This article has been available to Global Drinks Intel subscribers since June. For details on how to join them, please click here.
More than ever, the world, especially its youth, is closely connected, with trends spreading across the globe at lightning speed and across new paths. TikTok, Instagram et al are propelling the rise of pop culture phenomena such as Burna Boy, the Nigerian Afrobeat star taking the world by storm, Bad Bunny, the Puerto Rican musician who has been Spotify’s most streamed artist for three consecutive years, and BTS [do they even need an introduction?].
Add these to the far-reaching influences coming from film and TV from the likes of Africa and Korea, and it’s clear that the interconnectivity of globalisation means trends are travelling in different directions – and at greater speed – than we’ve seen previously.
As with any shift in pop culture influence, these trends reach far beyond music, fashion, film and television to impact other industries – including the on-premise channel. In fact, this increasingly multicultural definition of cool is already evident in some on-premise markets and has the potential to shape consumer rituals and drinks choices as trends establish themselves and habits form.
Of course, Asia [especially Japan] was the essence of style well before the advent of social media, but as interest in global travel [and with it the presence of travel vloggers] has grown, so too has the demand for high-quality spirits from the region.
Asian spirits are in significant growth in every single on-premise market in which CGA by NIQ collects data, with bars offering consumers the opportunity to trial new spirits brands without having to fork out for a full bottle, and often in outlets themed around the effortless coolness that oozes from the likes of Japan.
It’s not just Asian whisky or gin that are increasing their spheres of influence. Soju, shochu and sake are all experiencing a boom in terms of consumer interest. Producers, suppliers and even governments are looking to take full advantage of this trend, which offers both opportunities and threats for established on-premise beverage alcohol categories.
These growth categories are using the same playbook that has seen spirits categories and brands grow their share in the on-premise, which then leads to off-premise growth. The catch, however, is that they’re doing it with a bigger chequebook – so be afraid if you’re not already defending against this.
Let’s take soju as an example. In the UK, Jinro, perhaps the best-known brand among Western consumers, has run a superbly well-executed activation programme targeting festivals and experience-led events over the past two summers, both linking the brand with young LDA consumers ‘living their best life’ and providing category education to unlock barriers associated with soju to make it more accessible.
The Japanese Sake Association has taken a slightly different – yet similarly well-trodden – route. Backed by the Government’s export division, the trade organisation has targeted the best bars in the world, hiring ambassadors – such as Julia Momosé at Chicago-based bar Kumiko – to promote sake in these influential venues and let the impact spread across the on-premise more widely.
Of course, trends aren’t just emanating from Asia. The influence of Latin America has long been present throughout the global on-premise, especially in North America. Tequila has seemingly been on the rise in the US forever, but 2022 saw the segment hit a new high, overtaking vodka to become the second most valuable on-premise category behind whisky. Expect it to be vying for top spot before too long.
Elsewhere, mezcal, cachaça and pisco are also seeing increased interest, both in domestic and international markets, but, like Tequila, will require cocktail culture and signature serves to continue to make significant strides.
Africa, however, is truly the market to watch – both now and in the future. By 2030, 42% of the world’s youth will have been born in Africa, while nearly four in five Africans between the ages of 18 and 25 plan to start their own business in the next five years. Fuelled by its swelling, ambitious and increasingly well-heeled youth population, Africa is, quite rightly, at the centre of the world stage when it comes to the potential to influence global trends.
Unlike Latin America and Asia, it isn’t necessarily new categories or drinks that are coming out of Africa, but new opportunities. Population growth and a booming middle class, coupled with a desire to showcase status, provide significant premium opportunities for international brands. Indeed, given the choice, consumers in Africa are more likely to choose ‘high-quality’ rather than ‘cheap’ brands when they’re out, and over-index by six percentage points for preferring international over local drinks.
Category choices are different in Africa, with Cognac, stout and cider generally over-indexing and, of course, not everyone is an alcohol drinker. However, this is a market that’s too important not to understand in detail.
You may not need to know Burna Boy’s latest album, but if you don’t anticipate the impact of the cultural ripples that follow, you’ll need to be prepared to miss out on a significant sales opportunity.
This article has been available to Global Drinks Intel subscribers since June. For details on how to join them, please click here.
