According to the latest research from CGA by NIQ, consumers across the Asia Pacific are (still) increasingly moderating their alcohol consumption and looking for no and low (NoLo) alternatives on-premise as well as at home.
CGA found 30 per cent of APAC consumers were drinking less alcohol than they were a year ago – double the number who are drinking more.
“Numbers drinking less are even higher in countries including Australia (34 per cent), New Zealand (38 per cent) and the Philippines (42 per cent),” CGA said.
Snapshot
- 30% of APAC consumers are drinking less alcohol vs. a year ago – twice as many as those drinking more (15%);
- higher rates of reduced drinking recorded in Australia (34%), New Zealand (38%), and the Philippines (42%);
- 41% of those drinking less cite health as the reason – even higher in China (42%) and Hong Kong (45%);
- 25% are cutting back to save money;
- 31% now drink only on special occasions, rising to 38% in South Korea and 41% in Japan;
- 22% of APAC consumers (and 33% in NZ) still drink the same types when out but make fewer purchases per visit; and
- 32% have tried low- or no-alcohol drinks at bars or restaurants – trial of these drinks is especially high in China (48%).
CGA by NIQ’s head of on premise, APAC, James Phillips, said APAC consumers no longer drink out of habit, but with purpose.
“The shift toward mindful consumption is not a passing trend, but a cultural reset that’s redefining how, when and why people drink. The key question – is this the new normal in the on premise? If so, it presents big challenges for suppliers, manufacturers and operators, including the need to cater for moderating guests without alienating core consumers.
“Brands that can gain a deep understanding of this complex recalibration and adapt nimbly will be the ones that stay relevant in the months and years ahead,” Phillips said.
The research found moderation was driven by lifestyle factors including the prioritisation of wellbeing – 41 per cent of those drinking less say they are doing so because they are trying to be healthier. This motivation is notably higher in China (52 per cent) and Hong Kong (45 per cent). Pressure on spending, because of the cost-of-living crisis seems to be contributing to reduced intake, with 25 per cent of consumers who have reduced consumption saying they are trying to save money.
The report did find that while some are abstaining completely, the majority continue to enjoy social occasions at bars and restaurants. Nearly a third (31 per cent) of those who are moderating consumption say they are now only drinking alcohol on special occasions, a figure that is higher in South Korea (38 per cent) and Japan (41 per cent). Meanwhile, 22 per cent of APAC consumers – and 33 per cent of those in New Zealand – continue to drink the same categories when they go out but are making fewer purchases per visit.
CGA’s REACH research highlights the best ways to attract more consumers towards no or low alcohol drinks. More competitive pricing, creative flavours and serves, menu visibility and recommendations are among the factors most likely to generate extra orders.
