One of the most popular spirits segments in the on-premise channel, gin offers plenty of potential for growth. Graeme Loudon from CGA by NielsenIQ shares some of the latest consumer trends in gin across Italy, Great Britain, Canada, the US, Australia and New Zealand.
Gin’s widespread appeal, combined with its versatility, offers abundant opportunities to bounce back from the struggles of COVID-19. Yet suppliers, brands and operators should rely on data to appreciate the segment’s nuanced complexities and ensure they capitalise on its potential.
Market overview
CGA by NielsenIQ’s ‘On Premise Measurement’ research and ‘On Premise User Survey’ show that gin is an exceptionally popular segment in a number of key markets across the globe, including Great Britain (GB), Italy, Canada, Australia, New Zealand and the US.
In GB, nearly a quarter of all on-premise consumers prefer non-flavoured gin when out, while a remarkable 40.4% opt for flavoured expressions. The segment benefits from very high consumer loyalty too, with 54.6% drinking flavoured gin every, or almost every, time they visit on-premise venues, while non-flavoured gin is consumed on all, or nearly all, occasions by nearly 45% of GB’s on-premise drinkers. The figures translate into a considerable gin presence in bars, restaurants, pubs and clubs; in the latest quarter, a whopping 94% of GB’s back-bars stocked gin expressions.
The segment’s popularity extends well beyond the English Channel. Over a quarter of Italian on-premise consumers drink gin – significantly more than those who drink whisky, vodka, rum, brandy or Cognac – and more than a third of them order it with very high frequency, or even every time they go out.
Gin is also highly appreciated in Oceania’s largest markets. Over a fifth of all on-premise consumers in Australia and New Zealand drink flavoured gin, while around 18% choose non-flavoured expressions. Within these groups, non-flavoured and flavoured gins are consumed regularly, if not all the time, by over a third and around 40% of consumers, respectively.
The frequency of flavoured gin consumption is also on the up in New Zealand and GB, with 33.9% and 28.1% of gin fans claiming they order variants more often than a year ago. Gin does not enjoy the same degree of popularity in North American markets as it does in GB or Italy, but it is nonetheless chosen by 18% of drinkers in Canada, and by 8% of consumers in the US.
Who’s drinking?
On-premise gin consumers are largely female. Both in GB and New Zealand, over 70% are women, and just a little less – around two-thirds – in Australia and Canada. Gender-based segmentation is not as unbalanced in Italy, with gin consumers more evenly split between males and females. The US, on the other hand, presents a rather singular scenario, with a disproportionately male (68%) gin-drinking population.
Across these markets, gin tends to appeal to younger generations. In New Zealand and Italy, more than 74% of gin’s on-premise audience is under 44, 70.6% in Australia, a smaller yet still significant 58.4% in GB and, remarkably, 42% of all gin drinkers in the US are under 34. On the other hand, the majority of Canadian gin drinkers (62%) sit in the 35-to-54 age bracket. Irrespective of age or gender, North American gin drinkers tend to be wealthier than the average consumer, with their household income US$20,000 higher than average in the US, and some $48,000 higher in Canada.
In certain markets, brands and distributors could look to food-led venues for the next sales opportunity: Around 20% of the gin-drinking population in Australia – and over 16% in GB and New Zealand – stay in the segment when food is the principal reason for going out.
In Italy, while over 70% of gin drinkers go out to eat at least once a week, most of them associate gin consumption with drink-led occasions: More than two-thirds order it when out for drinks rather than food, less than a fifth when out for both drinks and food, and just over 13% when they go for a meal.
Research shows that consumers often see the gin-drinking occasion as a treat. More than 40% of New Zealand drinkers, for instance, look at gin as a segment for special occasions. Gin is also considered a treat by around a third of on-premise consumers in GB and in New Zealand, and by up to 41.5% in Australia, although in the latter – and in GB – imbibers are also drawn to the category by its taste profile. While 18% of Italians claim that they may drink gin simply because they are used to it, figures show that in Italy, too, a quarter of the country’s drinkers see gin as a treat.
That said, brands’ communication strategies should also take into account that gin drinking is seen by some Italian consumers as a pleasurable experience, an opportunity to wind down and ease stress; over 28% say that they imbibe it to have fun or to relax, and a third claim that they drink it to enjoy.
An adaptable all-rounder
Gin is a highly versatile spirit, widely consumed with tonics and sodas or blended with multiple ingredients in a cocktail, from the classic Negroni and French 75 to more innovative serves. Consuming flavoured and non-flavoured gin with a mixer – either bottled or on tap – is overwhelmingly the most popular choice in GB. Italian drinkers like gin blended with mixers too (49.5%), yet they’re also enthusiastic about cocktail serves (43.8%), and one in two like to drink it neat, with ice or as a shot.
Some markets are particularly keen on the uncompromising juniper-led flavour of straight-up serves. In Australia, on-premise consumers like to enjoy both non-flavoured (38.2%) and flavoured gin (44.6%) on its own. Gin is also drunk neat in North America: In the US, around 15% of consumers prefer the serve, while 9% drink it as a shot. This habit is more marked in Canada, where 16% of on-premise gin consumers like it neat and a sizeable 31% as a shot.
In some markets, price plays a pivotal role in driving purchase decisions. In GB, Australia, New Zealand and the US, between a quarter and a third of all on-premise consumers look for value-for-money brands. In GB and New Zealand, 22.6% and 26.6% of gin lovers, respectively, seek out special offers and discounts when placing their order, while ‘happy hours’ influence gin purchases for 27% of imbibers in the US.
Price does not play quite as big a role in Italy. There, only 20.5% say that value-for-money affects their decision-making process. In Canada, meanwhile, a mere 17% look at the price when selecting a brand and only 12% are influenced by special offers and discounts.
Across a number of markets, peers are often significantly more influential than price. In Italy, more than one in four gin drinkers let friends affect their purchase decisions. Consumers are similarly influenced by their peers in Canada, yet nearly a fifth of Canadians also rely on Social Media when choosing a brand.
In Italy, Australia and New Zealand, people are willing to take recommendations from bar staff but in the latter two, gin drinkers are considerably more welcoming to suggestions for flavoured expressions yet less open to advice on non-flavoured gin. Paired with a marked interest in new and interesting brands – as claimed by 23.7% of Australian and 19.8% of Kiwi gin drinkers – such a welcoming attitude towards flavoured expressions makes the sub-segment’s adventurous audience the ideal target for innovative brands. North American markets differ in that peers’ opinion does not play as substantial a role as the reputation of the brand and the perceived quality of the product.
Gin is a thriving spirits segment across several key on-premise markets. It is, however, rather competitive. For those looking to capitalise on its potential, what’s paramount is to appreciate its complexities, understand the dynamics of consumers’ preferences and market trends and, crucially, employ data and in-market knowledge to inform sales strategies, as well as marketing and communication decisions.
Graeme Loudon is CGA by NielsenIQ’s MD for EMEA. He can be contacted at [email protected].
This article was initially published in July/August’s issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
