Description

This report provides comprehensive and current information and analysis of the US Foodservice Alcohol Trends market including US Foodservice Alcohol Trends market size, anticipated market forecast, relevant market segmentation, and industry trends for the Foodservice Alcohol Trends market in the US.

Current market landscape

Consumers are excited to return to their favorite bars and enjoy bartender-crafted drinks after a period of primarily drinking at home. 57% of consumers agree that the pandemic made them appreciate the bar/restaurant drinking experience. However, the Delta variant’s spread will prolong the foodservice alcohol market’s recovery, as some consumers will avoid/limit drinking within bars/restaurants to reduce their exposure to the coronavirus; the share of consumers worried the coronavirus will disrupt their lifestyle significantly increased following the emergence of the Delta variant.

Rising economic uncertainty primarily driven by inflation fears will hinder the foodservice alcohol market’s recovery. Drinking away from home is a highly discretionary purchase and one consumers will eschew when facing economic uncertainty. Additionally, the cost savings consumers experienced by drinking at home during the pandemic may lead some consumers to opt for less expensive alcoholic drinks at home. 59% of consumers say the pandemic made them realize the cost savings of drinking at home compared to a bar/restaurant.

Future market trends in US beverage industry trends

Cost saving is on consumers’ minds, but premium alcoholic beverages represent a key opportunity within the foodservice market. Consumers can simply source their own basic alcoholic drinks from home but will treat themselves to high-quality drinks they cannot replicate at home when drinking at a bar/restaurant. Operators must provide consumers memorable drinks as well as experiences that play into consumers’ desire for comfort and nostalgia.

Consumer interest in premium drinks extends to home alcohol delivery; the repeal of foodservice alcohol delivery laws creates key new incremental revenue opportunities for operators. Foodie consumers are most likely to order alcoholic beverage delivery from restaurants, indicating an opportunity for restaurants to expand their bar programs by offering high-quality alcoholic drinks consumers can enjoy within the comfort of their homes.

Read on to discover more about the US Foodservice Alcohol Trends consumer market and DTC alcohol trends in the US, read our US Trending Flavors and Ingredients in Alcoholic Beverages Market Report 2021, or take a look at our other Drinks market research reports.

Quickly understand

  • The impact of COVID-19 on consumer behavior and the on-premise alcohol market.
  • Opportunities in foodservice alcohol delivery.
  • Alcoholic beverage menu trends.
  • Anticipated changes in on-premise alcohol consumption.

Covered in this report

Brands include: Ketel One, Grey Goose, California Pizza Kitchen, Chevy’s Fresh Mex, Strip House, Lonesome Dove Bistro, Bailey’s Chocolate Bar, O’Doul’s, Lagunitas IPNA, Budweiser Zero, Wellbeing Brewing Company, Brew Dog, Athletic Brewing Company.

Expert analysis from a specialist in the field

This report, written by Caleb Bryant, a leading analyst in the Food and Drink sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The on-premise alcohol market is in a recovery period following the vaccine rollout; yet, the Delta variant’s spread, along with general financial uncertainty, has consumers rethinking their foodservice alcohol expenditures. Moreover, consumers developed new home-based drinking behaviors and routines over the course of the pandemic; these new home drinking behaviors as a well as a general interest in moderation among Gen Z will challenge the on-premise alcohol market. Operators will need to provide consumers premium alcoholic beverages and on-premise experiences that consumers cannot replicate at home. Furthermore, the development of alcoholic beverage delivery offerings represents a key incremental revenue source for operators and a method for connecting with consumers within their homes.
Caleb Bryant, Associate Director of Food and Drink Reports
Caleb Bryant
Associate Director of Food and Drink Reports

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
          • Market context
            • Economic and other assumptions
              • COVID-19: US context
              • Executive Summary

                  • Top takeaways
                    • Market overview
                      • Figure 1: Total US retail sales and forecast of foodservice alcohol, at current prices, 2016-26
                    • Impact of COVID-19 on on-premise alcohol
                      • Figure 2: Short-, medium- and long-term impact of COVID-19 on on-premise alcohol, 2021
                    • Opportunities and challenges
                      • Drinking behaviors and habits established during the pandemic will challenge the foodservice alcohol market
                        • Figure 3: On-premise alcohol attitudes, 2021
                      • The foodservice alcohol market will not fully recover until the pandemic subsides
                        • Figure 4: Coronavirus life disruption concern, any worried, 2021
                      • Pandemic accelerates “fewer but better” trend, creating new cocktail opportunities
                        • Alcohol delivery will become a new revenue source for restaurants
                          • Figure 5: Foodservice alcohol delivery order frequency, by food and drink shopper segmentation, 2021
                        • Gen Z consumers are alcohol ambivalent; offer low-alcohol options for this health-conscious group
                          • Figure 6: On-premise alcoholic drink interest, by generation, 2021
                        • Bar menus shrink, but operators expand selection of hard seltzer, rosé, tequila, and NA beer options
                          • Figure 7: Penetration of hard seltzers at restaurants*, Q2 2018-Q2 2021
                      • The Market – Key Takeaways

                        • On-premise alcohol market’s recovery depends on the pandemic’s severity
                          • Moderation trend offers issues and opportunities
                            • States and cities open the door on alcohol delivery
                            • Market Size and Forecast

                              • AFH alcohol sales crater, and a recovery depends on the state of the pandemic
                                • Figure 8: Total US retail sales and forecast of foodservice alcohol, at current prices, 2016-26
                                • Figure 9: Total US retail sales and forecast of foodservice alcohol, at current prices, 2016-26
                            • Market Factors

                              • US states and cities approve delivered/takeaway cocktails
                                • Consumers’ finances are relatively healthy, but unease will lead to a frugal mentality
                                  • Figure 10: Financial health, 2020-21
                                  • Figure 11: Consumer confidence index, 2019-21
                                • Delta variant upends the foodservice industry’s recovery
                                  • Figure 12: Coronavirus life disruption concern, any worried, April 2021-August 2021
                                  • Figure 13: Activity comfort level, any comfortable, 2021
                                • Bars and restaurants struggle with labor shortage
                                  • Moderation nation
                                    • Figure 14: Consumption of any alcoholic beverages, 1996-2021*
                                    • Figure 15: Mean number of drinks consumed in past seven days, among respondents who drink alcohol, 1996-2021*
                                  • Consumers are eager to vacation, but COVID concerns linger
                                  • Companies and Brands – Key Takeaways

                                    • Create mocktails and low-ABV drinks for consumers interested in moderation
                                      • Bartenders slash alcohol beverage menus
                                        • Raise the bar (at home)
                                          • Bars can build upon tequila’s momentum and show off wine’s casual side
                                          • Competitive Strategies

                                            • Interest in moderation indicates opportunities for low-ABV cocktails
                                              • Figure 16: On-premise alcoholic drink interest, by generation, 2021
                                          • Competitive Strategies – Alcoholic Beverage Menu Trends

                                            • Smaller beverage menus may be here to stay
                                              • Figure 17: Change in menu incidence of alcoholic beverages, Q2 2018-Q2 2021
                                            • Hard seltzers take the alcohol market by storm but face unique challenges on premise
                                              • Figure 18: Penetration of hard seltzers at restaurants*, Q2 2018-Q2 2021
                                              • Figure 19: Menu examples, cocktails containing hard seltzer, 2021
                                            • Rosé all day (and all night)
                                              • Figure 20: Change in menu incidence of wines, Q2 2018-Q2 2021
                                              • Figure 21: Menu examples, cocktails containing rosé, 2021
                                              • Figure 22: Change in menu incidence of top 15 most menued red wines, Q2 2018-Q2 2021
                                              • Figure 23: Change in menu incidence of top 15 most menued white wines on menus, Q2 2018-Q2 2021
                                            • Say g’day to Australian wines
                                              • Figure 24: Change in wine menu incidence by region of origin, top 10 most menued regions, Q2 2018-Q2 2020
                                            • Growth of NA beer reflects changing consumer preferences
                                              • Figure 25: Change in menu incidence of top 20 most common beer types on menus, Q2 2018-Q2 2021
                                            • Tequila rises above other spirits
                                              • Figure 26: Change in menu incidence of spirits used in cocktails, Q2 2018-Q2 2021
                                          • Market Opportunities

                                            • Bring the bar to the home
                                              • Simplify operations with streamlined drinks and technology investments
                                                • Experiences and escapism are valued now more than ever
                                                  • Expand past the margarita and harness the white-hot tequila market’s momentum
                                                    • Figure 27: Trended spirit engagement, by spirit type, net: highly/extremely engaged, among consumers of each respective spirit type, 2018-21
                                                  • On-premise innovation can highlight wine’s fun and adventurous side
                                                    • Figure 28: Alcoholic beverage associations, 2021
                                                • The Consumer – Key Takeaways

                                                  • Alcohol delivery will become a new revenue source for restaurants
                                                    • Delta variant crashes happy hour
                                                      • Consumers enjoyed the cost savings of drinking at home during the pandemic
                                                        • Gen Z’s drinking behaviors and preferences will challenge the AFH alcohol market
                                                        • On-premise Consumption Occasions by Beverage Types

                                                          • Beer and hard seltzer battle for key on-premise drinking occasions
                                                              • Figure 29: Correspondence Analysis – Symmetrical map – On-premise consumption occasions by beverage type, 2021
                                                          • Foodservice Alcohol Delivery/Takeout

                                                            • Use of alcohol delivery is low but offers new revenue opportunities
                                                              • Figure 30: Foodservice alcohol delivery order frequency, by select AFH alcohol attitudes, 2021
                                                            • Deliver consumers premium, unique, and experiential alcoholic beverages
                                                              • Figure 31: Foodservice alcohol delivery order frequency, by food and drink shopper segmentation, 2021
                                                              • Figure 32: Foodservice alcohol delivery order frequency, by age and income, 2021
                                                            • Create drinks for a group
                                                              • Figure 33: Foodservice alcohol delivery/takeout interest, by alcohol delivery purchase frequency, 2021
                                                          • Anticipated AFH Alcohol Purchases and Reasons Why

                                                            • Consumers want to return to bars, but Delta ruins the happy hour
                                                              • Figure 34: Anticipated AFH alcoholic beverage purchases, 2021
                                                              • Figure 35: Anticipated AFH alcoholic beverage purchases, by select demographics, 2021
                                                            • Welcome consumers back with unique drinking experiences
                                                              • Figure 36: Anticipated AFH alcoholic beverage purchases, by AFH alcohol attitudes, 2021
                                                            • Younger consumers missed the AFH drinking experience
                                                              • Figure 37: Reasons for purchasing alcoholic drinks AFH more often, by age, 2021
                                                            • Some at-home drinking behaviors and experiences may carry over post-pandemic
                                                              • Figure 38: Reasons for purchasing alcoholic drinks AFH less often, 2021
                                                          • On-premise Alcoholic Drink Interest

                                                            • Cocktails can go both high and low
                                                                • Figure 39: On-premise alcoholic drink interest, by generation, 2021
                                                              • Low-alcohol cocktails can provide moderation to low-frequency alcohol consumers
                                                                • Figure 40: On-premise alcoholic drink interest, by alcohol consumption frequency, 2021
                                                              • Use delivery to promote new alcoholic beverages
                                                                • Figure 41: On-premise alcoholic drink interest, by alcohol delivery/takeout frequency, 2021
                                                              • Incorporate hard seltzers into cocktails
                                                                • Figure 42: On-premise alcoholic drink interest, by alcoholic beverages consumed on-premise, 2021
                                                            • On-premise Alcohol Attitudes

                                                              • Consumers want to return to bars, but Delta and cost savings of drinking at home deter visitation
                                                                • Figure 43: On-premise alcohol attitudes, pandemic attitudes, 2021
                                                                • Figure 44: premise alcohol attitudes, home vs away from home attitudes, 2021
                                                                • Figure 45: On-premise alcohol attitudes, general attitudes, 2021
                                                              • Millennials and Gen X will spend extra for a premium cocktail
                                                                • Figure 46: On-premise alcohol attitudes, by generation, 2021
                                                              • Social media-friendly drinks are most appealing to Black consumers
                                                                • Figure 47: premise alcohol attitudes, by race/ethnicity, 2021
                                                            • Alcohol Beverage Drinking Behaviors: During Pandemic and Post-pandemic

                                                              • Elevated at-home drinking experiences pose a strong competitive threat to on-premise alcohol
                                                                • Figure 48: alcoholic beverage drinking behaviors, during pandemic and post pandemic, 2021
                                                              • Gen Z prefers smaller group drinking experiences
                                                                • Figure 49: alcoholic beverage drinking behaviors, post pandemic, by generation, 2021
                                                            • Appendix – Data Sources and Abbreviations

                                                              • Data sources
                                                                • Sales data
                                                                  • Forecast
                                                                    • Consumer survey data
                                                                      • Abbreviations and terms
                                                                        • Abbreviations
                                                                          • Correspondence Analysis Methodology
                                                                          • Appendix – The Market

                                                                              • Figure 50: Total US retail sales and forecast of foodservice alcohol, at inflation-adjusted prices, 2016-26

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