Alcohol premiumisation to attract the discerning Australian Seniors market
With an ageing population comes opportunity for food and beverage marketers, according to new analysis from Datamonitor.
In a follow up to their research into the non-alcoholic beverage market, they have looked into the prospects for the alcoholic beverage sector within the Seniors market.
Matthew Taylor, Consumer Analyst at Datamonitor, believes that premium products will continue to get a boost in demand from older consumers.
“Alcoholic drinks are enjoyed by all age groups above legal drinking age, but tastes and attitudes are subject to a significant degree of change as consumers grow older,” he explained. “Younger age groups are likely to have few commitments, making the money spent on alcohol a relatively low concern. However, this financial concern will increase markedly with age, as consumers start families and make major purchases, such as houses and cars.”
“Consumers will sometimes choose alcoholic drinks on the basis of their status credentials. This propensity is subject to wide variations with age, with many older consumers choosing alcoholic beverages that they feel give an air of sophistication when drinking socially.”
The beer category is not dominant among Seniors, with wine and spirits substantially more popular with this age group, Mr Taylor added.
“These two sectors are more commonly associated with the sophistication that is valued by Seniors, with both wine and spirits exhibiting colossal variety and a substantial potential for premiumisation,” he advised. “These image-related factors are important to many Seniors who choose to drink alcohol. Wine is often associated with the responsible and moderate consumption of alcohol, which is also appealing to many Seniors. Many wines are designed to be enjoyed with food, which is another factor that can lend some sophistication to the category.”
Taste and price continue to dominate the selection criteria for the entire market but Seniors are less likely to think of moderate alcohol consumption as healthy. Typically, health concerns will be greater for this age group, according to Datamonitor’s research, requiring a more refined approach from marketers.