Australia: Shoppers buying less liquor but demand more value

Australia’s liquor shoppers are drinking less but demanding more value, according to new research from Shop! ANZ and Vypr.

The Australian Liquor: What Shoppers Want Instore Now report shows 47 per cent of consumers have reduced or stopped alcohol consumption in the past year, signalling a shift toward selective, value-driven drinking.

While cost-of-living pressures remain the biggest factor (58 per cent), health and wellness motivations (49 per cent) are also shaping long-term behaviour.

Despite reduced consumption, wine (56 per cent), beer (53 per cent) and spirits (51 per cent) remain close in popularity, creating a highly competitive retail environment.

Carla Bridge, GM at Shop! ANZ, said shoppers are now prioritising both value and flavour.

“Australians choose their alcohol based on occasion, mood or price. But taste is still the decisive factor for wine (78 per cent), beer (71 per cent) and spirit (68 per cent) drinkers,” she said.

“Almost two-thirds (66 per cent) say price is the most important factor in bottle shops, outweighing brand story, packaging or provenance.”

Brand loyalty continues to weaken, particularly in wine and spirits.

Only 22 per cent of wine shoppers buy the same brand consistently, and 72 per cent of spirit drinkers rotate between brands based on availability, price or flavour innovation.

Meanwhile, beer remains the most brand-loyal category, with half of consumers reporting a go-to label.

Shoppers are also willing to spend within a mid-tier price bracket but remain highly sensitive to rising prices. Many consider recent increases in pubs and bars (34 per cent) and bottle shops (26 per cent) to be unfair.

Vypr’s international chief revenue officer, Sam Gilding, said the findings reinforce the importance of simple, high-value promotions.

“Consumers respond most strongly to offers that create immediate, tangible value,” he said.

“‘Buy one, get one free and clear price discounts outperform free gifts, competitions or in-store tastings. Brands that deliver clarity, value and visibility will be best positioned in a shrinking market.”