New research by Shop! ANZ and Vypr reveals a significant shift in how Australians are buying, choosing and consuming alcohol.

According to the ‘Australian liquor: What shoppers want instore now’ report, almost half (47%) of the surveyed consumers are drinking less or have stopped altogether over the past year.

While the findings highlight cost-of-living pressures (58%) as the strongest driver of this change, health and wellness motivations (49%) are not far behind, suggesting this trend is becoming a long-term behavioural shift rather than a temporary response to economic conditions.

Despite this consumption decline, wine (56%), beer (53%) and spirits (51%) remain closely matched in popularity, creating a market where no category holds dominance.

Shop! ANZ General Manager Carla Bridge says Australians choose their alcohol based on occasion, mood or price.

“But at the end of the day, taste is the overall decisive factor for the majority of [surveyed] wine (78%), beer (71%) and spirit (68%) drinkers,” she says.

“At the same time, almost two-thirds (66%) of [surveyed] consumers say price is the most important factor when purchasing alcohol in bottle shops, outweighing brand story, packaging or provenance. People want both taste and value, and they’ll switch quickly if they don’t get it.”

Brand loyalty

In addition, the report also highlights weakening brand loyalty in wines and spirits, with only around one in five (22%) surveyed wine drinkers consistently buying a single brand – most either switch between a handful or simply purchase whatever is on offer.

Nearly three quarters (72%) of surveyed spirit drinkers rotate between brands, too, often basing their choice on availability, price or flavour innovation.

In contrast, beer drinkers tend to show stronger brand commitment, with half of respondents (50%) having a go-to brand, and nearly all identifying with particular labels.

Rising prices

Although prepared to spend within a mid-range bracket if the experience delivers clear value, consumers are becoming increasingly sensitive to rising prices.

Many respondents describe the increase in alcohol prices in pubs and bars (34%) and bottle shops (26%) in recent years as unfair to consumers.

Winning the shelf

Vypr International Chief Revenue Officer Sam Gilding adds that the findings also point to the power of simplicity in winning the shelf.

“Consumers respond most strongly to offers that create immediate, tangible value. ‘Buy one, get one free’ offers (50%) and straightforward price discounts (47%) have the strongest impact free gifts (19%), competitions (2%), or instore tastings (10%) have far less sway,” he says.  

“This means that brands that offer clarity, value and visibility will come out ahead in this shrinking market.”