In its latest research, it has revealed a growing polarisation in consumer behaviours across Great Britain and Ireland.
The research found while there are “tentative signs of recovery”, ongoing pressures on household finances continue to influence consumer habits.
It found more than half (55%) of UK households said they are either severely or moderately impacted by the cost of living.
High costs and less disposable income remained the biggest hurdle for the 42% of consumers who are going out less than usual (up six percentage points versus a year ago - source: On Premise Consumer Cost of Living Pulse).
Social motivation
In contrast, one in five consumers said they were going out more, with social motivations such as meeting friends and family and treats acting as key factors driving an increase in visits.
In terms of spend, fewer consumers have decreased their overall monthly spend compared to last year. But those watching their spend per visit are doing so to budget, indicating ongoing caution with disposable income, it said.
Everyday essentials like groceries remain the bigger priority for many, with 40% of UK consumers actively trying to save on their food shop. (NIQ UK State of the Nation). Eating and drinking out are perceived as more of a luxury or indulgence for some, the research concluded.
However, consumers are still demanding value, which, according to the survey, is reflected in category performance.
Beer, often perceived as good value over other categories, remained the most popular drink category in February, while the spirits category came under pressure. Cocktails were seen as a standout with consumers rating them highly for value, quality, and overall experience.
Drink experimentation
Cocktails also lead the way in drink experimentation with a third (34%) of consumers revealing they trialled a new drink this month. Beer followed closely behind, while other categories lagged behind. (On Premise Consumer Cost of Living Pulse).
CGA by NIQ concluded that this willingness to experiment reinforced the need for “targeted innovation and promotional strategies.”
Karl Chessell, CGA by NIQ’s director of Hospitality Operators and Food, EMEA, said: “It’s a pivotal moment for the British On Premise. Many consumers understandably remain
cautious. But there’s growing appetite among important segments to go out, spend more, and try something new – if the offer is right.”
He added: “As we head into summer, operators and suppliers who focus on delivering value, relevance, and quality across the most effective touchpoints are best placed to sustain and grow that spend by aligning with changing consumer priorities.”
The research was taken from a variety of Sources including On Premise Consumer Cost of Living Pulse GB February 2025, OPUS GB 2025, REACH 2024 and NIQ UK State of the Nation 2025.
