It seems we’re back in the Roaring Twenties, as industry insights point to a rise in premium purchases among drinkers.
Data firm IWSR Drinks Market Analysis explored 2022’s trends in a recent report that examines alcohol sales across price points and categories, especially noting economic challenges that may have influenced consumers.
For the purpose of this report, IWSR identified “premium-plus” as alcohol priced in the premium to prestige range. Data indicates that consumers increasingly traded up this year, choosing high-quality canned drinks, beer, and vino.
In the premium-plus price category, sales volumes exploded for RTDs, rising by a striking 38 percent. Premium-plus wine (+6 percent), beer (+4 percent), and cider (+11 percent) increased at slightly more modest rates. While economic inflation caused price increases across nearly every industry, this doesn’t seem to have stopped drinkers from purchasing pricier beverages.
“Economic uncertainty continued throughout 2022, ranging from inflation to talks of a recession to supply chain instability,” IWSR chief strategy officer Brandy Rand states in the press release. “Despite this, a recent IWSR consumer price sensitivity survey shows Americans feel confident about their finances at a personal level.”
While IWSR’s report paints a positive picture for premium bottles, 2022 data is less-than-optimistic for other categories. Total sales volume of wine, beer, and cider decreased in 2022, the latter dipping by four percent.
Total spirits sales were up, however, with an increase of 2 percent overall and 13 percent in the premium-plus category. The spirits category has enjoyed consistent growth; this marks the 25th consecutive year that the sales volume experienced growth, with agave-based liquor and whiskey leading the category.
“Another area where premiumization is proving to be a key factor driving volume is at-home consumption,” Rand states in the release. “With a vast majority of Americans consuming alcohol at home, 46 percent say they are likely to treat themselves to better quality drinks there, which is also beneficial for wine and beer.”
If you’ve spent a bit more money “treating yourself” in 2022, you’re definitely not alone. The full report is available on the IWSR website.
