Moderation following the festive period led to softer drinking intensity and lower consumption levels in January, according to The Oxford Partnership’s January 2026 Market Watch Snapshot.
Engagement across the on-trade remained resilient the report found, with venue occupancy increasing to 64.2% and average dwell time holding at 150 minutes.
Furthermore, average spend per head reached a new high of £26.74, driven largely by continued growth in food-led occasions and higher operating costs.
However, overall drinking intensity softened as the report showed the rate of sale fell from December levels.
Clear shift
The Oxford Partnership CEO Alison Jordan said: “January reflects a clear shift in how people are using hospitality venues.
“Consumers are still prioritising social experiences and longer visits but they are drinking more slowly and more selectively.
“Engagement remains strong yet operators are finding it hard to convert that footfall into volume and profit.”
Elsewhere, the report showed a widening gap between engagement and consumption with total volumes down almost a fifth (18.2%) compared to December.
The Oxford Partnership said this reflected the end of festive trading but year-on-year growth of 1.4% suggested underlying demand remains in tact.
Maximising longer visits
Moreover, spend-per-head on food increased to £31.85, indicating food continues to play a key role in driving value while drink spend also increased modestly, according to the report, though at a slower pace, which the intelligence firm said reinforced the shift towards experience-led occasions rather than high-intensity drinking.
A number of drinks categories also saw growth in the period with stout continuing to lead momentum (up 11.1% against last year) while world lager and premium lager were in modest growth.
However, core lager, premium 4% lager and ale all face structural decline, which The Oxford Partnership said reflected more selective consumer choices.
Jordan added: “The message for 2026 is clear. Venues that succeed will be those that maximise longer visits through food, premium products and strong experiences.
“With margins under pressure from rising costs, simply being busy is no longer enough.”
