Consumers are increasing their on-trade drinking occasions, despite worsening economic conditions. Consumers are increasing their visits to bars, cafes, restaurants and hotels during the week, engaging in more moderate week-round drinking and moving away from so-called weekend session drinking, according to a new report. In order to capitalize on these increased drinking occasions, the on-trade sector will need to offer exclusive products, encouraging consumers to trade up.

Despite the gloomy economic conditions across much of the globe, and stiff competition from the off-trade sector, consumers are increasing their visits to on-trade establishments. Indeed, according to the report, the total number of on-trade occasions is showing modest growth in Europe, the US and Australia, where they are forecast to increase at a CAGR 0.8%, 2.4% and 1.9%, respectively, between 2007 and 2012.

Meanwhile, volume sales of alcoholic beverages in the on-trade sector are also predicted to show growth in the US and Australia, at the slightly slower rates of 1.0% and 1.9%, respectively, between 2007 and 2012, while in Europe volume sales are expected to decrease by a marginal 0.1% during this period. The statistics regarding on-trade drinking occasions and volume sales emphasize the current consumer approach, which involves more on-trade occasions, but the consumption of less alcohol per visit.

A switch to more midweek drinking is a key driver behind the increase in on-trade visits. Alcoholic drinking occasions, in line with the moderation trend, are becoming more week-round. Midweek occasions, in particular, are becoming key to value generation in the market, due to their increasing numbers and growing diversity. Aging populations and time-scarcity are major motivators in this shift, as well as the proliferation of female-friendly environments, which has not only widened the consumer base, but also facilitated more diverse occasions throughout the week.

Related research: Understanding Alcoholic Drinking Occasions: The On-Trade