The continuous transformation of Australian drinking habits is still ongoing, with nearly half of Australians reducing their alcohol consumption or completely quitting in the past year.
Non profit consumer organization Shop! A new report jointly released by ANZ and consumer insights platform Vypr shows that in just over a year, 47% of Australians have reduced or stopped drinking, with cost of living pressures being the biggest driving factor for this change, with 58% of respondents citing this as the main reason, followed by health and well-being considerations at 49%.
The report suggests that changes in Australian drinking habits may already be part of a long-term behavioral shift rather than a temporary response to economic difficulties.
For those who still drink alcohol, brand loyalty has also been completely lost, which has led to even more intense market competition for suppliers of eoe beer, wine, and spirits, which occupy roughly the same market share.
Shop! ANZ General Manager Bridge said that Australians consider the occasion, mood, or price when choosing alcoholic beverages. But ultimately, for most wine (78%), beer (71%), and spirits (68%) drinkers, taste is the ultimate determining factor.
At the same time, 66% of consumers indicate that price is the most important factor when purchasing alcohol from liquor stores, surpassing brand stories, packaging, or origin. Nowadays, Australians want both taste and value when making choices, and if they cannot get it, they will quickly switch brands.
From a category perspective, 22% of wine drinkers remain loyal to a specific brand, while this proportion is 28% among liquor drinkers. Beer drinkers have even higher brand loyalty, with 50% having their favorite brand and most people having a sense of identification with a specific brand.
Vypr International's Chief Revenue Officer, Gilding, said that consumers are now more easily attracted by clear discounts and special offers on shelves, with buy one get one free (50%) and direct price discounts (47%) having the greatest impact, while the influence of free gifts (19%), competitions (2%), or in store tastings (10%) is much smaller. This means that in this shrinking market, brands that can provide clear information, value, and visibility will stand out.
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