IBISWorld says Australians drinking less, put paying for quality

KAREN COLLIER
November 08, 2012
News Limited Network

WE’RE drinking less, but Aussies are still on a $33 billion a year alcohol spending binge.

The nation’s traditional beer guzzler image is officially losing froth, giving way to a growing premium booze sipping set prepared to pay a price for quality.

Consumers are now loading up on more expensive lagers, wine and cider.

About $17.2 billion will be poured into bottle shops this financial year, compared with $15.9 billion spent in pubs and bars, business analyst IBISWorld predicts.

The massive annual swill at the till, tipped to soar to $39.9 billion in five years, comes despite the fact we are drinking less overall.

Alcohol consumption is predicted to drop to 9.8 litres per head this year, down from 10.6 litres six years ago, as more people heed dangerous drinking warnings.

“While Australian alcohol consumption is expected to fall to a decade low … the move towards more premium products will see alcohol revenue continue to rise,” IBISWorld Australia’s general manager Karen Dobie said.

“The rising popularity of high value products such as cider, RTDs (ready to drink) and premium beverages indicate that the industry will not be heavily affected by more sensible drinking patterns.”

Changing tastes are expected to continue to flatten beer sales.

Spending on the amber ale is set to slip from 37.1 per cent to 32.5 per cent of market share over the next five years as drinkers increasingly turn to wine and cider.

Wine is expected to swallow 29.6 per cent of revenue in five years, and cider will account for 12.9 per cent.

Ms Dobie said overall beer consumption had declined 15 per cent in the past decade as palates became more sophisticated.

European-style beers produced on our shores were also stealing market share from old-style, full-strength lagers such as VB, Carlton Draught and Tooheys.

Chardonnay remains the most popular wine.