Market insight: Quality over quantity

A new report from Fentimans has revealed five key trends it says are set to impact the hospitality industry...

The new Fentimans Market Report, which was produced in partnership with CGA by NielsenIQ, has identified the changing behaviours and attitudes of consumers. It also takes a look deep into the impact of the cost-of-living crisis, as well as the issues of health and sustainability. 

Starting with the increased cost of living, 40% of consumers say they are intending to go out less frequently as a result. Despite this, 35% say they will prioritise hospitality visits over holidays (34%), clothing (24%) and home improvements (19%). To help reduce their spending during these occasions, 58% plan on visiting local venues more often.

Another key trend highlighted in the report is how consumers will continue to be health conscious, with 70% trying to lead a healthy lifestyle, a 6% jump from last year. As part of their health kick, 14% say they’re buying healthier drinks than in previous years, while exactly half (50%) no- and low-alcohol options appealing.

Five key consumer trends affecting the industry are analysed within the report. They are The big squeeze: Inflation and the cost-of-living crisis; Changing it up: The new normal in drinking out; Cleaner living; Digitally driven: The new path to purchase; and Crafting success.

Jayne Andrews, marketing director for Fentimans, said: “In last year’s Premium Soft Drinks and Mixers Market Report, we showed how on-premise operators and suppliers were building back from the turmoil of the pandemic. Twelve months on, many of the challenges of the pandemic are now being replaced by fresh ones.

“It’s clear that consumers are changing their priorities in preparation for a tight few years. However, it’s encouraging that, while there will be cutbacks, there will still be a desire to enjoy high-quality experiences. As we enter times of uncertainty and financial concern, it’s critical that we understand what this means for the industry.”

Dave Lancaster, client director for CGA, added: “We’re delighted to have partnered with Fentimans to create this critical review of the sector and what can be expected in the next 12-months. The looming financial challenges have naturally changed how consumers plan on spending their disposable income, and it’s clear that this means a demand for quality over quantity during upcoming months.

“If hospitality businesses can adapt to these changes in habits and preferences, there is hopefully a steady year ahead for the sector – a feat we predict will be welcomed happily following two years of recovering from the impact of the pandemic. We hope this report gives businesses some of the market intelligence they need to get through this phase and remain positive for better times ahead.”

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