Diageo identifies £5.2bn growth opportunity for UK drinks industry

By Lisa Riley

Published: 23 April, 2019

Diageo has identified a 12% growth opportunity, translating to £5.2 billion, for the UK alcohol industry over the next three years.

The expected growth opportunity for the combined on and off-trade was revealed today (Tuesday 23 April) in a new report released by Diageo GB looking at the key changes in the market over the last 10 years and future trends.

Outlining opportunities, the Diageo Drinks Report identifies four key growth platforms - Balanced Choices (drinks choices to fit with all lifestyles including low and no alcohol), Make the moment (capturing moments of socialising in and out of the home), Exploration (tapping the increasing consumer thirst for trying new drinks) and Celebration (premium drinks to celebrate special times).

Focusing on those would help the category grow to £46.7 billion by 2022 from £41.5 billion in 2017, according to the report, which is based on historic and predictive IWSR data to identify the growth opportunity for the future.

“As categories grow, decline – and in some cases fuse – it becomes clear that we can no longer take an isolated sub-category view. This is now out of step with the way our consumers see the world,” said Dayalan Nayager, managing director, Diageo GB, Ireland & France.

To drive sustainable value, there was a need to look across total alcoholic beverages, to identify how (and where) consumers want to experience drinks, and ensure there is always an “exciting and relevant offer available”, he added.

Diageo also used today’s report launch to reveal a new initiative also designed to help licensees and retailers decipher the latest consumer trends and unlock the growth opportunity.

The ’Our Transforming Drinks Experiences’ project will be brought to life through a series of “inspiring and educational” initiatives across print and online channels.

The Diageo Drinks Report combines expertise and insight from Diageo GB’s 14-strong category development team.

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