The latest CGA On-Premise Impact Report has revealed positive signs for bars and venues in the United States, with one-in-four consumers planning to increase their spending in bars, restaurants and similar venues over the course of 2025.
After a year of tough trading conditions in 2024, the report says that spending increases will be led by younger demographics, with almost a third of 21-34-year-olds (30 per cent) and 35-54-year-olds (29 per cent) anticipating higher on-premise expenditures in the coming year.
CGA said this optimism reflects broader consumer sentiment, with almost two thirds (65 per cent) of consumers expressing a positive outlook for 2025, up seven percentage points from August 2024.
With Australia commonly following trends from the US, there is hope that bars across Australia will soon see increased consumers spending, with the on-premise remaining a key driver for consumer engagement.
Matthew Crompton, CGA’s Regional Director – Americas said: “Industry stakeholders looking to maximise their performance need to adopt a more holistic view of consumer trends across various touchpoints.
“The latest Impact Report highlights why understanding these dynamics is more important than ever. A prime example is the ability to translate on-premise success into off-premise gains, which will define the next phase of growth in 2025 and beyond.
“Now is the time for the industry to act on these insights, with optimism high and spending set to increase.”
The data also delves into specific drink categories, illustrating consumer preferences for where they first try new products:
- 71 per cent of cocktail drinkers and more than two thirds (67 per cent) of shot drinkers prefer bars and restaurants for initial trials.
- The split is more balanced for RTDs (Ready-to-Drink), with one-third (33 per cent) likely to try RTDs in venues and 60 per cent favouring home settings.
Interestingly, 21-34-year-olds are most open to exploring RTDs in venues. But they want greater flavour variety and convenience, giving a clear signal to drinks brands, suppliers and operators to adapt their offerings to supply to demand.
And, while the optimism for 2025 is encouraging, industry stakeholders must remain agile to navigate potential challenges, with both suppliers and venues are better equipped to strategise in alignment with consumer expectations by leveraging these insights, in turn ensuring relevance.
