6 Keys Trends Driving the Premium Drinks Market

What is Driving Premiumisation?

Craft beers, small batch gins or single cask whiskies. Going premium is an exciting and growing trend bringing positive development to the drinks industry. But what’s driving it?


54% of those aged 18-34 are likely to choose a premium drink compared to only 35% in the age bracket 55+.

A combination of relatively high levels of disposable income dedicated to socialising and the frequency at which they do so, the 18-34 age group is the obvious target for operators and suppliers to take advantage of the Premiumisation trend. 


We love trying new brands and flavours with the premium drinkers among us including an average of 20 brands in their repertoire. Those who tend to opt for premium drinks immerse themselves in new trends. We bet some of your gin lover friends weren’t that into gin 10 years ago before the craft craze erupted? 


We’ve seen a 11.9% rise in the category of drinks classed as “super-premiums”. This is the next step up from premium, so those who were already on that tier are going next level fancy. Most common in the spirits industry where volumes of standard varieties fell by 1.9% to the year June 2017, premium spirits rose by 2.9% and super-premiums soared by 11.9%! The evolution has encouraged value brands to compete with the more boutique options on the shelves.

If you’re going for a high-end spirit, you’re probably not going to opt for draught mixer are you? Most likely bottled so you can pour yourself as over 42% of people associate these with premium serves. This association is deemed more important than the heritage (34%) or the fact that it’s more expensive than value brands (19%).


The diversification of beer could be responsible for kicking off the premiumisation trend. Craft became king and world lagers jumped from 3-11% in share of the beer market in the past 10 years. Around 1 in 6 consumers now drink craft beer in the on trade – more so than drink gin! We have also seen a 14.5% rise in craft brands in the year to June 2017.


The average craft beer drinker will pay up to £5.41 for a pint and when the average price of world lager is £4.20 a pint, that’s a huge upgrade! For context, the study was from the average of 7.5 million consumers so there are a considerable more who will happily pay more as long as the experience delivered is the enhancement they sought.

By identifying key trends, brands can capitalise on premiumisation. Targeting the right audience, finding the right price point and perfecting the serve can add value to the range of products available.

Read the full CGA report here.

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