing to spend on themselves.
Social Connection and Experience: Enjoying premium drinks in a social setting enhances the overall experience.
Exploring New Flavors and Categories: Premium offerings often include unique or innovative drinks that consumers are eager to try.
Signaling Status and Taste: Choosing premium beverages can reflect personal taste and social standing.
What is Driving Trend:
Established Consumer Preferences: The preference for quality drinks is a well-established behavior for many consumers.
Value Perception: Consumers often perceive premium drinks as offering better value in terms of taste and experience.
Marketing and Branding: Effective marketing by premium beverage brands continues to drive desire.
On-Premise Innovation: Bars and restaurants are increasingly offering creative and high-quality premium drink options.
Shifting Lifestyles: More flexible work schedules and a desire for experiences contribute to earlier and more frequent on-premise visits.
What is Motivation Beyond the Trend:
Beyond the immediate enjoyment and social aspects:
Creating Memorable Experiences: Premium drinks often contribute to special and memorable outings.
Supporting Quality Businesses: Choosing premium options can be seen as supporting establishments that prioritize quality and craftsmanship.
Personal Well-being and Enjoyment: For some, enjoying a high-quality drink is an important aspect of personal well-being and relaxation.
Description of Consumers Article is Referring To:
The article refers to a global consumer base, with specific mentions of Asian markets and a general observation of the impact of inflation on some consumers' spending habits.
Who are them: Global consumers who frequent on-premise beverage establishments.
What kind of products they like: High-quality drinks, premium beverages across various categories (whiskey/whisky, gin, cocktails mentioned specifically).
What is their age?: Not explicitly segmented by age, but likely includes adults of legal drinking age who socialize and dine out.
What is their gender?: Not explicitly specified.
What is their income?: Includes consumers willing to pay extra for premium drinks, suggesting a certain level of disposable income, but also notes that some consumers are cutting back due to inflation, implying a range of income levels.
What is their lifestyle: Likely includes individuals who value social experiences, enjoy going out to bars and restaurants, and appreciate higher-quality food and beverages.
What are their category article is referring shopping preferences: Premium alcoholic beverages consumed in on-premise locations.
Are they low, occasional or frequent category shoppers: Likely includes both occasional and frequent visitors to on-premise establishments who prioritize premium drinks.
What are their general shopping preferences-how they shop: Likely influenced by quality, brand reputation, and the overall experience offered by the venue.
Conclusions:
Despite economic headwinds, the demand for premium beverages in the on-premise market remains strong globally. Consumers are willing to invest in higher-quality drinks for their out-of-home experiences, presenting a continued opportunity for bars, restaurants, and beverage brands.
Implications for Brands (Beverage Alcohol):
Continue to Invest in Premium Offerings: Focus on developing and marketing high-quality products that justify a premium price point.
Tailor Strategies to Regional Preferences: Recognize that preferred premium categories may vary across different markets, such as the emphasis on whiskey/whisky, gin, and cocktails in Asia.
Support On-Premise Partners: Work closely with bars and restaurants to ensure they are well-equipped to showcase and serve premium beverages.
Highlight Quality and Craftsmanship: Emphasize the unique attributes and production processes that contribute to the premium nature of your products.
Consider Earlier Daypart Opportunities: Recognize the trend of earlier on-premise visits and tailor offerings and promotions accordingly.
Implication for Society:
Continued Importance of Social Venues: On-premise establishments remain vital for social interaction and leisure activities.
Economic Driver for Hospitality Sector: The demand for premium drinks supports higher revenue for bars and restaurants.
Implications for Consumers:
Wider Availability of High-Quality Choices: Consumers can expect a diverse selection of premium beverages in on-premise locations.
Potential for Higher Prices: While willing to pay, consumers may also be mindful of the cost, especially in an inflationary environment.
Implication for Future:
Sustained Demand for Premiumization: This trend is likely to continue as long as consumers value quality experiences.
Further Innovation in Premium Categories: Expect to see ongoing development of new and exciting premium drinks.
Integration of Technology: Technology may play a role in enhancing the premium on-premise experience, such as through digital menus with detailed product information.
Consumer Trend (name, detailed description):
Name: The Selective Indulger
Detailed Description: Consumers are becoming more selective about their indulgences, potentially cutting back on overall spending but still prioritizing and willing to pay extra for higher-quality experiences and products, particularly in social settings like on-premise beverage consumption.
Consumer Sub Trend (name, detailed description):
Name: Daypart Diversification in On-Premise
Detailed Description: The traditional evening focus of on-premise beverage consumption is evolving, with more consumers, especially premium drinkers, visiting earlier in the day, creating new opportunities for different daypart offerings.
Big Social Trend (name, detailed description):
Name: The Persistence of Experience Economy
Detailed Description: Despite economic pressures, consumers continue to prioritize spending on experiences, such as dining and drinking out, often opting for higher-quality options to make those experiences more special and memorable.
Worldwide Social Trend (name, detailed description):
Name: Global Appreciation for Craft and Quality
Detailed Description: Across the world, there is a growing appreciation for products that are perceived as being high-quality, crafted with care, and offering a superior experience, influencing consumer choices in various categories, including beverages.
Social Drive (name, detailed description):
Name: The Pursuit of Enjoyment and Connection Through Shared Experiences
Detailed Description: A fundamental human drive to seek enjoyment and connect with others often manifests in social settings where food and beverages play a central role, and premium options can enhance these experiences.
Learnings for brands to use in 2025:
Emphasize Quality and Premium Attributes: Clearly communicate the factors that make your beverages high-quality and worth the premium price.
Understand Regional Preferences for Premium Categories: Tailor your offerings and marketing efforts to align with what consumers in specific areas are seeking.
Support Earlier Daypart Consumption: Develop strategies to attract consumers to on-premise locations earlier in the day with relevant premium offerings and promotions.
Provide Training and Education to On-Premise Staff: Ensure bartenders and servers are knowledgeable about your premium products and can effectively recommend them.
Create Engaging and Memorable On-Premise Experiences: The overall atmosphere and service contribute significantly to the perception of premiumization.
Strategy Recommendations for brands to follow in 2025:
Develop Limited-Edition or Special Release Premium Products: Create excitement and drive trial by offering exclusive or high-end versions of your beverages.
Partner with On-Premise Locations for Tasting Events: Offer consumers the opportunity to sample premium products and learn more about them.
Utilize Digital Platforms to Highlight Premium Offerings: Showcase the quality and unique characteristics of your premium drinks through engaging online content.
Offer Incentives for Trade-Ups: Encourage consumers to choose premium options through strategic promotions or bundle deals in on-premise settings.
Monitor Consumption Trends Across Different Dayparts: Track when consumers are most likely to indulge in premium drinks and adjust your strategies accordingly.
Final sentence (key concept) describing main trend from article (which is a summary of all trends specified):
Despite economic pressures, the fundamental consumer desire for high-quality drinks continues to fuel premiumization in the on-premise market in 2025.
What brands & companies should do in 2025 to benefit from trend and how to do it:
In 2025, beverage alcohol brands and on-premise establishments should recognize and capitalize on the enduring consumer appetite for premiumization. This involves continuing to invest in high-quality offerings, understanding and catering to regional preferences for premium categories like whiskey, gin, and cocktails in Asia, and adapting to evolving consumption times that see more premium drinkers venturing out earlier in the day. By emphasizing the quality, craftsmanship, and experience associated with premium drinks and tailoring their strategies to meet these nuanced consumer behaviors, brands and on-premise operators can effectively drive revenue and loyalty within this resilient market segment.
Final Note: Core Trend
Name: Resilient Premiumization in On-Premise
Detailed Description: The sustained consumer demand for and willingness to pay for premium beverages in bars, restaurants, and other on-premise locations, even amidst economic challenges.
Final Note: Core Strategy
Name: Focus on Quality and Experience in On-Premise
Detailed Description: Beverage brands and on-premise operators should prioritize the quality of their offerings and the overall consumer experience to cater to the demand for premiumization.
Final Note: Core Industry Trend
Name: Daypart Expansion for Premium Drinks
Detailed Description: The trend of premium beverage consumption extending beyond traditional evening hours into earlier parts of the day in on-premise settings.
Final Note: Core Consumer Motivation
Name: Seeking Quality and Indulgence in Social Settings
Detailed Description: Consumers are primarily motivated by the desire for higher quality and a sense of indulgence when enjoying drinks in social, on-premise environments.
Final Conclusion:
The resilience of premiumization in the on-premise market in 2025 presents a significant opportunity for beverage brands and establishments that can effectively cater to consumers' enduring preference for quality and elevated experiences. By understanding the nuances of this trend, businesses can strategically position themselves to thrive in the current landscape.
Core Trend Detailed:
Description: Resilient Premiumization in On-Premise signifies the sustained consumer appetite for high-quality beverages consumed in bars, restaurants, and other on-premise locations, demonstrating a remarkable resilience even when faced with economic pressures. This trend indicates that the experience and perceived value associated with premium drinks in social settings remain a priority for a significant portion of consumers globally, highlighting a key driver for revenue and innovation within the beverage alcohol industry.
Key Characteristics of the Trend:
Strong Preference for High-Quality Drinks: Consumers actively choose and favor beverages that are perceived as being of a higher quality.
Willingness to Pay a Premium: A significant portion of consumers are prepared to spend more money for drinks that offer a better taste, ingredients, or overall experience.
Occasion-Driven Consumption: The on-premise environment often represents a special occasion or a moment of leisure where consumers are more inclined to indulge in premium options.
Regional Variations in Preference: While the overall trend is global, specific preferences for premium categories (e.g., whiskey in Asia) can vary significantly by region.
Daypart Expansion: Premium beverage consumption is not limited to evening hours, with more consumers opting for higher-quality drinks earlier in the day.
Market and Cultural Signals Supporting the Trend:
High Percentage of Consumers Favoring Quality: The fact that two in three consumers globally prioritize high-quality drinks is a strong indicator.
Significant Willingness to Pay Extra: The 55% of consumers willing to spend more for premium drinks confirms the financial commitment to this trend.
Increase in Earlier On-Premise Visits: The 19% rise in consumers heading out earlier suggests new opportunities for premium offerings throughout the day.
Focus on Premium Categories in Growing Markets: The strong trade-up potential for whiskey, gin, and cocktails in Asian markets highlights regional strengths within the premium segment.
The Concept of "Treat Yourself" Culture: Consumers often view on-premise visits and premium drink choices as a form of self-reward or indulgence.
How the Trend Is Changing Consumer Behavior:
Prioritizing Quality Over Quantity: Consumers may opt for fewer but higher-quality drinks when they are out.
Seeking More Sophisticated and Unique Options: A desire for beverages that offer something beyond the standard or mass-produced.
Planning On-Premise Visits Across Different Dayparts: Consumers are not just going out in the evenings but also for earlier social occasions.
Being More Discerning About Venue Choice: Selecting on-premise locations that offer a good selection and quality of premium drinks.
Potentially Reducing Spending in Other Areas to Accommodate Premium Choices: Consumers may adjust their spending in other areas to allow for higher-quality experiences when socializing.
Implications Across the Ecosystem:
For Brands and CPGs: Encourages continued innovation and investment in premium product lines and targeted marketing towards consumers willing to trade up.
For Retailers: May see a corresponding interest in premium beverage options for at-home consumption as consumers seek similar quality experiences.
For Consumers: A broader selection of high-quality drinks available in on-premise locations and potentially an evolving social culture around earlier daypart beverage consumption.
Strategic Forecast:
The demand for premium on-premise beverages will likely remain a significant driver in the beverage alcohol market for the foreseeable future.
We can expect to see continued innovation within the premium segment, with new and exciting product offerings catering to evolving consumer tastes.
The trend of earlier daypart consumption in on-premise locations will likely continue, presenting new opportunities for brands and venues.
Regional differences in premium category preferences will remain important for brands to consider in their marketing and distribution strategies.
The overall on-premise experience, encompassing ambiance, service, and the quality of beverages, will be crucial for attracting and retaining consumers seeking premium indulgence.
Final Thought (summary):
Despite economic pressures, the fundamental consumer desire for high-quality drinks continues to fuel premiumization in the on-premise market in 2025.
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