Table Of Contents
OVERVIEW
Catalyst
Summary
EXECUTIVE SUMMARY
Synopsis
Minimizing binge drinking occasions has become a key issue for the alcohol industry
Attitudes to alcohol and health vary from country to country
An aging population will make health concerns regarding alcohol more important
Barriers to alcohol consumption remain high
Wine and beer drinkers have different attitudes to health and alcohol
Dovetailing with health concerns will be critical for the alcoholic beverage industry in the future
THE FUTURE DECODED
Introduction
The new World Health Organization strategy is likely to change the game for alcoholic beverage manufacturers
This report focuses on the highly topical issue of health in the CPG segment, with specific emphasis on alcoholic beverage products
Health is driven by a number of influences which are covered in detail in the trends and insights sections of this report
Trend: health continues to have a growing impact on consumer lifestyles and product choices
Health is an issue that the majority of consumers pay a high amount of attention to
Physical health is only one aspect of consumers’ desire for a healthier lifestyle
Many consumers are placing emphasis on specific dietary issues, and this has implications for certain alcoholic beverage choices
Trend: health has an increasingly significant impact on alcohol consumption behaviors
Body shape is an area of particular concern for many consumers, especially women
The consumption of alcoholic drinks is linked to weight gain, a fact many consumers are conscious of
General health concerns do not necessarily drive alcohol abstention
Alcohol abstainers: although a minority, those that never drink account for a sizable share of LDA consumers
Medical advice stipulates that alcohol can be consumed as part of a healthy lifestyle
The health risks of alcohol are exacerbated by heavy consumption
Excessive consumption can lead to a myriad of both short- and long-term health concerns
Distinguishing moderate alcohol consumption from heavy consumption has become a key marketing pillar for manufacturers
The alcoholic drinks industry has responded with a greater number of consumer marketing messages that focus on responsible drinking
Key take outs and implications: understanding the moderation factors of alcohol consumption is imperative to leveraging crossover with health
Trend: corporate social responsibility is making alcohol and health a hot topic for the alcohol industry
Ethicality in marketing is particularly pertinent to the alcoholic beverage sector
The presence of health warnings differs markedly by country
Calls for nutritional labeling on alcohol are growing
Key take-outs and implications: it is imperative that the alcoholic beverage industry adopts a responsible approach to the marketing and sales of their brands
Insight: binge drinking is a reality in many countries despite educational campaigns designed to encourage a more moderate approach to alcohol consumption
There is still confusion about the definition of binge drinking
The majority of drinking occasions are not binge drinking occasions
Key take-outs and implications: addressing binge drinking is imperative in terms of the health and alcohol debate
Insight: barriers to incorporating alcoholic drinks as part of a healthy lifestyle are high
The importance of habit and preferred brand holds back adoption of healthier choices
Health is a mid-ranging driver of alcohol purchase in most markets
Many rituals surrounding alcohol consumption are not conducive to a healthy or sophisticated approach to alcohol consumption
The link between smoking and alcohol undermines any crossover with health
Key take-outs and implications: alcohol manufacturers must have an overall understanding of the barriers which are precluding the adoption of a healthy approach to alcohol beverage consumption
Insight: health is a complex issue which varies by frequency of drinking across the different alcohol categories
Repertoire drinking ensures that among monthly category drinkers there is very little difference in moderating alcohol intake
Frequent RTD and cider drinkers are the most likely to moderate alcohol consumption
Wine has intrinsic health benefits which are acknowledged in scientific journals
The nature of the occasion influences category preferences
Biodynamic and natural wine are alternatives to organic, and are quickly gaining momentum
The health concerns that deter wider beer consumption may not apply to craft beers
Key take-outs and implications: health influences differ by category, and it is therefore vital to understand consumer motivations by category
Insight: age and gender are important differentiators in health conscious alcohol attitudes and consumption behaviors
Men are more likely to drink alcohol, whereas women are more likely to abstain
Older consumers are the most likely to moderate their alcohol consumption
Older consumers are more tuned into the health benefits of alcohol
Younger consumers respond in a different way and look to low alcohol and low calorie products
Key take-outs and implications: health concerns are top of mind among older and female consumers, and as the global population is aging, alcohol manufacturers have to be intelligent if they are to appeal to older consumers without alienating them
ACTION POINTS
Action: encourage a more sophisticated approach to alcohol consumption to encourage a less of the best approach consistent with a health focus
Action: maintain investment in, and exploitation of, opportunities within the healthy alcohol market
Action: formulate and position products with healthier ingredients and freshness
Action: use the advancements in product formulation to make "low" alcohol a viable option for consumers
APPENDIX
Secondary sources
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
LIST OF TABLES
Table: Consumer survey: extent to which drinkers pay attention to weight gain from drinking alcohol in six countries across Asia Pacific, by gender, 2010
Table: Consumer survey: extent to which drinkers pay attention to weight gain from drinking alcohol in eight countries across Europe, by gender, 2010
Table: Consumer survey: extent to which drinkers pay attention to weight gain from drinking alcohol in three countries across the Americas, by gender, 2010
Table: Consumer survey: extent to which drinkers pay attention to weight gain from drinking alcohol in South Africa, by gender, 2010
Table: Rate of alcohol abstention (percentage of LDA population and number of abstainers [millions]), in 15 countries across Europe, the Americas, and Asia Pacific, 2009
Table: Rate of alcohol abstention (percentage of LDA population), by gender, in 15 countries across Europe, the Americas, and Asia Pacific, 2009
Table: Rate of alcohol abstention (percentage of LDA population), by age, in 15 countries across Europe, the Americas, and Asia Pacific, 2009
Table: Consumer survey: level of attention of paid to health in general in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Product launch analytics: gluten-free food launches between 2005 and 2010
Table: Consumer survey: importance of various factors in 15 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2008
Table: Consumer survey: level of attention of paid to weight gain from alcohol in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by gender, 2010
Table: Consumer survey: level of attention of paid to weight gain from alcohol in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: level of attention of paid to the number of calories in alcoholic drinks in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: whether consumers drink alcohol or not by level of attention of paid to general health in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2010
Table: Consumer survey: level of attention consumers paid to ensuring they do not drink too much alcohol in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: level of attention paid to the recommended quantity of alcohol to consume in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: the extent to which drinkers feel informed about the health benefits of consuming alcoholic beverages in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: the extent to which drinkers feel informed about the health risks of consuming alcoholic beverages in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: level of attention paid to the short-term impact of consuming too much alcohol in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: level of attention paid to the long-term impact of consuming too much alcohol in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: average number of alcoholic beverages consumed on a weekend night, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: average number of alcoholic beverages consumed on a weekday night, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: average number of alcoholic beverages consumed on a weekend night, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by age band, 2010
Table: Consumer survey: agreement with health warnings on alcohol products, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: level of influence different factors have on choice of alcoholic beverage in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, 2009
Table: Consumer survey: level of influence of price on choice of alcoholic beverage in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2009
Table: Consumer survey: level of influence of health on choice of alcoholic beverage in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2009
Table: Consumer survey: level of influence of brand name on choice of alcoholic beverage in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2009
Table: Consumer survey: level of influence of habit/preferred brand on choice of alcoholic beverage in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2009
Table: Consumer survey: whether drink alcohol, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by whether they smoke, 2010
Table: Consumer survey: level of attention consumers paid to ensuring they do not drink too much alcohol, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by category of alcoholic beverage, 2010
Table: Consumer survey: level of attention consumers paid to ensuring they do not drink too much alcohol, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by four or more times a week drinkers, 2010
Table: Consumer survey: influence of habit/preferred brand on alcohol beverage choice, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by four or more times a week drinkers, 2010
Table: Consumer survey: informed level of health benefits of consuming alcohol, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by four or more times a week drinkers, 2010
Table: Consumer survey: preferred alcoholic beverage of choice when having a relaxing drink at home on a meal occasion in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: preferred alcoholic beverage of choice when having a relaxing drink in a bar, restaurant, or pub on a meal occasion in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: preferred alcoholic beverage of choice on having or participating in an informal gathering with friends in your own home or someone else’s home in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: preferred alcoholic beverage of choice on having a barbecue occasion in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: extent to which consumers feel informed as to the differences between regular and organic alcoholic beverages in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: amount of attention consumers pay to drinking too much alcohol in general, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by age and gender, 2010
Table: Consumer survey: extent to which drinkers feel informed on the recommended quantity of alcohol to consume, in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by age and gender, 2010
Table: Consumer survey: knowledge of food and alcohol pairings by age and gender in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by country, 2010
Table: Consumer survey: extent to which drinkers feel informed as to the health benefits of drinking alcohol, by age and gender in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by age and gender, 2010
Table: Consumer survey: extent to which drinkers have opted for lower calorie versions of their favorite brands, by age and gender in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by age and gender, 2010
Table: Consumer survey: extent to which drinkers have opted for lower alcohol versions of their favorite brands, by age and gender in 18 countries across Europe, Asia Pacific, the Americas, and the Middle East and Africa, by age and gender, 2010
LIST OF FIGURES
Figure: Alcohol and health is a multifaceted issue that incorporates many different trends and insights, but the alcohol issue and its link with health is clear
Figure: Health is one of the most pervasive trends influencing CPG marketing at present, with a majority of consumers placing importance on it and feeling well-informed about it
Figure: The level of attention consumers pay to their health is greatest in China, South Korea, Saudi Arabia, and India
Figure: In capitalizing on the growing interest in health and wellbeing, CPG industry players must consider a wide array of lifestyle issues in order to truly be in-touch with consumers
Figure: Diet and nutrition is a mid-ranging consumer concern in terms of what makes up a feeling of a health and wellness lifestyle
Figure: The number of gluten-free foods has more than tripled between 2005 and 2010, highlighting the opportunity for brewers
Figure: Moderation in alcohol consumption is driven by a number of constituent concerns
Figure: The implications of alcohol consumption on body weight exerts a greater influence over women than men
Figure: The level of attention paid to calorific content and weight gain associated with alcohol indicates a high degree of consumer knowledge of the relevant issues
Figure: The extent to which drinkers feel informed about the number of calories in particular alcoholic drinks indicates that drinkers in Italy and India are the best educated
Figure: The extent to which drinkers feel informed about weight gain from alcohol indicates that drinkers are best educated about the subject in Brazil, India, and Italy
Figure: The level of attention paid to health is largely unrelated to alcohol consumption
Figure: Advice from the American Medical Association clearly puts the focus on moderating alcohol intake, rather than abstaining altogether
Figure: Drinkers in South Korea, Japan, and to a certain extent China are least likely to feel well and very well-informed about the recommended quantity of alcohol to consume
Figure: The attention that drinkers pay to ensure that they do not drink too much alcohol is most pronounced in India and lowest in Japan
Figure: Drinkers are more aware of the health risks of consuming alcohol than the health benefits
Figure: The negative short- and long-term effects of alcohol consumption are often associated with different drinking occasions
Figure: Consumer publications such as Guilt-Free Drinking highlight the benefits of consuming in moderation
Figure: The drinks industry has undertaken a number of different campaigns to encourage a more responsible attitude towards alcohol consumption
Figure: The reporting of the health benefits of alcohol in the media globally is well-received by readers who like to hear that a product they enjoy for sensory reasons also has health benefits
Figure: The purchasing decision of a significant number of consumers are influenced by concerns over corporate social responsibility
Figure: Diageo's stringent code of conduct is designed to ensure responsible practices are adhered to in the development, production, marketing, and sales of its brands
Figure: Energy-infused and high ABV alcoholic beverages have been singled out as products that encourage excessive consumption
Figure: In the EU, alcohol labeling varies significantly from country to country
Figure: Drinkers in Russia are the most likely to state that there should be health warnings on alcohol products, reflecting the direction of market conditions in Russia
Figure: Proposed health warnings on alcohol in Thailand mimic those on tobacco
Figure: On average, fewer than one in five drinkers consume more than five alcoholic beverages when they drink alcohol at the weekend
Figure: Binge drinking is a weekend phenomenon, but even then only occurs on less than one in six weekend occasions
Figure: Drinkers in South Korea are the most likely to usually consume five or more drinks on a weekday when they drink alcohol reflecting national customs
Figure: Binge drinking is an issue that makes headlines all over the world
Figure: Drinkers in South Korea are the most likely to consume five or more drinks on a weekend when they choose to drink alcohol, reflecting national preferences
Figure: Younger drinkers and males are the most likely to consume more than five drinks at the weekend
Figure: Fewer consumers are concerned about health than they are about preferred brand/habit
Figure: Habit/preferred brand and price are the two factors with the greatest influence on choice of alcoholic beverage, while health is a mid-ranging concern
Figure: Health is the key reason why consumers in Russia choose the alcohol they do
Figure: Two in five consumers who claim to have never smoked do not drink, compared to one in five consumers who smoke frequently
Figure: Frequent beer drinkers are less likely to report that health has a high or very high influence on their alcoholic beverage choice than equivalent wine or spirit drinkers
Figure: Among drinkers there is very little difference in the propensity to cut down alcohol consumption in terms of the category of alcoholic beverage
Figure: Consumer attitudes to ensuring that they do not drink too much alcohol are at their hardest among cider and RTD drinkers, and are more pronounced among frequent wine drinkers than beer drinkers
Figure: Frequent wine drinkers are the least likely to state that habit/preferred brand has a very high amount of influence on their alcoholic beverage choice
Figure: Frequent wine drinkers are more likely to feel well-informed as to the health benefits of alcohol than beer drinkers
Figure: Resveratrol is both one of the key chemicals in red wine, and is widely linked with health benefits
Figure: Wine is the drink of choice when consumers sit down for a meal
Figure: Popular associations regarding the propensity of consumers to consume wine on at home meal occasions are supported by global research findings
Figure: Beer is strongly associated with barbecue occasions, although there are a number of exceptions, notably France and Italy
Figure: Natural, bio-dynamic, and fair-trade are all production techniques that have been applied in the wine market. and lend products a health positioning
Figure: The majority of consumers do not feel well-informed as to the differences between regular and organic alcoholic beverages
Figure: Compare and contrast - restrictions on the term organic in wine prevents its widespread usage on packaging compared to a sector such as yogurt
Figure: EU legislation prevents the use of the term organic wine with regards to the actual wine-making process
Figure: Taste is one of the key factors that is exerting influence over sales of Fuller's Organic Honey Dew in the UK
Figure: Fruit flavors feature heavily in rose wine and help target a younger audience
Figure: The variety of flavors and tastes of craft beers in the US are a key point of differentiation, and are more complementary to food than mass-market lagers
Figure: Popular gender stereotypes about propensity to consume alcohol are supported by global research findings
Figure: Older consumers are the consumer group most likely not to drink too much alcohol
Figure: Older groups are more likely to know the recommended quantity of alcohol to consume
Figure: Older consumers, most notably males, are more likely to feel well-informed about how to match food and alcohol
Figure: Older consumers are more likely to feel fairly well-informed or very well-informed as to the health benefits of consuming alcoholic beverages
Figure: Younger consumers are more likely to say that they have opted for lower calorie version of their favorite brand in the last 6 months
Figure: Younger consumers are more likely to say that they have opted for lower alcohol versions of their favorite brand in the last six months
Figure: Low alcohol and low calorie variants transcend a number of different categories and tend to appeal to younger consumers
Figure: Stella Artois Black is a premium lager aimed at more sophisticated consumption occasions
Figure: Smaller packaging formats can be leveraged to encourage more moderate patterns of alcohol consumption
Figure: Single serve RTD wine and spirit formats make it easier for consumers to drink in moderation and can help add value
Figure: Naturally healthier products can be used to develop a lifestyle positioning for alcohol
Figure: Freshness is an multi-faceted concept and can be applied in many different ways in alcohol
Figure: When combined freshness and low calorie will exert influence over the choices women make when drinking alcohol in the on-trade
Figure: New in-store delivery systems can be used to encourage freshness in alcohol and dovetail with consumers growing green concerns
Figure: The virtuousness of the product ingredients is a key feature in the marketing of two of the leading lager brands in the UK
Figure: Distillation can be used to enhance the purity credentials of vodka and other spirits, in order to generate a health and premium positioning
Figure: The positioning of Michelob Ultra is very much in line with an active lifestyle
Figure: In the UK, indigestion tablets and analgesics are positioned in the alcohol aisle of Sainsbury's stores, and are designed to help cross sales
Figure: Based on analysis of the needs of the neighborhoods, US pharmacy Duane Reade has started to stock beer in its stores
Figure: QR codes provide more information to the consumer at the point of sale via their mobile phone than would otherwise be possible via off-line shopper marketing techniques