Consumers willing to spend more, but drink less, according to Heineken

Consumers are prioritising value for money by opting for premium beer options and products, despite ongoing financial challenges, according to a recent report from Heineken UK.

The report also revealed that 34% of pub-goers expect to drink in the pub less often, 24% of which said they are planning to drink less alcohol altogether.

Those who are seeking to drink less often will opt for a higher value or perceived higher value product when drinking, the report said.

It found that the desire to seek higher quality beer is important to a third of all drinkers, but even more so among the younger age group, with 40% of 18- to 34-year-olds seeking brands with a premium look and feel.

Despite the ongoing cost of living crisis, the report stated that beer drinkers are still looking to treat themselves when they head to venues. Many are doing so through trade-up options, with world and premium lagers remaining key drivers of category growth. World lager sales grew 27% during 2022, up from 21% in 2021, and and one in three pints served in the on-trade are premium lagers.

The report said: “[W]hen drinkers head to their favourite venue they are willing to pay that little bit extra for a pint that promises premium taste credentials.”

The findings come as Heineken UK released its second annual beer report this week. The report aims to alert operators to changing drinking trends and the impact the increased cost of living is having on beer sales across the country.

Serena Smith, head of category at Heineken UK, said: “We are seeing volume decline, but that doesn’t mean value is falling at the same level. Premium brands remain a core choice and take the lion’s share of beer sales, while world lager continues to grow volume and attract drinkers.

“We see drinkers opt to treat themselves or move into a more premium offering – this feeling of, ‘If I can afford to go out, I want something different’. In essence, a reward or treat.”

Smith added that premises should offer a range of options to give consumers “the opportunity to trade up”, ensuring they purchase a product “they deem to be value for money”.

Will Rice, Heineken UK on-trade director, said: “In the midst of a cost of living crisis, more than ever we’re seeing a greater emphasis on ‘smart spending’ to maximise the return from disposable income.

"Beer drinkers are increasingly looking for value for money. Consumers are looking to prioritise their experience in the on-trade, primarily by buying into beer brands they believe can deliver on that premium quality experience."

For further information, read the Heineken Beer Report 2023.

Photo: Anton Bannov/Shutterstock