Retail price wars see at home drinking increase

Fierce price competition in the retail sector will contribute to an increase in at home drinking, which is predicted to grow by 15% to £12.3bn by 2010, according to market analyst Datamonitor.

Off-trade alcohol consumption currently stands at 5.7l/year, while on-trade lags behind on 5.3l/year. Retail price wars make drinking affordable, while drinking at home provides protection from the binge-drinking culture and drink-related violence, claimed Datamonitor. People wishing to smoke or avoid smoking in the run-up to the on-trade smoking ban, are also being tempted to drink at home, said the report.

The importance of comfort and the option of entertainment, which people are now integrating into their homes, was another factor, said the study.

While men remain the biggest consumers of alcohol, it is women who are key to off-trade growth. By 2010 they will account for 40% of market volume as consumption increases from just under 100M litres of pure alcohol in 2005, to 124M litres in 2010, claimed the study.

At £4.301bn, wine has overtaken beer as the off-trade drink of choice and is expected to grow by over 5% annually, reaching £5.5bn by 2010. “Consumers perceive wine as being the healthiest alcoholic beverage, or the one that does the least harm when consumed in moderation, said Datamonitor's consumer market analyst and author of the study Matthew Adams. “The stuffy image of wine being consumed exclusively with meals by affluent customers with extensive knowledge of what to buy and how to drink it has been dissolved,” he said.