The research, which has been compiled by Fentimans and CGA by NielsenIQ, has revealed five major upcoming trends for the out-of-home and hospitality sectors in 2023.
A key trend explored in the report is the growing concern for the cost-of-living crisis, with 40% of consumers planning on going out less frequently as a result. Despite this, 35% plan to prioritise hospitality visits over holidays (34%), clothing (24%) and home improvements (19%). To help reduce their spending during these visits, more than half (58%), plan on visiting local venues more often.
Another key trend highlighted in the report is how consumers will continue to be health conscious, with seven in ten (70%) trying to lead a healthy lifestyle, a 6% jump from last year. As part of their health kick, one in seven (14%) admit to purchasing healthier drinks than in previous years while half (50%) find no and low alcohol options appealing.
Other factors the Fentimans Market Report has discovered are changes in the ‘new normal’ when drinking out such as shifts in why, where and when of drinking, and how businesses can meet the new demands; technology in terms what systems and methods consumers want to use when out of home and what businesses need to do to deliver on these; and that provenance, heritage and localism are all fuelling the premiumisation trend in drinks.
Fentimans marketing director Jayne Andrews said: “In last year’s Fentimans Premium Soft Drinks and Mixers Market Report we showed how on-premise operators and suppliers were building back from the turmoil of the pandemic. Twelve months on, many of the challenges of the pandemic are now being replaced by fresh ones.”
Tight few years
She continued: “It’s clear consumers are changing their priorities in preparation for a tight few years, however, it’s encouraging that while there will be cut backs, there will still be a desire to enjoy high-quality experiences.
“As we enter times of uncertainty and financial concern, it’s critical we understand what this means for the industry.”
CGA client director Dave Lancaster added: “The looming financial challenges have naturally changed how consumers plan on spending their disposable income and it’s clear this means a demand for quality over quantity during upcoming months.
“If pubs, bars and restaurants can adapt to these changes in habits and preferences, there is, hopefully, a steady year ahead for the sector – a feat we predict will be welcomed happily following two years of recovering from the impact of the pandemic.”